ITW
Illinois Tool Works Inc.
ITW's fundamentals are mixed: it turned 17% of its revenue into free cash flow, while its operating margin held steady at 27%. At 26x earnings, it's trading in line with its usual 24x. Analysts expect earnings growth.
ITW Fundamentals
| Metric | Status |
|---|---|
| Stable | |
| Strong | |
| Healthy | |
| Healthy |
ITW's profitability, cash flow and balance sheet are currently healthy, and its revenue is stable.
ITW PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 23x | $253 | -12% |
| Fair | 24x | $274 | -4.4% |
| Forward | 24x | $287 | — |
| Current | 26x | $287 | — |
| Expensive | 28x | $311 | +8.4% |
Historical ranges are pointers, not guarantees.
ITW's PE is in its expensive range at 26x. If earnings grow as analysts expect, today's price would be 24x next year's earnings, in its fair range.
ITW Forward outlook
| Metric | Outlook |
|---|---|
| Improving | |
| Growth | |
| Stable | |
| Improving | |
| Limited | |
| High |
Analysts expect ITW's earnings to grow and its profitability to improve, with its revenue holding steady.
ITW Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $12.04 | +7.3% |
| Q3 2026 | $11.22 | +8.9% |
| Q2 2026 | $11.03 | -3.2% |
| Q1 2026 | $10.77 | -5.2% |
| Q4 2025 | $10.49 | -10% |
| Q3 2025 | $10.30 | -11% |
| Q2 2025 | $11.40 | +12% |
| Q1 2025 | $11.36 | +12% |
| Q4 2024 | $11.71 | +20% |
ITW earned $11.22 per share over the past year, up 8.9% from the year before.
ITW Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $4.2B | +4.4% |
| Q2 2026 | $4.3B | +6.1% |
| Q1 2026 | $4B | +4.6% |
| Q4 2025 | $4.1B | +4.1% |
| Q3 2025 | $4.1B | +2.3% |
| Q2 2025 | $4.1B | +0.6% |
| Q1 2025 | $3.8B | -3.4% |
| Q4 2024 | $3.9B | -1.3% |
ITW's revenue has grown year over year for six quarters in a row: $4.2B last quarter, up 4.4% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 28% | +0.4 points |
| Q2 2026 | 27% | +0.3 points |
| Q1 2026 | 25% | +0.6 points |
| Q4 2025 | 27% | +0.3 points |
| Q3 2025 | 27% | +0.9 points |
| Q2 2025 | 26% | +0.2 points |
| Q1 2025 | 25% | -3.6 points |
| Q4 2024 | 26% | +1.4 points |
ITW's operating margin was 28% last quarter, about level with the same quarter a year ago, near the top of its range since 2019.
ITW Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $851M | -5.9% |
| Q2 2026 | $631M | +41% |
| Q1 2026 | $528M | +6.5% |
| Q4 2025 | $858M | -14% |
| Q3 2025 | $904M | +15% |
| Q2 2025 | $449M | -21% |
| Q1 2025 | $496M | +0.4% |
| Q4 2024 | $996M | +9.7% |
ITW's free cash flow has been positive every quarter for seven years: $2.9B over the past year, about the same as the year before.
ITW Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -0.6% | -1.7M shares |
| 1 year | -2.2% | -6.4M shares |
| 3 years | -5.8% | -17.7M shares |
| 5 years | -9.7% | -30.6M shares |
| Available history | -12% | -40.3M shares |
ITW has 285M diluted shares, down 2.2% from a year ago, with $1.7B in buybacks over the past year.
| Quarter | Spent |
|---|---|
| Q3 2026 | $187M |
| Q2 2026 | $750M |
| Q1 2026 | $375M |
| Q4 2025 | $375M |
| Q3 2025 | $375M |
| Q2 2025 | $375M |
| Q1 2025 | $375M |
| Q4 2024 | $375M |
ITW spent $1.7B buying back its own shares over the past year, up 12% from the year before.
ITW Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 1.8x | Healthy |
| Q2 2026 | 1.9x | Healthy |
| Q1 2026 | 1.8x | Healthy |
| Q4 2025 | 1.8x | Healthy |
| Q3 2025 | 1.8x | Healthy |
| Q2 2025 | 1.9x | Healthy |
| Q1 2025 | 1.7x | Healthy |
| Q4 2024 | 1.5x | Healthy |
ITW's net debt is about 1.8 years of its operating earnings (EBITDA), about the same as a year ago.
ITW Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 60.0 | Neutral |
| Stochastic | 59.9 | Neutral |
ITW's weekly RSI is 60 (neutral) and its Stochastic is 60 (neutral).
ITW PE vs Industrials Sector
| Metric | ITW | Sector median | Relative |
|---|---|---|---|
| PE | 26x | 24x | 6.4% above |
| PE % | 67 | 58 | 9 pts above |
ITW is trading at 26x earnings, in line with the Industrials sector's median of 24x.
ITW Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $274.5 | 4.5% above |
| 20 week MA | $277.0 | 3.5% above |
| 50 week MA | $269.0 | 6.6% above |
| 100 week MA | $260.5 | 10% above |
| 200 week MA | $253.6 | 13% above |
ITW is in an uptrend: it's above all five of its weekly moving averages, and 13% above its 200-week average.
ITW Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $181.1 | $202.4 | +12% |
| 2021 | $202.4 | $240.5 | +19% |
| 2022 | $240.5 | $222.0 | -7.7% |
| 2023 | $222.0 | $261.9 | +18% |
| 2024 | $261.9 | $256.6 | -2.1% |
| 2025 | $256.6 | $252.5 | -1.6% |
| 2026 YTD | $252.5 | $286.8 | +14% |
ITW has finished lower in three of the last six years. It's up 14% so far in 2026.