Illinois Tool Works Inc. · ITW · FY2025 Q1 · Calendar Q2 2025
ITW: Pricing offsets tariffs as margin initiatives continue
The supplied analysis supports a cautiously constructive operating view: pricing, localized production, enterprise initiatives, and China automotive demand may help protect earnings, but the durability of pricing and underlying volume growth remains unproven.
Earnings scorecard
Reported versus consensusMarket reaction
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Transcript intelligence
What changed
The current analysis emphasizes tariff mitigation through pricing and a 90%+ produce-where-we-sell footprint, while highlighting flat organic revenue and continued China automotive strength. Compared with the prior analysis, tariff execution and the sustainability of pricing are more prominent concerns.
Guidance delta
Maintained: full-year EPS guidance was unchanged in the supplied analysis.
Key takeaways
- Management's analysis described Q1 EPS of $2.38 and a 24.8% operating margin as above expectations.
- Organic revenue was flat, with Asia Pacific and China automotive OEM growth supporting results.
- The supplied analysis says full-year EPS guidance was maintained, while pricing and a 90%+ produce-where-we-sell footprint are intended to mitigate tariffs.
- Enterprise initiatives, product launches, and flexible costs remain the principal operating levers.
Management priorities
- Roll out new products across segments.
- Use a produce-where-we-sell strategy to manage trade risk.
- Invest in enterprise initiatives and maintain a flexible cost structure.
- Adapt pricing as the tariff environment evolves.
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Try FN2 freeEarnings History
Analyst 52W Price Targets
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 16, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| JP Morgan | Neutral | Overweight | Downgrade | Oct 9, 2026 |
| Truist Securities | Hold | Hold | Maintain | Oct 5, 2026 |
| Evercore ISI Group | Underperform | Underperform | Maintain | Aug 11, 2026 |
| Baird | Neutral | Neutral | Maintain | Jul 29, 2026 |
| Wells Fargo | Underweight | Underweight | Maintain | May 4, 2026 |
| Citigroup | Neutral | Neutral | Maintain | May 4, 2026 |
| Barclays | Underweight | Underweight | Maintain | Apr 1, 2026 |
| Goldman Sachs | Sell | Neutral | Downgrade | Dec 16, 2025 |
| B of A Securities | Neutral | Underperform | Upgrade | Nov 18, 2025 |
| UBS | Neutral | Neutral | Maintain | Jul 31, 2025 |
| Stifel | Hold | Hold | Maintain | Jul 31, 2025 |
| Jefferies | Hold | Hold | Maintain | Dec 6, 2024 |
| Morgan Stanley | Underweight | Underweight | Maintain | Aug 3, 2023 |
| Credit Suisse | Outperform | Outperform | Maintain | Aug 2, 2023 |
| Deutsche Bank | Sell | Sell | Maintain | Apr 12, 2023 |
| Vertical Research | Hold | Buy | Downgrade | Jan 3, 2023 |
| BMO Capital | Market Perform | Market Perform | Maintain | May 3, 2021 |
| CFRA | Sell | Sell | Maintain | Jan 31, 2020 |
| Stifel Nicolaus | Hold | Hold | Maintain | Jul 29, 2019 |
| Northcoast Research | Sell | Neutral | Downgrade | Jun 26, 2019 |
| Argus Research | Buy | Buy | Maintain | Apr 26, 2019 |
| Bank of America | Underperform | Neutral | Downgrade | Feb 5, 2019 |
| Seaport Global | Neutral | Buy | Downgrade | Oct 25, 2018 |
| Argus | Buy | Buy | Maintain | May 5, 2018 |
| RBC Capital | Perform | Sector Perform | Maintain | Nov 25, 2014 |
| ISI Group | Buy | Neutral | Upgrade | Aug 7, 2014 |
| Tigress Financial | Neutral | Neutral | Maintain | Mar 12, 2013 |
| Barrington Research | Outperform | Outperform | Maintain | Oct 24, 2012 |
Named analyst price targets
Upside is calculated against the persisted current price $271.19. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| UBS | Analyst unavailable | $277 | $264.71 | +2.1% | Oct 9, 2026 |
| Truist Financial | Analyst unavailable | $297 | $260.93 | +9.5% | Oct 5, 2026 |
| UBS | Steven Fisher | $300 | $296.5 | +10.6% | Jul 29, 2026 |
| Robert W. Baird | Analyst unavailable | $297 | $295.16 | +9.5% | Jul 29, 2026 |
| Wolfe Research | Nigel Coe | $286 | $266.56 | +5.5% | Jul 9, 2026 |
| Truist Financial | Analyst unavailable | $301 | $268.97 | +11.0% | Jul 2, 2026 |
| Evercore ISI | Analyst unavailable | $272 | $254.72 | +0.3% | May 11, 2026 |
| Wells Fargo | Joseph O'Dea | $255 | $255.47 | -6.0% | May 4, 2026 |
| Goldman Sachs | Analyst unavailable | $254 | $258.01 | -6.3% | Apr 30, 2026 |
| Barclays | Julian Mitchell | $275 | $293.57 | +1.4% | Feb 9, 2026 |
| Truist Financial | Analyst unavailable | $280 | $290.33 | +3.2% | Feb 4, 2026 |
| UBS | Analyst unavailable | $285 | $290.71 | +5.1% | Feb 4, 2026 |
| Robert W. Baird | Mircea Dobre | $278 | $278.91 | +2.5% | Feb 4, 2026 |
| Wells Fargo | Joseph O'Dea | $270 | $278.91 | -0.4% | Feb 4, 2026 |
| Goldman Sachs | Analyst unavailable | $253 | $278.91 | -6.7% | Feb 3, 2026 |
| Goldman Sachs | Analyst unavailable | $230 | $259.07 | -15.2% | Dec 16, 2025 |
| Truist Financial | Analyst unavailable | $275 | $245.75 | +1.4% | Oct 27, 2025 |
| Barclays | Analyst unavailable | $244 | $246.98 | -10.0% | Oct 27, 2025 |
| Robert W. Baird | Analyst unavailable | $265 | $247.12 | -2.3% | Oct 27, 2025 |
| Goldman Sachs | Analyst unavailable | $258 | $247.48 | -4.9% | Oct 27, 2025 |
| Wells Fargo | Joseph O'Dea | $245 | $245.75 | -9.7% | Oct 27, 2025 |
| Truist Financial | Analyst unavailable | $298 | $255.75 | +9.9% | Oct 8, 2025 |
| Evercore ISI | David Raso | $265 | $259.22 | -2.3% | Aug 19, 2025 |
| Truist Financial | Analyst unavailable | $283 | $253.67 | +4.4% | Jul 31, 2025 |
| Barclays | Analyst unavailable | $252 | $255.89 | -7.1% | Mar 26, 2025 |
| Barclays | Julian Mitchell | $260 | $274.48 | -4.1% | Mar 10, 2025 |
| Wells Fargo | Joseph O'Dea | $250 | $248.59 | -7.8% | Jan 7, 2025 |
| CFRA | Jonathan Sakraida | $250 | $247.57 | -7.8% | Sep 10, 2024 |
| Wells Fargo | Joseph O'Dea | $236 | $249.34 | -13.0% | Jul 31, 2024 |
| Truist Financial | Jamie Cook | $281 | $249.34 | +3.6% | Jul 31, 2024 |
| Wells Fargo | Joseph O'Dea | $244 | $244.11 | -10.0% | May 1, 2024 |
| Wolfe Research | Nigel Coe | $250 | $262.94 | -7.8% | Apr 8, 2024 |
| Truist Financial | Jamie Cook | $303 | $262.67 | +11.7% | Mar 13, 2024 |
| Barclays | Analyst unavailable | $172 | $183.33 | -36.6% | Oct 3, 2022 |
| Morgan Stanley | Analyst unavailable | $191 | $206.61 | -29.6% | Aug 3, 2022 |
| Wells Fargo | Analyst unavailable | $187 | $204.9 | -31.0% | Aug 3, 2022 |
| Jefferies | Stephen Volkmann | $195 | $193.4 | -28.1% | Jul 26, 2022 |
| Barclays | Analyst unavailable | $167 | $185.64 | -38.4% | Jul 8, 2022 |
| Wells Fargo | Analyst unavailable | $185 | $182.99 | -31.8% | Jun 29, 2022 |
| Morgan Stanley | Analyst unavailable | $182 | $204.12 | -32.9% | May 31, 2022 |
| Barclays | Analyst unavailable | $180 | $199.78 | -33.6% | May 24, 2022 |
| UBS | Steven Fuller | $243 | $201.77 | -10.4% | May 21, 2022 |
| Morgan Stanley | Analyst unavailable | $187 | $209.05 | -31.0% | May 4, 2022 |
| Credit Suisse | Analyst unavailable | $261 | $208.85 | -3.8% | May 4, 2022 |
| Barclays | Analyst unavailable | $192 | $204.2 | -29.2% | May 4, 2022 |
| Deutsche Bank | Nicole DeBlase | $226 | $199.7 | -16.7% | May 2, 2022 |
| Stifel Nicolaus | Nathan Jones | $202 | $203.35 | -25.5% | Apr 23, 2022 |
| Barclays | Julian Mitchell | $200 | $206.43 | -26.3% | Apr 5, 2022 |
| Credit Suisse | Jamie Cook | $284 | $245.63 | +4.7% | Jan 13, 2022 |
| BMO Capital | Joel Tiss | $235 | $232.65 | -13.3% | Dec 2, 2021 |
| Jefferies | Stephen Volkmann | $260 | $224.16 | -4.1% | Oct 28, 2021 |
| UBS | Steven Fisher | $253 | $223.32 | -6.7% | Aug 5, 2021 |
| Wolfe Research | Nigel Coe | $243 | $223.8 | -10.4% | Jul 12, 2021 |
| Argus Research | John Eade | $260 | $230.68 | -4.1% | May 5, 2021 |
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Start freeCompany context
Snapshot as of publicationIllinois Tool Works Inc. is a global enterprise specializing in the production and distribution of a wide array of industrial goods and specialized equipment. The company operates through seven distinct divisions: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM division supplies plastic and metal components, various fastening solutions, and integrated assemblies for automobiles, light-duty trucks, and other industrial applications. Its Food Equipment segment delivers commercial kitchen appliances for washing, refrigeration, cooking, and food processing, alongside comprehensive kitchen exhaust, ventilation, and pollution control systems, and offers related maintenance and repair services.…
Historical context
All ITW earningsIndustrials peers this season
Latest reports in the same sector| Company | Quarter | EPS surprise | Market move | Headline |
|---|---|---|---|---|
| FAST Fastenal Company | FY2026 Q3 · Calendar Q4 2026 | +3.3% | +1.1% | Fastenal Q3: Share Gains and Digital Adoption Lift Growth |
Latest beats and misses
Who reports nextBeat on EPS
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Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2025-04-17T00:33:03.056206+00:00
- Polygon adjusted daily market bars · 2026-10-16T05:00:41.990041+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-16T05:00:41.987458+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-10-16. For educational purposes only; not investment advice.