Illinois Tool Works (NYSE:ITW) Releases FY 2026 Earnings Guidance
by Jessica Moore · The Cerbat GemIllinois Tool Works (NYSE:ITW – Get Free Report) updated its FY 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 11.100-11.500 for the period, compared to the consensus estimate of 11.270. The company issued revenue guidance of $16.4 billion-$16.7 billion, compared to the consensus revenue estimate of $16.6 billion.
Illinois Tool Works Stock Performance
Shares of ITW traded down $7.66 during mid-day trading on Thursday, hitting $258.01. The company’s stock had a trading volume of 3,486,781 shares, compared to its average volume of 1,112,040. Illinois Tool Works has a one year low of $236.68 and a one year high of $303.15. The company has a debt-to-equity ratio of 2.07, a quick ratio of 0.89 and a current ratio of 1.21. The firm has a market capitalization of $74.33 billion, a PE ratio of 24.60, a price-to-earnings-growth ratio of 4.77 and a beta of 1.13. The stock’s 50-day moving average is $270.96 and its two-hundred day moving average is $261.65.
Illinois Tool Works (NYSE:ITW – Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The industrial products company reported $2.66 earnings per share for the quarter, beating the consensus estimate of $2.55 by $0.11. Illinois Tool Works had a return on equity of 95.16% and a net margin of 19.11%.The company had revenue of $4.02 billion during the quarter, compared to analysts’ expectations of $4.01 billion. During the same period in the prior year, the business earned $2.38 earnings per share. Illinois Tool Works’s revenue for the quarter was up 4.6% compared to the same quarter last year. Illinois Tool Works has set its FY 2026 guidance at 11.100-11.500 EPS. As a group, sell-side analysts anticipate that Illinois Tool Works will post 11.26 EPS for the current year.
Illinois Tool Works Dividend Announcement
The firm also recently disclosed a quarterly dividend, which was paid on Thursday, April 9th. Stockholders of record on Tuesday, March 31st were given a $1.61 dividend. This represents a $6.44 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend was Tuesday, March 31st. Illinois Tool Works’s dividend payout ratio is currently 61.39%.
Wall Street Analysts Forecast Growth
ITW has been the subject of several research reports. Barclays reduced their price objective on Illinois Tool Works from $275.00 to $250.00 and set an “underweight” rating for the company in a research report on Wednesday, April 1st. Citigroup increased their price objective on Illinois Tool Works from $271.00 to $284.00 and gave the company a “neutral” rating in a research report on Wednesday, February 4th. UBS Group reaffirmed a “neutral” rating and issued a $285.00 target price on shares of Illinois Tool Works in a research report on Wednesday, February 4th. Truist Financial raised their target price on Illinois Tool Works from $275.00 to $280.00 and gave the stock a “hold” rating in a research report on Wednesday, February 4th. Finally, Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Illinois Tool Works in a research report on Monday. Two equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and five have issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Reduce” and a consensus price target of $270.08.
Get Our Latest Research Report on ITW
Insiders Place Their Bets
In other Illinois Tool Works news, Director Ernest Scott Santi sold 167,345 shares of Illinois Tool Works stock in a transaction on Wednesday, February 4th. The stock was sold at an average price of $290.93, for a total transaction of $48,685,680.85. Following the completion of the transaction, the director directly owned 258,766 shares of the company’s stock, valued at approximately $75,282,792.38. This trade represents a 39.27% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Axel Beck sold 4,223 shares of Illinois Tool Works stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $290.22, for a total value of $1,225,599.06. Following the transaction, the executive vice president directly owned 5,789 shares of the company’s stock, valued at approximately $1,680,083.58. The trade was a 42.18% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.83% of the stock is currently owned by company insiders.
Trending Headlines about Illinois Tool Works
Here are the key news stories impacting Illinois Tool Works this week:
- Positive Sentiment: Q1 beat and guidance bump — ITW delivered $2.66 GAAP EPS (+12% YoY) on $4.02B revenue, and raised FY 2026 GAAP EPS to a $11.10–$11.50 range, which supports upside to consensus. ITW Reports First Quarter 2026 Results
- Positive Sentiment: Operational improvement — operating margin expanded 60 bps to 25.4% (enterprise initiatives added 120 bps) and management cited stronger cash flow and execution, suggesting continued earnings leverage if trends persist. ITW Q1 2026 Earnings Call Transcript
- Neutral Sentiment: Guidance largely in line with estimates — the new FY EPS range is close to sell‑side consensus, leaving limited surprise to drive further rerating absent stronger organic demand. Investors will watch forward revenue cadence and margins. Compared to Estimates, ITW Q1 Earnings
- Negative Sentiment: Muted organic growth and mixed segment performance — organic revenue was roughly flat (~0.4%), several end markets (Automotive OEM, Food Equipment, Construction Products, Specialty Products) showed declines, and management indicated part of the EPS lift reflects a lower effective tax-rate assumption; investors are interpreting this as lower demand‑driven upside and took profits. Insider selling and a range of divergent analyst targets add to near‑term uncertainty. Illinois Tool Works slides as investors focus on muted organic growth
Institutional Trading of Illinois Tool Works
A number of hedge funds and other institutional investors have recently made changes to their positions in the business. State Street Corp increased its stake in shares of Illinois Tool Works by 1.2% in the fourth 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. Charles Schwab Investment Management Inc. increased its stake in shares of Illinois Tool Works by 1.0% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 2,685,068 shares of the industrial products company’s stock valued at $661,334,000 after buying an additional 26,791 shares in the last quarter. Ameriprise Financial Inc. increased its stake in shares of Illinois Tool Works by 1.1% in the second quarter. Ameriprise Financial Inc. now owns 2,554,468 shares of the industrial products company’s stock valued at $631,685,000 after buying an additional 28,762 shares in the last quarter. Dimensional Fund Advisors LP increased its stake in shares of Illinois Tool Works by 11.7% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,985,000 shares of the industrial products company’s stock valued at $488,960,000 after buying an additional 207,295 shares in the last quarter. Finally, Schroder Investment Management Group increased its stake in shares of Illinois Tool Works by 4.7% in the fourth quarter. Schroder Investment Management Group now owns 1,751,393 shares of the industrial products company’s stock valued at $436,482,000 after buying an additional 79,104 shares in the last quarter. 79.77% of the stock is currently owned by institutional investors and hedge funds.
Illinois Tool Works Company Profile
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.