Zacks Research Analysts Lower Earnings Estimates for ITW

Illinois Tool Works Inc. (NYSE:ITW) – Stock analysts at Zacks Research decreased their Q3 2025 earnings per share (EPS) estimates for shares of Illinois Tool Works in a note issued to investors on Wednesday, May 14th. Zacks Research analyst A. Bhattacharjee now forecasts that the industrial products company will post earnings per share of $2.63 for the quarter, down from their prior forecast of $2.72. The consensus estimate for Illinois Tool Works’ current full-year earnings is $10.39 per share. Zacks Research also issued estimates for Illinois Tool Works’ Q2 2026 earnings at $2.77 EPS, Q3 2026 earnings at $2.84 EPS and FY2026 earnings at $10.97 EPS.

Illinois Tool Works (NYSE:ITW) last issued its quarterly earnings results on Wednesday, April 30th. The industrial products company reported $2.38 EPS for the quarter, beating analysts’ consensus estimates of $2.34 by $0.04. The company had revenue of $3.84 billion for the quarter, compared to analyst estimates of $3.83 billion. Illinois Tool Works had a return on equity of 95.39% and a net margin of 21.94%. The company’s quarterly revenue was down 3.4% compared to the same quarter last year. During the same period last year, the company earned $2.44 earnings per share.

Several other equities research analysts have also weighed in on ITW. Barclays lowered their price objective on Illinois Tool Works from $240.00 to $237.00 and set an “equal weight” rating on the stock in a research note on Thursday, May 1st. Truist Financial lowered their price target on Illinois Tool Works from $302.00 to $284.00 and set a “buy” rating on the stock in a research report on Thursday, May 1st. JPMorgan Chase & Co. reduced their target price on shares of Illinois Tool Works from $300.00 to $295.00 and set an “overweight” rating on the stock in a research note on Monday, February 3rd. Deutsche Bank Aktiengesellschaft upgraded shares of Illinois Tool Works from a “sell” rating to a “hold” rating and set a $257.00 target price for the company in a research report on Wednesday, February 19th. Finally, Citigroup reduced their price target on shares of Illinois Tool Works from $265.00 to $253.00 and set a “neutral” rating on the stock in a research report on Monday, April 14th. Three equities research analysts have rated the stock with a sell rating, eight have given a hold rating, two have given a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $253.42.

Illinois Tool Works Price Performance

Shares of ITW stock opened at $249.90 on Monday. Illinois Tool Works has a 12 month low of $214.66 and a 12 month high of $279.13. The company has a market capitalization of $73.22 billion, a P/E ratio of 21.32, a P/E/G ratio of 4.56 and a beta of 1.12. The stock has a 50 day moving average of $241.76 and a two-hundred day moving average of $255.42. The company has a current ratio of 1.36, a quick ratio of 0.99 and a debt-to-equity ratio of 1.90.

Hedge Funds Weigh In On Illinois Tool Works

Several institutional investors have recently added to or reduced their stakes in ITW. Flaharty Asset Management LLC purchased a new stake in shares of Illinois Tool Works during the 1st quarter valued at approximately $50,000. Integrity Alliance LLC. lifted its position in shares of Illinois Tool Works by 142.5% during the first quarter. Integrity Alliance LLC. now owns 14,031 shares of the industrial products company’s stock worth $3,480,000 after acquiring an additional 8,244 shares in the last quarter. Ransom Advisory Ltd bought a new position in shares of Illinois Tool Works in the first quarter worth $174,000. Aspen Investment Management Inc raised its stake in shares of Illinois Tool Works by 0.7% during the 1st quarter. Aspen Investment Management Inc now owns 6,236 shares of the industrial products company’s stock valued at $1,547,000 after purchasing an additional 45 shares during the period. Finally, SageView Advisory Group LLC lifted its holdings in Illinois Tool Works by 57.1% during the 1st quarter. SageView Advisory Group LLC now owns 2,523 shares of the industrial products company’s stock worth $626,000 after purchasing an additional 917 shares in the last quarter. Institutional investors own 79.77% of the company’s stock.

Insiders Place Their Bets

In related news, CEO Christopher A. O’herlihy sold 48,453 shares of the stock in a transaction on Friday, March 7th. The stock was sold at an average price of $274.36, for a total value of $13,293,565.08. Following the transaction, the chief executive officer now directly owns 55,113 shares in the company, valued at $15,120,802.68. This trade represents a 46.78% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Michael M. Larsen sold 41,472 shares of Illinois Tool Works stock in a transaction that occurred on Friday, March 7th. The shares were sold at an average price of $271.25, for a total value of $11,249,280.00. Following the transaction, the chief financial officer now directly owns 50,502 shares in the company, valued at approximately $13,698,667.50. The trade was a 45.09% decrease in their position. The disclosure for this sale can be found here. Company insiders own 0.88% of the company’s stock.

Illinois Tool Works Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, July 11th. Shareholders of record on Monday, June 30th will be given a dividend of $1.50 per share. The ex-dividend date is Monday, June 30th. This represents a $6.00 dividend on an annualized basis and a yield of 2.40%. Illinois Tool Works’s dividend payout ratio (DPR) is currently 52.77%.

About Illinois Tool Works

Illinois Tool Works Inc manufactures and sells industrial products and equipment in the United States and internationally. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products.