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Illinois Tool Works (ITW) stock

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NYSE: ITW NYSE Industrial Machinery & Supplies & Components Next results ~February 2, 2027

B Fundamentals grade

Illinois Tool Works is a US-listed company in the industrial machinery & supplies & components industry. Its financial year ends in December.

Stock price today

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Third-party market data · may be delayed

Fair value per share

~$160

Cash-flow model

Base case. Range ~$110–$230 across our lower- and higher-growth cases (-2%–8% a year).

Price vs value

Overvalued

The price is above our entire value range; our base value is 44% below it.

Price used: $290.05, November 2, 2026

Illinois Tool Works valuation: adjust assumptions and compare models →

Who’s trading

What company insiders, investment funds and members of Congress have been doing with the stock, from their own filings.

Value diary

Our note on each quarter Illinois Tool Works files

10-Q filed October 28: Illinois Tool Works

Model value +4.7%

Revenue for the twelve months to September 2026 was $16.6bn, up 4.8% on a year earlier, faster than the 4.3% growth a quarter earlier. Free-cash-flow margin held at 17.2%. Our model value rises from $154 to $161 a share, against a share price of $285. The rating stays Sell. At that price, our model says the market is pricing in about 11.7% a year of cash-flow growth for five years, faster than the 2.9% a year revenue growth it has delivered.

Source: 10-Q filed October 28, 2026 on SEC EDGAR · Financials · Valuation

Earlier notes (2)

10-Q filed August 6: Illinois Tool Works

Illinois Tool Works grew revenue 4.8% to $16.6bn in the twelve months to June 2026, an acceleration from the prior quarter's 4.3% pace. Free-cash-flow margin was steady at 17.2%. Our model value barely moved, sitting at $154 a share versus a market price of $276, and the rating remains Sell. That gap matters: at the current price, the market is pricing in roughly 11.7% annual cash-flow growth over five years, well ahead of the 2.9% a year revenue growth the company has actually delivered. Nothing in the latest numbers closes that distance.

10-Q on SEC EDGAR

Where Illinois Tool Works stands after its latest 10-Q

Revenue for the twelve months to June 2026 was $16.5bn, up 4.3% on a year earlier, faster than 2.9% a quarter earlier. Free-cash-flow margin held at 17.7%. Against its peers on growth, profitability, cash generation and balance sheet, it grades B. It passes 3 of our 6 financial-health checks. Our cash-flow model value is $149 a share, against a share price of $273. At that price, our model says the market is pricing in about 12.4% a year of cash-flow growth for five years, faster than the 2.6% a year revenue growth it has delivered.

10-Q on SEC EDGAR

Written from the company's filings and our models when each quarter's report arrives. Figures in older notes are as published at the time. Not investment advice.

The Fundamentalytics view

Next results ~February 2, 2027 (estimated)

Illinois Tool Works's trailing-twelve-month revenue grew 4.8% year on year, with a free-cash-flow margin of 17.2%. Where it stands out: net margin of 19.4% ranks 2 of 76 industrial machinery & supplies & components companies we cover. Where it lags: long-term debt as % of assets of 43.4% ranks 55 of 59 industrial machinery & supplies & components companies we cover.

Our discounted-cash-flow model values the business at ~$160 per share in the base case (~$110–$230 across growth scenarios) — model values under stated assumptions, not a price target.

Current signal Revenue growth accelerating: TTM revenue growth rose to 4.8% (+0.5pp vs the prior quarter).

Assembled from SEC-filed figures — the full workings are on this page and in our methodology. Observations, not recommendations.

Highlights

How we pick these

Strengths

  • High operating margin. 26.6% of revenue is left as operating profit, against a median of 13.0% for industrial machinery & supplies & components companies we cover.
  • Shrinking share count. Diluted shares fell 2.0% in a year, so each share owns more of the business.
  • Beating expectations. Earnings per share beat the analysts' consensus estimate in each of the last four quarters.

Things to watch

  • Priced above our value. The share price of $290.05 is 44% above our value per share of $160.
  • Below peers: long-term debt as % of assets. Long-term debt as % of assets of 43.4% ranks 55 of 59 industrial machinery & supplies & components companies we cover (median 23.4%).
  • Below peers: revenue growth. Revenue growth of 4.8% ranks 58 of 75 industrial machinery & supplies & components companies we cover (median 8.3%).

Latest results: FY2026 Q3

Filed October 28, 2026
Earnings per share
$3.00 against an average estimate of $2.97: beat by 0.9%
Revenue
$4.24bn, up 4.4% on a year earlier
Share reaction
-0.1% in the first session after the results on October 27, 2026, against +0.9% for the S&P 500
Guidance given
GAAP EPS guidance $11.45 to $11.55 (Full Year 2026); revenue growth guidance growth 4.5% to 5.5% (Full Year 2026)
Next report
October 27, 2026; average EPS estimate $2.98

Illinois Tool Works' figures from its SEC filings and results release; estimates are the analysts' average. Not a recommendation.

Price chart

  • 1 day+4.1%
  • 1 week+5.0%
  • 1 month+10.3%
  • This year+20.0%
  • 1 year+22.0%
  • 5 years+42.5%
  • S&P 500 this year+11.2%

Closing prices to 2026-11-02. Price change only, dividends excluded.

Loading chart…

Third-party market data · may be delayed

At a glance

Trailing twelve months, from SEC filings

Profitability

Revenue (TTM)
$16.6B
Operating margin
26.6%
Net margin
19.4%
EPS (TTM, diluted)
$11.21

Growth

Revenue growth
+4.8%
Change in growth rate
+0.5 pts
Share count change
−2.0%

Cash

Free cash flow (TTM)
$2.9B
FCF margin
17.2%
Stock pay % of revenue
0.5%

Earnings

Last results
October 27, 2026
Next results (est.)
February 2, 2027

News & updates

Updated October 31, 2026

Company announcements, filed results and changes that matter to shareholders.

  1. Dividend
  2. Results
  3. Guidance
  4. Our research
  5. Insider trade
  6. Announcement
  7. Dividend
  8. Results

Refreshed hourly when new source data is available. Summaries are checked against company releases and SEC filings. Company announcement headlines are labelled when a checked summary is unavailable.

Valuation

Illinois Tool Works valuation models and calculator

What the price is pricing in

The share price implies about 12.0% a year of cash-flow growth for five years.That is faster than the 2.9% a year revenue growth Illinois Tool Works has delivered.

  • Priced in12.0%
  • Last 12 months4.8%
  • 3 years a year1.1%
  • 5 years a year2.9%

Our cash-flow model with every input fixed except growth over the next five years, solved for the growth at which the model value equals the share price ($285.76, Nov 3, 2026). Cash-flow growth then fades to 2.5% a year; discount rate 8.5%. Delivered figures are revenue growth from SEC filings. This is a model exercise, not investment advice or a forecast of the share price. All companies

Fundamentalytics rating

model v1.6 · 2026-11-03
Sell12-month view
12-month price target
~$160
Price used
$285.76close November 3, 2026
Implied change
▼ 43%
Uncertainty
Medium

How we got here: a discounted-cash-flow model of Illinois Tool Works's free cash flow after stock-based pay with after-tax interest added back ($3.1B, FY2026 Q3 TTM), growing 3.7% and 3.2% in the next two years (forecasts, guidance and its record), then back to 3% by year five, and fading to 2.5%, discounted at 8.5%. Lower and higher growth cases span ~$110–~$230 ; that spread sets a 25% margin before we rate Buy or Sell.

Produced by Fundamentalytics' automated valuation model on November 3, 2026, using delayed market prices. Rating meanings, methodology and conflicts: recommendations disclosure and research disclaimer. General research, not personal advice — it does not consider your circumstances. Prices can fall as well as rise.

Our value per share comes from a discounted-cash-flow model of Illinois Tool Works's free cash flow after stock-based pay ( $3.1B, FY2026 Q3 TTM, with after-tax interest added back): growth for five years as below (the first two years from forecasts, guidance and the company's record), fading to 2.5%, discounted at 8.5%, then cash added and debt and other claims subtracted. These are model values under stated assumptions, not price targets or recommendations.

Valuation models

We value Illinois Tool Works as an operating company, with every model that fits that kind of business. Cost of equity 9%: the 10-year Treasury yield (4.9%) plus a beta of 0.89 times a 4.5% equity risk premium.

Value per share by model
Model Value per share In the combined value?
Cash-flow model (DCF) Free cash flow to the firm (after stock pay, with after-tax interest added back), grown then faded to 2.5%, discounted at 8.5% as the firm rate, less debt and other claims. ~$160 ~$110–$230 Primary model, counts double
Forward price-to-earnings vs peers Next year's consensus earnings per share times peers' typical (harmonic-mean) forward price-to-earnings. Uses analysts' consensus estimates (third-party data), not our forecasts. ~$210 ~$190–$280 Included
Residual income Book value plus the present value of returns above the cost of equity, fading over ten years. — Does not apply: return on equity above 40%: buybacks or intangibles make book value too small an anchor
Justified price-to-book Book value times (return on equity - growth) / (cost of equity - growth): steady-state returns. ~$180 ~$150–$220 Included
Combined value Weighted average of the models that apply: the primary model (cash-flow model (dcf)) counts double. Models more than 5x or less than 0.2x the share price, or more than 3x away from the other models' median, are left out. ~$180 ~$160–$210 3 models

Different models fail in different ways, so where several apply we average them rather than trust one. Peer-based models compare Illinois Tool Works with Industrial Machinery & Supplies & Components in our coverage, using third-party market data. Model values are estimates under stated assumptions, updated as new filings arrive; not price targets or investment advice. How each model works.

What moves the value

  • Revenue growth 5 points lower ▼ −29%
  • Revenue growth 5 points higher ▲ +38%
  • Free-cash-flow margin 1 point lower ▼ −6%
  • Last year's free-cash-flow margin change, if it persists ▼ −4%
  • Discount rate 1 point higher ▼ −17%
Value per share under different assumptions
Discount rate ↓ / growth → −5% growth0% growth5% growth10% growth15% growth20% growth
7% $126$182$256$353$481$645
8.5% $89$130$183$253$344$460
10% $67$99$140$193$262$351

Valuation multiples over time Market data may be delayed

At fiscal year end 20152016201720182019202020212022202320242025Now
Share price$71.94$97.15$134.96$105.13$153.07$178.21$220.26$201.63$245.11$242.74$241.71$290.05
Market value$26.6bn$34.7bn$46.8bn$35.4bn$49.8bn$56.7bn$69.7bn$62.6bn$74.4bn$72.3bn$70.7bn$83.5bn
+ Net debt (− = net cash)$4.3bn$5.4bn$5.2bn$5.9bn$5.8bn$5.9bn$6.7bn$7.6bn$8.5bn$6.9bn$8.1bn$8.6bn
Enterprise value$31.0bn$40.0bn$52.0bn$41.3bn$55.6bn$62.6bn$76.4bn$70.2bn$82.9bn$79.2bn$78.8bn$92.1bn
Multiples
Price / sales 2.0x2.6x3.3x2.4x3.5x4.5x4.8x3.9x4.6x4.5x4.4x5.0x
Price / earnings 14.0x17.0x27.7x13.8x19.8x26.9x25.9x20.6x25.2x20.7x23.0x25.9x
Price / free cash flow 13.2x17.1x22.2x14.5x18.7x22.1x30.8x32.4x24.1x25.4x26.1x29.1x
EV / EBITDA 10.0x12.1x13.9x10.7x15.2x19.9x20.4x17.3x19.2x17.4x17.4x19.3x

Market value uses the period's diluted share count; figures for each fiscal year use that year's results and the price at year end. "Now" uses today's price and the last twelve months.

Moat

87 /100

Strong moat

How hard Illinois Tool Works's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

  • Returns on capital 20 / 20

    Net income has been a median 17.8% of total assets over 10 years.

  • Pricing power 10 / 20

    Gross margin has been a median 41.9%, moving by 6.2 percentage points (standard deviation) across 10 years.

  • Durability 18 / 20

    Operating margin has been a median 24.5%; its worst year was 22.5%.

  • Cash conversion 19 / 20

    Free cash flow was positive in 10 of 10 years, at a median 17.3% of revenue.

  • Discipline 20 / 20

    The diluted share count fell 9.3% over five years; stock-based pay has been a median 0.4% of revenue.

AI disruption exposure: Low. In this industry, the business rests on physical assets, regulated networks or products AI itself depends on.

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

Forecasts and guidance

Analysts' consensus

Fiscal yearEPSGrowthRevenueGrowth
Current $11.47 +9% $16.8bn +5%
Next $12.34 +8% $17.4bn +4%

Next year's EPS estimate has moved +0.2% in 90 days, across 14 analysts.

How the EPS forecast has moved

The consensus EPS forecast for the current fiscal year is +0.5% on 90 days ago. In the last 30 days, 2 analysts raised Illinois Tool Works's forecast and 2 cut it.

Consensus EPS forecast Illinois Tool Works, last 90 days
$11.00 $11.50 $12.00 $12.50 90 days ago 60 days ago 30 days ago 7 days ago Now Current fiscal year, 90 days ago: $11.42 Current fiscal year, 60 days ago: $11.45 Current fiscal year, 30 days ago: $11.46 Current fiscal year, 7 days ago: $11.44 Current fiscal year, Now: $11.47 $11.47 Next fiscal year, 90 days ago: $12.31 Next fiscal year, 60 days ago: $12.39 Next fiscal year, 30 days ago: $12.40 Next fiscal year, 7 days ago: $12.35 Next fiscal year, Now: $12.34 $12.34

Average of analysts' published estimates (third-party data).

View chart data
Period Current fiscal yearNext fiscal year
90 days ago $11.42$12.31
60 days ago $11.45$12.39
30 days ago $11.46$12.40
7 days ago $11.44$12.35
Now $11.47$12.34

Earnings against estimates

Quarter toEstimateActualSurprise
Sept 2026 $2.97 $3.00 +0.9%
Jun 2026 $2.80 $2.84 +1.5%
Mar 2026 $2.56 $2.66 +3.7%
Dec 2025 $2.69 $2.72 +1.2%

Adjusted EPS as companies report it, against the average analyst estimate.

Management guidance

Earnings release, October 27, 2026
  • Revenue growth guidance Full Year 2026 4.5% growth to 5.5% growth Raised
    “Based on current demand levels and prevailing foreign exchange rates, the company is raising revenue growth guidance to 4.5 to 5.5 percent and reaffirming its organic growth guidance of 3 to 4 percent.” source
  • Organic revenue growth guidance Full Year 2026 3% growth to 4% growth Maintained
    “Based on current demand levels and prevailing foreign exchange rates, the company is raising revenue growth guidance to 4.5 to 5.5 percent and reaffirming its organic growth guidance of 3 to 4 percent.” source
  • GAAP EPS guidance Full Year 2026 $11.45 to $11.55 GAAP Raised
    “ITW is raising its full year 2026 GAAP EPS guidance by $0.05 at the midpoint to a narrowed range of $11.45 to $11.55 per share, representing 10 percent growth at the midpoint.” source
  • Operating margin guidance Full Year 2026 26.5% to 27.5% Maintained vs 26.5 to 27.5
    “Operating margin is projected to be in the range of 26.5 to 27.5 percent, with enterprise initiatives contributing more than 100 basis points.” source
  • Free cash flow to net income conversion guidance Full Year 2026 about 100%
    “Free cash flow is projected to be approximately 100 percent of net income, and the company expects to repurchase approximately $1.5 billion of its own shares.” source
  • Projected effective tax rate Full Year 2026 23% to 24% Maintained vs 23 to 24
    “The projected effective tax rate is 23 to 24 percent.” source

Figures and quotations are management's, copied from the company's own press release (SEC 8-K exhibit) and checked word for word against it. Forward-looking statements are the company's expectations, not ours and not advice; guidance can change or be missed.

How our valuation uses these forecasts

Our cash-flow model grows Illinois Tool Works's revenue by +3.7% next year and +3.2% the year after, then fades back toward its own record by year five. Next year's rate weighs analysts' consensus (+3.9%, weight 46%) , management guidance (+4.0%, weight 32%) and the company's own record (+3.0%, weight 22%) . How the weights are set.

Analyst recommendations

16 analysts, Oct 2026
Buy16%
Hold1275%
Sell319%

Monthly trend

  1. Oct 202612316
  2. Sep 202611316
  3. Aug 202610316
  4. Jul 202610316

Counts of recommendations published by analysts covering Illinois Tool Works, by month. Source: Aggregated broker recommendations (third-party data). Aggregated counts only: we do not reproduce any firm's recommendation or price target, and these are not Fundamentalytics ratings.

Positioning

Short interest
2.9%
of tradable shares
Days to cover
6.02
at average volume
Short interest, 1 month
−5%
to October 15, 2026
Held by institutions
87%
of shares
Held by insiders
0.4%
of shares
Employees
43,000
full time

Consensus figures average analysts' published estimates (third-party data); guidance is the company's own. Neither is our forecast. Short interest is reported twice a month and lags. Market data may be delayed.

This section is general information, not investment advice or a personal recommendation, and it does not take account of your objectives or circumstances. Forecasts and guidance are estimates, not promises: companies miss their own guidance and analysts' figures are often revised. Prices can fall as well as rise, and you can lose money. See our disclaimer.

Share-price performance

Market data may be delayed

What moved the share price

Last 12 months +22.0%

$237.84 on October 31, 2025 to $290.05

ThenNowEffect
Revenue (last 12 months) $15.8bn $16.5bn +4.3%
Net margin 21.3% 19.4% −9.0%
P/E multiple 20.9x 26.3x +26.1%
Share count 295m 289m +1.9%

Biggest factor: p/e multiple.

Last 3 years +33.7%

$216.98 on November 3, 2023 to $290.05

ThenNowEffect
Revenue (last 12 months) $16.1bn $16.5bn +2.5%
Net margin 19.3% 19.4% +0.5%
P/E multiple 21.5x 26.3x +22.4%
Share count 307m 289m +6.0%

Biggest factor: p/e multiple.

The effects multiply back to the price change exactly. Results are the last 12 months as known on each date (filings assumed public 45 days after quarter end).

Return and risk by year

Calendar year 202120222023202420252026 to date
Return
ITW+24%−9%+22%−1%−0%+20%
Industry peers (median)+19%−15%+19%+2%+13%+3%
S&P 500+29%−18%+26%+25%+18%+11%
Months that ended higher
ITW75%33%50%50%58%55%
S&P 50075%42%67%75%75%46%
Largest fall from a high during the year
ITW−13%−28%−15%−13%−20%−17%
S&P 500−5%−25%−10%−8%−19%−9%

Worst fall since November 2, 2015: 38% from February 20, 2020 to March 23, 2020. Getting back needed a 61% gain, reached on July 27, 2020, 126 days after the low.

Price behaviour

52-week range
$235.06 – $295.41
From 52-week high
−1.8%
vs 50-day average
+7.2%
vs 200-day average
+8.3%
Volatility (1 year)
22%
Beta vs S&P 500
0.48

Volatility is the annualised standard deviation of daily returns. Beta 1.5 means the shares typically moved 1.5% for each 1% move in the S&P 500 over the past year. Prices to November 2, 2026.

Share price after results

Next day
4 up, 8 down
typical move ±2.4%
After a week
4 up, 7 down
typical move ±3.7%
After a month
7 up, 4 down
typical move ±4.2%
Results releasedNext dayS&P 500 next day5 days21 days
October 27, 2026 −0.1% +0.9% — —
July 28, 2026 +2.7% −1.3% +3.6% +0.2%
April 30, 2026 −3.8% +1.3% −3.8% −7.5%
February 3, 2026 +9.3% −1.3% +11.4% +6.9%
October 24, 2025 −3.7% +2.0% −5.3% −5.8%
July 30, 2025 −1.4% −0.5% −0.8% +2.4%
April 30, 2025 −1.0% +0.7% −0.6% +1.4%
February 5, 2025 +0.2% +0.8% +0.5% +7.8%
October 30, 2024 +2.0% −2.3% +7.6% +8.4%
July 30, 2024 −0.3% +1.1% −3.9% +0.2%
April 30, 2024 −2.8% −1.9% −0.8% −4.6%
February 1, 2024 −1.9% +2.4% −2.4% −0.7%

From the close before the release date to the close 1, 5 and 21 trading days after it, so releases before the open and after the close are both captured. Past moves don't predict future ones.

Options strategies

All options ideas

How Illinois Tool Works’s listed options are priced, and three ways to use them that follow from our valuation. Quotes are delayed, read November 2, 2026. Check the live chain at your broker before trading.

Implied vs realised volatility

Options look rich

Option prices imply clearly more movement than the shares have shown. That strengthens the case for selling options.

  • Implied is 1.45× the last 60 days’ realised volatility , richer than 88% of the 229 stocks we screen today.
  • Why: implied is 1.45x 60-day realised, above 1-year realised, and in the top 20% of our coverage today.

Our rule for “rich”: implied at least 1.2× 60-day realised (beyond measurement noise), above 1-year realised (not just a calm spell), and in the top 20% of our coverage that day. Never with results inside the option’s life. These are our conventions, built on research showing option prices usually imply more movement than follows, most when the gap is wide. How we judge this.

Cash-secured put

Not offered: rated Sell.

We suggest selling a put only on well-rated companies, at a strike where the price you would pay if assigned (strike less premium) is at or below our fair value.

ITW Illinois Tool Works Grade B $289.34

Own 100 shares, sell the $310 call expiring December 18, 2026 (46 days) for $2.50 a share — $250 per contract.

Previous session · Bid $2.50, ask $3.10, quoted Mon 2 Nov, 17:27 New York time with ITW at $289.34. Option prices move with the shares: check the live chain at your broker before trading.

  • If ITW ends below $310: you keep your shares and the $250 — 0.9% extra on the position, 6.9% a year at that pace.
  • If it ends above $310: your shares are sold at $310, a total return of 8.0% including the premium — at or above our value of ~$160.
$2.3k $0 −$5.7k Break-even $286.84 Price $289.34 ← Our value ~$160
Profit or loss per contract at expiry, by share price (including the shares bought at today's price).
Premium
$250
Annualised
6.9%
Break-even
$286.84
Max gain
$2,316
Chance of selling
~23%

Collar

Not offered: no liquid put and call pair for the same expiry.

For holders of a stock trading at or above our fair value: buy a put for a floor and sell a call to pay for it.

General research, not personal advice. Options can lose you more than you expect and are not suitable for everyone: put sellers can be made to buy shares that keep falling, call sellers give up gains above the strike, and results or news can move prices sharply. Chances shown are approximations from each option’s delta. Spreads, fees and early assignment are not modelled.

Illinois Tool Works in five measures

Fundamentals grade B
Growth Profitability Cash Balance sheet Value

Growth, profitability, cash generation and balance sheet are percentiles against the companies we cover in the same industry, from SEC filings (100 = best). Value compares the share price with our modelled value range (50 = at our base value; higher = cheaper). A description of reported data and our model — not a quality score or advice.

Fundamentals

Revenue (TTM) Illinois Tool Works
$15.5B $16B $16.5B $17B FY23 Q4 FY24 Q3 FY25 Q2 FY26 Q3 Revenue (TTM), FY23 Q4: $16.1B Revenue (TTM), FY24 Q1: $16.1B Revenue (TTM), FY24 Q2: $16B Revenue (TTM), FY24 Q3: $15.9B Revenue (TTM), FY24 Q4: $15.9B Revenue (TTM), FY25 Q1: $15.8B Revenue (TTM), FY25 Q2: $15.8B Revenue (TTM), FY25 Q3: $15.9B Revenue (TTM), FY25 Q4: $16B Revenue (TTM), FY26 Q1: $16.2B Revenue (TTM), FY26 Q2: $16.5B Revenue (TTM), FY26 Q3: $16.6B $16.6B

Source: SEC EDGAR filings. Retrieved October 29, 2026.

View chart data
Period Revenue (TTM)
FY23 Q4 $16.1B
FY24 Q1 $16.1B
FY24 Q2 $16B
FY24 Q3 $15.9B
FY24 Q4 $15.9B
FY25 Q1 $15.8B
FY25 Q2 $15.8B
FY25 Q3 $15.9B
FY25 Q4 $16B
FY26 Q1 $16.2B
FY26 Q2 $16.5B
FY26 Q3 $16.6B
Revenue growth, TTM YoY Illinois Tool Works
-2% 0% 2% 4% 6% FY23 Q4 FY24 Q3 FY25 Q2 FY26 Q3 Revenue growth, TTM YoY, FY23 Q4: 1.1% Revenue growth, TTM YoY, FY24 Q1: 0.3% Revenue growth, TTM YoY, FY24 Q2: -0.4% Revenue growth, TTM YoY, FY24 Q3: -0.9% Revenue growth, TTM YoY, FY24 Q4: -1.3% Revenue growth, TTM YoY, FY25 Q1: -1.8% Revenue growth, TTM YoY, FY25 Q2: -1.4% Revenue growth, TTM YoY, FY25 Q3: -0.4% Revenue growth, TTM YoY, FY25 Q4: 0.9% Revenue growth, TTM YoY, FY26 Q1: 2.9% Revenue growth, TTM YoY, FY26 Q2: 4.3% Revenue growth, TTM YoY, FY26 Q3: 4.8% 4.8%

Source: SEC EDGAR filings. Retrieved October 29, 2026.

View chart data
Period Revenue growth, TTM YoY
FY23 Q4 1.1%
FY24 Q1 0.3%
FY24 Q2 -0.4%
FY24 Q3 -0.9%
FY24 Q4 -1.3%
FY25 Q1 -1.8%
FY25 Q2 -1.4%
FY25 Q3 -0.4%
FY25 Q4 0.9%
FY26 Q1 2.9%
FY26 Q2 4.3%
FY26 Q3 4.8%
Operating margin (TTM) Illinois Tool Works
25% 25.5% 26% 26.5% 27% FY23 Q4 FY24 Q3 FY25 Q2 FY26 Q3 Operating margin (TTM), FY23 Q4: 25.1% Operating margin (TTM), FY24 Q1: 26.1% Operating margin (TTM), FY24 Q2: 26.5% Operating margin (TTM), FY24 Q3: 26.5% Operating margin (TTM), FY24 Q4: 26.8% Operating margin (TTM), FY25 Q1: 25.9% Operating margin (TTM), FY25 Q2: 26.0% Operating margin (TTM), FY25 Q3: 26.2% Operating margin (TTM), FY25 Q4: 26.3% Operating margin (TTM), FY26 Q1: 26.4% Operating margin (TTM), FY26 Q2: 26.5% Operating margin (TTM), FY26 Q3: 26.6% 26.6%

Source: SEC EDGAR filings. Retrieved October 29, 2026.

View chart data
Period Operating margin (TTM)
FY23 Q4 25.1%
FY24 Q1 26.1%
FY24 Q2 26.5%
FY24 Q3 26.5%
FY24 Q4 26.8%
FY25 Q1 25.9%
FY25 Q2 26.0%
FY25 Q3 26.2%
FY25 Q4 26.3%
FY26 Q1 26.4%
FY26 Q2 26.5%
FY26 Q3 26.6%
FCF margin (TTM) Illinois Tool Works
16% 17% 18% 19% 20% FY23 Q4 FY24 Q3 FY25 Q2 FY26 Q3 FCF margin (TTM), FY23 Q4: 19.1% FCF margin (TTM), FY24 Q1: 18.4% FCF margin (TTM), FY24 Q2: 17.7% FCF margin (TTM), FY24 Q3: 17.3% FCF margin (TTM), FY24 Q4: 17.9% FCF margin (TTM), FY25 Q1: 18.1% FCF margin (TTM), FY25 Q2: 17.3% FCF margin (TTM), FY25 Q3: 17.9% FCF margin (TTM), FY25 Q4: 16.9% FCF margin (TTM), FY26 Q1: 16.9% FCF margin (TTM), FY26 Q2: 17.7% FCF margin (TTM), FY26 Q3: 17.2% 17.2%

Source: SEC EDGAR filings. Retrieved October 29, 2026.

View chart data
Period FCF margin (TTM)
FY23 Q4 19.1%
FY24 Q1 18.4%
FY24 Q2 17.7%
FY24 Q3 17.3%
FY24 Q4 17.9%
FY25 Q1 18.1%
FY25 Q2 17.3%
FY25 Q3 17.9%
FY25 Q4 16.9%
FY26 Q1 16.9%
FY26 Q2 17.7%
FY26 Q3 17.2%

Data: SEC EDGAR XBRL company facts (as filed in 10-K/10-Q); forms 10-K, 10-Q, 10-Q/A. Generated November 3, 2026. Definitions in our methodology.

Where the money goes

FY2025, from the 10-K

Each dollar Illinois Tool Works took in during FY2025, followed through to profit: what it cost to make, what went on research and running the business, and what was left after tax.

  1. Revenue $16B
  2. Cost of revenue $7.6B · 47.1%
  3. Gross profit $8.5B · 52.9%
  4. Research and development $302M · 1.9%
  5. Other operating costs $4B · 24.7%
  6. Operating income $4.2B · 26.3%
  7. Income tax $900M · 5.6%
  8. Interest and other $250M · 1.6%
  9. Net income $3.1B · 19.1%

Shares of revenue. Source: Illinois Tool Works's 10-K for FY2025, as filed with the SEC. "Other" lines are what the reported lines leave unexplained.

Financial statements

US$ billions unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Fiscal year 2009 Dec 2009 2010 Dec 2010 2011 Dec 2011 2012 Dec 2012 2013 Dec 2013 2014 Dec 2014 2015 Dec 2015 2016 Dec 2016 2017 Dec 2017 2018 Dec 2018 2019 Dec 2019 2020 Dec 2020 2021 Dec 2021 2022 Dec 2022 2023 Dec 2023 2024 Dec 2024 2025 Dec 2025 LTM Sept 2026
Income
Revenue 13.6 15.4 14.5 14.8 14.1 14.5 13.4 13.6 14.3 14.8 14.1 12.6 14.5 15.9 16.1 15.9 16.0 16.6
Gross profit 4.6 5.4 5.4 5.7 5.6 5.8 5.5 5.7 6.0 6.2 5.9 5.2 6.0 7.8 8.2 8.3 8.5 8.8
EBITDA 1.8 2.6 2.7 2.8 2.8 3.2 3.1 3.3 3.7 3.9 3.7 3.2 3.8 4.1 4.3 4.6 4.5 4.8
Operating income 1.4 2.3 2.4 2.5 2.5 2.9 2.9 3.1 3.5 3.6 3.4 2.9 3.5 3.8 4.0 4.3 4.2 4.4
Net income 1.0 1.5 2.1 2.9 1.7 2.9 1.9 2.0 1.7 2.6 2.5 2.1 2.7 3.0 3.0 3.5 3.1 3.2
Diluted EPS $1.94 $2.99 $4.19 $6.06 $3.74 $7.28 $5.13 $5.70 $4.86 $7.60 $7.74 $6.63 $8.51 $9.77 $9.74 $11.71 $10.49 $11.21
Growth (year on year)
Revenue −20.6% +13.6% −5.8% +1.9% −4.4% +2.5% −7.4% +1.4% +5.3% +3.2% −4.5% −10.9% +15.0% +10.2% +1.1% −1.3% +0.9% +4.8%
EBITDA −38.7% +47.2% +4.2% +3.7% +0.5% +12.0% −1.2% +6.1% +13.3% +3.1% −4.8% −14.0% +19.0% +8.3% +6.3% +5.6% −0.7% +6.4%
Operating income −44.7% +63.0% +4.7% +4.8% +1.6% +14.9% −0.7% +6.6% +14.0% +2.8% −5.1% −15.3% +20.6% +9.0% +6.6% +5.5% −1.1% +6.4%
Net income −36.0% +54.5% +37.8% +38.6% −41.5% +75.5% −35.5% +7.2% −17.1% +51.9% −1.6% −16.3% +27.7% +12.6% −2.5% +18.0% −12.1% +6.7%
Diluted EPS −33.3% +54.1% +40.1% +44.6% −38.3% +94.7% −29.5% +11.1% −14.7% +56.4% +1.8% −14.3% +28.4% +14.8% −0.3% +20.2% −10.4% +8.8%
Margins
Gross margin 34.0% 35.2% 37.4% 38.2% 39.5% 40.1% 41.2% 41.8% 42.0% 41.7% 42.0% 41.3% 41.3% 48.9% 50.7% 52.2% 52.9% 53.1%
EBITDA margin 13.0% 16.8% 18.6% 18.9% 19.9% 21.7% 23.2% 24.3% 26.1% 26.1% 26.0% 25.1% 26.0% 25.5% 26.8% 28.7% 28.3% 28.6%
Operating margin 10.2% 14.6% 16.3% 16.7% 17.8% 19.9% 21.4% 22.5% 24.3% 24.3% 24.1% 22.9% 24.1% 23.8% 25.1% 26.8% 26.3% 26.6%
Net margin 7.2% 9.7% 14.3% 19.4% 11.9% 20.3% 14.2% 15.0% 11.8% 17.4% 17.9% 16.8% 18.6% 19.0% 18.4% 21.9% 19.1% 19.4%
Free-cash-flow margin 14.1% 7.8% 11.0% 11.4% 15.3% 8.7% 15.0% 14.9% 14.7% 16.6% 18.9% 20.4% 15.6% 12.2% 19.1% 17.9% 16.9% 17.2%
Cash flow
Cash from operations 2.2 1.5 2.0 2.1 2.5 1.6 2.3 2.3 2.4 2.8 3.0 2.8 2.6 2.3 3.5 3.3 3.1 3.3
Capital spending 0.3 0.3 0.4 0.4 0.4 0.4 0.3 0.3 0.3 0.4 0.3 0.2 0.3 0.4 0.5 0.4 0.4 0.4
Free cash flow 1.9 1.2 1.6 1.7 2.2 1.3 2.0 2.0 2.1 2.4 2.7 2.6 2.3 1.9 3.1 2.8 2.7 2.9
Stock-based pay 0.1 0.1 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.1 0.1 0.1 0.1
Free cash flow after stock pay 1.9 1.1 1.5 1.6 2.1 1.2 2.0 2.0 2.1 2.4 2.6 2.5 2.2 1.9 3.0 2.8 2.6 2.8
Balance sheet
Cash 1.3 1.2 1.2 2.8 3.6 4.0 3.1 2.5 3.1 1.5 2.0 2.6 1.5 0.7 1.1 0.9 0.9 0.8
Total debt 3.1 2.9 4.0 5.0 6.3 7.4 7.4 7.8 8.3 7.4 7.8 8.5 8.3 8.3 9.5 7.9 9.0 9.4
Net debt (negative = net cash) 1.8 1.7 2.8 2.3 2.7 3.4 4.3 5.4 5.2 5.9 5.8 5.9 6.7 7.6 8.5 6.9 8.1 8.6
Diluted shares 502m 503m 495m 473m 449m 405m 370m 357m 347m 337m 326m 318m 316m 311m 304m 298m 292m 288m
Returned to shareholders
Dividends 0.6 0.6 0.7 0.9 0.5 0.7 0.7 0.8 0.9 1.1 1.3 1.4 1.5 1.5 1.6 1.7 1.8 1.9
Buybacks 0.0 0.4 1.0 2.0 2.1 4.3 2.0 2.0 1.0 2.0 1.5 0.7 1.0 1.8 1.5 1.5 1.5 1.7
Total returned 0.6 1.0 1.6 2.9 2.6 5.1 2.7 2.8 1.9 3.1 2.8 2.1 2.5 3.3 3.1 3.2 3.3 3.5

Source: SEC EDGAR XBRL company facts (US and foreign periodic filings); column headings link to the filing. EBITDA is operating income plus depreciation and amortisation. Free cash flow is cash from operations minus capital spending. Growth is left blank when last year's figure was a loss or under 2% of revenue. Share counts and EPS are restated for stock splits. A dash means the company didn't report the figure.

Financial health

3 of 6 checks passed · September 30, 2026
What it owns · $16.5bn
Short-term assets $6.6bnLonger-term assets $9.9bn
What it owes, and who funded it · $8.2bn
Short-term liabilities $5.1bnShareholders' equity $3.1bn
  • Short-term assets cover short-term liabilities $6.6bn of assets due within a year against $5.1bn of liabilities due within a year.
  • Short-term assets cover long-term liabilities Not assessable from the reported split. Not assessable.
  • More cash than debt $809m of cash against $9.4bn of debt.
  • Debt below 40% of shareholders' equity Debt is 298% of equity.
  • Debt burden no higher than five years ago Debt to equity moved from 190% to 298% over five years.
  • A year's operating cash flow covers at least 20% of debt $3.3bn of operating cash flow against $9.4bn of debt.
  • Operating profit covers interest at least five times over Operating income of $4.4bn against $310m of interest.

From Illinois Tool Works's latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Dividends, buybacks and capital spending

FY2026 Q3 TTM
Buybacks (TTM)
$1.7B
Dividends (TTM)
$1.9B
Returned to shareholders
123%
of free cash flow
Buybacks, last 3 fiscal years
$4.5B
Diluted share count
−2.0%
year over year
Total shareholder yield
4.3%
dividends 2.3% + buybacks 2.0% of market value
Dividend payout ratio
57%
of net income paid out

Competitors: side by side with peers

Closest by revenue in industrial machinery & supplies & components
Last 12 months unless stated ITW SWK OTIS GWW PH XYL Median
Revenue, last 12 months $16.6bn $15.2bn $15.1bn $18.8bn $21.5bn $9.1bn $1.4bn
Revenue growth, last 12 months 4.8% 0.6% 5.8% 7.8% 8.3% 1.9% 8.3%
Revenue growth, 3-year average 1.1% −2.0% 2.6% 5.6% 4.1% 10.3% 4.0%
Revenue growth, latest quarter 4.4% 0.4% 6.1% 10.3% 9.8% −3.0% 9.1%
Gross margin 53.1% 31.9% 29.6% 39.4% 37.7% 39.8% 35.2%
Operating margin 26.6% 16.7% 15.3% 14.6% 23.6% 15.1% 13.1%
Operating margin, 3-year average 26.4% 14.5% 14.6% 15.0% 22.0% 13.1% 13.7%
Net margin 19.4% 4.1% 10.3% 9.9% 17.0% 11.9% 8.9%
Cash from operations / revenue 19.6% 10.2% 12.1% 11.5% 20.3% 14.0% 11.9%
Free-cash-flow margin 17.2% 8.5% 11.1% 8.0% 18.2% 10.2% 8.8%
Free-cash-flow margin, 3-year average 17.5% 5.9% 9.9% 8.9% 16.7% 10.1% 9.8%
Stock pay / revenue 0.5% 0.5% 0.5% 0.4% 0.8% 0.6% 0.8%
Change in share count −2.0% −0.0% −2.6% −1.9% −1.6% −1.9% −0.0%

Median of all 76 companies we cover in industrial machinery & supplies & components. Shaded: best of the six on that line (lowest for stock pay and share-count growth). 3-year figures average the last three 12-month periods; 3-year growth is compound annual. Source: SEC filings.

Peer comparison

76 industrial machinery & supplies & components companies
Measure Company Peer median Rank
Revenue growth Growth 4.8% 8.3% 58 of 75
Change in growth rate Growth +0.5pp +1.2pp 47 of 75
Gross margin Profitability 53.1% 35.4% 4 of 70
Operating margin Profitability 26.6% 13.0% 3 of 75
Net margin Profitability 19.4% 8.9% 2 of 76
Free-cash-flow margin Cash generation 17.2% 9.1% 14 of 76
Stock pay as % of revenue Cash generation 0.5% 0.8% 6 of 70
Long-term debt as % of assets Balance sheet 43.4% 23.4% 55 of 59
Change in share count Balance sheet -2.0% -0.0% 15 of 73

Rank 1 = best in the group (for spending, debt and dilution, lower ranks first).

Where the revenue comes from

Fiscal year to December 31, 2025
Geography
Region Revenue Share YoY
North America $8.5B 52.9% ▼ 0.6%
United States $7.4B 87.2% ▲ 0.3%
Canada and Mexico $1.1B 12.8% ▼ 6.1%
EMEA $4.2B 25.9% ▲ 1.5%
Asia Pacific $3.1B 19.2% ▲ 4.0%
South America $323M 2.0% ▲ 5.6%

From Illinois Tool Works's 10-K filed February 13, 2026, as tagged in the filing. View filing. Indented rows are part of the line above; their share is of that line. In the bars, the faint bar behind is the year before.

Who owns it

Funds buying and selling
Reported value
$65.8B
Institutions reporting
1,958
Shares held vs prior quarter
▲ 0.8%
Positions opened / closed
125 / 97

Top buyers and sellers, Q2 2026: 811 institutions bought and 848 sold ; the biggest buyer was Ameriprise Financial Inc (+1.1M shares) and the biggest seller Charles Schwab Investment Management Inc (−1.0M). See which funds bought and sold →

Largest reported holders, June 30, 2026
Manager Value Shares Share of 13F value Shares QoQ
Briar Hall Management LLC $7B 25.8M 10.6% ▼ 0.1%
Blackrock, Inc. $6.3B 23.3M 9.6% ▼ 0.4%
State Farm Mutual Automobile Insurance Co $5.7B 21.0M 8.6% 0.0%
Vanguard Capital Management LLC $4.7B 17.5M 7.2% ▲ 0.3%
State Street Corp $3.5B 12.8M 5.3% ▲ 1.0%
Northern Trust Corp $3B 11.1M 4.5% ▼ 1.3%
Geode Capital Management, LLC $1.9B 7.1M 2.9% ▲ 0.4%
Vanguard Portfolio Management LLC $1.9B 6.9M 2.9% ▲ 2.2%
Morgan Stanley $1.3B 4.9M 2.0% ▼ 9.3%
Capital Research Global Investors $1.3B 4.9M 2.0% ▲ 2.5%
Wells Fargo & Company $1.2B 4.4M 1.8% ▼ 5.7%
Goldman Sachs Group Inc $1.1B 4.0M 1.6% ▲ 9.9%

From Form 13F filings with the SEC ( quarterly data sets), as reported by each manager for June 30, 2026 and filed up to 45 days later. 13F reports cover long US-listed positions of managers above $100M only, so this is not Illinois Tool Works's complete shareholder register. Values are as reported by the filers ; 9 inconsistently scaled filing rows were excluded.

Insider trading activity

Full insider history and chart
Insider purchases History → $1.9M 2 trades by 2 insiders, last 12 months Insider sales History → $67.3M 14 trades by 5 insiders · 0% under pre-set plans
Net ▼ $65.4M net selling
Insider Date Trade Shares Price Value
Santi Ernest Scott Director August 19, 2026 Sell 1,890 $289.19 $546,569
Santi Ernest Scott Director August 19, 2026 Sell 8,928 $288.22 $2.6M
Santi Ernest Scott Director August 19, 2026 Sell 8,142 $287.35 $2.3M
Santi Ernest Scott Director August 19, 2026 Sell 22,471 $286.37 $6.4M
Pigozzo Matteo C. VP & Chief Accounting Officer August 13, 2026 Sell 277 $289.22 $80,114
Scanlon Jennifer F. Director June 2, 2026 Buy 806 $247.99 $199,880
Lawler Mary Katherine SVP & Chief HR Officer February 6, 2026 Sell 17,279 $291.90 $5M
Beck Axel Executive Vice President February 5, 2026 Sell 4,223 $290.22 $1.2M
Santi Ernest Scott Director February 4, 2026 Sell 3,931 $293.43 $1.2M
Santi Ernest Scott Director February 4, 2026 Sell 57,361 $292.72 $16.8M
Santi Ernest Scott Director February 4, 2026 Sell 19,471 $291.90 $5.7M
Santi Ernest Scott Director February 4, 2026 Sell 20,833 $290.65 $6.1M

From insiders' Form 4 filings with the SEC. Excludes awards, option exercises and shares withheld for tax. "Pre-set plan" means the filing marks the trade as made under a Rule 10b5-1 plan. See every insider trade since five years ago, on a price chart.

Trades by members of Congress

All 55 trades and filings

In the last 12 months, 2 members of Congress disclosed 1 purchase and 5 sales of Illinois Tool Works shares.

  • Kevin Hern(R-OK 1):Sale (full), $15,001 - $50,000, traded September 9, 2026, filed September 25, 2026
  • Kevin Hern(R-OK 1):Sale (partial), $50,001 - $100,000, traded September 4, 2026, filed September 25, 2026
  • Kevin Hern(R-OK 1):Sale (partial), $15,001 - $50,000, traded September 2, 2026, filed September 25, 2026

Value ranges as filed; reports can arrive up to 45 days after a trade.

Earnings dates and SEC filings

Results announcements

Next expected around February 2, 2027 estimated from the company's past filing pattern, not announced

  • October 27, 2026
  • July 28, 2026
  • April 30, 2026
  • February 3, 2026
  • October 24, 2025
  • July 30, 2025

Recent SEC filings

Data status

When each part of this page on Illinois Tool Works was last updated.

DataLast updatedSource
Share priceExchange closing prices
Financial statementsSEC 10-K and 10-Q filings
News and updatesCompany releases and SEC 8-K filings
Analyst estimatesAggregated analyst estimates
Valuation and scoresOur models, from the filed figures

How we build and check these figures: methodology and data sources.

Illinois Tool Works in brief

What does Illinois Tool Works do?
Illinois Tool Works is a US-listed company in the industrial machinery & supplies & components industry. Its financial year ends in December.
What is Illinois Tool Works's stock ticker?
Illinois Tool Works trades under the ticker ITW on NYSE. This page brings together its financial statements, valuation models, ownership and recent company updates.
What is Illinois Tool Works's revenue, and how fast is it growing?
Over its most recent trailing twelve months, Illinois Tool Works reported revenue of $16.6B, 4.8% higher than a year earlier, according to its SEC filings.
What is Illinois Tool Works's free cash flow?
Illinois Tool Works's free-cash-flow margin is 17.2% of revenue over the trailing twelve months, ranking 14 of the 76 industrial machinery & supplies & components companies we cover.
What is Illinois Tool Works's fair value (intrinsic value) per share?
Our discounted-cash-flow model of Illinois Tool Works's free cash flow after stock-based pay gives ~$160 per share in the base case, and ~$110–$230 across growth scenarios. These are model values under stated assumptions — not a price target or a recommendation.
Who are Illinois Tool Works's largest institutional shareholders?
By value reported in 13F filings for June 30, 2026, the largest reported holders are Briar Hall Management LLC, Blackrock, Inc. and State Farm Mutual Automobile Insurance Co. 13F reports cover long US-listed positions of managers above $100M, filed up to 45 days after quarter end.
Is Illinois Tool Works buying back stock, and does it pay a dividend?
Illinois Tool Works spent $1.7B on share repurchases over the trailing twelve months, and its diluted share count fell 2.0% over the year.
What is Illinois Tool Works's market cap?
On November 2, 2026, Illinois Tool Works's market capitalisation was about $83.5B, with a price-to-earnings ratio of 25.9 and net debt of $8.6B. Market figures come from third-party market data and may be delayed.
Does Illinois Tool Works pay a dividend?
Yes: Illinois Tool Works paid $1.9B in dividends over the trailing twelve months, a dividend yield of 2.25% and a payout ratio of 57.4%.
How much debt does Illinois Tool Works have?
Illinois Tool Works's debt-to-equity ratio is 298.3%, from its latest balance sheet (190.3% five years earlier). The financial health section below sets out its other solvency checks.
Who are Illinois Tool Works's competitors?
In our Industrial Machinery & Supplies & Components peer group, the companies closest to Illinois Tool Works are Stanley Black & Decker, Otis Worldwide, W. W. Grainger, Parker Hannifin and Xylem Inc. The side-by-side comparison below sets their revenue, margins and growth against Illinois Tool Works's.
Are insiders buying or selling Illinois Tool Works stock?
Over the last 12 months, Illinois Tool Works's directors and officers reported 2 open-market purchases and 14 sales on Form 4. The insider trading page charts every trade.
When is Illinois Tool Works's next earnings date?
Around February 2, 2027, estimated from the spacing of its past results announcements (8-K filings). That is an estimate, not a confirmed date — Illinois Tool Works announces its own schedule.