Illinois Tool Works

ITW Q4 2025 Earnings

Reported Feb 3, 2026 at 9:48 AM ET · SEC Source

Q4 25 EPS

$2.72

BEAT +1.12%

Est. $2.69

Q4 25 Revenue

$4.09B

BEAT +0.60%

Est. $4.07B

vs S&P Since Q4 25

-12.1%

TRAILING MARKET

ITW -7.1% vs S&P +5.0%

Full Year 2025 Results

FY 25 EPS

$10.49

BEAT +0.31%

Est. $10.46

FY 25 Revenue

$16.04B

BEAT +0.15%

Est. $16.02B

Market Reaction

Did ITW Beat Earnings? Q4 2025 Results

Illinois Tool Works closed out 2025 on a solid note, posting Q4 earnings per share of $2.72 against a consensus estimate of $2.69, a beat of 1.12%, while revenue of $4.09 billion edged past the $4.07 billion forecast by 0.60% and grew 4.1% year over … Read more Illinois Tool Works closed out 2025 on a solid note, posting Q4 earnings per share of $2.72 against a consensus estimate of $2.69, a beat of 1.12%, while revenue of $4.09 billion edged past the $4.07 billion forecast by 0.60% and grew 4.1% year over year. The quarter's most telling detail was operating margin expansion of 30 basis points to 26.5%, with enterprise initiatives alone contributing 140 basis points of improvement, underscoring the disciplined cost management that has made ITW a recurring topic among industrial investors eyeing new all-time highs in the sector. For the full year, GAAP EPS of $10.49 cleared the company's own guidance midpoint, and free cash flow reached $2.71 billion at an 88% conversion rate, funding $3.30 billion in shareholder returns. Looking ahead, ITW guided 2026 GAAP EPS to $11.00 to $11.40, implying roughly 7% growth at the midpoint, with revenue growth of 2% to 4% and free cash flow conversion projected to exceed 100% of net income.

Key Takeaways

  • Enterprise initiatives contributed 140 bps to Q4 operating margin
  • Customer-Back Innovation drove 2.4% of full-year revenue growth
  • Pricing and supply chain actions successfully offset tariff impacts for the year
  • Organic revenue growth of 1.3% in Q4
  • Foreign currency translation added 2.5% to Q4 revenue
  • Six of seven segments expanded operating margins in 2025
  • Three segments achieved operating margins above 30%
24/7 Wall St

ITW YoY Financials

Q4 2025 vs Q4 2024, source: SEC Filings

24/7 Wall St

ITW Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“ITW delivered a solid finish to the year, marked by more than four percent revenue growth and a seven percent increase in GAAP earnings per share. As a result of our disciplined execution across all seven segments, we expanded both operating margin and income to record levels in the quarter.”

— Christopher O'Herlihy, Q4 2025 Earnings Press Release