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Illinois Tool Works

ITW Q1 2026 Earnings

Reported Apr 30, 2026 at 9:14 AM ET · SEC Source

Q1 26 EPS

$2.66

Q1 26 Revenue

$4.02B

BEAT +0.15%

Est. $4.01B

vs S&P Since Q1 26

-0.2%

TRAILING MARKET

ITW -0.2% vs S&P +0.0%

Market Reaction

Did ITW Beat Earnings? Q1 2026 Results

Illinois Tool Works kicked off 2026 on firm footing, posting first-quarter earnings per share of $2.66 against a consensus estimate of $2.56, a beat of 3.72% that extends the industrial conglomerate's streak of topping Wall Street EPS expectations to… Read more Illinois Tool Works kicked off 2026 on firm footing, posting first-quarter earnings per share of $2.66 against a consensus estimate of $2.56, a beat of 3.72% that extends the industrial conglomerate's streak of topping Wall Street EPS expectations to four consecutive quarters. Revenue climbed 4.6% year-over-year to $4.02 billion, edging past the $4.01 billion consensus, with foreign currency translation contributing 3.9% of that gain alongside modest organic growth of 0.4%. The headline profit figure was further supported by a $34.00 million discrete tax benefit tied to the resolution of a U.S. Tax audit, which pulled the effective tax rate to 20.6% versus an adjusted 24.1%, while enterprise initiatives drove 120 basis points of margin improvement, lifting operating margin 60 basis points to 25.4%. Welding was a standout segment, delivering 6.0% organic growth and a leading operating margin of 32.1%. On the strength of the quarter, ITW raised its full-year 2026 GAAP EPS guidance by $0.10 to a range of $11.10 to $11.50, representing approximately 8% growth at the midpoint, while maintaining its revenue growth projection of 2-4%.

Key Takeaways

  • • Enterprise initiatives contributed 120 basis points to operating margin expansion
  • • Positive demand trends in capex-related segments, led by Welding (6% organic growth) and Test & Measurement and Electronics (4.6% organic growth)
  • • Favorable foreign currency translation increased revenue by 3.9%
  • • Discrete tax benefit of $34 million from resolution of U.S. tax audit lowered effective tax rate to 20.6%
  • • Organic revenue growth of 0.4% at the total company level

ITW Forward Guidance & Outlook

ITW raised its full-year 2026 GAAP EPS guidance by $0.10 to a range of $11.10 to $11.50 per share, representing approximately 8% growth at the midpoint. The company continues to project total revenue growth of 2-4% and organic growth of 1-3% based on current demand levels and prevailing foreign exchange rates. All seven segments are expected to deliver both positive organic growth and operating margin expansion. Full-year operating margin is projected at 26.5-27.5%, an improvement of approximately 100 basis points year-over-year driven by enterprise initiatives. Free cash flow is projected to exceed 100% of net income. The company expects to repurchase approximately $1.5 billion of its own shares, with a projected effective tax rate of 23-24%.

24/7 Wall St

ITW YoY Financials

Q1 2026 vs Q1 2025, 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 start to the year, marked by five percent revenue growth, margin expansion of 60 basis points to 25.4 percent, and a 12 percent increase in GAAP earnings per share to $2.66. Positive demand trends continued in our capex-related segments, led by Welding and Test & Measurement and Electronics, which delivered organic growth of six percent and five percent, respectively, this quarter.”

— Christopher A. O'Herlihy, Q1 2026 Earnings Press Release

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