Illinois Tool Works (ITW) Q3 2026 Earnings
ITW reports GAAP EPS only. Tornado damage to two Welding facilities reduced Q3 revenue by an estimated $40 million, with the associated operating income loss largely offset by business interruption insurance. Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.04) on GAAP EPS.
How Did ITW Stock React to Q3 2026 Earnings?
Did ITW Beat Earnings? Q3 2026 Results
Yes. Illinois Tool Works reported Q3 2026 earnings of $3.00 a share on Oct 27, 2026, beating the $2.97 consensus estimate by 0.9%. Revenue was $4.2B against a $4.3B estimate.
Illinois Tool Works posted a solid if mixed third quarter for 2026, with GAAP diluted EPS of $3.00 edging past the $2.97 consensus estimate by 0.88% and extending the company's streak of consensus EPS beats to six consecutive quarters, while revenue of $4.24 billion grew 4.4% year over year but fell just short of the $4.25 billion consensus by 0.43%. The quarter carried a notable asterisk: a tornado that struck two Welding facilities in late July stripped an estimated $40 million from revenue, with business interruption insurance largely covering the lost operating income. The headline EPS figure is reported on a GAAP basis and reflects, among other items, a $0.04 per-share drag from amortization of acquisition-related intangible assets. Strength in Test and Measurement and Electronics, where organic growth reached 15.8%, helped offset softness in Automotive OEM and Construction Products. Operating margin expanded 40 basis points to a quarterly record 27.8%. Looking ahead, ITW raised its full-year 2026 GAAP EPS guidance by $0.05 at the midpoint to a range of $11.45 to $11.55, representing 10% growth, and lifted revenue growth expectations to 4.5% to 5.5%.
- Organic revenue growth of 3.8%, led by 6.0% organic growth in North America
- Accelerating demand in capex-related segments: Test & Measurement and Electronics organic +15.8%, Welding organic +6.9%
- Continued strength in Polymers & Fluids, organic +8.2% with 280 bps margin expansion
- Enterprise initiatives contributed 130 bps to operating margin
- Price increases and other actions more than offset rising raw material costs, giving favorable price/cost
- Foreign currency translation and an acquisition each added 0.3% to revenue
- Welding operating margin expanded 370 bps to 36.3%; Test & Measurement and Electronics margin expanded 330 bps to 28.7%
- Automotive OEM organic revenue declined 2.1% and operating margin fell 170 bps to 20.1%
“The ITW team delivered strong operational execution and financial performance in the third quarter, including organic growth of 4 percent (5 percent excluding the impact of a tornado affecting our Welding segment), 40 basis points of operating margin expansion to 27.8 percent, and a 7 percent increase in GAAP earnings per share to $3.00.”
Illinois Tool Works CEO, on the earnings call
What Is Illinois Tool Works's Outlook?
ITW raised full-year 2026 GAAP EPS guidance by $0.05 at the midpoint to a narrowed range of $11.45 to $11.55, which represents 10% growth at the midpoint. Based on current demand levels and prevailing FX rates, revenue growth guidance was raised to 4.5%–5.5% and organic growth guidance was reaffirmed at 3%–4%. Other guidance: - Operating margin of 26.5%–27.5%, with enterprise initiatives contributing more than 100 bps. - Free cash flow of approximately 100% of net income. - Share repurchases of approximately $1.5 billion. - Effective tax rate of 23%–24%. Management said it entered Q4 with strong operational momentum and expects the tornado impact going forward to be immaterial.
ITW YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $4.2B | $4.1B | +4.4% |
| Operating Income | $1.2B | $1.1B | +5.9% |
| Net Income | $855.0M | $821.0M | +4.1% |
ITW Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.