Zacks Research Has Bullish Outlook for ITW FY2026 Earnings

Illinois Tool Works Inc. (NYSE:ITW) – Equities research analysts at Zacks Research lifted their FY2026 earnings per share (EPS) estimates for shares of Illinois Tool Works in a report issued on Tuesday, November 10th. Zacks Research analyst Team now forecasts that the industrial products company will post earnings per share of $11.46 for the year, up from their prior forecast of $11.39. The consensus estimate for Illinois Tool Works’ current full-year earnings is $11.49 per share. Zacks Research also issued estimates for Illinois Tool Works’ Q4 2026 earnings at $2.96 EPS and Q2 2027 earnings at $3.04 EPS.

Illinois Tool Works (NYSE:ITW) last released its quarterly earnings results on Tuesday, October 27th. The industrial products company reported $3.00 earnings per share for the quarter, beating the consensus estimate of $2.97 by $0.03. Illinois Tool Works had a return on equity of 103.35% and a net margin of 19.39%. The company had revenue of $4.24 billion for the quarter, compared to analyst estimates of $4.26 billion. During the same period in the previous year, the company posted $2.81 earnings per share. The firm’s revenue was up 4.5% on a year-over-year basis.

A number of other research firms have also commented on ITW. Robert W. Baird lifted their target price on Illinois Tool Works from $278.00 to $297.00 and gave the stock a “neutral” rating in a report on Wednesday, July 29th. UBS Group set a $277.00 price objective on Illinois Tool Works in a research note on Friday, October 9th. Citigroup decreased their target price on shares of Illinois Tool Works from $317.00 to $310.00 and set a “neutral” rating on the stock in a research note on Wednesday, October 28th. Weiss Ratings upgraded Illinois Tool Works from a “buy (b-)” rating to a “buy (b)” rating in a research report on Wednesday, October 28th. Finally, JPMorgan Chase & Co. downgraded shares of Illinois Tool Works from an “overweight” rating to a “neutral” rating and lowered their target price for the stock from $350.00 to $270.00 in a report on Friday, October 9th. One equities research analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and five have issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Reduce” and an average price target of $276.33.

Illinois Tool Works Trading Up 0.1%

Illinois Tool Works stock opened at $288.44 on Thursday. Illinois Tool Works has a 12 month low of $238.82 and a 12 month high of $303.15. The business’s fifty day simple moving average is $272.60 and its two-hundred day simple moving average is $271.83. The company has a market capitalization of $81.97 billion, a price-to-earnings ratio of 25.71, a price-to-earnings-growth ratio of 3.16 and a beta of 0.92. The company has a current ratio of 1.29, a quick ratio of 0.94 and a debt-to-equity ratio of 2.28.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Sumitomo Mitsui Financial Group Inc. increased its stake in Illinois Tool Works by 6.5% in the third quarter. Sumitomo Mitsui Financial Group Inc. now owns 1,338 shares of the industrial products company’s stock worth $344,000 after purchasing an additional 82 shares during the period. TIAA Trust National Association raised its position in Illinois Tool Works by 26.7% during the 3rd quarter. TIAA Trust National Association now owns 3,758 shares of the industrial products company’s stock valued at $967,000 after purchasing an additional 791 shares in the last quarter. Mayflower Financial Advisors LLC lifted its holdings in shares of Illinois Tool Works by 3.9% in the 3rd quarter. Mayflower Financial Advisors LLC now owns 1,263 shares of the industrial products company’s stock worth $325,000 after buying an additional 47 shares during the period. Advisors Asset Management Inc. bought a new position in shares of Illinois Tool Works during the 3rd quarter worth $15,489,000. Finally, Edmond DE Rothschild Holding S.A. increased its stake in shares of Illinois Tool Works by 7.0% during the third quarter. Edmond DE Rothschild Holding S.A. now owns 63,522 shares of the industrial products company’s stock valued at $16,343,000 after buying an additional 4,177 shares during the period. Institutional investors own 79.77% of the company’s stock.

Insider Buying and Selling

In other Illinois Tool Works news, Director Ernest Santi sold 60,000 shares of the business’s stock in a transaction on Wednesday, November 4th. The shares were sold at an average price of $292.87, for a total transaction of $17,572,200.00. Following the transaction, the director owned 266,333 shares in the company, valued at $78,000,945.71. The trade was a 18.39% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.83% of the stock is owned by insiders.

Illinois Tool Works Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, January 15th. Stockholders of record on Thursday, December 31st will be issued a $1.72 dividend. The ex-dividend date is Thursday, December 31st. This represents a $6.88 dividend on an annualized basis and a dividend yield of 2.4%. Illinois Tool Works’s payout ratio is 61.32%.

Trending Headlines about Illinois Tool Works

Investors following ITW have been watching these headlines:

• Positive Sentiment: Zacks raised its FY2026 EPS estimate to $11.46 from $11.39, and its Q4 2026 estimate to $2.96 from $2.93. Its Q2 2027 estimate also edged up to $3.04 from $3.03, providing a modest near-term positive.
• Negative Sentiment: Zacks lowered estimates across several later periods, including FY2027 EPS to $12.21 from $12.33 and FY2028 EPS to $13.08 from $13.20. It also cut forecasts for several 2027–2028 quarters, suggesting a softer outlook for earnings growth farther out.

About Illinois Tool Works

Illinois Tool Works Inc. (NYSE: ITW) is a diversified manufacturer serving industrial and commercial customers around the world. Founded in 1912, the company is known for its decentralized operating model and focus on specialized products and solutions. ITW’s businesses make products and equipment for a range of markets, including automotive, food service, construction, welding, and testing and measurement. Its offerings include food-service equipment, welding systems and consumables, automotive components, construction products, polymers and fluids, and laboratory and electronics testing equipment.