Zacks Research Has Optimistic Outlook of ITW Q1 Earnings

Illinois Tool Works Inc. (NYSE:ITW) – Equities research analysts at Zacks Research increased their Q1 2026 EPS estimates for Illinois Tool Works in a research note issued to investors on Tuesday, February 17th. Zacks Research analyst Team now anticipates that the industrial products company will post earnings per share of $2.53 for the quarter, up from their previous estimate of $2.52. The consensus estimate for Illinois Tool Works’ current full-year earnings is $10.39 per share. Zacks Research also issued estimates for Illinois Tool Works’ Q2 2026 earnings at $2.85 EPS, Q3 2026 earnings at $2.94 EPS, Q4 2026 earnings at $2.90 EPS, FY2026 earnings at $11.21 EPS, Q1 2027 earnings at $2.79 EPS and Q4 2027 earnings at $3.12 EPS.

Illinois Tool Works (NYSE:ITW) last announced its earnings results on Tuesday, February 3rd. The industrial products company reported $2.72 earnings per share for the quarter, beating analysts’ consensus estimates of $2.69 by $0.03. The business had revenue of $4.09 billion during the quarter, compared to analyst estimates of $4.07 billion. Illinois Tool Works had a net margin of 19.11% and a return on equity of 95.16%. The company’s quarterly revenue was up 4.1% compared to the same quarter last year. During the same period in the previous year, the business earned $2.54 EPS. Illinois Tool Works has set its FY 2026 guidance at 11.000-11.400 EPS.

A number of other equities research analysts also recently issued reports on ITW. Barclays boosted their price target on Illinois Tool Works from $244.00 to $275.00 and gave the company an “underweight” rating in a research note on Monday, February 9th. Robert W. Baird set a $278.00 target price on shares of Illinois Tool Works in a research report on Wednesday, February 4th. Bank of America upgraded shares of Illinois Tool Works from an “underperform” rating to a “neutral” rating and increased their price target for the stock from $220.00 to $255.00 in a research report on Tuesday, November 18th. JPMorgan Chase & Co. boosted their price objective on shares of Illinois Tool Works from $275.00 to $310.00 and gave the company an “overweight” rating in a research report on Wednesday, February 4th. Finally, The Goldman Sachs Group reaffirmed a “sell” rating and issued a $253.00 target price on shares of Illinois Tool Works in a report on Tuesday, February 3rd. Two investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and five have given a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Reduce” and an average price target of $272.92.

Illinois Tool Works Stock Performance

Shares of ITW opened at $296.15 on Thursday. The firm has a market capitalization of $85.35 billion, a P/E ratio of 28.23, a PEG ratio of 15.93 and a beta of 1.15. The company has a debt-to-equity ratio of 2.07, a current ratio of 1.21 and a quick ratio of 0.89. Illinois Tool Works has a one year low of $214.66 and a one year high of $303.15. The business has a fifty day moving average of $264.41 and a 200 day moving average of $257.96.

Hedge Funds Weigh In On Illinois Tool Works

Several institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. boosted its holdings in shares of Illinois Tool Works by 0.7% during the 4th quarter. Vanguard Group Inc. now owns 26,887,218 shares of the industrial products company’s stock valued at $6,622,322,000 after purchasing an additional 189,229 shares during the last quarter. State Street Corp grew its holdings in Illinois Tool Works by 1.2% during the 4th quarter. State Street Corp now owns 12,596,511 shares of the industrial products company’s stock valued at $3,122,535,000 after buying an additional 151,864 shares in the last quarter. Geode Capital Management LLC increased its stake in Illinois Tool Works by 2.7% in the 4th quarter. Geode Capital Management LLC now owns 6,944,651 shares of the industrial products company’s stock worth $1,709,734,000 after acquiring an additional 184,301 shares during the last quarter. Capital Research Global Investors raised its holdings in shares of Illinois Tool Works by 3.2% during the 4th quarter. Capital Research Global Investors now owns 4,636,392 shares of the industrial products company’s stock worth $1,141,948,000 after acquiring an additional 142,837 shares in the last quarter. Finally, Massachusetts Financial Services Co. MA boosted its position in shares of Illinois Tool Works by 12.3% during the 2nd quarter. Massachusetts Financial Services Co. MA now owns 3,797,055 shares of the industrial products company’s stock valued at $938,822,000 after acquiring an additional 415,982 shares during the last quarter. 79.77% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, Director Ernest Scott Santi sold 167,345 shares of the business’s stock in a transaction that occurred on Wednesday, February 4th. The stock was sold at an average price of $290.93, for a total value of $48,685,680.85. Following the transaction, the director directly owned 258,766 shares of the company’s stock, valued at approximately $75,282,792.38. The trade was a 39.27% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Axel Beck sold 4,223 shares of the stock in a transaction that occurred on Thursday, February 5th. The shares were sold at an average price of $290.22, for a total transaction of $1,225,599.06. Following the sale, the executive vice president directly owned 5,789 shares of the company’s stock, valued at approximately $1,680,083.58. This trade represents a 42.18% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.88% of the company’s stock.

Illinois Tool Works Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, April 9th. Investors of record on Tuesday, March 31st will be issued a $1.61 dividend. The ex-dividend date of this dividend is Tuesday, March 31st. This represents a $6.44 annualized dividend and a yield of 2.2%. Illinois Tool Works’s dividend payout ratio is currently 61.39%.

About Illinois Tool Works

Illinois Tool Works Inc (ITW) is a diversified industrial manufacturer that designs and produces a broad array of engineered products, consumables and related service solutions for industrial customers. Its offerings span engineered fastening systems, specialty components, industrial equipment, welding products, foodservice and packaging equipment, adhesives and polymer products, and test-and-measurement technologies. These products are used as critical inputs by customers across automotive, construction, electronics, foodservice, maintenance and other industrial end markets.

The company operates a decentralized business model in which independently managed businesses focus on niche product lines and close customer relationships.