Illinois Tool Works (ITW) financials

NYSE · Industrials · Industrial - Machinery · 43,000 employees · CEO Christopher A. O'Herlihy

Price: $278.55 -1.01%
Market cap: $79.2B
Enterprise value: $87.7B
Last report: Q3 '26 filed 2026-10-28
Next report: 2027-02-02 EPS est. $2.97

Revenue (TTM)$16.6B+4.8% vs a year agoLast 4 quarters; bars = each quarter

Operating margin (TTM)26.6%+0.4 pp vs a year agoOperating income $4.43B

Net income (TTM)$3.23B+6.7% vs a year agoAfter tax, incl. non-operating gains

Free cash flow (TTM)$2.87B+0.8% vs a year agoCapex $394M

Diluted EPS (TTM)$11.22+8.8% vs a year agoSum of the last 4 quarters

Net cash-$8.56B-6.8% vs a year agoCash + short-term investments - debt

Valuation & key figures

Market cap: $79.2B
Revenue: $16.6B
Revenue growth: +5%
Profit margin: 19.4%
P/E: 24.8×
P/S: 4.8×
EV / EBITDA: 18.2×
Free cash flow: $2.87B
Net income: $3.23B
Revenue estimate: $16.8B
Earnings: 2027-02-02
Dividend: $6.55

Key takeaways

Computed from the reported numbers - every statement carries the figure it rests on.

Last report (2026-10-27): revenue missed by 0.5%, EPS beat by 2.4%Revenue $4.24B vs $4.26B expected (-0.5%); EPS $3.04 vs $2.97 (+2.4%).
Revenue growth steady: 4.4% year on yearQ3 '26 revenue $4.24B, against an average of 4.3% over the four quarters before.
Operating margin 26.6% (TTM), +0.4 pp on a year agoOperating income grew 6.4% while revenue grew 4.8%.
Capex 2.4% of revenue (a year ago 2.7%)$394M invested in the last 4 quarters (-8.8% on a year earlier). Free cash flow $2.87B = 88.8% of net income.
Returned $3.54B to shareholders = 123.4% of free cash flowBuybacks $1.69B (a year earlier $1.5B), dividends $1.85B, stock-based pay $57M (TTM). More than the free cash flow: paid from cash or debt.
Diluted share count down 2.2% in a year285M diluted shares in Q3 '26, 292M a year earlier.
Net debt $8.56BCash + short-term investments $809M, debt incl. leases $9.37B; a year ago net debt $8.02B.

Last quarter: Q3 '26

Quarter ended 2026-09-30. Compared with the same quarter a year earlier and with the analyst consensus before the report.

Quarter vs a year ago

	Q3 '26	Year ago	Change
Revenue	$4.24B	$4.06B	+4.4%
Gross margin	45.1%	44.5%	+0.6 pp
Operating income	$1.18B	$1.11B	+5.8%
Operating margin	27.8%	27.4%	+0.4 pp
Net income	$855M	$821M	+4.1%
Diluted EPS	$3.00	$2.81	+6.8%
Operating cash flow	$953M	$1.02B	-6.7%
Capex	$102M	$117M	-12.8%
Free cash flow	$851M	$904M	-5.9%
R&D	$0	$676M	-100.0%
Stock-based compensation	$0	$17M	-100.0%

Reported vs consensus

2026-10-27

	Actual	Consensus	vs consensus
Revenue	$4.24B	$4.26B	-0.5%
EPS (as estimated)	$3.04	$2.97	+2.4%

From the report of 2026-10-27 for Q3 '26: revenue and the EPS analysts estimate (often adjusted), so it can differ from the EPS of the statements above.

EPS vs consensus

last 8 reports

Revenue

Where the money comes from - by business line and by region, quarter by quarter.

Revenue, operating income and growth

quarterly

Revenue by business line

stacked, quarterly

Segment	Q3 '26	y/y	Share	TTM	TTM y/y
Automotive OEM Segment	$814M	-1.9%	19.2%	$3.32B	+2.2%
Test and Measurement and Electronics Segment	$819M	+17.3%	19.3%	$3.09B	+11.1%
Food Equipment Segment	$698M	+0.6%	16.5%	$2.73B	+1.9%
Welding Segment	$513M	+7.5%	12.1%	$2.03B	+8.3%
Construction Products Segment	$472M	-0.2%	11.1%	$1.86B	+1.5%
Polymers and Fluids Segment	$477M	+8.2%	11.3%	$1.86B	+7.1%
Specialty Products Segment	$447M	-1.1%	10.5%	$1.78B	+1.2%

Segment profits

Operating income per reported segment, read from the segment note of each 10-Q / 10-K (the profit split most data feeds leave out).

Segments in Q3 '26

Segment	Revenue	y/y	Operating income	y/y	Margin	Margin a year ago	TTM operating income
Automotive OEM Segment	–	–	$163M	-10.4%	–	–	$701M
Food Equipment Segment	–	–	$208M	+3.0%	–	–	$749M
Testand Measurementand Electronics Segment	–	–	$235M	+32.8%	–	–	$813M
Welding Segment	–	–	$186M	+19.2%	–	–	$680M
Polymers And Fluids	–	–	–	–	–	–	–
Construction Products Segment	–	–	$141M	-5.4%	–	–	$553M
Specialty Products Segment	–	–	$140M	-4.1%	–	–	$547M
Corporate And Reconciling Items	–	–	-$45M	-73.1%	–	–	-$161M
Polymers And Fluids Segment	–	–	$149M	+18.3%	–	–	–

Operating income by segment

quarterly

Segment operating margin

quarterly

Fourth quarters are derived: the 10-K reports the full year, minus the three quarters of the 10-Qs.

Margins & cost structure

How much of each unit of revenue is left at each level - and where the costs go.

Margins

quarterly

Costs as % of revenue

quarterly

Cash flow & capital allocation

Cash generated, what it is spent on, and what reaches shareholders.

Operating cash flow, capex, free cash flow

quarterly

Uses of cash vs operating cash flow

fiscal years

Last 4 quarters

cash flow statement

Operating cash flow: $3.26B
Capex: -$394M
Buybacks: -$1.69B
Dividends: -$1.85B
Acquisitions: -$113M
Net debt issued: -$255M
Stock-based compensation: $57M
Free cash flow: $2.87B
Returned to shareholders / FCF: 123.4%

Share count and EPS

quarterly, diluted

Balance sheet

Liquidity, investments and debt at each quarter end.

Cash, investments and debt

quarter ends

Valuation & returns

Today's multiples against the company's own last five fiscal years; analyst targets and ratings.

Multiples and returns

TTM vs 5 fiscal years

	Now	5y average	Where today sits in the 5-year range
P/E (TTM)	24.8×	24.6×	21.6× – 28.9×
EV / EBITDA	18.2×	18.2×	16.1× – 21.4×
EV / Sales	5.3×	5.2×	4.7× – 5.8×
Price / FCF	27.6×	29.7×	25.7× – 35.2×
Price / Book	25.2×	23.0×	21.5× – 26.3×
FCF yield	3.6%	3.4%	2.8% – 3.9%
Return on invested capital	25.0%	24.2%	20.9% – 27.2%
Return on equity	103.4%	94.2%	74.3% – 105.2%

Analysts

Consensus target $278.57 (0.0%)
range $255.00 – $297.00 · rating Hold

Strong buy0

Buy5

Hold14

Sell9

Strong sell0

Outlook

Analyst consensus for the coming fiscal years and what it implies at today's price.

Consensus estimates

Fiscal year	Revenue	Growth	EPS	Growth	P/E at today's price	Analysts (EPS)
FY2026	$16.8B	+4.9%	$11.48	+9.4%	24.3×	10
FY2027	$17.5B	+3.7%	$12.28	+7.0%	22.7×	12
FY2028	$18B	+3.1%	$13.06	+6.4%	21.3×	10
FY2029	$18.6B	+3.0%	$13.28	+1.7%	21.0×	4
FY2030	$18.4B	-0.7%	$14.02	+5.6%	19.9×	4

Financial statements

Every line of the income statement, balance sheet and cash flow statement - 12 quarters and 10 fiscal years, as values, as % of revenue or as growth.

Income statementRevenue, costs, operating income, net income and EPSOpen Balance sheetCash, investments, assets, debt, liabilities and equityOpen Cash flowOperating cash flow, capex, free cash flow, buybacks and dividendsOpen

Every reported line

All 280 figures Illinois Tool Works Inc. tagged in its recent 10-Q / 10-K filings, with the official SEC label and definition - including the notes (leases, taxes, buybacks, employees, ...).

Line (SEC label)	Latest quarter	Year ago	y/y	Latest FY	Prior FY	y/y
Accounts Payable, Current	$623M	$608M	+2.5%	$522M	$519M	+0.6%
Accounts Receivable, Allowance for Credit Loss	$26M2025-12-31	$24M	+8.3%	$26M	$24M	+8.3%
Accounts Receivable, Credit Loss Expense (Reversal)	$3M	$1M	+200.0%	$5M	-$1M	+600.0%
Accrued Income Taxes, Current	$133M	$223M	-40.4%	$217M	$217M	0.0%
Accrued Income Taxes, Noncurrent	–	–	–	$151M2024-12-31	$151M	0.0%
Accrued Liabilities, Current	$1.64B	$1.57B	+4.3%	$1.64B	$1.58B	+3.8%
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	$4.36B2025-12-31	$4.03B	+8.3%	$4.36B	$4.03B	+8.3%
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax	$234M	$267M	-12.4%	$237M	$266M	-10.9%
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax	-$1.5B	-$1.6B	+6.3%	-$1.6B	-$1.6B	0.0%
Accumulated Other Comprehensive Income (Loss), Net of Tax	-$1.72B	-$1.88B	+8.4%	-$1.83B	-$1.88B	+2.7%
Additional Paid in Capital, Common Stock	$1.87B	$1.75B	+6.6%	$1.77B	$1.67B	+6.1%
Advances on Inventory Purchases	$60M2025-12-31	$60M	0.0%	$60M	$60M	0.0%
Advertising Expense	–	–	–	$62M	$58M	+6.9%
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	200K	400K	-50.0%	400K	200K	+100.0%
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	$20M	$17M	+17.6%	$69M	$61M	+13.1%
Assets	$16.5B	$16.1B	+2.2%	$16.1B	$15.1B	+7.2%
Assets, Current	$6.6B	$6.32B	+4.4%	$6.2B	$5.86B	+5.9%
Buildings and Improvements, Gross	$1.71B2025-12-31	$1.56B	+9.2%	$1.71B	$1.56B	+9.2%
Cash and Cash Equivalents, at Carrying Value	$809M	$924M	-12.4%	$851M	$948M	-10.2%
Cash Surrender Value of Life Insurance	$445M2025-12-31	$439M	+1.4%	$445M	$439M	+1.4%
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$809M	$924M	-12.4%	$851M	$948M	-10.2%
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	-$30M	$136M	-122.1%	-$97M	-$117M	+17.1%
Commercial Paper	$369M	$1.3B	-71.6%	$1.29B	$778M	+65.4%
Common Stock, Dividends, Per Share, Cash Paid	–	–	–	$6.11	$5.70	+7.2%
Common Stock, Dividends, Per Share, Declared	$1.72	$1.61	+6.8%	$6.22	$5.80	+7.2%
Common Stock, Par or Stated Value Per Share	$0.01	$0.01	0.0%	$0.01	$0.01	0.0%
Common Stock, Shares Authorized	700M	700M	0.0%	700M	700M	0.0%
Common Stock, Shares, Issued	550M	550M	0.0%	550M	550M	0.0%
Common Stock, Shares, Outstanding	284M	290M	-2.0%	289M	294M	-1.8%
Common Stock, Value, Issued	$6M	$6M	0.0%	$6M	$6M	0.0%
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	$895M	$813M	+10.1%	$3.12B	$3.45B	-9.6%
Construction in Progress, Gross	$299M2025-12-31	$270M	+10.7%	$299M	$270M	+10.7%
Contract with Customer, Liability	$340M2025-12-31	$360M	-5.6%	$340M	$360M	-5.6%
Cost of Goods and Services Sold	$2.33B	$2.25B	+3.2%	$8.97B	$8.86B	+1.3%
Cost of Revenue	$1.96B	$1.9B	+3.5%	$7.56B	$7.6B	-0.6%
Cost, Overhead	$1.05B	$1.03B	+2.4%	$4.15B	$4.1B	+1.2%
Current Federal Tax Expense (Benefit)	–	–	–	$418M	$486M	-14.0%
Current Foreign Tax Expense (Benefit)	–	–	–	$413M	$515M	-19.8%
Current State and Local Tax Expense (Benefit)	–	–	–	$86M	$109M	-21.1%
Debt, Current	$2.22B	$1.27B	+75.1%	$2.29B	$1.56B	+47.0%
Debt, Long-term and Short-term, Combined Amount	$9.37B	$8.94B	+4.8%	$8.97B	$7.86B	+14.1%
Decrease in Unrecognized Tax Benefits is Reasonably Possible	$67M2025-09-30	$15M	+346.7%	–	–	–
Deferred Federal Income Tax Expense (Benefit)	–	–	–	-$25M	-$576M	+95.7%
Deferred Foreign Income Tax Expense (Benefit)	–	–	–	$5M	$487M	-99.0%
Deferred Income Tax Assets, Net	$492M	$573M	-14.1%	$519M	$369M	+40.7%
Deferred Income Tax Liabilities, Net	$168M	$149M	+12.8%	$154M	$119M	+29.4%
Deferred State and Local Income Tax Expense (Benefit)	–	–	–	$3M	-$87M	+103.4%
Deferred Tax Assets, Capital Loss Carryforwards	$78M2025-12-31	$81M	-3.7%	$78M	$81M	-3.7%
Deferred Tax Assets, Goodwill and Intangible Assets	$511M2025-12-31	$553M	-7.6%	$511M	$553M	-7.6%
Deferred Tax Assets, Gross	$1.73B2025-12-31	$1.65B	+4.9%	$1.73B	$1.65B	+4.9%
Deferred Tax Assets, in Process Research and Development	$225M2025-12-31	$173M	+30.1%	$225M	$173M	+30.1%
Deferred Tax Assets, Inventory	$54M2025-12-31	$54M	0.0%	$54M	$54M	0.0%
Deferred Tax Assets, Investments	$19M2025-12-31	$24M	-20.8%	$19M	$24M	-20.8%
Deferred Tax Assets, Net of Valuation Allowance	$1.2B2025-12-31	$1.14B	+5.5%	$1.2B	$1.14B	+5.5%
Deferred Tax Assets, Operating Loss Carryforwards	$494M2025-12-31	$465M	+6.2%	$494M	$465M	+6.2%
Deferred Tax Assets, Other	$37M2025-12-31	$32M	+15.6%	$37M	$32M	+15.6%
Deferred Tax Assets, Property, Plant and Equipment	$23M2025-12-31	$19M	+21.1%	$23M	$19M	+21.1%
Deferred Tax Assets, Tax Credit Carryforwards, Foreign	$15M2025-12-31	$13M	+15.4%	$15M	$13M	+15.4%
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Benefits	$129M2025-12-31	$137M	-5.8%	$129M	$137M	-5.8%
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals	$32M2025-12-31	$35M	-8.6%	$32M	$35M	-8.6%

Source: SEC companyfacts (XBRL of every 10-Q / 10-K). Cash-flow quarters are derived from the year-to-date figures the 10-Q tags. Segment breakdowns are tagged with dimensions and are shown in the segment section instead.

Sources

Statements, segment revenue, metrics, estimates: Financial Modeling Prep. Segment profits and every reported line: SEC EDGAR (XBRL). Filings read: 10-Q 2026-09-30, 10-Q 2026-06-30, 10-Q 2026-03-31, 10-K 2025-12-31, 10-Q 2025-09-30, 10-Q 2025-06-30, 10-Q 2025-03-31, 10-K 2024-12-31, 10-Q 2024-09-30

Data as of 2026-11-01