Zacks Research Issues Optimistic Estimate for ITW Earnings

Illinois Tool Works Inc. (NYSE:ITW) – Stock analysts at Zacks Research boosted their Q3 2027 earnings per share (EPS) estimates for shares of Illinois Tool Works in a note issued to investors on Tuesday, February 17th. Zacks Research analyst Team now forecasts that the industrial products company will earn $3.13 per share for the quarter, up from their previous forecast of $3.10. The consensus estimate for Illinois Tool Works’ current full-year earnings is $10.39 per share. Zacks Research also issued estimates for Illinois Tool Works’ FY2027 earnings at $12.10 EPS and FY2028 earnings at $13.21 EPS.

Other analysts have also recently issued reports about the company. The Goldman Sachs Group reiterated a “sell” rating and issued a $253.00 price objective on shares of Illinois Tool Works in a research note on Tuesday, February 3rd. Robert W. Baird set a $278.00 price target on Illinois Tool Works in a research report on Wednesday, February 4th. Wolfe Research lowered their price objective on Illinois Tool Works from $278.00 to $276.00 and set an “underperform” rating for the company in a research report on Wednesday, February 4th. JPMorgan Chase & Co. raised their target price on shares of Illinois Tool Works from $275.00 to $310.00 and gave the company an “overweight” rating in a report on Wednesday, February 4th. Finally, Evercore decreased their price target on shares of Illinois Tool Works from $261.00 to $253.00 and set an “underperform” rating for the company in a research note on Monday, November 17th. Two equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and five have assigned a Sell rating to the company’s stock. According to MarketBeat, Illinois Tool Works has an average rating of “Reduce” and a consensus target price of $272.92.

Illinois Tool Works Stock Performance

Shares of ITW stock opened at $294.61 on Friday. The firm has a 50 day moving average of $265.86 and a two-hundred day moving average of $258.51. The stock has a market capitalization of $84.91 billion, a PE ratio of 28.08, a P/E/G ratio of 15.79 and a beta of 1.15. The company has a quick ratio of 0.89, a current ratio of 1.21 and a debt-to-equity ratio of 2.07. Illinois Tool Works has a 52 week low of $214.66 and a 52 week high of $303.15.

Illinois Tool Works (NYSE:ITW) last posted its quarterly earnings data on Tuesday, February 3rd. The industrial products company reported $2.72 earnings per share for the quarter, topping analysts’ consensus estimates of $2.69 by $0.03. Illinois Tool Works had a net margin of 19.11% and a return on equity of 95.16%. The firm had revenue of $4.09 billion during the quarter, compared to analysts’ expectations of $4.07 billion. During the same quarter last year, the company posted $2.54 EPS. The firm’s quarterly revenue was up 4.1% on a year-over-year basis. Illinois Tool Works has set its FY 2026 guidance at 11.000-11.400 EPS.

Hedge Funds Weigh In On Illinois Tool Works

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Cambient Family Office LLC purchased a new position in Illinois Tool Works during the 4th quarter worth $648,000. Wick Capital Partners LLC increased its stake in shares of Illinois Tool Works by 1,224.1% during the fourth quarter. Wick Capital Partners LLC now owns 15,201 shares of the industrial products company’s stock worth $3,744,000 after acquiring an additional 14,053 shares during the period. Vancity Investment Management Ltd raised its holdings in Illinois Tool Works by 24.5% during the fourth quarter. Vancity Investment Management Ltd now owns 2,110 shares of the industrial products company’s stock worth $520,000 after purchasing an additional 415 shares in the last quarter. T. Rowe Price Investment Management Inc. lifted its position in Illinois Tool Works by 184.5% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 9,268 shares of the industrial products company’s stock valued at $2,283,000 after purchasing an additional 6,010 shares during the period. Finally, Claris Financial LLC purchased a new stake in Illinois Tool Works in the 4th quarter valued at approximately $404,000. Hedge funds and other institutional investors own 79.77% of the company’s stock.

Insider Buying and Selling at Illinois Tool Works

In related news, EVP Axel Beck sold 4,223 shares of the business’s stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $290.22, for a total value of $1,225,599.06. Following the completion of the sale, the executive vice president directly owned 5,789 shares of the company’s stock, valued at $1,680,083.58. The trade was a 42.18% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Ernest Scott Santi sold 167,345 shares of the firm’s stock in a transaction dated Wednesday, February 4th. The stock was sold at an average price of $290.93, for a total value of $48,685,680.85. Following the transaction, the director directly owned 258,766 shares in the company, valued at approximately $75,282,792.38. The trade was a 39.27% decrease in their position. The SEC filing for this sale provides additional information. 0.88% of the stock is owned by company insiders.

Illinois Tool Works Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, April 9th. Investors of record on Tuesday, March 31st will be given a $1.61 dividend. This represents a $6.44 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend is Tuesday, March 31st. Illinois Tool Works’s dividend payout ratio (DPR) is 61.39%.

Illinois Tool Works News Roundup

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

• Positive Sentiment: Zacks raised FY2026 EPS to $11.21 (from $11.17) and increased several 2026 quarterly estimates (Q1–Q4 2026 slightly higher), implying stronger near‑term earnings momentum for ITW. Zacks raises FY2026 & 2026 quarter estimates
• Positive Sentiment: Zacks lifted FY2027 guidance to $12.10 EPS and increased Q3 2027 to $3.13 — an upward revision to multi‑year expectations that supports a higher valuation multiple. Zacks raises FY2027 estimates
• Positive Sentiment: Zacks published FY2028 estimates at $13.21 EPS, showing continued expected earnings growth beyond FY2027. This longer‑range raise can improve investor confidence in ITW’s growth trajectory. Zacks issues FY2028 estimate
• Negative Sentiment: One small downgrade: Zacks trimmed Q1 2027 to $2.79 from $2.80 — a very minor change that slightly offsets other raises but is unlikely to materially alter the outlook on its own. Zacks trims Q1 2027 estimate

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.