| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 4.3K | 7.1% | 6.1% |
| Total Income | 4.3K | 7.1% | 6.1% |
| Expenditure | 3.2K | 5.3% | 5.7% |
| PBT | — | ||
| Net Profit | 815.00 | 6.1% | 8.0% |
| OPM | 26.67% | 1.27pp | 0.32pp |
| NPM | 18.95% | 0.17pp | 0.32pp |
| EPS | 2.85 | 7.1% | 10.5% |
Illinois Tool Works Reports Q2 2026 Results and Raises Full Year Guidance
28 Jul 2026 · 28 Jul, 6:57 pm
Summary
Illinois Tool Works Inc. reported strong second quarter 2026 results, with revenue reaching $4.30 billion, up 6.1% year-over-year, fueled by 4.5% organic growth. The company achieved its most profitable quarter in history with operating income of $1.15 billion, a 7.4% increase, and an expanded operating margin of 26.7%. GAAP EPS rose 10.1% to $2.84, and free cash flow saw a significant 41% increase to $631 million. Reflecting this positive momentum, ITW raised its full-year 2026 guidance for both organic revenue and GAAP EPS.
Key Highlights
- 1
Second quarter revenue was $4.30 billion, an increase of 6.1% driven by organic growth of 4.5%.
- 2
Operating income of $1.15 billion grew by 7.4%, marking the most profitable quarter in the company's history.
- 3
Operating margin expanded by 40 basis points to 26.7%, with enterprise initiatives contributing 120 basis points.
- 4
GAAP EPS increased by 10.1% to $2.84 for the second quarter.
- 5
Operating cash flow was $723 million and free cash flow was $631 million, representing a 41% increase.
- 6
Full Year 2026 guidance was raised, with organic revenue guidance increased to a new midpoint of 3.5% and GAAP EPS raised to a new midpoint of $11.45.
Management Comments
Christopher A. O’Herlihy
The ITW team delivered a strong operational and financial performance in the second quarter highlighted by organic growth of 4.5 percent, operating margin of 26.7 percent, and a 10 percent increase in GAAP earnings per share to $2.84. Our results reflect a meaningful acceleration in our capex-related segments, led by double-digit organic growth in Welding and Test & Measurement and Electronics, alongside strong performance in Polymers & Fluids. As we advance our enterprise strategy priorities, we remain well-positioned to drive consistent, above-market organic growth powered by increased contribution to revenue growth from Customer-Back Innovation while further expanding profitability and margins. As a result of our strong operational momentum, we are raising both top- and bottom-line guidance for the full year.
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