Illinois Tool Works Inc. (ITW) Earnings Call Transcripts

Illinois Tool Works Inc.'s Latest Earnings Call - Q2 FY2026

In the second quarter of 2026, Illinois Tool Works Inc. (ITW) reported a revenue of $4.3 billion, reflecting a 6.1% increase year-over-year, driven by 4.5% organic growth. Earnings per share (EPS) rose to $2.84, a 10% increase, marking the most profitable quarter in the company's history. Management raised full-year guidance for organic growth to a midpoint of 3.5% and EPS to $11.45, indicating strong operational momentum and confidence in sustained demand across segments.

Reported metrics

Guidance from management

Management raised full-year organic growth guidance to a midpoint of 3.5% and EPS guidance to $11.45, reflecting confidence in sustained demand and operational momentum.

What management said

Yes. Well, we haven't done the annual plans yet for 2027. And so I won't really have an accurate view until we get closer to the end of the year and early next year. But I think the long-term algorithm here, if you go back and look at our TSR model, has been incremental in that 35% range. We've said previously, that's now in the 40% to 45% range in a normal environment. And so I would characterize the current price-c...

Yes, Steve, I would say, fundamentally, what drives our incrementals in the long term is the quality of our portfolio and the quality of execution of our business model. And the quality of our portfolio has continued to get better through the ongoing kind of portfolio pruning. We've gone through PLS over the years. The quality of our business model continues to get better in terms of the quality of 80/20 execution. A...

What analysts pressed on

Analysts expressed concerns regarding the sustainability of growth in CapEx-focused segments and the impact of inflation on margins. There were questions about the durability of order growth and whether ITW could maintain its strong performance amidst potential economic fluctuations.

Main topics on the call

• Record Operating Income — ITW achieved an operating income of $1.15 billion, a 7.4% increase year-over-year, marking the most profitable quarter in the company's history. CEO Chris O'Herlihy stated, "Our top line momentum this quarter was propell...
• Strong Organic Growth — The company reported 4.5% organic growth, with notable contributions from Welding (14%), Test & Measurement and Electronics (10%), and Polymers & Fluids (7%). This growth was attributed to favorable market conditions and...
• Guidance Increase — Management raised full-year organic growth guidance by 1.5 percentage points to a new midpoint of 3.5% and EPS guidance by $0.15 to $11.45, reflecting a 9% year-over-year growth. This marks the second guidance increase o...
• Margin Expansion — Operating margin expanded to 26.7%, with a 120 basis point contribution from enterprise initiatives. Management noted that price increases have more than offset higher raw material costs, although timing lags temporarily...

Read the full Illinois Tool Works Inc. transcript (Q2 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 36 Illinois Tool Works Inc. earnings call transcripts on record, spanning January 31, 2020 to July 28, 2026. Based on this history, Illinois Tool Works Inc. reports quarterly. The most recent call on file is dated July 28, 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

36

First call

January 31, 2020

Most recent

July 28, 2026

Reporting cadence

quarterly