Illinois Tool Works (ITW) · Q2 2026 results and valuation

At 0.2% growth a year (3-year revenue growth), the model's fair value is $72.98 a share — the stock trades 296% above it. Today's price assumes 15.0% growth a year.

1. Guidance ↑

   Illinois Tool Works is raising its 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.

2. Guidance ↑

   Illinois Tool Works raised guidance implies sustained 4.5% organic growth in the second half alongside disciplined operational execution.

   Source quote

   “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...”

3. Figure

   ITW saw 4.5% organic growth, operating margin expansion to 26.7%, and a 10% GAAP EPS rise to $2.84.

   Source quote

   “Highlights include 4.5% organic growth, operating margin expansion to 26.7% and a 10% increase in GAAP EPS to $2.84.”

4. Fading

   Illinois Tool Works was particularly encouraged by positive demand trends and strong order activity in its CapEx and semi-related segments.

   Source quote

   “we were particularly encouraged by positive demand trends and strong order activity in our CapEx and semi-related segments. Starting with the top line, revenue growth was 4.6%, driven by organic growth of 0.4%, a 3.9% contribution from foreign currency translation and 0.3% from an acquisition. The combination of our product line simplification, PLS efforts and delayed sales to the Middle East reduced our organic growth rate by approximately 1 percentage point.”

Management sounded noticeably less positive answering analysts than in its prepared script — one of the biggest drops of any company call. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.

Sentences that drove the tone

“Our businesses in these 2 sectors are able to fully capitalize on the growth opportunities ahead of them and gain market share based on their expanded capacity, the highly differentiated...”

“In Polymers & Fluids, organic growth reached 7%, driven by strength across the board, including 7% growth in Automotive Aftermarket as a result of traction on new products and continued...”

“North America grew 2% and International grew 1%, with strong growth in medical, aerospace and consumer packaging, offset by product line simplification in appliance components.”