Zacks Research Brokers Increase Earnings Estimates for ITW

Illinois Tool Works Inc. (NYSE:ITW) – Equities researchers at Zacks Research lifted their FY2026 earnings per share (EPS) estimates for shares of Illinois Tool Works in a research note issued on Tuesday, August 11th. Zacks Research analyst Team now anticipates that the industrial products company will post earnings per share of $11.40 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 announced its quarterly earnings data on Tuesday, July 28th. The industrial products company reported $2.84 earnings per share for the quarter, topping analysts’ consensus estimates of $2.80 by $0.04. The firm had revenue of $4.30 billion for the quarter, compared to analyst estimates 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 quarter in the prior year, the company posted $2.58 earnings per share. Illinois Tool Works has set its FY 2026 guidance at 11.350-11.550 EPS.

A number of other brokerages also recently issued reports on ITW. Citigroup reiterated a “neutral” rating on shares of Illinois Tool Works in a report on Monday, July 13th. Wolfe Research reissued an “underperform” rating and set a $286.00 price objective on shares of Illinois Tool Works in a report on Thursday, July 9th. Evercore dropped their target price on shares of Illinois Tool Works from $296.00 to $272.00 in a report on Monday, May 11th. Truist Financial lifted their price target on shares of Illinois Tool Works from $280.00 to $301.00 and gave the company a “hold” rating in a research report on Thursday, July 2nd. Finally, The Goldman Sachs Group reissued a “sell” rating and set a $254.00 price target on shares of Illinois Tool Works in a research note on Thursday, April 30th. Two investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and five have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Reduce” and a consensus target price of $281.25.

Illinois Tool Works Price Performance

Illinois Tool Works stock opened at $292.40 on Thursday. The company has a market cap of $83.28 billion, a P/E ratio of 26.51, a price-to-earnings-growth ratio of 4.95 and a beta of 0.99. Illinois Tool Works has a one year low of $238.82 and a one year high of $303.15. The business has a fifty day moving average of $273.45 and a two-hundred day moving average of $270.28. 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 disclosed a quarterly dividend, which will be paid on Friday, October 9th. Stockholders of record on Wednesday, September 30th will be paid a dividend of $1.72 per share. This is a positive change from Illinois Tool Works’s previous quarterly dividend of $1.61. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $6.88 dividend on an annualized basis and a dividend yield of 2.4%. Illinois Tool Works’s dividend payout ratio is 58.39%.

Insider Buying and Selling at Illinois Tool Works

In related news, Director Jennifer F. Scanlon acquired 806 shares of the business’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was purchased at an average cost of $247.99 per share, for a total transaction of $199,879.94. Following the transaction, the director directly owned 1,652 shares of the company’s stock, valued at approximately $409,679.48. This trade represents a 95.27% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 0.83% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Illinois Tool Works

Institutional investors have recently made changes to their positions in the stock. Brighton Jones LLC lifted its holdings in Illinois Tool Works by 5.3% in the 4th quarter. Brighton Jones LLC now owns 5,519 shares of the industrial products company’s stock valued at $1,399,000 after purchasing an additional 277 shares in the last quarter. Bison Wealth LLC grew its holdings in shares of Illinois Tool Works by 2.3% during the fourth quarter. Bison Wealth LLC now owns 3,555 shares of the industrial products company’s stock worth $901,000 after buying an additional 81 shares in the last quarter. Sivia Capital Partners LLC raised its position in shares of Illinois Tool Works by 20.6% in the second quarter. Sivia Capital Partners LLC now owns 1,038 shares of the industrial products company’s stock valued at $257,000 after buying an additional 177 shares during the last quarter. Sei Investments Co. lifted its stake in shares of Illinois Tool Works by 22.0% during the second quarter. Sei Investments Co. now owns 106,784 shares of the industrial products company’s stock valued at $26,401,000 after buying an additional 19,248 shares during the period. Finally, Treasurer of the State of North Carolina boosted its position in Illinois Tool Works by 2.2% during the second quarter. Treasurer of the State of North Carolina now owns 136,884 shares of the industrial products company’s stock worth $33,845,000 after acquiring an additional 2,890 shares during the last quarter. 79.77% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about 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.