The Quick Take
Illinois Tool Works delivered record quarterly operating income and a 27.8% operating margin, then raised the midpoint of full-year EPS guidance by $0.05. Revenue of $4.24B grew 4.4%, and GAAP EPS of $3.00 rose 6.8%. Free cash flow equalled 100% of net income.
Results
| Metric | Q3 2026 | Comparison |
|---|---|---|
| Revenue | $4.24B | up 4.4% |
| Organic growth | 3.8% | about 5% excluding tornado impact |
| Operating margin | 27.8% | up 40 bps |
| GAAP EPS | $3.00 | up 6.8% from $2.81 |
Full-year 2026 outlook
- GAAP EPS $11.45 to $11.55; revenue growth 4.5% to 5.5% (raised).
- Organic growth 3% to 4%; share repurchases about $1.5B.
Risks
- Automotive and construction end markets could weaken further.
- Tariffs and raw material costs.
Recommendation: HOLD
A high-quality compounder with best-in-class margins and a long dividend record; growth is steady rather than exciting.
Educational purposes only, not investment advice. Do your own research before investing.
Sources: ITW Q3 2026 earnings release (GlobeNewswire), as cited in the report.
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