Illinois Tool Works Inc.
ITW · NYSE
Next quarter
Reports Oct 23, 2026.
Consensus is $2.98 EPS for Sep 2026 across 6 estimates, ranging $2.92 to $3.07.
ITW Jun 2026
- 1.43%
- -0.92%
- $2.80
- $2.84
- —
- $4.30B
Reported results
- $4.30B
- 52.73%
- $1.15B
- 26.67%
- $815.00M
- $2.84
Highlights
- Second-quarter operating revenue was $4.301 billion, up 6.1% year over year, including 4.5% organic growth, 0.2% from acquisition, and 1.4% from foreign currency; product line simplification reduced organic growth by 60 basis points.
- Operating income increased 7.4% to $1.147 billion, while operating margin expanded 40 basis points to 26.7%, helped by 120 basis points from enterprise initiatives and 90 basis points of operating leverage, partly offset by employee costs and unfavorable price/cost.
- Automotive OEM revenue was $857 million and operating income was $185 million; Food Equipment revenue was $692 million and operating income was $188 million; Test & Measurement and Electronics revenue was $769 million and operating income was $193 million.
- Welding revenue was $549 million and operating income was $178 million; Polymers & Fluids revenue was $476 million and operating income was $140 million; Construction Products revenue was $494 million and operating income was $151 million; Specialty Products revenue was $468 million and operating income was $148 million.
- First-half operating revenue was $8.317 billion, up 5.4%, and operating income was $2.167 billion, up 7.3%; operating margin rose 50 basis points to 26.1%. Diluted EPS was $2.84, up 10.1%, and the company repurchased approximately 2.9 million shares for approximately $750 million.
Analysis
No consensus figures are available, so the quarter cannot be assessed against an external earnings estimate. ITW delivered $4.301 billion of revenue, up 6.1% from $4.053 billion a year earlier, with organic growth of 4.5%; first-half growth was slower at 5.4% overall and 2.5% organically. Test & Measurement and Electronics, Welding, and Polymers & Fluids were the main organic growth engines. Welding revenue rose to $549 million and operating income to $178 million, while Test & Measurement and Electronics reached $769 million of revenue and $193 million of operating income. Food Equipment revenue increased to $692 million, but operating income slipped to $188 million as organic revenue declined. Consolidated operating income rose 7.4% to $1.147 billion and margin improved to 26.7%, driven by enterprise initiatives and operating leverage despite higher employee-related expenses and unfavorable price/cost.
Guidance
No formal quarterly or full-year revenue, earnings, margin, or capital-expenditure guidance was given in the supplied material. Management’s longer-term strategic objective remains achieving high-quality organic growth of 4% or more through the cycle. The filing also says tariff policies create uncertainty and could weigh on customer demand, although ITW expects to recover increased tariff costs through price increases and benefits from manufacturing products near their markets. Product line simplification remains a caveat because it reduced second-quarter and year-to-date organic revenue by 60 basis points.
What drove it
- Test and Measurement — Revenue increased to $769 million and operating income to $193 million in the second quarter, from $686 million and $157 million, respectively.
- Welding growth — Revenue rose to $549 million from $479 million, while operating income increased to $178 million from $159 million.
- Polymers and Fluids — Revenue reached $476 million and operating income $140 million, compared with $438 million and $121 million a year earlier.
- Enterprise initiatives — Enterprise initiatives contributed 120 basis points to second-quarter operating margin, while positive operating leverage contributed 90 basis points.
- Regional demand — North American organic revenue grew 6.4% and Asia Pacific organic revenue grew 5.6% in the second quarter, while Europe, the Middle East and Africa were flat.
Watch items
- Food Equipment organic revenue declined 2.2% in the second quarter and its operating margin fell 60 basis points to 27.1%.
- Automotive OEM organic revenue declined 0.4%, while unfavorable price/cost reduced its second-quarter margin by 90 basis points despite a 30-basis-point margin increase to 21.6%.
- Product line simplification reduced consolidated organic revenue by 60 basis points in both the second quarter and year-to-date period, and reduced Automotive OEM organic revenue by 80 basis points in the quarter.
- The company said current tariff policies create additional uncertainty and may negatively affect customer demand, even though it expects to recover increased costs through price increases.
