Research memoIllinois Tool Works Inc. (ITW) · NYSEMemo of October 18, 2026

ITW earnings date

ITW is scheduled to report results on October 27, 2026. Watch whether growth broadens beyond capex-sensitive businesses.

October 27, 2026
Next results
4,301
Revenue, quarter to Jun 2026 (US$ millions)
2.84
EPS, diluted, quarter to Jun 2026
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Every number traced to ITW's filings8 chapters · 16,199 words160 sources cited

What has ITW guided for 2026?

Management’s raised 2026 outlook depends on growth and profitability arriving together. The July 28 forecast calls for GAAP earnings per share of $11.35–$11.55, with midpoint growth of 9% and implied second-half organic growth of 4.5%. GAAP earnings per share are profit per share under standard accounting rules; organic growth excludes acquisitions and currency effects.

Management also expects companywide initiatives to add at least one percentage point to operating margin. A basis point is one-hundredth of a percentage point. Simplifying products, improving purchasing, and reducing overhead can make more of each new sales dollar become operating profit; under ITW’s incremental-margin assumption, about 40 cents of an additional dollar would do so. ITW also expects free cash flow to exceed net income, so the next test is whether sales, margins, and cash conversion improve together.

Revenue by quarter (US$ millions)3,966Sep 20243,932Dec 20243,839Mar 20254,053Jun 20254,059Sep 20254,093Dec 20254,016Mar 20264,301Jun 2026Revenue
Guidance in forceUS$ millions
Period guidedLowHighDate given
GAAP EPSYear to Dec 202611.3511.55Jul 28, 2026
GAAP EPS growthYear to Dec 20267.0%11.0%Jul 28, 2026
RevenueYear to Dec 202616,70016,800Jul 28, 2026
organic growthYear to Dec 20263.0%4.0%Jul 28, 2026
Operating marginYear to Dec 202626.5%27.5%Jul 28, 2026
Free cash flow conversion to net incomeYear to Dec 2026100.0%Jul 28, 2026

What this means. The company's after-tax return on invested capital is at least 30 percent, not exactly 30 percent, because no upper limit was given.

What has ITW's revenue and profit trend been over the last eight quarters?

The longer pattern is uneven. Revenue rose sharply earlier in the period, then contracted before edging higher again. The segment split matters because Automotive OEM, Welding, Food Equipment and Specialty Products grew organically in 2025, while Construction Products, Test & Measurement and Electronics, and Polymers & Fluids declined.

The last eight quartersUS$ millions
Jun 2026Mar 2026Dec 2025Sep 2025Jun 2025Mar 2025Dec 2024Sep 2024
Revenue4,3014,0164,0934,0594,0533,8393,9323,966
Operating income1,1471,0201,0851,1121,0689511,0311,052
Net income8157687908217557007501,160
EPS, diluted2.842.662.722.812.582.382.543.91
= Free cash flow631528858904449496996783

What this means. September 2024 net income is unusually high because it includes a one-time gain from selling an investment, not just profit from the company's normal business.

What should people watch in ITW's next results?

The next major test is whether ITW’s second-half growth appears broadly and produces cash. ITW is scheduled to report third-quarter results on October 27, 2026. Investors should look beyond total sales to see whether demand spreads beyond capex-sensitive businesses, while checking whether margins and cash conversion hold.

The main takeaway is simple: ITW’s plan is financially possible, but only if growth broadens, margins remain strong, and operating cash catches up with shareholder commitments.

From the full memo · 1. The business

Illinois Tool Works is a global manufacturer of specialized industrial products and equipment. It earns money by selling those products and services for more than it costs to make, support, and deliver them.

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