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Illinois Tool Gears Up to Report Q3 Earnings: What's in the Cards?
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Key Takeaways
ITW expects Q3 revenues to rise 5% and adjusted EPS to increase 6.4%.
Welding and Electronics revenues are projected to grow 9.5% and 10.1%, respectively.
Weak construction markets, vehicle production and foreign currency headwinds may weigh on results.
Illinois Tool Works Inc. (ITW - Free Report) is scheduled to release third-quarter 2026 results on Oct. 27, 2026, before market open.
The Zacks Consensus Estimate for third-quarter earnings has remained steady in the past 30 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters. The average surprise was 2.9%.
The consensus estimate for third-quarter revenues is pegged at $4.26 billion, suggesting growth of 5% from the year-ago quarter’s figure. The consensus estimate for adjusted earnings is pinned at $2.99 per share, indicating a 6.4% increase from the year-ago quarter’s number.
Let’s see how things have shaped up for Illinois Tool this earnings season.
Factors to Note Ahead of ITW’s Results
Strength in commercial construction in North America, along with positive contributions from residential renovation and improving demand across Europe and Australia/New Zealand, is likely to have boosted the performance of Illinois Tool’s Construction Products segment in the third quarter. Our model estimates the segment’s revenues to increase 1.1% year over year to $478.2 million.
Growth in medical, aerospace and consumer packaging markets is likely to have driven its Specialty Products segment’s performance. We expect the Specialty Products segment’s revenues to grow 2% year over year to $461.2 million.
Strong capital expenditure-related demand, broad-based growth across industrial and commercial markets, and healthy adoption of new products are expected to have aided the Welding segment’s performance in the third quarter. Our model estimates the segment’s revenues to increase 9.5% from the year-ago quarter to $522.1 million.
Strength in electronic assembly and semiconductor-related businesses, supported by expanded production capacity and differentiated product offerings, is expected to boost the Test & Measurement and Electronics segment’s results. We expect the segment’s revenues to increase 10.1% year over year to $768.3 million in the third quarter.
The Polymers & Fluids segment is anticipated to have performed well in the third quarter, driven by new product launches in the automotive aftermarket. We expect the segment’s revenues to increase 6.6% from the year-ago quarter to $$470.2 million.
However, weakness in the commercial and residential construction end markets, owing to lower demand for products in Europe, is likely to have hurt the Food Equipment segment’s revenues in the third quarter. The Automotive OEM segment’s performance is expected to have put up a weak show due to weak global vehicle production.
ITW has considerable exposure to overseas markets. Given the company’s substantial international operations, foreign currency headwinds are likely to have marred its profitability.
Our proven model does not conclusively predict an earnings beat for ITW this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: ITW has an Earnings ESP of -0.97% as the Most Accurate Estimate is pegged at $2.96 per share, which is lower than the Zacks Consensus Estimate of $2.99. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Here are some companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
Stanley Black & Decker, Inc. (SWK - Free Report) has an Earnings ESP of +1.10% and a Zacks Rank of 2 at present. The company is slated to release third-quarter 2026 results on Nov. 4.
Stanley Black’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 23.3%.
Deere & Company (DE - Free Report) has an Earnings ESP of +1.86% and a Zacks Rank of 3 at present. The company is slated to release third-quarter 2026 results on Nov. 25.
Deere & Company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark in one, the average surprise being 11.1%.
Crane Company (CR - Free Report) has an Earnings ESP of +0.86% and a Zacks Rank of 3 at present. The company is scheduled to release third-quarter 2026 results on Oct. 27.
Crane’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 10.4%.
View the Zacks #1 Rank List
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Illinois Tool Gears Up to Report Q3 Earnings: What's in the Cards?
Key Takeaways
Illinois Tool Works Inc. (ITW - Free Report) is scheduled to release third-quarter 2026 results on Oct. 27, 2026, before market open.
The Zacks Consensus Estimate for third-quarter earnings has remained steady in the past 30 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters. The average surprise was 2.9%.
The consensus estimate for third-quarter revenues is pegged at $4.26 billion, suggesting growth of 5% from the year-ago quarter’s figure. The consensus estimate for adjusted earnings is pinned at $2.99 per share, indicating a 6.4% increase from the year-ago quarter’s number.
Let’s see how things have shaped up for Illinois Tool this earnings season.
Factors to Note Ahead of ITW’s Results
Strength in commercial construction in North America, along with positive contributions from residential renovation and improving demand across Europe and Australia/New Zealand, is likely to have boosted the performance of Illinois Tool’s Construction Products segment in the third quarter. Our model estimates the segment’s revenues to increase 1.1% year over year to $478.2 million.
Growth in medical, aerospace and consumer packaging markets is likely to have driven its Specialty Products segment’s performance. We expect the Specialty Products segment’s revenues to grow 2% year over year to $461.2 million.
Strong capital expenditure-related demand, broad-based growth across industrial and commercial markets, and healthy adoption of new products are expected to have aided the Welding segment’s performance in the third quarter. Our model estimates the segment’s revenues to increase 9.5% from the year-ago quarter to $522.1 million.
Strength in electronic assembly and semiconductor-related businesses, supported by expanded production capacity and differentiated product offerings, is expected to boost the Test & Measurement and Electronics segment’s results. We expect the segment’s revenues to increase 10.1% year over year to $768.3 million in the third quarter.
The Polymers & Fluids segment is anticipated to have performed well in the third quarter, driven by new product launches in the automotive aftermarket. We expect the segment’s revenues to increase 6.6% from the year-ago quarter to $$470.2 million.
However, weakness in the commercial and residential construction end markets, owing to lower demand for products in Europe, is likely to have hurt the Food Equipment segment’s revenues in the third quarter. The Automotive OEM segment’s performance is expected to have put up a weak show due to weak global vehicle production.
ITW has considerable exposure to overseas markets. Given the company’s substantial international operations, foreign currency headwinds are likely to have marred its profitability.
Illinois Tool Works Inc. Price and EPS Surprise
Illinois Tool Works Inc. price-eps-surprise | Illinois Tool Works Inc. Quote
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for ITW this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: ITW has an Earnings ESP of -0.97% as the Most Accurate Estimate is pegged at $2.96 per share, which is lower than the Zacks Consensus Estimate of $2.99. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Illinois Tool presently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
Stanley Black & Decker, Inc. (SWK - Free Report) has an Earnings ESP of +1.10% and a Zacks Rank of 2 at present. The company is slated to release third-quarter 2026 results on Nov. 4.
Stanley Black’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 23.3%.
Deere & Company (DE - Free Report) has an Earnings ESP of +1.86% and a Zacks Rank of 3 at present. The company is slated to release third-quarter 2026 results on Nov. 25.
Deere & Company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark in one, the average surprise being 11.1%.
Crane Company (CR - Free Report) has an Earnings ESP of +0.86% and a Zacks Rank of 3 at present. The company is scheduled to release third-quarter 2026 results on Oct. 27.
Crane’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 10.4%.