Q3 25 EPS
$2.81
BEAT +3.91%
Est. $2.70
Q3 25 Revenue
$4.06B
MISS 0.70%
Est. $4.09B
vs S&P Since Q3 25
-0.9%
TRAILING MARKET
ITW +5.5% vs S&P +6.4%
Market Reaction
Did ITW Beat Earnings? Q3 2025 Results
Illinois Tool Works posted a stronger-than-expected bottom line in Q3 2025, with earnings per share of $2.81 beating the consensus estimate of $2.70 by 3.91%, even as revenue of $4.06 billion came in fractionally light, missing expectations by 0.70% … Read more Illinois Tool Works posted a stronger-than-expected bottom line in Q3 2025, with earnings per share of $2.81 beating the consensus estimate of $2.70 by 3.91%, even as revenue of $4.06 billion came in fractionally light, missing expectations by 0.70% despite growing 2.3% year-over-year. The standout driver behind the earnings beat was a record operating margin of 27.4%, which expanded 90 basis points year-over-year as enterprise initiatives alone contributed 140 basis points of improvement, with six of the company's seven segments widening margins during the quarter. Free cash flow reached $904 million, a 15% increase year-over-year, underscoring the operational discipline that has defined ITW's model. On the capital return front, the company repurchased $375 million in shares and raised its dividend 7% to an annualized $6.44 per share, marking 62 consecutive years of dividend increases, though some observers note the guidance adjustment signals a cautious demand backdrop. Looking ahead, ITW narrowed its full-year 2025 EPS guidance to $10.40 to $10.50, projecting overall revenue growth of 1% to 3% while incorporating pricing actions designed to offset tariff-related cost pressures.
Key Takeaways
- • Enterprise initiatives contributed 140 basis points to operating margin expansion
- • Record operating margin of 27.4%, with six of seven segments expanding margins
- • Organic revenue growth of 1% with favorable foreign currency translation of 2%
- • Automotive OEM led organic growth at 5.0%
- • Free cash flow conversion rate of 110% to net income
ITW YoY Financials
Q3 2025 vs Q3 2024, source: SEC Filings
ITW Revenue by Segment
With YoY comparisons, source: SEC Filings
“The ITW team concluded the third quarter with solid operational and financial execution, delivering EPS of $2.81, which grew six percent year-over-year excluding the divestiture gain, alongside record operating margin of 27.4 percent, and a 15 percent increase in free cash flow. This outcome underscores the fundamental strength of the ITW Business Model, the inherent resilience of our diversified portfolio, and the high-quality execution demonstrated by our colleagues worldwide.”
— Christopher A. O'Herlihy, Q3 2025 Earnings Press Release
ITW Earnings Trends
ITW vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
ITW EPS Trend
Earnings per share: estimate vs actual
ITW Revenue Trend
Quarterly revenue: estimate vs actual
ITW Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | $2.66 | — | $4.02B | +0.15% |
| Q4 25 BEAT FY | $2.69 | $2.72 | +1.12% | $4.09B | +0.60% |
| FY Full Year | $10.46 | $10.49 | +0.31% | $16.04B | +0.15% |
| Q3 25 BEAT | $2.70 | $2.81 | +3.91% | $4.06B | -0.70% |
| Q2 25 BEAT | $2.56 | $2.58 | +0.89% | $4.05B | +0.71% |
| Q1 25 BEAT | $2.35 | $2.38 | +1.14% | $3.84B | -0.10% |