Companies /Industrials

Illinois Tool Works Inc

NYSE: ITW Specialty Industrial Machinery
$281.11
▼ $4.41 (−1.54%) today
Markets open · 1:39pm ET

Q4 2025 Earnings

Reported Feb 3, 2026, 9:48am ET · SEC source
$2.72
Beat +1.24%
EPS · est. $2.69
$4.1B
Beat +0.70%
Revenue · est. $4.1B
+1.9%
Beating market
ITW vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−3%0+3%+6%Feb 3Feb 4report 9:48am ETearnings−1.4%+5.3%
−3%0+3%+6%Feb 3Feb 4earnings−1.4%+5.3%
ITW +5.3%S&P 500 −1.4%
−4%0+4%Feb 3Feb 4report 9:48am ETearnings−3.1%+5.3%
−4%0+4%Feb 3Feb 4earnings−3.1%+5.3%
ITW +5.3%NASDAQ −3.1%
−4%0+4%+8%Feb 2Feb 11report 9:48am ETearnings−0.2%+8.1%
−4%0+4%+8%Feb 2Feb 11earnings−0.2%+8.1%
ITW +8.1%S&P 500 −0.2%
−4%0+4%+8%Feb 2Feb 11report 9:48am ETearnings−1.4%+8.1%
−4%0+4%+8%Feb 2Feb 11earnings−1.4%+8.1%
ITW +8.1%NASDAQ −1.4%
+5.56%
Day of report
+3.55%
Next session
+5.50%
One week
−0.63%
30 days

S&P 500 over the same 30 days: −2.49%.

Did ITW Beat Earnings? Q4 2025 Results

Illinois Tool Works closed out 2025 on a solid note, posting Q4 earnings per share of $2.72 against a consensus estimate of $2.69, a beat of 1.12%, while revenue of $4.09 billion edged past the $4.07 billion forecast by 0.60% and grew 4.1% year over year. The quarter's most telling detail was operating margin expansion of 30 basis points to 26.5%, with enterprise initiatives alone contributing 140 basis points of improvement, underscoring the disciplined cost management that has made ITW a recurring topic among industrial investors eyeing new all-time highs in the sector. For the full year, GAAP EPS of $10.49 cleared the company's own guidance midpoint, and free cash flow reached $2.71 billion at an 88% conversion rate, funding $3.30 billion in shareholder returns. Looking ahead, ITW guided 2026 GAAP EPS to $11.00 to $11.40, implying roughly 7% growth at the midpoint, with revenue growth of 2% to 4% and free cash flow conversion projected to exceed 100% of net income.

Key Takeaways
  • Enterprise initiatives contributed 140 bps to Q4 operating margin
  • Customer-Back Innovation drove 2.4% of full-year revenue growth
  • Pricing and supply chain actions successfully offset tariff impacts for the year
  • Organic revenue growth of 1.3% in Q4
  • Foreign currency translation added 2.5% to Q4 revenue
  • Six of seven segments expanded operating margins in 2025
  • Three segments achieved operating margins above 30%

“ITW delivered a solid finish to the year, marked by more than four percent revenue growth and a seven percent increase in GAAP earnings per share. As a result of our disciplined execution across all seven segments, we expanded both operating margin and income to record levels in the quarter.”

Illinois Tool Works CEO, on the earnings call

Forward Guidance & Outlook

ITW's 2026 guidance calls for GAAP EPS of $11.00 to $11.40, representing approximately 7% earnings growth at the midpoint. Revenue growth is projected at 2% to 4%, with organic growth of 1% to 3% based on current demand levels and foreign exchange rates. Operating margin is expected to expand approximately 100 basis points to a range of 26.5% to 27.5%, with enterprise initiatives contributing 100 basis points. All seven segments are expected to deliver positive organic growth and operating margin expansion. Free cash flow is projected to exceed 100% of net income, and the company plans approximately $1.5 billion in share repurchases. The projected effective tax rate is 23.5% to 24.5%.

ITW YoY Financials

Q4 2025 vs Q4 2024 · SEC filings Q4 2024 Q4 2025
$0$2.0B$4.0B$3.9B$4.1BRevenue$1.7B$1.8BGross Profit$1.0B$1.1BOperating Income$750.0M$790.0MNet Income
$0$2.0B$4.0BRevenueGross ProfitOperating IncomeNet Income

ITW Revenue by Segment

Automotive OEM$827.0M+5.5%
Test & Measurement and Electronics$789.0M+5.5%
Food Equipment$698.0M+3.8%
Welding$462.0M+3.3%
Construction Products$431.0M−1.5%
Polymers & Fluids$457.0M+6.5%
Specialty Products$433.0M+4.0%

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