ITW earnings analysis
What we found in ITW's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Illinois Tool Works reported solid Q1 2026 results with revenues of $4.02 billion and EPS of $2.66, exceeding expectations. Segment performance was mixed, with notable growth in Test & Measurement and Electronics, while Automotive OEM and Specialty Products faced declines. Management cited enterprise initiatives as key drivers but mentioned ongoing headwinds from tariffs and external market conditions.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth of 4.6%
- Total operating revenue was $4.02 billion in Q1 2026, compared to $3.84 billion in Q1 2025, representing a 4.6% increase.
- EPS Increase to $2.66
- Diluted EPS rose to $2.66, an 11.8% increase from $2.38 in Q1 2025.
- Operating Margin Improvement
- Operating margin increased by 60 bps to 25.4% in Q1 2026 from 24.8% in Q1 2025.
- Strong Performance in Test & Measurement
- Test & Measurement and Electronics segment grew revenues by 9.6% to $715 million from $652 million.
- Free Cash Flow of $528M
- Free cash flow for the quarter was $528 million, up from $496 million in Q1 2025.
- Decrease in Effective Tax Rate
- Effective tax rate declined to 20.6% from 21.7% year-over-year, aided by discrete tax benefits.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Segment Declines in Automotive OEM
- Automotive OEM segment revenue decreased by 0.9%, impacted by a 3% decline in worldwide auto builds.
- Weak Food Equipment Sales
- Food Equipment segment experienced a 2.8% organic revenue decline due to lower demand, particularly in institutional markets.
- Tariff-Related Uncertainty
- Ongoing tariffs and trade policies have introduced uncertainty and may negatively impact overall demand.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.66
- Operating margin
- 25.4%
- Segment
- Automotive OEM
- Segment
- Food Equipment
- Segment
- Test & Measurement and Electronics
- Segment
- Welding
- Segment
- Polymers & Fluids
- Segment
- Construction Products
- Segment
- Specialty Products
What they said about what is next.
Management raised full year 2026 EPS guidance to a range of $11.10 to $11.50.
The filing reads better than the one before it.
What came before.
- 10-K · February 13, 2026
- ITW emphasizes its long-standing ITW Business Model (80/20 Front-to-Back, customer-back innovation and a decentralized culture) as the core competitive moat and is entering a “Next Phase: 2024–2030” focused on building…
- 10-Q · October 24, 2025
- Illinois Tool Works reported third-quarter operating revenue of $4,059 million, up $93 million (+2.3%) versus the prior-year quarter, with gross margin expanding to 44.5% and operating margin rising to 27.4%. Diluted…
- 10-Q · August 1, 2025
- Illinois Tool Works reported Q2 (ended June 30, 2025) revenue of $4,053 million and diluted EPS of $2.58, modestly above consensus. Gross margin improved to ~44.0% and operating margin to ~26.4% versus the prior…
- 10-Q · May 1, 2025
- Illinois Tool Works reported Q1 operating revenue of $3,839 million, down $134 million (-3.4%) year-over-year, with diluted EPS of $2.38 versus $2.73 a year ago. Gross margin contracted to 43.7% (from 46.0%) and…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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