ITW Q4 revenue slightly beats expectations, EPS beats

Overview

• Multi-industrial manufacturer's Q4 revenue slightly beat analyst expectations

• Q4 EPS beat analyst expectations

• Company repurchased $375 mln of its own shares in Q4

Outlook

• ITW projects 2026 revenue growth of 2% to 4%

• Company expects 2026 GAAP EPS of $11.00 to $11.40

• ITW sees 2026 operating margin expansion of 100 bps

Result Drivers

• FOREIGN CURRENCY - Foreign currency translation increased Q4 revenue by 2.5%

• ENTERPRISE INITIATIVES - Enterprise initiatives contributed 140 bps to Q4 operating margin expansion

• CUSTOMER-BACK INNOVATION - Customer-Back Innovation contributed 2.4% to 2025 revenue growth

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 6 "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 $265.00, about 0.3% above its February 2 closing price of $264.21

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release: ID:nGNX72sKSN

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