Zacks Research Issues Positive Outlook for ITW Earnings

Illinois Tool Works Inc. (NYSE:ITW) – Equities research analysts at Zacks Research boosted their Q3 2027 EPS estimates for Illinois Tool Works in a research note issued on Tuesday, February 17th. Zacks Research analyst Team now expects that the industrial products company will post earnings per share of $3.13 for the quarter, up from their prior estimate of $3.10. The consensus estimate for Illinois Tool Works’ current full-year earnings is $10.39 per share. Zacks Research also issued estimates for Illinois Tool Works’ FY2027 earnings at $12.10 EPS and FY2028 earnings at $13.21 EPS.

Illinois Tool Works (NYSE:ITW) last posted its earnings results on Tuesday, February 3rd. The industrial products company reported $2.72 EPS for the quarter, topping the consensus estimate of $2.69 by $0.03. Illinois Tool Works had a net margin of 19.11% and a return on equity of 95.16%. The company had revenue of $4.09 billion during the quarter, compared to the consensus estimate of $4.07 billion. During the same period in the previous year, the firm posted $2.54 earnings per share. The firm’s revenue for the quarter was up 4.1% on a year-over-year basis. Illinois Tool Works has set its FY 2026 guidance at 11.000-11.400 EPS.

Several other research analysts have also recently issued reports on ITW. The Goldman Sachs Group reaffirmed a “sell” rating and set a $253.00 target price on shares of Illinois Tool Works in a research report on Tuesday, February 3rd. UBS Group reaffirmed a “neutral” rating and set a $285.00 price objective on shares of Illinois Tool Works in a report on Wednesday, February 4th. Wells Fargo & Company increased their target price on shares of Illinois Tool Works from $250.00 to $270.00 and gave the company an “underweight” rating in a report on Wednesday, February 4th. Robert W. Baird set a $278.00 price target on shares of Illinois Tool Works in a report on Wednesday, February 4th. Finally, Citigroup upped their price objective on shares of Illinois Tool Works from $271.00 to $284.00 and gave the stock a “neutral” rating in a research report on Wednesday, February 4th. Two investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and five have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Reduce” and an average price target of $272.92.

Illinois Tool Works Stock Performance

Shares of ITW opened at $293.39 on Friday. The firm has a market capitalization of $84.56 billion, a P/E ratio of 27.97, a P/E/G ratio of 15.85 and a beta of 1.15. Illinois Tool Works has a 52 week low of $214.66 and a 52 week high of $303.15. The stock has a 50 day moving average price of $265.13 and a two-hundred day moving average price of $258.21. The company has a debt-to-equity ratio of 2.07, a quick ratio of 0.89 and a current ratio of 1.21.

Institutional Investors Weigh In On Illinois Tool Works

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ITW. AE Wealth Management LLC increased its holdings in Illinois Tool Works by 128.4% during the 3rd quarter. AE Wealth Management LLC now owns 9,128 shares of the industrial products company’s stock worth $2,380,000 after acquiring an additional 5,131 shares during the period. Mediolanum International Funds Ltd grew its position in shares of Illinois Tool Works by 10.4% during the 3rd quarter. Mediolanum International Funds Ltd now owns 103,161 shares of the industrial products company’s stock valued at $26,964,000 after purchasing an additional 9,738 shares in the last quarter. Brendel Financial Advisors LLC increased its holdings in shares of Illinois Tool Works by 1,328.6% in the third quarter. Brendel Financial Advisors LLC now owns 13,929 shares of the industrial products company’s stock worth $3,632,000 after purchasing an additional 12,954 shares during the period. Madison Asset Management LLC raised its position in shares of Illinois Tool Works by 411.8% in the third quarter. Madison Asset Management LLC now owns 87,875 shares of the industrial products company’s stock worth $22,914,000 after buying an additional 70,704 shares in the last quarter. Finally, Davis Capital Management bought a new stake in Illinois Tool Works during the third quarter valued at $1,162,000. 79.77% of the stock is currently owned by institutional investors.

Insider Activity at Illinois Tool Works

In other Illinois Tool Works news, EVP Axel Beck sold 4,223 shares of the business’s stock in a transaction on Thursday, February 5th. The stock was sold at an average price of $290.22, for a total value of $1,225,599.06. Following the sale, the executive vice president directly owned 5,789 shares in the company, valued at $1,680,083.58. The trade was a 42.18% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Ernest Scott Santi sold 167,345 shares of the company’s stock in a transaction on Wednesday, February 4th. The shares were sold at an average price of $290.93, for a total value of $48,685,680.85. Following the transaction, the director directly owned 258,766 shares in the company, valued at $75,282,792.38. This represents a 39.27% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 0.88% of the company’s stock.

Illinois Tool Works Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, April 9th. Stockholders of record on Tuesday, March 31st will be given a dividend of $1.61 per share. This represents a $6.44 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend is Tuesday, March 31st. Illinois Tool Works’s dividend payout ratio is currently 61.39%.

Trending Headlines about Illinois Tool Works

Here are the key news stories impacting Illinois Tool Works this week:

• Positive Sentiment: Zacks Research raised several near? and medium?term EPS forecasts (small but consistent increases), including FY2026 to $11.21 (from $11.17), FY2027 to $12.10 (from $12.04) and FY2028 to $13.21 — these upgrades signal an improving earnings trajectory well above the current consensus full?year estimate of $10.39, which can support higher valuation for ITW.
• Positive Sentiment: Zacks also lifted multiple quarterly estimates (Q1–Q4 2026, Q2–Q4 2026/2027, and Q3 2027) — the breadth of revisions suggests analysts see durable margin or revenue improvement across cycles rather than a one?off beat.
• Neutral Sentiment: A very small cut to Zacks’ Q1 2027 estimate (from $2.80 to $2.79) is immaterial in isolation, but highlights analysts are still fine?tuning near?term timing; these micro changes are unlikely to drive major stock moves.
• Negative Sentiment: A Seeking Alpha piece argues that “the market has better opportunities available,” presenting a bearish/rotational view that could weigh on sentiment if investors favor higher?growth or cheaper alternatives. Article Title

Illinois Tool Works Company Profile

Illinois Tool Works Inc (ITW) is a diversified industrial manufacturer that designs and produces a broad array of engineered products, consumables and related service solutions for industrial customers. Its offerings span engineered fastening systems, specialty components, industrial equipment, welding products, foodservice and packaging equipment, adhesives and polymer products, and test-and-measurement technologies. These products are used as critical inputs by customers across automotive, construction, electronics, foodservice, maintenance and other industrial end markets.

The company operates a decentralized business model in which independently managed businesses focus on niche product lines and close customer relationships.