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

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

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

Reuters Recommended Reads

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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.)