Q2 26 EPS
$2.84
BEAT +1.54%
Est. $2.80
Q2 26 Revenue
$4.30B
BEAT +2.67%
Est. $4.19B
vs S&P Since Q2 26
-1.2%
TRAILING MARKET
ITW +4.6% vs S&P +5.8%
Market Reaction
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 co… Read more 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
ITW 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, source: SEC Filings
ITW Revenue by Segment
With YoY comparisons, source: SEC Filings
“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.”
— Christopher A. O'Herlihy, Q2 2026 Earnings Press Release
ITW Earnings Trends
ITW vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
ITW EPS Trend
Earnings per share: estimate vs actual
ITW Revenue Trend
Quarterly revenue: estimate vs actual
ITW Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT | $2.80 | $2.84 | +1.54% | $4.30B | +2.67% |
| Q1 26 BEAT | $2.56 | $2.66 | +3.71% | $4.02B | +0.15% |
| Q4 25 BEAT FY | $2.69 | $2.72 | +1.24% | $4.09B | +0.70% |
| FY Full Year | $10.46 | $10.49 | +0.31% | $16.04B | +0.15% |
| Q3 25 BEAT | $2.70 | $2.81 | +3.91% | $4.06B | -0.70% |
| Q2 25 BEAT | $2.56 | $2.58 | +0.89% | $4.05B | +0.71% |
| Q1 25 BEAT | $2.35 | $2.38 | +1.14% | $3.84B | -0.10% |