Education
About Us
Working with TipRanks
Follow Us
Illinois Tool Works (ITW)
NYSE:ITW
Earnings Data
Report Date
May 05, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
2.57Last Year’s EPS
2.38Same Quarter Last Year
Based on 9 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a fundamentally positive tone: management reported solid Q4 results with revenue growth, record margins, strong cash generation, meaningful progress on strategic innovation (CBI), and constructive 2026 guidance (moderate organic growth, EPS growth, margin expansion). Challenges were acknowledged — regional softness in Europe, construction/residential weakness, cyclical exposure in semiconductors, some inflationary and employee-cost offsets, and a selective M&A backdrop — but these were framed as manageable. On balance, the operational execution, margin expansion from enterprise initiatives, and CBI momentum outweigh the cited headwinds.Company Guidance
Quarterly Revenue and EPS Beat
Q4 total revenue growth of 4.1% (organic +1.3%, FX +2.5%, acquisitions +0.3%) with GAAP EPS of $2.72, up 7% year-over-year.
Strong Sequential Improvement
Revenue improved sequentially by ~4% from Q3 to Q4, materially above the historical sequential average of ~2%, indicating improving demand momentum heading into 2026.
Record Margins and Operating Income
Record Q4 operating margin (company-level ~26.5%; segment operating margin 27.7%) with operating income of $1.1 billion, up 5%. Enterprise initiatives contributed ~140 bps to margins in Q4.
Full-Year Strategic Progress on CBI
CBI (customer-backed innovation) contributed 2.4% to revenue in 2025, a 40 bps year-over-year improvement. Patent filings — a leading indicator of CBI — rose 9% in 2025 (after +18% in 2024).
Cash Generation and Capital Return
Q4 free cash flow conversion to net income was 109% for the quarter. ITW repurchased $375 million of shares in Q4, returned $3.3 billion to shareholders in 2025, raised the dividend for the 62nd consecutive year, and plans ~$1.5 billion of buybacks for 2026.
2026 Financial Guidance and Profitability Targets
Guidance: total revenue +2% to +4%, organic growth +1% to +3%, GAAP EPS $11.00–$11.20 (midpoint +7%), operating margin expansion of ~100 bps to 26.5%–27.5%, enterprise initiatives expected to contribute ~100 bps, and incremental margins forecasted in the mid-to-high 40s.
Targeted Investments Supporting Growth
Invested roughly $800 million in high-return internal projects in 2025 to accelerate organic growth and productivity; management expects continued investment while expanding margins.
Segment-Level Outperformance and Margin Expansion
All seven segments expanded margins in Q4 and are projecting margin improvements for 2026. Notable segment results: Automotive OEM revenue +6% (organic +2%), Welding operating margin 33.3% (+210 bps), Polymers & Fluids organic growth ~5% and margin expanded to ~29% (+110 bps), Food Equipment revenue +4% and margin 28.1% (+110 bps).
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 |
|---|---|---|---|
Feb 03, 2026 | $264.21 | $278.91 | +5.56% |
Oct 24, 2025 | $257.44 | $245.75 | -4.54% |
Jul 30, 2025 | $257.90 | $252.11 | -2.25% |
Apr 30, 2025 | $238.81 | $236.99 | -0.76% |
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 May 05, 2026, Before Open (Confirmed).
What is Illinois Tool Works (ITW) earnings time?
Illinois Tool Works (ITW) earnings time is at May 05, 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 (Q1) is 2.57.