Illinois Tool Works raises 2026 GAAP EPS guidance to $11.35-$11.55, up $0.15
Company raises 2026 organic revenue growth guidance to 3-4%, up 1.5 percentage points
Illinois Tool Works projects 2026 operating margin of 26.5-27.5%
Overview
US industrial manufacturer's Q2 revenue rose 6.1%, beating analyst expectations
Q2 GAAP EPS grew 10.1% to $2.84, beating analyst expectations
Company raised full-year 2026 revenue and EPS guidance
Result drivers
Segment growth - Double-digit organic growth in Welding and Test & Measurement and Electronics segments, with strong performance in Polymers & Fluids, drove overall results
Margin expansion - Operating margin expanded 40 bps to 26.7% as enterprise initiatives contributed 120 bps
Pricing actions - Price increases more than offset higher raw material costs, though timing lags modestly diluted margins
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 11 "hold" and 4 "sell" or "strong sell"
The average consensus recommendation for the consumer goods conglomerates peer group is "buy"
Wall Street's median 12-month price target for Illinois Tool Works Inc is $278.00, about 2.4% below its July 27 closing price of $284.82
The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 23 three months ago
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