Fool - Investing News·Sep 30, 2026
Most Investors Overlook Dividends. That's a Costly Mistake.Making good money in the stock market may or may not happen the way it seems like it should.
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...
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Start with the evidence for owning the stock and the risks that can break the thesis.
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.
ITW reported higher sales and increased earnings per share in Q4 2025, with full-year revenue reaching $16.04 billion.
The company provided 2026 guidance expecting modest revenue growth and higher GAAP EPS, indicating confidence in future performance.
ITW completed a $3.01 billion buyback, demonstrating commitment to returning capital to shareholders.
Trailing total returns as of 10/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (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 |
Making good money in the stock market may or may not happen the way it seems like it should.
Illinois Tool Works (ITW) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
Illinois Tool Works Inc. (NYSE: ITW - Get Free Report) declared a quarterly dividend on Friday, August 7th. Investors of record on Wednesday, September 30th will be given a dividend of $1.72 per share by the industrial products company on Friday, October 9th. This represents a $6.88 annualized dividend and a yield of 2.5%. The ex-dividend
Dividend Kings are underperforming SPY in September, with a -4.22% average return versus SPY's marginal gain. Despite aggregate weakness, 29 Dividend Kings appear both undervalued and offer a long-term expected return of at least 10%. Recent dividend increases and higher projected earnings growth have modestly improved the Kings' average dividend growth rate to 4.49%.
Benchmark ITW against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Illinois Tool Works Inc. (ITW)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $267.14 | $76.86B | 25.47 | 0.92% | 19.11% | 93.72% | 2.29% | |
| $161.38 | $90.39B | 39.95 | 3% | 13.83% | 12.68% | — | |
| $445.09 | $172.83B | 42.55 | 10.33% | 12.76% | 19.51% | — | |
| $212.87 | $67.47B | 14.46 | 7.85% | 22.73% | 41.21% | — | |
| $450.74 | $50.16B | 58.77 | 0.97% | 13.38% | 32.94% | — | |
| $984.91 | $124.18B | 115.33 | -71.01% | 16.97% | 25.1% | — |
Illinois Tool Works Inc. (ITW) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Illinois Tool Works Inc. (ITW) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 13, 2026·SEC
Jul 28, 2026·SEC
May 22, 2026·SEC
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Illinois Tool Works Inc. (ITW) stock FAQ — growth, dividends, profitability & financials explained
Illinois Tool Works Inc. (ITW) reported $16.47B in revenue for fiscal year 2025. This represents a 230% increase from $5.00B in 1996.
Illinois Tool Works Inc. (ITW) grew revenue by 0.9% over the past year. Growth has been modest.
Yes, Illinois Tool Works Inc. (ITW) is profitable, generating $3.19B in net income for fiscal year 2025 (19.1% net margin).
Yes, Illinois Tool Works Inc. (ITW) pays a dividend with a yield of 2.29%. This makes it attractive for income-focused investors.
Illinois Tool Works Inc. (ITW) has a return on equity (ROE) of 93.7%. This is excellent, indicating efficient use of shareholder capital.
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.
