Illinois Tool Works Inc. Q3 2026 Earnings Recap

ITW’s results were broadly solid, with 3.8% organic revenue growth and higher EPS, while the stock was essentially flat at -0.1%. The quarter included uneven segment and regional performance, and management noted that some businesses still need to catch up on price and costs.

Key Takeaways

• Revenue rose 4.4%, including 3.8% organic growth; excluding the tornado disruption in Welding, organic growth was approximately 4.8%.
• Operating margin expanded 40 basis points to 27.8%, with enterprise initiatives contributing 130 basis points. GAAP EPS increased 7% to $3 despite a higher tax rate.
• Growth was uneven: Test and Measurement and Electronics grew 16%, Welding grew 7% (15% excluding the tornado), and Polymers and Fluids grew 8%; Automotive OEM organic revenue declined 2%.
• North America organic growth was 6%, Asia Pacific grew 3% with China down 2%, and Europe was flat.
• ITW raised full-year GAAP EPS guidance by $0.05 to a midpoint of $11.50, while flagging price/cost catch-up needs in Automotive OEM and Construction Products.