Illinois Tool Works Q2 revenue beats on segment growth; raises outlook

Illinois Tool Works

28/07/2026 13:10

Overview
US industrial manufacturer's Q2 revenue rose 6.1%, beating analyst expectations
Q2 GAAP EPS grew 10.1% to $2.84, beating analyst expectations
Company raised full-year 2026 revenue and EPS guidance

Outlook
Illinois Tool Works raises 2026 GAAP EPS guidance to $11.35-$11.55, up $0.15
Company raises 2026 organic revenue growth guidance to 3-4%, up 1.5 percentage points
Illinois Tool Works projects 2026 operating margin of 26.5-27.5%

Result Drivers
SEGMENT GROWTH - Double-digit organic growth in Welding and Test & Measurement and Electronics segments, with strong performance in Polymers & Fluids, drove overall results
MARGIN EXPANSION - Operating margin expanded 40 bps to 26.7% as enterprise initiatives contributed 120 bps
PRICING ACTIONS - Price increases more than offset higher raw material costs, though timing lags modestly diluted margins

Company press release: ID:nGNX77BC94

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$4.30 bln
$4.19 bln (12 Analysts)
Q2 EPS
Beat
$2.84
$2.79 (13 Analysts)
Q2 Net Income
 
$815 mln
 
Q2 Organic Growth
 
4.50%
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 11 "hold" and 4 "sell" or "strong sell"
The average consensus recommendation for the consumer goods conglomerates peer group is "buy."
Wall Street's median 12-month price target for Illinois Tool Works Inc is $278.00, about 2.4% below its July 27 closing price of $284.82
The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 23 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)