Illinois Tool Works (NYSE:ITW) Reaches New 12-Month High After Better-Than-Expected Earnings

Illinois Tool Works Inc. (NYSE:ITW)’s stock price hit a new 52-week high on Tuesday following a stronger than expected earnings report. The company traded as high as $282.88 and last traded at $279.9580, with a volume of 1248807 shares. The stock had previously closed at $264.21.

The industrial products company reported $2.72 earnings per share for the quarter, topping the consensus estimate of $2.69 by $0.03. The business had revenue of $4.09 billion during the quarter, compared to analyst estimates of $4.07 billion. Illinois Tool Works had a return on equity of 93.26% and a net margin of 19.05%.The company’s revenue was up 4.1% compared to the same quarter last year. During the same period last year, the company posted $2.54 EPS. Illinois Tool Works has set its FY 2026 guidance at 11.000-11.400 EPS.

Key Illinois Tool Works News

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

• Positive Sentiment: Q4 beat: ITW reported EPS of $2.72 vs. consensus ~$2.69 and revenue of $4.09B, driving a near-term positive reaction. The beat was small on EPS but validated execution heading into the year. Illinois Tool Works Inc. (ITW) Q4 2025 Earnings Call Transcript
• Positive Sentiment: Margin expansion — operating margin widened to 26.5% (Q4) and enterprise initiatives contributed meaningful bps of improvement, which supports higher earnings power and drove investor optimism. ITW Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: FY‑2026 guidance and buybacks — management set EPS guidance of $11.00–$11.40 (≈7% growth at the midpoint) and flagged continued buybacks, signaling confidence in cash flow and capital return that typically supports the stock. Illinois Tool Surpasses Q4 Earnings Estimates, Issues 2026 View
• Positive Sentiment: Market reaction — shares reached a new 52‑week high after the results, reflecting investor focus on durable margins, cash returns and tangible EPS upside rather than just top-line growth. Illinois Tool Works Stock Smashes 52-Week High After Earnings Beat
• Neutral Sentiment: Top-line is modest — full‑year revenue was ~$16.0B (up ~0.9% year) and 2026 revenue guidance is for low-single-digit growth (organic 1–3%), so growth remains modest even as margins improve. ITW Reports Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: Guidance range vs. consensus — management’s $11.00–$11.40 EPS range includes but does not materially exceed consensus (~$11.26), leaving room for upside or downside depending on execution; investors should watch early‑year organic trends. Illinois Tool Works beats Q4 estimates, forecasts 7% EPS growth for 2026
• Negative Sentiment: Execution dependence — the stock rally leans heavily on continued margin gains and buybacks; any slowdown in organic demand or failure to deliver the ~100 bps margin expansion could reverse gains. (Earnings transcripts and slides highlight sensitivity to execution.) Illinois Tool Works Inc. (ITW) Q4 2025 Earnings Call Transcript

Analyst Ratings Changes

Several research firms have recently weighed in on ITW. Barclays lifted their target price on shares of Illinois Tool Works from $243.00 to $244.00 and gave the stock an “underweight” rating in a research report on Monday, October 27th. Robert W. Baird set a $265.00 price objective on shares of Illinois Tool Works in a research report on Monday, October 27th. Truist Financial cut their target price on shares of Illinois Tool Works from $298.00 to $275.00 and set a “hold” rating on the stock in a research note on Monday, October 27th. Evercore ISI decreased their target price on Illinois Tool Works from $261.00 to $253.00 and set an “underperform” rating for the company in a research report on Monday, November 17th. Finally, Wolfe Research upped their price target on Illinois Tool Works from $264.00 to $278.00 and gave the company an “underperform” rating in a research report on Thursday, January 15th. One investment analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and five have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Reduce” and an average target price of $260.17.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of ITW. Norges Bank acquired a new stake in shares of Illinois Tool Works during the 2nd quarter valued at about $821,888,000. Massachusetts Financial Services Co. MA raised its position in Illinois Tool Works by 12.3% during the second quarter. Massachusetts Financial Services Co. MA now owns 3,797,055 shares of the industrial products company’s stock valued at $938,822,000 after acquiring an additional 415,982 shares in the last quarter. Laurel Wealth Advisors LLC lifted its stake in Illinois Tool Works by 24,625.1% in the second quarter. Laurel Wealth Advisors LLC now owns 343,431 shares of the industrial products company’s stock valued at $84,913,000 after acquiring an additional 342,042 shares during the last quarter. Vanguard Group Inc. grew its position in Illinois Tool Works by 1.3% in the second quarter. Vanguard Group Inc. now owns 26,723,774 shares of the industrial products company’s stock worth $6,607,453,000 after acquiring an additional 335,955 shares in the last quarter. Finally, Caisse de depot et placement du Quebec increased its stake in shares of Illinois Tool Works by 293.0% during the 3rd quarter. Caisse de depot et placement du Quebec now owns 424,547 shares of the industrial products company’s stock worth $110,705,000 after purchasing an additional 316,512 shares during the last quarter. Hedge funds and other institutional investors own 79.77% of the company’s stock.

Illinois Tool Works Stock Up 5.3%

The company has a current ratio of 1.53, a quick ratio of 1.11 and a debt-to-equity ratio of 2.39. The business’s fifty day moving average price is $254.35 and its two-hundred day moving average price is $255.13. The firm has a market cap of $80.70 billion, a P/E ratio of 26.98, a P/E/G ratio of 14.15 and a beta of 1.15.

About Illinois Tool Works

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.