Illinois Tool Works Inc. (ITW) Earnings Call Transcripts
Illinois Tool Works Inc.'s Latest Earnings Call - Q3 FY2026
In the third quarter of 2026, Illinois Tool Works Inc. (ITW) reported a revenue increase of 4.4% year-over-year, driven by 3.8% organic growth despite a tornado event impacting welding operations. GAAP EPS rose 7% to $3, exceeding estimates, and the company raised its full-year EPS guidance by $0.05 to a midpoint of $11.50, reflecting a 10% year-over-year growth. Management signaled strong momentum heading into 2027, particularly in welding and Test & Measurement segments, with expectations for continued organic growth above 4%.
Reported metrics
| Metric | Value |
|---|---|
| Total Revenue | $4.4B |
| GAAP EPS | $3 (beat) |
| Operating Margin | 27.8% (positive) |
| Free Cash Flow | $851 million |
| Organic Growth in Test & Measurement and Electronics | 16% (positive) |
| Organic Growth in Polymers & Fluids | 8% (positive) |
Guidance from management
Management raised GAAP EPS guidance for the full year to a midpoint of $11.50, reflecting 10% year-over-year growth. They expect organic growth of 5% plus in Q4 and maintain long-term goals of 4% plus organic growth and 30% operating margins by 2030.
What management said
Yes. So I would say in both auto and construction, we are busily recovering price right now. But I think in both cases, we think about margins in -- across all 7 agents particularly with auto for a second, the primary drivers of auto margins are enterprise initiatives and higher-margin innovation. And we are making great progress on those, both in auto and construction. We see those standing into next year.
And I would just add, Andy, as you think about this from a modeling standpoint, the comparison does get quite a bit tougher here in the fourth quarter. So Q4 last year. As Chris said, this has been going on for a while, was up -- the segment was up 5% organic. And so the Q4 growth rate might not be starting with an 8, is kind of what I'm trying to tell you here.
What analysts pressed on
Analysts expressed concerns regarding the impact of inflation on margins, particularly in automotive and construction segments. There were questions about the timing of pricing actions and the sustainability of growth in the face of economic headwinds.
Main topics on the call
- Revenue Growth and Guidance — ITW achieved total revenue growth of 4.4%, with organic growth at 3.8%. Management raised full-year revenue growth guidance by 50 basis points to a range of 4.5% to 5.5%.
- Earnings Performance — GAAP EPS increased 7% to $3, exceeding estimates. This growth was supported by strong operational execution and a favorable price/cost dynamic.
- Impact of Tornado Event — The tornado event at a welding facility reduced revenues by approximately $40 million or 1 percentage point in Q3. Despite this, welding still managed 7% organic growth, which would have been 15% without the impact.
- Customer-Backed Innovation (CBI) — Management raised the full-year CBI projection to exceed 3%, contributing significantly to revenue growth. This marks an increase from 2.4% in 2025, indicating improved innovation practices.
Read the full Illinois Tool Works Inc. transcript (Q3 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.
About Illinois Tool Works Inc.
Illinois Tool Works Inc. (ITW) is a publicly listed company in the Machinery industry, within the Industrials sector. It trades on NYSE and is based in US. EarningsCalls.dev maintains a free, full-text archive of its earnings call transcripts — 37 calls on record spanning January 31, 2020 to October 27, 2026. Every transcript is split into speaker-by-speaker segments with headline metrics, free to read or available through our REST API.
Earnings Call History
EarningsCalls.dev has 37 Illinois Tool Works Inc. earnings call transcripts on record, spanning January 31, 2020 to October 27, 2026. Based on this history, Illinois Tool Works Inc. reports quarterly. The most recent call on file is dated October 27, 2026. The full list is below — each row opens the complete, free-to-read transcript.
- Ticker
- ITW
- Exchange
- NYSE
- Country
- US
- Sector
- Industrials
- Industry
- Machinery
- Calls on record
- 37
- First call
- January 31, 2020
- Most recent
- October 27, 2026
- Reporting cadence
- quarterly