# Illinois Tool Works Inc. (ITW)

> Source: Nexqual · https://nexqual.com/ITW · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Illinois Tool Works Inc. (ITW), nexqual.com/ITW" · informational, not investment advice.

**Price:** USD 279.24 (+0.88% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 276.8 · day 267.86–279.71 · 52w 238.82–303.16 · market cap $79.5B · NYQ

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $16.5B, net income $3.19B (19.4% margin), free cash flow $2.92B (SEC filings).
- Valuation: P/E 24.9x (avg 24.0x at the last 3 fiscal year-ends), EV/EBITDA 18.8x, net debt $8.86B.
- 2 of 80 tracked superinvestors hold ITW (13F, Q2 2026): 0 new, 1 added, 0 reduced, 1 unchanged.
- Analysts: Hold (mean 3.13 on a 1–5 scale) (16 analysts), mean target USD 294.57 (range 249–326).
- Total return with dividends: 1Y +11.2% vs S&P 500 +14.9%; 5Y +40.0% vs S&P 500 +80.3%.
- Next earnings: 2026-10-27, EPS estimate USD 2.98, revenue estimate $4.25B.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $14.5B | $15.9B | $16.1B | $15.9B | $16.0B | $16.5B |
| Gross profit | $5.97B | $7.80B | $8.16B | $8.29B | $8.49B | — |
| Operating income | $3.48B | $3.79B | $4.04B | $4.26B | $4.22B | $4.36B |
| Net income | $2.69B | $3.03B | $2.96B | $3.49B | $3.07B | $3.19B |
| EPS (diluted) | $8.51 | $9.77 | $9.74 | $11.71 | $10.49 | — |
| Free cash flow | $2.26B | $1.94B | $3.08B | $2.84B | $2.71B | $2.92B |
| Gross margin | 41.3% | 48.9% | 50.7% | 52.2% | 52.9% | — |
| Operating margin | 24.1% | 23.8% | 25.1% | 26.8% | 26.3% | 26.5% |
| Net margin | 18.6% | 19.0% | 18.4% | 21.9% | 19.1% | 19.4% |
| Revenue growth | +15.0% | +10.2% | +1.1% | -1.3% | +0.9% | — |
| Cash + short-term investments | $1.53B | $708M | $1.06B | $948M | $851M | — |
| Total debt | $7.48B | $6.71B | $7.70B | $7.08B | $7.68B | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 24.9x · P/S 4.8x · EV/EBITDA 18.8x · EV/Sales 5.4x · P/FCF 27.2x · P/B 27.5x · FCF yield 3.67% · Earnings yield 4.02% · Dividend yield (paid, TTM) 2.30% · Buyback yield (TTM) 2.36% · Net debt $8.86B · EV $88.4B
P/E at fiscal year-ends: Dec 2025 23.5x, Dec 2024 21.6x, Dec 2023 26.9x.

## Superinvestors (SEC 13F-HR, Q2 2026)
2 of 80 tracked investors hold ITW. Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change |
|---|---|---|---|---|
| Thomas Gayner | Markel Group | 0.67% | $88.6M | Unchanged |
| Mairs & Power | Mairs & Power Funds | <0.01% | $415K | Added +3.4% |

## Analysts
Consensus Hold (mean 3.13 on a 1–5 scale), 16 analysts; mean target USD 294.57 (low 249, high 326).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-09 | JP Morgan | Downgrade | Overweight → Neutral | $350 → $277 |
| 2026-10-05 | Truist Securities | Target lowered | Hold | $308 → $297 |
| 2026-08-11 | Evercore ISI Group | Target raised | Underperform | $272 → $309 |
| 2026-07-29 | JP Morgan | Target raised | Overweight | $310 → $350 |
| 2026-07-29 | Baird | Target raised | Neutral | $278 → $297 |
| 2026-07-13 | JP Morgan | Target raised | Overweight | $295 → $310 |
| 2026-07-02 | Truist Securities | Target raised | Hold | $280 → $301 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +11.2% | +40.0% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +11.3% | +7.0% |
| Volatility (annualized) | 21.7% | 21.4% |
| Max drawdown | -17.4% (Feb 2026→Jun 2026) | -27.4% (Dec 2021→Jun 2022) |

## Peers (Specialty Industrial Machinery)
CMI (Cummins Inc.) USD 519.53 -4.18% · EMR (Emerson Electric Company) USD 160.29 -1.73% · AME (AMETEK, Inc.) USD 238.82 -4.58% · PH (Parker-Hannifin Corporation) USD 893.21 -6.78% · ROK (Rockwell Automation, Inc.) USD 423.87 -3.34% · ETN (Eaton Corporation, PLC) USD 368.99 -6.33%

## More
Full page: https://nexqual.com/ITW · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $2.98 | $2.93 | +1.5% | $4.25B | 11 |
| Next quarter (ends 2026-12-31) | $2.96 | $2.93 | +1.3% | $4.25B | 11 |
| Current fiscal year (ends 2026-12-31) | $11.44 | $11.35 | +0.9% | $16.83B | 12 |
| Next fiscal year (ends 2027-12-31) | $12.35 | $12.20 | +1.2% | $17.44B | 13 |