Illinois Tool Works beats Q3 EPS estimates, raises 2026 outlook
ITW•Illinois Tool Works reported Q3 revenue of $4.24 billion, slightly below expectations, and EPS of $3, beating estimates at $3.00. It raised 2026 GAAP EPS guidance to $11.45-$11.55 and revenue growth guidance to 4.5%-5.5%.
1. Quarterly results
Illinois Tool Works reported Q3 revenue of $4.24 billion, slightly below the $4.26 billion consensus estimate. GAAP EPS rose 7% to $3, above the $2.98 estimate, while net income was $855 million and organic growth was 4%.
2. 2026 outlook
The company raised its 2026 GAAP EPS guidance to $11.45-$11.55, lifting the midpoint by $0.05, and raised its revenue growth outlook to 4.5%-5.5%. It maintained organic growth guidance of 3%-4% and projected operating margin of 26.5%-27.5% and free cash flow equal to 100% of net income.
3. Growth and margins
Illinois Tool Works said accelerating demand in its Welding, Test & Measurement and Electronics segments supported top-line growth. Price increases and other actions more than offset rising raw material costs, and enterprise initiatives contributed 130 basis points to margin expansion in the quarter. The company repurchased $187 million in shares.
