ILLINOIS TOOL WORKS INC (ITW) Form 8-K — Oct 27, 2026
Illinois Tool Works reported strong third-quarter 2026 results, with revenue of $4.24 billion up 4.4% and GAAP EPS of $3.00 up 6.8% year-over-year. Operating income hit a quarterly record of $1.18 billion with margin expanding 40 basis points to 27.8%, and the company converted 100% of net income into free cash flow ($851 million). Management raised full-year 2026 GAAP EPS guidance by $0.05 at the midpoint to $11.45-$11.55, representing 10% year-over-year growth, and lifted revenue growth guidance to 4.5-5.5%. The release also highlights a 7% dividend increase — the 63rd consecutive annual increase — and $187 million of buybacks during the quarter.
Key figures
- Eps
- 3
- Eps Beat
- 0
- Revenue
- 4236000000
- Guidance
- FY2026 GAAP EPS raised $0.05 at midpoint to $11.45-$11.55 (+10% YoY at midpoint); revenue growth guidance raised to 4.5-5.5%; organic growth 3-4%; operating margin 26.5-27.5%; free cash flow ~100% of net income; ~$1.5B share repurchases expected; effective tax rate 23-24%
- Net Income
- 855000000
- Total Debt
- 9372000000
- Revenue Yoy
- 4.4%
- Total Assets
- 16497000000
- Cash Position
- 809000000
- After tax roic
- 30.3%
- Free cash flow
- $851 million (100% of net income conversion)
- Operating income
- $1.18 billion, +5.9%, quarterly record
- Operating margin
- 27.8%, +40 bps
- Dividend increase
- 7%, annualized payout $6.88/share, 63rd consecutive annual increase
- Operating cash flow
- $953 million
- Effective tax rate q3
- 24.4%
- Organic revenue growth
- 3.8% (5% ex-Welding tornado impact)
- Q3 revenue yoy comparison
- $4,236M vs $4,059M
- Share repurchases in quarter
- $187 million
- Welding tornado revenue impact
- $40 million
AI analysis
The rest of the AI analysis, red flags and sentiment are part of Signal8 Pro.
AI-generated analysis of a public disclosure. Not investment advice; verify against the original document.