Zacks Research Has Bullish Outlook for ITW FY2026 Earnings

Illinois Tool Works Inc. (NYSE:ITW) – Equities researchers at Zacks Research raised their FY2026 earnings per share (EPS) estimates for Illinois Tool Works in a research note issued to investors on Tuesday, August 11th. Zacks Research analyst Team now forecasts that the industrial products company will earn $11.40 per share for the year, up from their previous forecast of $11.28. The consensus estimate for Illinois Tool Works’ current full-year earnings is $11.46 per share. Zacks Research also issued estimates for Illinois Tool Works’ Q1 2027 earnings at $2.74 EPS.

Illinois Tool Works (NYSE:ITW) last posted its quarterly earnings results on Tuesday, July 28th. The industrial products company reported $2.84 earnings per share for the quarter, beating analysts’ consensus estimates of $2.80 by $0.04. The company had revenue of $4.30 billion for the quarter, compared to analysts’ expectations of $4.19 billion. Illinois Tool Works had a return on equity of 101.72% and a net margin of 19.39%.Illinois Tool Works’s quarterly revenue was up 6.1% on a year-over-year basis. During the same period last year, the firm earned $2.58 earnings per share. Illinois Tool Works has set its FY 2026 guidance at 11.350-11.550 EPS.

ITW has been the topic of several other reports. Citigroup reiterated a “neutral” rating on shares of Illinois Tool Works in a research note on Monday, July 13th. Weiss Ratings upgraded shares of Illinois Tool Works from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday. Evercore dropped their target price on shares of Illinois Tool Works from $296.00 to $272.00 in a research report on Monday, May 11th. The Goldman Sachs Group reissued a “sell” rating and issued a $254.00 price target on shares of Illinois Tool Works in a research report on Thursday, April 30th. Finally, JPMorgan Chase & Co. upped their price objective on shares of Illinois Tool Works from $310.00 to $350.00 and gave the company an “overweight” rating in a research note on Wednesday, July 29th. Two analysts have rated the stock with a Buy rating, six have issued a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Reduce” and an average price target of $281.25.

Illinois Tool Works Price Performance

Shares of NYSE ITW opened at $292.40 on Thursday. The stock’s 50-day simple moving average is $273.45 and its 200-day simple moving average is $270.28. The firm has a market capitalization of $83.28 billion, a PE ratio of 26.51, a price-to-earnings-growth ratio of 4.95 and a beta of 0.99. Illinois Tool Works has a fifty-two week low of $238.82 and a fifty-two week high of $303.15. The company has a debt-to-equity ratio of 2.26, a quick ratio of 0.81 and a current ratio of 1.11.

Illinois Tool Works Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 9th. Investors of record on Wednesday, September 30th will be paid a dividend of $1.72 per share. The ex-dividend date is Wednesday, September 30th. This represents a $6.88 dividend on an annualized basis and a yield of 2.4%. This is an increase from Illinois Tool Works’s previous quarterly dividend of $1.61. Illinois Tool Works’s dividend payout ratio (DPR) is currently 58.39%.

Insider Transactions at Illinois Tool Works

In other Illinois Tool Works news, Director Jennifer F. Scanlon acquired 806 shares of the company’s stock in a transaction on Tuesday, June 2nd. The shares were bought at an average cost of $247.99 per share, for a total transaction of $199,879.94. Following the completion of the purchase, the director owned 1,652 shares in the company, valued at $409,679.48. This trade represents a 95.27% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. Insiders own 0.83% of the company’s stock.

Institutional Trading of Illinois Tool Works

Several institutional investors and hedge funds have recently added to or reduced their stakes in ITW. Cresta Advisors Ltd. acquired a new position in shares of Illinois Tool Works in the fourth quarter valued at approximately $25,000. Motiv8 Investments LLC purchased a new position in Illinois Tool Works in the 4th quarter valued at $27,000. Kemnay Advisory Services Inc. acquired a new position in Illinois Tool Works in the 4th quarter valued at $27,000. Abound Wealth Management increased its stake in Illinois Tool Works by 178.6% in the 2nd quarter. Abound Wealth Management now owns 117 shares of the industrial products company’s stock valued at $32,000 after buying an additional 75 shares during the period. Finally, Wilkerson Advisory Group LLC raised its position in Illinois Tool Works by 77.6% during the 1st quarter. Wilkerson Advisory Group LLC now owns 119 shares of the industrial products company’s stock worth $31,000 after buying an additional 52 shares during the last quarter. 79.77% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Illinois Tool Works

Here are the key news stories impacting Illinois Tool Works this week:

• Positive Sentiment: Higher earnings expectations: Zacks Research raised its FY2026 EPS estimate to $11.40 from $11.28 and its Q1 2027 estimate to $2.74 from $2.72. Analysts also increased estimates for several future quarters, lifting FY2027 EPS to $12.27 from $12.10 and FY2028 EPS to $13.54 from $13.32. The revisions imply improving confidence in ITW’s earnings outlook and could support the stock. Zacks Research earnings estimates
• Positive Sentiment: New Paslode products: ITW’s Paslode brand launched new heavy-duty stapling products for professional contractors, including compression staplers, hammer tackers and staples. The product expansion is a modest positive for the company’s fastening business, though the immediate financial impact is likely limited. Paslode Launches New Universal Heavy-Duty Stapling Solutions for PROs
• Positive Sentiment: Dividend appeal: Recent coverage is focused on whether Illinois Tool Works is reinforcing its reputation as a reliable dividend company, which may attract income-oriented investors and help support demand for the shares. Is Illinois Tool Works Reinforcing Its Dividend Reputation
• Neutral Sentiment: Valuation and execution remain considerations: ITW has a market capitalization of approximately $83.3 billion and a price-to-earnings ratio near 26.5. Its latest quarter exceeded revenue and EPS expectations, but investors may require continued earnings growth to justify the premium valuation.

About Illinois Tool Works

Illinois Tool Works Inc (ITW) is a diversified industrial manufacturer that designs and produces a broad array of engineered products, consumables and related service solutions for industrial customers. Its offerings span engineered fastening systems, specialty components, industrial equipment, welding products, foodservice and packaging equipment, adhesives and polymer products, and test-and-measurement technologies. These products are used as critical inputs by customers across automotive, construction, electronics, foodservice, maintenance and other industrial end markets.

The company operates a decentralized business model in which independently managed businesses focus on niche product lines and close customer relationships.