ITW Q2 FY2026 earnings: EPS beat by 1.8%, revenue beat by 2.7%
ILLINOIS TOOL WORKS INC reported Q2 FY2026. EPS came in at $2.84 against a $2.79 consensus, beat by 1.8%. Revenue was $4.3B versus $4.2B expected, beat by 2.7%. Gross margin was 44.1%, up 30 bps from last quarter.
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Q2 GAAP earnings per share $2.84.
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“In Q2, we opportunistically pulled forward our planned Q3 share repurchases, buying back $750 million or about 1% of ITW's outstanding shares at an average price of $255 per share.”
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Sees 2026 GAAP earnings per share $11.35 to $11.55.
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“We are raising our GAAP EPS guidance by $0.15 to a range of $11.35 to $11.55 with a new midpoint of $11.45, representing 9% year-over-year growth.”
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Sees 2026 organic revenue growth 3.5%.
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“In addition to capitalizing on favorable market conditions, we continue to make progress on our long-term organic growth agenda, most notably through customer-back innovation or CBI, which contributed 3% to revenue growth in the first half compared to 2.4% for full year 2025.”
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Sees 2026 organic revenue growth 4.5% in second half of year.
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“As evidenced by today's raised guidance, which implies sustained organic growth of 4.5% in the second half, our best-in-class margins and returns and our disciplined operational execution, ITW is well positioned to deliver strong financial performance in 2026 and beyond.”
Guidance “Operating margin expanded by 240 basis points to 25.2%, and we expect further improvement in the second half of the year.”
Guidance “As evidenced by today's raised guidance, which implies sustained organic growth of 4.5% in the second half, our best-in-class margins and returns and our disciplined operational execution, ITW is well positioned to deliver strong financial performance in 2026 and beyond.”
4 more flagged statementsand 3 tone events from this call are in the Pro read.
Subscribe — $49.99/mo →| Metric | Actual | Consensus | Surprise |
|---|---|---|---|
| EPS | $2.84 | $2.79 | beat by 1.8% |
| Revenue | $4.3B | $4.2B | beat by 2.7% |
| Line | This quarter | QoQ | YoY |
|---|---|---|---|
| Revenue | $4.3B | +7.1% | +6.1% |
| Gross profit | $1.9B | +7.8% | +6.5% |
| Operating income | $1.1B | +12.5% | +7.4% |
| Net income | $815.0M | +6.1% | +7.9% |
| Diluted EPS | $2.84 | +6.8% | +10.1% |
| Gross margin: 44.1%. |
Revenue is up 6.1% from the same quarter last year. Gross margin sits at 44.1%, 40 bps off its 8-quarter high.
This section is part of the Pro report for ITW.
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