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Illinois Tool Works beats Q1 estimates with EPS of $2.66 and revenues of $4.02B, both above consensus.
ITW sales rose 5% on FX boost; operating margin up 60 bps with enterprise initiatives adding 120 bps.
ITW raises 2026 EPS outlook to $11.10-$11.50, sees 2-4% revenue growth and plans $1.5B buybacks.
Illinois Tool Works Inc. (ITW - Free Report) reported first-quarter 2026 adjusted earnings of $2.66 per share, which surpassed the Zacks Consensus Estimate of $2.55. Earnings increased 12% year over year.
Illinois Tool’s revenues of $4.02 billion beat the consensus estimate of $4.00 billion. The top line increased 5% year over year, driven by a favorable foreign currency translation of 3.9%. Organic sales increased 0.4% in the quarter, while acquisitions had a favorable impact of 0.3%.
ITW’s Segmental Performance
Test & Measurement and Electronics’ revenues were $715 million, up 9.6% year over year. Our estimate for segmental revenues was $681.8 million. Revenues from Automotive Original Equipment Manufacturer increased 4.4% year over year to $820 million. Our estimate for segmental revenues was $812.1 million.
Food Equipment generated revenues of $637 million, up 1.7% year over year. Our estimate for segmental revenues was $651.0 million. Welding revenues were $507 million, up 7.3% year over year. Our estimate for segmental revenues was $497.3 million.
Construction Products’ revenues were up 3.4% year over year to $458 million. Our estimate for segmental revenues was $441.7 million. Revenues of $431 million from Specialty Products reflected a decrease of 1% year over year. Our estimate for segmental revenues was $449.6 million. Polymers & Fluids’ revenues of $452 million increased 5.4% year over year. Our estimate for segmental revenues was $446.3 million.
Illinois Tool Works Inc. Price, Consensus and EPS Surprise
Illinois Tool’s cost of sales increased 4.4% year over year to $2.26 billion. Selling, administrative and research and development expenses increased 2.3% year over year to $722 million. The operating margin was 25.4%, up 60 basis points (bps) from the year-ago quarter. Enterprise initiatives contributed 120 bps to the operating margin.
ITW’s Balance Sheet and Cash Flow
At the end of the first quarter, Illinois Tool had cash and equivalents of $827 million compared with $851 million at the end of December 2025. Long-term debt was $6.60 billion compared with $6.68 billion at the end of December 2025.
In the first three months of 2026, Illinois Tool generated net cash of $623 million from operating activities, reflecting an increase of 5.2% from the year-ago number. Capital spending on the purchase of plant and equipment was $95 million, down 1% year over year. Free cash flow was $528 million, up 6.9% year over year.
Illinois Tool’s 2026 Guidance
Illinois Tool updated its full-year 2026 financial guidance. ITW now expects earnings to be in the range of $11.10-$11.50 per share compared with $11.00 - $11.40 expected earlier. Revenues are expected to increase 2-4% while organic revenues are anticipated to rise 1-3%. Operating margin is expected to be 26.5–27.5%. Enterprise initiatives are expected to contribute approximately 100 bps to the operating margin.
Illinois Tool projects the free cash flow to be more than 100% of its net income. The company expects to repurchase about $1.5 billion worth of shares. The effective tax rate is expected to be 23-24%.
ITW’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).
Graco Inc. (GGG - Free Report) posted quarterly earnings of 66 cents per share in the first quarter of 2026, missing the Zacks Consensus Estimate of 75 cents per share. This compares with earnings of 70 cents per share a year ago.
Graco posted revenues of $540.1 million for the quarter, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $528.3 million.
Stanley Black & Decker, Inc. (SWK - Free Report) reported first-quarter 2026 adjusted earnings of 80 cents per share, which beat the Zacks Consensus Estimate of 61 cents. The bottom line increased 6.7% year over year.
Stanley Black’s net sales of $3.85 billion beat the consensus estimate of $3.74 billion. The top line increased 2.7% from the year-ago quarter.
Ingersoll Rand Inc. (IR - Free Report) reported first-quarter 2026 adjusted earnings of 77 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents. The bottom line increased 7% year over year.
Total revenues of $1.85 billion beat the consensus estimate of $1.83 billion. The top line increased 7.6% year over year.
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Illinois Tool Surpasses Q1 Earnings Estimates, Updates 2026 View
Key Takeaways
Illinois Tool Works Inc. (ITW - Free Report) reported first-quarter 2026 adjusted earnings of $2.66 per share, which surpassed the Zacks Consensus Estimate of $2.55. Earnings increased 12% year over year.
Illinois Tool’s revenues of $4.02 billion beat the consensus estimate of $4.00 billion. The top line increased 5% year over year, driven by a favorable foreign currency translation of 3.9%. Organic sales increased 0.4% in the quarter, while acquisitions had a favorable impact of 0.3%.
ITW’s Segmental Performance
Test & Measurement and Electronics’ revenues were $715 million, up 9.6% year over year. Our estimate for segmental revenues was $681.8 million. Revenues from Automotive Original Equipment Manufacturer increased 4.4% year over year to $820 million. Our estimate for segmental revenues was $812.1 million.
Food Equipment generated revenues of $637 million, up 1.7% year over year. Our estimate for segmental revenues was $651.0 million. Welding revenues were $507 million, up 7.3% year over year. Our estimate for segmental revenues was $497.3 million.
Construction Products’ revenues were up 3.4% year over year to $458 million. Our estimate for segmental revenues was $441.7 million. Revenues of $431 million from Specialty Products reflected a decrease of 1% year over year. Our estimate for segmental revenues was $449.6 million. Polymers & Fluids’ revenues of $452 million increased 5.4% year over year. Our estimate for segmental revenues was $446.3 million.
Illinois Tool Works Inc. Price, Consensus and EPS Surprise
Illinois Tool Works Inc. price-consensus-eps-surprise-chart | Illinois Tool Works Inc. Quote
Illinois Tool’s Margin Profile
Illinois Tool’s cost of sales increased 4.4% year over year to $2.26 billion. Selling, administrative and research and development expenses increased 2.3% year over year to $722 million. The operating margin was 25.4%, up 60 basis points (bps) from the year-ago quarter. Enterprise initiatives contributed 120 bps to the operating margin.
ITW’s Balance Sheet and Cash Flow
At the end of the first quarter, Illinois Tool had cash and equivalents of $827 million compared with $851 million at the end of December 2025. Long-term debt was $6.60 billion compared with $6.68 billion at the end of December 2025.
In the first three months of 2026, Illinois Tool generated net cash of $623 million from operating activities, reflecting an increase of 5.2% from the year-ago number. Capital spending on the purchase of plant and equipment was $95 million, down 1% year over year. Free cash flow was $528 million, up 6.9% year over year.
Illinois Tool’s 2026 Guidance
Illinois Tool updated its full-year 2026 financial guidance. ITW now expects earnings to be in the range of $11.10-$11.50 per share compared with $11.00 - $11.40 expected earlier. Revenues are expected to increase 2-4% while organic revenues are anticipated to rise 1-3%. Operating margin is expected to be 26.5–27.5%. Enterprise initiatives are expected to contribute approximately 100 bps to the operating margin.
Illinois Tool projects the free cash flow to be more than 100% of its net income. The company expects to repurchase about $1.5 billion worth of shares. The effective tax rate is expected to be 23-24%.
ITW’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
Graco Inc. (GGG - Free Report) posted quarterly earnings of 66 cents per share in the first quarter of 2026, missing the Zacks Consensus Estimate of 75 cents per share. This compares with earnings of 70 cents per share a year ago.
Graco posted revenues of $540.1 million for the quarter, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $528.3 million.
Stanley Black & Decker, Inc. (SWK - Free Report) reported first-quarter 2026 adjusted earnings of 80 cents per share, which beat the Zacks Consensus Estimate of 61 cents. The bottom line increased 6.7% year over year.
Stanley Black’s net sales of $3.85 billion beat the consensus estimate of $3.74 billion. The top line increased 2.7% from the year-ago quarter.
Ingersoll Rand Inc. (IR - Free Report) reported first-quarter 2026 adjusted earnings of 77 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents. The bottom line increased 7% year over year.
Total revenues of $1.85 billion beat the consensus estimate of $1.83 billion. The top line increased 7.6% year over year.