ITW Reports Third Quarter 2026 Results
Illinois Tool Works delivered a record third quarter with revenue of $4.24 billion up 4.4%, operating income of $1.18 billion up 5.9%, and GAAP EPS of $3.00 up 6.8%. Organic growth of 3.8% was led by North America (6.0%), with Test & Measurement and Electronics organic revenue up 15.8%; a late-July tornado cost an estimated $40 million of Welding revenue, largely offset by business interruption insurance. Operating margin expanded 40 bps to a record 27.8%, and free cash flow of $851 million represented 100% conversion of net income.
Key figures
- Eps
- 3
- Revenue
- 4236000000
- Guidance
- Full year 2026 GAAP EPS raised $0.05 at the midpoint to $11.45-$11.55 (+10% YoY at midpoint); revenue growth guidance raised to 4.5-5.5% with organic growth reaffirmed at 3-4%
- Revenue Yoy
- +4.4%
- Net income
- 855000000
- Fcf conversion
- 100% of net income
- Free cash flow
- 851000000
- Operating income
- 1177000000
- Operating margin
- 27.8%
- Dividend increase
- 7% to $6.88 annualized; 63rd consecutive year of increases
- Effective tax rate
- 24.4%
- Operating cash flow
- 953000000
- Share repurchases q3
- 187000000
- Organic revenue growth
- 3.8% (5% ex-tornado)
- Tornado revenue impact
- 40000000
- Operating margin change
- +40 bps
AI analysis
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