Analyst Consensus ?
ConsensusHold28 ratings
Bullish517.9%
Neutral1450.0%
Bearish932.1%
Illinois Tool Works Inc. · ITW · FY2026 Q3 · Calendar Q4 2026
ITW: Strong Q3 growth, margin expansion and higher EPS outlook
ITW's Q3 analysis supports a constructive operating trajectory: demand in CapEx-related businesses, Customer Back Innovation and margin initiatives drove growth and expansion. The evidence is balanced by cost-recovery timing, regional softness and questions about the durability of electronics growth.
Reported Before market openNYSEIndustrials
$78.67B market cap
80quality score
Earnings scorecard
Reported versus consensus
Reported EPS
—
Consensus $2.97
EPS surprise
—
Reported versus consensus
Reported revenue
—
Consensus $4.26B
Revenue surprise
—
Reported versus consensus
Market reaction
prior-close to event-session close
Stock move
-0.1%
Event window
SPY move
+0.6%
Same window
Abnormal move
-0.7%
Stock minus SPY
Volume
1.6×
Versus trailing sessions
Subsequent drift
0.0%
Up to 20 sessions
ITWSPY benchmark
Ask FN2 about ITW FY2026 Q3
Transcript, numbers and history already loaded
What drove ITW's -0.1% move after FY2026 Q3 earnings?What changed in ITW's guidance and outlook in FY2026 Q3?Give me the bull and bear case for ITW after FY2026 Q3 earnings.
Free account. Your question opens in FN2 with this report's transcript and numbers attached.
Transcript intelligence
What changed
Compared with the prior-quarter analysis, ITW reported continued organic growth and stronger margin contribution from enterprise initiatives and CBI. Management also highlighted a few months of backlog in traditionally short-cycle CapEx businesses and raised the full-year EPS midpoint to $11.50.
Guidance delta
Management raised full-year GAAP EPS guidance to a midpoint of $11.50 and reiterated its 4%+ organic-growth target.
Key takeaways
- Organic revenue growth was 4.4%, led by welding, test and measurement electronics, and polymers and fluids.
- Customer Back Innovation contributed more than 3% to revenue growth; enterprise initiatives added roughly 130 basis points to operating margin.
- A tornado reduced Q3 welding revenue by about $40 million, while insurance was described as offsetting the operating-income loss.
Management priorities
- Expand Customer Back Innovation and launch higher-margin products.
- Restore welding margins to the 32%–34% range.
- Invest in semiconductor-related businesses and continue planned capital returns.
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Estimate
Beat
Miss
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Analyst 52W Price Targets
$275.93Current
$187Low
$255.4Average
$300High
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 28, 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 $275.93. 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 | +0.4% | Oct 9, 2026 |
| Truist Financial | Analyst unavailable | $297 | $260.93 | +7.6% | Oct 5, 2026 |
| UBS | Steven Fisher | $300 | $296.5 | +8.7% | Jul 29, 2026 |
| Robert W. Baird | Analyst unavailable | $297 | $295.16 | +7.6% | Jul 29, 2026 |
| Wolfe Research | Nigel Coe | $286 | $266.56 | +3.6% | Jul 9, 2026 |
| Truist Financial | Analyst unavailable | $301 | $268.97 | +9.1% | Jul 2, 2026 |
| Evercore ISI | Analyst unavailable | $272 | $254.72 | -1.4% | May 11, 2026 |
| Wells Fargo | Joseph O'Dea | $255 | $255.47 | -7.6% | May 4, 2026 |
| Goldman Sachs | Analyst unavailable | $254 | $258.01 | -7.9% | Apr 30, 2026 |
| Barclays | Julian Mitchell | $275 | $293.57 | -0.3% | Feb 9, 2026 |
| Truist Financial | Analyst unavailable | $280 | $290.33 | +1.5% | Feb 4, 2026 |
| UBS | Analyst unavailable | $285 | $290.71 | +3.3% | Feb 4, 2026 |
| Robert W. Baird | Mircea Dobre | $278 | $278.91 | +0.8% | Feb 4, 2026 |
| Wells Fargo | Joseph O'Dea | $270 | $278.91 | -2.1% | Feb 4, 2026 |
| Goldman Sachs | Analyst unavailable | $253 | $278.91 | -8.3% | Feb 3, 2026 |
| Goldman Sachs | Analyst unavailable | $230 | $259.07 | -16.6% | Dec 16, 2025 |
| Truist Financial | Analyst unavailable | $275 | $245.75 | -0.3% | Oct 27, 2025 |
| Barclays | Analyst unavailable | $244 | $246.98 | -11.6% | Oct 27, 2025 |
| Robert W. Baird | Analyst unavailable | $265 | $247.12 | -4.0% | Oct 27, 2025 |
| Goldman Sachs | Analyst unavailable | $258 | $247.48 | -6.5% | Oct 27, 2025 |
| Wells Fargo | Joseph O'Dea | $245 | $245.75 | -11.2% | Oct 27, 2025 |
| Truist Financial | Analyst unavailable | $298 | $255.75 | +8.0% | Oct 8, 2025 |
| Evercore ISI | David Raso | $265 | $259.22 | -4.0% | Aug 19, 2025 |
| Truist Financial | Analyst unavailable | $283 | $253.67 | +2.6% | Jul 31, 2025 |
| Barclays | Analyst unavailable | $252 | $255.89 | -8.7% | Mar 26, 2025 |
| Barclays | Julian Mitchell | $260 | $274.48 | -5.8% | Mar 10, 2025 |
| Wells Fargo | Joseph O'Dea | $250 | $248.59 | -9.4% | Jan 7, 2025 |
| CFRA | Jonathan Sakraida | $250 | $247.57 | -9.4% | Sep 10, 2024 |
| Wells Fargo | Joseph O'Dea | $236 | $249.34 | -14.5% | Jul 31, 2024 |
| Truist Financial | Jamie Cook | $281 | $249.34 | +1.8% | Jul 31, 2024 |
| Wells Fargo | Joseph O'Dea | $244 | $244.11 | -11.6% | May 1, 2024 |
| Wolfe Research | Nigel Coe | $250 | $262.94 | -9.4% | Apr 8, 2024 |
| Truist Financial | Jamie Cook | $303 | $262.67 | +9.8% | Mar 13, 2024 |
| Barclays | Analyst unavailable | $172 | $183.33 | -37.7% | Oct 3, 2022 |
| Morgan Stanley | Analyst unavailable | $191 | $206.61 | -30.8% | Aug 3, 2022 |
| Wells Fargo | Analyst unavailable | $187 | $204.9 | -32.2% | Aug 3, 2022 |
| Jefferies | Stephen Volkmann | $195 | $193.4 | -29.3% | Jul 26, 2022 |
| Barclays | Analyst unavailable | $167 | $185.64 | -39.5% | Jul 8, 2022 |
| Wells Fargo | Analyst unavailable | $185 | $182.99 | -33.0% | Jun 29, 2022 |
| Morgan Stanley | Analyst unavailable | $182 | $204.12 | -34.0% | May 31, 2022 |
| Barclays | Analyst unavailable | $180 | $199.78 | -34.8% | May 24, 2022 |
| UBS | Steven Fuller | $243 | $201.77 | -11.9% | May 21, 2022 |
| Morgan Stanley | Analyst unavailable | $187 | $209.05 | -32.2% | May 4, 2022 |
| Credit Suisse | Analyst unavailable | $261 | $208.85 | -5.4% | May 4, 2022 |
| Barclays | Analyst unavailable | $192 | $204.2 | -30.4% | May 4, 2022 |
| Deutsche Bank | Nicole DeBlase | $226 | $199.7 | -18.1% | May 2, 2022 |
| Stifel Nicolaus | Nathan Jones | $202 | $203.35 | -26.8% | Apr 23, 2022 |
| Barclays | Julian Mitchell | $200 | $206.43 | -27.5% | Apr 5, 2022 |
| Credit Suisse | Jamie Cook | $284 | $245.63 | +2.9% | Jan 13, 2022 |
| BMO Capital | Joel Tiss | $235 | $232.65 | -14.8% | Dec 2, 2021 |
| Jefferies | Stephen Volkmann | $260 | $224.16 | -5.8% | Oct 28, 2021 |
| UBS | Steven Fisher | $253 | $223.32 | -8.3% | Aug 5, 2021 |
| Wolfe Research | Nigel Coe | $243 | $223.8 | -11.9% | Jul 12, 2021 |
| Argus Research | John Eade | $260 | $230.68 | -5.8% | May 5, 2021 |
Track every rating change on ITW the moment it posts. Free to start.
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
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Latest beats and misses
Who reports nextBeat on EPS
- INIOFY2026 Q3 · October 27, 2026+29.5% EPS+2.1% move
- KOFY2026 Q3 · October 27, 2026+3.3% EPS-1.6% move
- HIG-PGFY2026 Q3 · October 26, 2026+10.4% EPS— move
- HIGFY2026 Q3 · October 26, 2026+10.4% EPS-1.8% move
- CLSFY2026 Q3 · October 26, 2026+12.6% EPS+12.1% move
- CINFFY2026 Q3 · October 26, 2026+39.5% EPS+2.3% move
Missed on EPS
- HSBCFY2026 Q3 · October 27, 2026-4.5% EPS-5.7% move
- BROFY2026 Q3 · October 26, 2026-1.8% EPS-5.0% move
- PSA-PLFY2026 Q3 · October 26, 2026-32.1% EPS— move
- PSA-PNFY2026 Q3 · October 26, 2026-32.1% EPS— move
- PSA-POFY2026 Q3 · October 26, 2026-32.1% EPS— move
- PSA-PKFY2026 Q3 · October 26, 2026-32.1% EPS— move
Get the ITW recap when the next report posts
One email per quarter with the scorecard, the market reaction and what changed on the call. No account needed.
Sources
- Earnings call transcript and parsed analysis · 2026-10-27T16:06:19.706225+00:00
- FN2 earnings calendar · 2026-10-27T01:23:15.065758+00:00
- Polygon adjusted daily market bars · 2026-10-28T00:30:40.689118+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-28T00:30:40.686475+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 2026-10-28. For educational purposes only; not investment advice.