Illinois Tool Works Inc

Latest Results (08.06.2026):

Illinois Tool Works Inc first quarter 2026 results: ITW reported revenue of $4.02 billion in Q1 2026, GAAP diluted EPS of $2.66 (up 12% year-over-year), operating margin of 25.4% (up 60 bps), and raised full-year 2026 GAAP EPS guidance to $11.10–$11.50.

Revenue and Growth

Q1 2026 revenue was $4.02 billion, up 4.6% versus Q1 2025. Organic growth was 0.4%, foreign currency added 3.9% and acquisitions contributed 0.3%.

Earnings and Margins

GAAP diluted EPS was $2.66, a 12% increase. Operating income rose to $1.02 billion (up 7%) and operating margin expanded 60 basis points to 25.4%, with enterprise initiatives contributing ~120 bps of improvement.

Segment Performance

Capex-related segments led demand: Welding delivered 6% organic growth and Test & Measurement and Electronics grew 5% organically. Segment margins remained strong (Welding 32.1%, Specialty Products 31.3%, Polymers & Fluids 28.0%).

Cash Flow and Capital Returns

Operating cash flow was $623 million and free cash flow $528 million (69% of net income for the quarter). ITW repurchased $375 million of stock in Q1 and expects roughly $1.5 billion of repurchases for the full year.

Guidance

Full-year 2026 GAAP EPS guidance was raised by $0.10 to $11.10–$11.50 (midpoint ≈ +8%). Revenue growth is projected at 2–4% (organic 1–3%). Company expects full-year operating margin of 26.5–27.5% and free cash flow to exceed 100% of net income.

Tax and One-time Items

The reported Q1 effective tax rate was 20.6%, which includes a $34 million discrete tax benefit (resolution of a U.S. tax audit); the adjusted quarterly tax rate excluding that item was 24.1%.

Balance Sheet and Liquidity

At March 31, 2026 ITW had $827 million of cash and equivalents, total debt of $9.15 billion, and shareholders’ equity of $3.23 billion, with invested capital and returns remaining robust (after‑tax ROIC ≈ 27.1% annualized for the quarter).