Illinois Tool Works (ITW) Q1 2026 Earnings
How Did ITW Stock React to Q1 2026 Earnings?
S&P 500 over the same 30 days: +5.69%.
Did ITW Beat Earnings? Q1 2026 Results
Yes. Illinois Tool Works reported Q1 2026 earnings of $2.66 a share on Apr 30, 2026, beating the $2.56 consensus estimate by 3.7%. Revenue was $4.0B against a $4.0B estimate.
Illinois Tool Works kicked off 2026 on firm footing, posting first-quarter earnings per share of $2.66 against a consensus estimate of $2.56, a beat of 3.72% that extends the industrial conglomerate's streak of topping Wall Street EPS expectations to four consecutive quarters. Revenue climbed 4.6% year-over-year to $4.02 billion, edging past the $4.01 billion consensus, with foreign currency translation contributing 3.9% of that gain alongside modest organic growth of 0.4%. The headline profit figure was further supported by a $34.00 million discrete tax benefit tied to the resolution of a U.S. tax audit, which pulled the effective tax rate to 20.6% versus an adjusted 24.1%, while enterprise initiatives drove 120 basis points of margin improvement, lifting operating margin 60 basis points to 25.4%. Welding was a standout segment, delivering 6.0% organic growth and a leading operating margin of 32.1%. On the strength of the quarter, ITW raised its full-year 2026 GAAP EPS guidance by $0.10 to a range of $11.10 to $11.50, representing approximately 8% growth at the midpoint, while maintaining its revenue growth projection of 2-4%.
- Enterprise initiatives contributed 120 basis points to operating margin expansion
- Positive demand trends in capex-related segments, led by Welding (6% organic growth) and Test & Measurement and Electronics (4.6% organic growth)
- Favorable foreign currency translation increased revenue by 3.9%
- Discrete tax benefit of $34 million from resolution of U.S. tax audit lowered effective tax rate to 20.6%
- Organic revenue growth of 0.4% at the total company level
“ITW delivered a solid start to the year, marked by five percent revenue growth, margin expansion of 60 basis points to 25.4 percent, and a 12 percent increase in GAAP earnings per share to $2.66. Positive demand trends continued in our capex-related segments, led by Welding and Test & Measurement and Electronics, which delivered organic growth of six percent and five percent, respectively, this quarter.”
Illinois Tool Works CEO, on the earnings call
What Was Illinois Tool Works's Outlook in Q1 2026?
ITW raised its full-year 2026 GAAP EPS guidance by $0.10 to a range of $11.10 to $11.50 per share, representing approximately 8% growth at the midpoint. The company continues to project total revenue growth of 2-4% and organic growth of 1-3% based on current demand levels and prevailing foreign exchange rates. All seven segments are expected to deliver both positive organic growth and operating margin expansion. Full-year operating margin is projected at 26.5-27.5%, an improvement of approximately 100 basis points year-over-year driven by enterprise initiatives. Free cash flow is projected to exceed 100% of net income. The company expects to repurchase approximately $1.5 billion of its own shares, with a projected effective tax rate of 23-24%.
ITW YoY Financials
| Metric | Q1 2026 | Q1 2025 | Year over year |
|---|---|---|---|
| Revenue | $4.0B | $3.8B | +4.6% |
| Gross Profit | $1.8B | $1.7B | +6.2% |
| Operating Income | $1.0B | $951.0M | +7.3% |
| Net Income | $768.0M | $700.0M | +9.7% |
ITW Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.