Companies /Industrials

Illinois Tool Works Inc

NYSE: ITW Specialty Industrial Machinery
$281.57
▼ $3.95 (−1.38%) today
Markets open · 2:20pm ET

Q2 2026 Earnings

Reported Jul 28, 2026, 9:21am ET · SEC source
$2.84
Beat +1.54%
EPS · est. $2.80
$4.3B
Beat +2.67%
Revenue · est. $4.2B
−8.9%
Trailing market
ITW vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−1.8%−0.9%0Jul 28Jul 29report 9:21am ETearnings−0.7%−2.3%
−1.8%−0.9%0Jul 28Jul 29earnings−0.7%−2.3%
ITW −2.3%S&P 500 −0.7%
−1.8%−0.9%0Jul 28Jul 29report 9:21am ETearnings−1.1%−2.3%
−1.8%−0.9%0Jul 28Jul 29earnings−1.1%−2.3%
ITW −2.3%NASDAQ −1.1%
−4%0+4%Jul 27Aug 5report 9:21am ETearnings+5.0%−1.2%
−4%0+4%Jul 27Aug 5earnings+5.0%−1.2%
ITW −1.2%S&P 500 +5.0%
−5%0+5%Jul 27Aug 5report 9:21am ETearnings+8.0%−1.2%
−5%0+5%Jul 27Aug 5earnings+8.0%−1.2%
ITW −1.2%NASDAQ +8.0%
+3.63%
Day of report
−0.92%
Next session
−0.03%
One week
−4.75%
30 days

S&P 500 over the same 30 days: +4.18%.

Did ITW Beat Earnings? Q2 2026 Results

Illinois Tool Works posted a convincing second-quarter beat on Tuesday, extending its streak of exceeding consensus EPS estimates to five consecutive quarters as the industrial conglomerate delivered earnings of $2.84 per share, ahead of the $2.80 consensus by 1.54%, while revenue climbed 6.1% year-over-year to $4.30 billion, topping estimates of $4.19 billion by 2.67%. The standout driver behind the quarter was a powerful acceleration in capital equipment-linked segments, with Welding surging 13.9% organically and Test & Measurement and Electronics posting 10.0% organic growth, together lifting consolidated organic growth to 4.5% and pushing operating income up 7.4% to $1.15 billion. Operating margin expanded 40 basis points to 26.7%, with enterprise efficiency initiatives contributing 120 basis points, and free cash flow jumped 41% to $631 million. Management rewarded shareholders with over $1.20 billion in capital returns during the period and raised full-year 2026 EPS guidance by $0.15 to a range of $11.35 to $11.55, implying 9% growth at the midpoint, with organic revenue growth guidance lifted 1.5 percentage points to a 3-4% range.

Key Takeaways
  • Organic growth accelerated to 4.5%, led by 6.4% growth in North America
  • Double-digit organic growth in Welding (13.9%) and Test & Measurement and Electronics (10.0%)
  • Enterprise initiatives contributed 120 basis points to operating margin
  • Price increases more than offset higher raw material costs in dollar terms
  • Strong performance in Polymers & Fluids with 7.3% organic growth

“The ITW team delivered a strong operational and financial performance in the second quarter highlighted by organic growth of 4.5 percent, operating margin of 26.7 percent, and a 10 percent increase in GAAP earnings per share to $2.84.”

Illinois Tool Works CEO, on the earnings call

Forward Guidance & Outlook

ITW raised its full year 2026 GAAP EPS guidance by $0.15 to a narrowed range of $11.35 to $11.55 per share, representing 9% growth at the midpoint. Revenue growth guidance was raised to 4-5%, with organic growth guidance raised to 3-4%, a 1.5 percentage point increase at the midpoint. Operating margin is projected at 26.5-27.5%, with enterprise initiatives contributing more than 100 basis points. Free cash flow is projected to exceed 100% of net income. The company expects to repurchase approximately $1.5 billion of its own shares. The projected effective tax rate is 23-24%.

ITW YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$2.0B$4.0B$4.1B$4.3BRevenue$1.8B$1.9BGross Profit$1.1B$1.1BOperating Income$755.0M$815.0MNet Income
$0$2.0B$4.0BRevenueGross ProfitOperating IncomeNet Income

ITW Revenue by Segment

Automotive OEM$857.0M+1.3%
Test & Measurement and Electronics$769.0M+12.1%
Food Equipment$692.0M+1.6%
Welding$549.0M+14.7%
Construction Products$494.0M+4.3%
Polymers & Fluids$476.0M+8.8%
Specialty Products$468.0M+3.0%

Figures from SEC filings and company reports. Not investment advice.