Earnings summary

Illinois Tool Works Inc Q1 2026 results

Reported 2026-04-30Full transcript →

Snapshot

Illinois Tool Works Inc reported $4.02B of revenue in Q1 2026, up 4.6% year over year, with diluted EPS of $2.66 and an operating margin of 25.4%.

Revenue
$4.02B
YoY growth
+4.6%
Diluted EPS
$2.66
Operating margin
25.4%
$4.02B
Revenue
+4.6%
YoY growth
$2.66
Diluted EPS
25.4%
Operating margin
01 Key takeaways

What management said

  • During today's call, we will discuss ITW's first quarter 2026 financial results and provide an update on our outlook for full year 2026.
  • In the first quarter, we continued to outperform our underlying end markets, delivering revenue growth of 5% and a 12% increase in GAAP EPS to $1.66.
  • Through disciplined operational execution, we expanded operating margin by 60 basis points to 25.4%.
  • We continued to capitalize on positive demand trends in our CapEx-related segments, with organic growth in Welding up 6% and Test & Measurement and Electronics up 5%.
  • Our enterprise initiatives contributed 120 basis points to the bottom line, driving that 60 basis point overall margin improvement.
  • We were equally encouraged by our continued progress on ITW's organic growth agenda, specifically on Customer-Back Innovation, or CBI as we call it.
  • We are positioning the company to consistently deliver 3% plus CBI contribution to revenue by 2030.
  • As we've noted before, this is the key driver of our ability to consistently deliver 4%+ high-quality organic growth at the enterprise level.
  • As we look ahead and based on our solid Q1 results, we are raising our full year GAAP EPS guidance by $0.10.
  • Our new guidance midpoint of $11.30 incorporates a slightly lower tax rate and represents 8% year-over-year growth.
  • Our full year organic growth projection of 1% to 3% remains unchanged, reflecting current demand levels adjusted for seasonality.
  • For the full year, we expect operating margin expansion of approximately 100 basis points, powered by our enterprise initiatives.
Read the full Q1 2026 transcript
SourcesCompany financials · earnings call Last updated

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