| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 33 | 24.6x | 17.3x | Bottom tier | |
Growth | 39 | 4.8% | 7.1% | Bottom tier | |
Quality | 94 | 27.5% | 4.4% | Top tier | |
Safety | 65 | 1.9x | 2.6x | Around median | |
Capital Return | 74 | 2.25% | 0.06% | Top tier | |
Momentum | 71 | 6.6% | -1.7% | Top tier | |
Sentiment | 40 | 11 | 3 | Bottom tier |
The floor: what the company is worth if growth stopped today
65% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 5.00% as of 2026-10-23. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Illinois Tool Works Inc. operates through a diversified industrial portfolio comprising seven segments, including Automotive OEM, Food Equipment, Test & Measurement and Electronics, Welding, Polymers & Fluids, Construction Products, and Specialty Products. The company generates revenue from specialized industrial equipment, products, and services; examples include welding equipment, electronic board assembly and semiconductor manufacturing solutions, food equipment and services, automotive aftermarket products, polymers and fluids, and construction products. Its growth strategy relies on customer-driven product innovation through CBI, alongside portfolio optimization using the 80/20 methodology and efficiency and pricing initiatives.
In Q2 of fiscal 2026, revenue reached $4.3 billion and gross profit was $1.9 billion, equivalent to a calculated gross margin of approximately 44.2%, while net income was $815 million and earnings per share were $2.84. Total revenue grew 6.1%, including 4.5% organic growth, 1.4% from currency translation, and 0.2% from an acquisition, while operating income reached a record $1.15 billion, up 7.4%. Operating margin expanded 40 basis points to 26.7%, and GAAP earnings per share increased 10%.
Operating momentum was concentrated in activities related to capital spending and semiconductors; Welding delivered organic growth of 14%, Test & Measurement and Electronics grew 10%, and Polymers & Fluids grew 7%. In contrast, Automotive OEM and Food Equipment remained approximately flat organically, illustrating that the quarter's strength was not evenly distributed across the seven segments. On a trailing-twelve-month basis for fiscal 2026, ITW recorded revenue of $16.2 billion, gross profit of $7.2 billion, net income of $3.1 billion, and earnings per share of approximately $10.84.
The average analyst price target is $280.71, within a wide range of $254 to $301, with a neutral consensus rather than a buy consensus. The average is approximately 7.4% below the 52-week range high of $303.16, while the highest target of $301 nearly matches that high; this distribution reflects a balance between ITW's raised fiscal 2026 guidance and the strength of Welding and semiconductors on one hand, and price-cost pressures and uneven growth across segments on the other.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Revenue in Q2 of fiscal 2026 reached approximately $4.3 billion, with total growth of 6.1% and organic growth of 4.5%. Welding led performance with organic growth of 14%, followed by Test & Measurement and Electronics at 10% and Polymers & Fluids at 7%. Operating income reached a record $1.15 billion, while earnings per share increased 10% to $2.84.
CBI measures incremental revenue from products introduced during the past three years after deducting any replacement of existing product sales. It contributed 3% to growth in the first half of fiscal 2026, up from 2.4% in fiscal 2025. In Polymers & Fluids alone, its contribution approached 5% during Q2 of fiscal 2026, and management links reaching 3% or more with the ability to achieve sustainable enterprise-level organic growth of 4% or higher.
On July 28, 2026, the company raised its expected organic growth range to 3%–4% from 1%–3%, with a new midpoint of 3.5%. It also raised its GAAP earnings-per-share range to $11.35–$11.55, whose midpoint of $11.45 represents annual growth of 9%. It maintained the operating margin range at 26.5%–27.5% and expects free cash flow conversion to exceed 100% of net income.
Automated analysis for informational purposes only — not investment advice.
Welding delivered organic growth of 14% in Q2 of fiscal 2026, while equipment sales increased 19%. Demand came from infrastructure, energy, aerospace, defense, and data center-related construction, alongside strong adoption of products launched during the twelve months preceding the call. North America represents approximately 85% of the segment and grew 19%, while operating margin remained at 32.4% and order growth exceeded revenue growth.
Test & Measurement and Electronics grew organically by 10% in Q2 of fiscal 2026, led by a 21% surge in Electronics, which represents approximately 40% of the segment. The drivers are concentrated in electronic board assembly solutions and activities serving the chip industry, and ITW continued investing in production capacity during the previous downturn. This helped the segment expand its operating margin by 240 basis points to 25.2%, with orders growing faster than revenue.
The lag in adjusting prices after raw material costs increased reduced the Q2 fiscal 2026 margin by approximately 40 basis points, even though price increases exceeded cost increases in dollar terms. Pressures included crude oil derivatives such as resins and chemicals, as well as transportation and electronic components. Management expects the impact to decline to approximately 30 basis points in Q3 and approximately 20 basis points in Q4, with the annual operating margin range remaining at 26.5%–27.5%.