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ITWIllinois Tool Works Inc.
$270.47$77.8B
Overview & Tools
OverviewChart Terminal ↗Visualize
Valuation & Forecasts
Valuation ModelsEstimatesDCF Model
Price & Analyst Data
Analyst TargetsPrice History
Financial Statements
Income StatementBalance SheetCash FlowRatios & Margins
Performance
P/E HistoryRevenue HistoryEarnings HistoryDividend HistoryTotal Return
Discovery & Screens
Live BreakoutsStock ScreenerOwnership
ITW logo

Illinois Tool Works Inc.

ITW
NYSE · Industrial Machinery
$270.47
At close - Sep 22, 4:00 PM EDT - USD
Market Cap$77.81B
P/E25.8x
52W High$303.15
Volume917.08K
OverviewTerminalAnalysisFinancialsValuationEarningsBreakoutsOwnership
VCP Research Verdict2026Q2

Margin Expansion Masks Rising Leverage and Cyclical Risk

ITW's 80/20 business model continues to drive structural margin expansion, with gross margins at 44.1% and operating margins at 26.7% in Q2 2026, supported by pricing power and cost discipline. However, organic growth remains tepid at 0.92% YoY, and the compan...

GrowthStable
ProfitabilityStrong
ValuationAttractive
TechnicalsMixed
Explore valuation models
MARKET ACTION

ITW price & volume

Price trend, volume and key moving averages

Launch Terminal
Loading chart...
Decision Checklist4 Core Signals

What matters now

The signals most likely to change the investment case.

01

Earnings momentum

12/12 Beats

EPS beat 12 of last 12 quarters

02

Valuation risk

-27% Peers

P/E is 27% below peer median

03

Market leadership

RS 57 · Avg

Average momentum (RS Rating: 57)

04

Mixed Trend

Mixed

Price < 50DMA but > 200DMA

Next CatalystEstimated earnings · Oct 28
01

Build the investment case

Start with the evidence for owning the stock and the risks that can break the thesis.

EXECUTIVE THESIS

The Investment Case

Full Analysis
Fundamental Trajectory

Revenue growth of 6.1% YoY in Q2 2026 masks organic growth of only 4.5%, but gross margin expanded to 44.1% from 43.2%, driving operating income up 10.1% and EPS up 10.1% to $2.84.

Analyst Consensus+3.8% target
Hold(28 analysts)
6 Buy13 Hold9 Sell

The Bull Case

Upside Catalysts

Strong earnings growth

ITW reported higher sales and increased earnings per share in Q4 2025, with full-year revenue reaching $16.04 billion.

Positive 2026 guidance

The company provided 2026 guidance expecting modest revenue growth and higher GAAP EPS, indicating confidence in future performance.

Aggressive share buybacks

ITW completed a $3.01 billion buyback, demonstrating commitment to returning capital to shareholders.

The Bear Case

Key Downside Risks

Market performance

Price History →

Trailing total returns as of 9/23/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).

YTD Return
ITW+9.70%
S&P 500 (^GSPC)+13.20%
1-Year Return
ITW+6.14%
S&P 500 (^GSPC)+15.98%
3-Year Return
ITW+23.55%
S&P 500 (^GSPC)+80.36%
5-Year Return
ITW+38.47%
S&P 500 (^GSPC)+76.80%
02

Test the fundamentals

Check whether operating performance supports the current valuation.

VALUATION & INTRINSIC VALUE

Valuation Scenarios

Valuation Analysis
Trailing P/EMedian
25.8x
Forward P/EExpansion
23.7x
EV/EBITDA60th %ile
18.6x
FCF YieldCash Flow
3.5%

Valuation vs 5-Year History

Multiple Range
Metric
Current
5Y Median
Historical Range
Percentile
P/E
25.8x
23.5x
60th· Fair
EV/EBITDA
18.6x
18.0x
60th· Fair
Price/FCF
28.7x
26.6x
60th· Fair
Current Multiple
5Y Median (50th %ile)

Intrinsic Value Scenarios

DCF Projection
Bear$149.89-44.6%
Base (Fair)$287.37+6.7%
Bull$510.86+88.9%
$149.89 Bear$287.37 Base$510.86 Bull
Current Market Price: $270.47
Trades at a 5.9% discount to Base DCF ($287.37)
Open DCF & Valuation Models →Chart Terminal ↗

Growth & profitability

Annual revenue & EPS trend
Revenue
$16.04B+0.9% YoY
Net income
$3.07B-12.1% YoY
Free cash flow
$2.71B-4.8% YoY
Operating margin
26.3%-0.5 pts YoY
ROIC (TTM)29%
Avg ROIC 5Y-
ROE (TTM)93.7%
Piotroski Score5 / 9
Financial Statements →
03

Monitor what changed

Recent results and news deserve attention only when they alter the forward view.

OPERATING RESULTS

Recent Earnings

Earnings History
EPS Beat Rate12/12 (100%)
Revenue Beat Rate4/12 (33%)
QuarterEPS (Act vs Est)Revenue (Act vs Est)
Q3 2026Latest
Jul 28, 2026
$2.84+1.8%
vs $2.79
$4.3B+2.7%
vs $4.2B
Q2 2026
Apr 30, 2026
$2.66+3.5%
vs $2.57
$4.0B+0.2%
vs $4.0B
Q1 2026
Feb 3, 2026
$2.72+1.1%
vs $2.69
$4.1B+0.7%
vs $4.1B
Q4 2025
Oct 24, 2025
$2.81+2.2%
vs $2.75
$4.1B-0.5%
vs $4.1B
Historical baseline: 12 quarters analyzedGAAP / Adjusted
MARKET COVERAGE

Latest News

5 Stories
Seeking Alpha·5d ago
The Dividend Kings Ranked By Quality Scores (September 2026)

Dividend Kings have a 50+ year track record of increasing dividends, showcasing resilience through economic challenges. I rank the Dividend Kings using my 9F Quality Scores, blending qualitative and quantitative factors for a robust, investment-grade assessment. ADP stands out as the best total-return candidate. It is undervalued, high-quality, and offering a strong projected dividend growth rate and Adjusted Chowder Number.

Seeking Alpha·Sep 14, 2026
Illinois Tool Works: Consistent Execution Leads To Organic Growth

Illinois Tool Works is a global industrial conglomerate with strong organic growth, high operating margins, and a disciplined capital allocation strategy. ITW is a Dividend King with a 59-year streak of increases, excellent dividend safety, and a forward yield of ~2.57%, currently trading just below fair value. Management guides for 4–5% revenue and 7–11% EPS growth in 2026, supported by innovation, price increases, and bolt-on acquisitions.

Zacks Investment Research·Sep 11, 2026
Illinois Tool Exhibits Strong Prospects Despite Persisting Headwinds

ITW gains from broad-based segment growth, strong new-product demand and efficiency initiatives, while automotive and foodservice remain weak.

Defense World·Sep 11, 2026
Head to Head Comparison: Hillman Solutions (NASDAQ:HLMN) vs. Illinois Tool Works (NYSE:ITW)

Illinois Tool Works (NYSE: ITW - Get Free Report) and Hillman Solutions (NASDAQ: HLMN - Get Free Report) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends. Insider and Institutional Ownership 79.8% of Illinois

Filtered for Illinois Tool Works Inc.More Headlines
04

Compare before deciding

Benchmark ITW against direct peers instead of judging its metrics in isolation.

Peers Comparison

Key metrics vs top competitors for Illinois Tool Works Inc. (ITW)

Full Screener →
CompanyPriceMarket CapP/E RatioRev Growth (1Y)Net MarginROEDiv Yield
ITW logoITWIllinois Tool Works Inc.Current
$270.47$77.81B25.780.92%19.11%93.72%2.26%
EMR logoEMREmerson Electric Co.
$154.25$86.4B38.183%13.83%12.68%—
ETN logoETNEaton Corporation plc
$442.49$171.82B42.3010.33%12.76%19.51%—
HON logoHONHoneywell International Inc.
$211.85$67.14B14.397.85%22.73%41.21%—
ROK logoROKRockwell Automation, Inc.
$427.19$47.54B55.700.97%13.38%32.94%—
PH logoPHParker-Hannifin Corporation
$964.85$121.65B112.98-71.01%16.97%25.1%—

Compare ITW vs Peers

Illinois Tool Works Inc. (ITW) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.

Closest Rival

vs EMR

Most directly comparable listed peer for ITW.

Scale Benchmark

vs ETN

Larger-name benchmark to compare ITW against a more recognizable public peer.

Peer Set

Compare Top 5

vs EMR, ETN, HON, ROK

05

Keep researching

Verify the primary filings, follow material updates, and answer the remaining questions.

ITW SEC Filings & Documents

Illinois Tool Works Inc. (ITW) SEC filings — annual & quarterly reports (10-K, 10-Q)

8-K Announcements

6
Material company update

Aug 13, 2026·SEC

Material company update

Jul 28, 2026·SEC

Material company update

May 22, 2026·SEC

10-K Annual Reports

3
FY 2026

Feb 13, 2026·SEC

FY 2025

Feb 14, 2025·SEC

FY 2024

Feb 9, 2024·SEC

10-Q Quarterly Reports

6
FY 2026

Aug 6, 2026·SEC

FY 2026

May 7, 2026·SEC

FY 2025

Oct 24, 2025·SEC

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ITW Frequently Asked Questions

Illinois Tool Works Inc. (ITW) stock FAQ — growth, dividends, profitability & financials explained

Growth & Financials
What is Illinois Tool Works Inc.'s revenue?

Illinois Tool Works Inc. (ITW) reported $16.47B in revenue for fiscal year 2025. This represents a 230% increase from $5.00B in 1996.

How fast is Illinois Tool Works Inc. growing?

Illinois Tool Works Inc. (ITW) grew revenue by 0.9% over the past year. Growth has been modest.

Is ITW profitable?

Yes, Illinois Tool Works Inc. (ITW) is profitable, generating $3.19B in net income for fiscal year 2025 (19.1% net margin).

Dividend & Returns
Does ITW pay dividends?

Yes, Illinois Tool Works Inc. (ITW) pays a dividend with a yield of 2.26%. This makes it attractive for income-focused investors.

What is ITW's return on equity?

Illinois Tool Works Inc. (ITW) has a return on equity (ROE) of 93.7%. This is excellent, indicating efficient use of shareholder capital.

What is Illinois Tool Works Inc.'s free cash flow?

Illinois Tool Works Inc. (ITW) generated $2.92B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

What if you invested $1,000 in ITW back in 1996?

Total return calculator · dividends reinvested · 30+ years of data

See returns →