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…
Earnings analysis · 10-Q
ITW earnings analysis
Filed May 7, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- 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 stood out
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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.
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EPS Increase to $2.66
Diluted EPS rose to $2.66, an 11.8% increase from $2.38 in Q1 2025.
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Operating Margin Improvement
Operating margin increased by 60 bps to 25.4% in Q1 2026 from 24.8% in Q1 2025.
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Strong Performance in Test & Measurement
Test & Measurement and Electronics segment grew revenues by 9.6% to $715 million from $652 million.
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Free Cash Flow of $528M
Free cash flow for the quarter was $528 million, up from $496 million in Q1 2025.
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Decrease in Effective Tax Rate
Effective tax rate declined to 20.6% from 21.7% year-over-year, aided by discrete tax benefits.
What to watch
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Segment Declines in Automotive OEM
Automotive OEM segment revenue decreased by 0.9%, impacted by a 3% decline in worldwide auto builds.
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Weak Food Equipment Sales
Food Equipment segment experienced a 2.8% organic revenue decline due to lower demand, particularly in institutional markets.
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Tariff-Related Uncertainty
Ongoing tariffs and trade policies have introduced uncertainty and may negatively impact overall demand.
Management's outlook
Management raised full year 2026 EPS guidance to a range of $11.10 to $11.50.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.