Illinois Tool Works (ITW)
NYSE:ITW
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Earnings Data
Report Date
Aug 04, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
2.79Last Year’s EPS
2.58Same Quarter Last Year
Based on 9 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized multiple constructive operational and financial takeaways — revenue growth, 12% EPS growth, margin expansion (driven by Enterprise Initiatives), strong performance in CapEx- and semi-related segments (Test & Measurement, Welding), and an upward EPS guidance revision. Short-term headwinds were noted in Food Equipment and Specialty Products due to seasonal/one-off timing, PLS and delayed Middle East shipments, and companywide organic growth remained modest (0.4%) in Q1. Management expressed confidence in sequential improvement, raised confidence in guidance, and expects incremental and operating margins to improve through the year. On balance, positive momentum and outlook outweigh the isolated challenges.Company Guidance
Quarterly Revenue Growth and Drivers
Reported Q1 revenue growth of 4.6% (company also cited ~5% in commentary) driven by organic growth of 0.4%, a +3.9% contribution from foreign currency translation and +0.3% from an acquisition.
Earnings Per Share and Margin Expansion
GAAP EPS increased 12% to $2.66 in Q1. Operating margin expanded 60 basis points to 25.4%, with Enterprise Initiatives contributing 120 basis points to the quarter's margin improvement.
Raised Full-Year EPS Guidance
Raised full-year GAAP EPS guidance by $0.10 to a range of $11.10–$11.50 (midpoint $11.30), representing ~8% year-over-year growth at the midpoint; tax rate guidance lowered to 23%–24%.
Enterprise Initiatives and Incremental Margins
Enterprise Initiatives remain a key margin driver (120 bps in Q1; on track for ~100 bps full-year independent of volume). Incremental margins were ~40% in Q1 and are expected to be in the mid-to-high 40s for the year.
Strong Free Cash Flow and Share Repurchases
Free cash flow grew 6% in Q1 with a 69% conversion rate (seasonal); company repurchased $375 million of shares in the quarter and is on track to repurchase approximately $1.5 billion of shares in 2026. Full-year free cash flow conversion expected to exceed 100% of net income.
Test & Measurement and Electronics Outperformance
Test & Measurement & Electronics segment delivered 10% revenue growth and 5% organic growth (highest in three years). Semi‑related businesses (~$500M annual revenue; ~15% of segment) grew >15%, supported by rising fab utilization and strong order activity.
Welding Segment Strength
Welding revenue grew 7% with 6% organic growth; Equipment up 8% driven by new products. North America was the primary growth engine (+8%); operating margin best-in-class at 32.1%.
Polymers & Fluids and Automotive Margin Gains
Polymers & Fluids revenue +5% with 2% organic growth and operating margin expansion of 150 basis points to 28%. Automotive OEM revenue +4% with operating margin improvement of 170 basis points to 21%, while outpacing global builds despite localized declines.
ITW Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
ITW Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 30, 2026 | $265.67 | $258.01 | -2.88% |
Feb 03, 2026 | $262.55 | $277.16 | +5.56% |
Oct 24, 2025 | $254.18 | $242.64 | -4.54% |
Jul 30, 2025 | $254.63 | $248.91 | -2.25% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Illinois Tool Works (ITW) report earnings?
Illinois Tool Works (ITW) is schdueled to report earning on Aug 04, 2026, Before Open (Confirmed).
What is Illinois Tool Works (ITW) earnings time?
Illinois Tool Works (ITW) earnings time is at Aug 04, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is ITW EPS forecast?
ITW EPS forecast for the fiscal quarter 2026 (Q2) is 2.79.