Illinois Tool Works (ITW) stock
Industrials · Industrial Machinery & Supplies & Components
Illinois Tool Works (ITW) is an Industrial Machinery & Supplies & Components company in the Industrials sector, headquartered in Glenview, Illinois. As of October 23, 2026, ITW closed at $275.75, a market capitalization of $78.53 billion, the 163rd largest company in the S&P 500. Over the last twelve months it generated $16.47 billion in revenue (+6% year over year) and $2.92 billion in free cash flow. The stock trades at 25.0x trailing earnings and 22.3x forward earnings.
- 1-year total return: +9.9% (dividends reinvested)
- 5-year return: +6.7% a year
- 52-week range: $238.82 – $303.16
- Gross margin 44.2%, operating margin 26.9%
- Dividend yield: 2.50%, 38 straight years of increases
- FI Handbook report card: B- across 10 metrics
- 23rd largest of 83 Industrials stocks in the S&P 500
ITW price chart
1Y price change: +7.1% (price only; total returns below include dividends)
| Total return | 1M | YTD | 1Y | 3Y | 5Y | 10Y | MAX |
|---|---|---|---|---|---|---|---|
| ITW | +1.5% | +14.1% | +9.9% | +10.0% | +6.7% | +11.9% | +12.4% |
Dividends reinvested. 3Y and longer are annualized; MAX is annualized since 1973.
ITW key statistics
- Market cap
- $78.5B
- #163 in S&P 500
- P/E (TTM)
- 25.0x
- Forward P/E
- 22.3x
- EPS (TTM)
- $11.03
- Revenue (TTM)
- $16.5B
- +6%
- Free cash flow
- $2.9B
- Gross margin
- 44.2%
- Operating margin
- 26.9%
- Return on equity
- 104.6%
- Dividend yield
- 2.50%
- 52-week range
- $238.82 – $303.16
- Beta
- 0.97
- Price / sales
- 4.8x
- EV / EBITDA
- 18.2x
- Debt / equity
- 3.35x
- Employees
- 43,000
ITW report card
B-Ten fundamentals graded A to F against fixed thresholds. Not a buy or sell rating.
- Revenue growth6.1%C
- Gross margin44.2%B
- Operating margin26.9%B
- FCF margin17.7%B
- Return on equity104.6%A
- Net debt / EBITDA1.8xC
- Forward P/E22.3xC
- PEG ratio2.5xD
- Shareholder yield4.4%B
- Share count change / yr-1.7%B
Illinois Tool Works financials
Revenue went from $13.6B in fiscal 2016 to $16.0B in fiscal 2025, growing 1.9% a year.
| Fiscal year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $13.6B | $14.3B | $14.8B | $14.1B | $12.6B | $14.5B | $15.9B | $16.1B | $15.9B | $16.0B |
| Gross profit | $5.7B | $6.0B | $6.2B | $5.9B | $5.2B | $6.0B | $6.5B | $6.8B | $7.0B | $7.1B |
| Operating income | $3.1B | $3.5B | $3.6B | $3.4B | $2.9B | $3.5B | $3.8B | $4.0B | $4.3B | $4.2B |
| Net income | $2.0B | $1.7B | $2.6B | $2.5B | $2.1B | $2.7B | $3.0B | $3.0B | $3.5B | $3.1B |
| EPS (diluted) | $5.70 | $4.86 | $7.60 | $7.74 | $6.63 | $8.51 | $9.77 | $9.74 | $11.71 | $10.49 |
| Free cash flow | $2.0B | $2.1B | $2.4B | $2.7B | $2.6B | $2.3B | $1.9B | $3.1B | $2.8B | $2.7B |
| Buybacks | $2.0B | $1.0B | $2.0B | $1.5B | $706.0M | $1.0B | $1.8B | $1.5B | $1.5B | $1.5B |
| Dividends paid | $821.0M | $941.0M | $1.1B | $1.3B | $1.4B | $1.5B | $1.5B | $1.6B | $1.7B | $1.8B |
| Diluted shares | 357.1M | 346.8M | 337.1M | 325.6M | 318.3M | 316.4M | 310.7M | 303.6M | 297.8M | 292.3M |
Source: SEC filings (10-K XBRL). EPS and share counts are split-adjusted.
What's priced into ITW?
A reverse DCF asks what growth the current price requires. With an enterprise value of $87.4B and $2.9B of trailing free cash flow, Illinois Tool Works needs to grow free cash flow about 20.8% a year for ten years (fading to 3.0% terminal growth) to earn a 10% annual return. For context, free cash flow grew 1.0% a year over the last five years.
P/E ratio history
Current 26.3x vs. median 22.8x (10th–90th percentile 12.8x–28.5x).
A model, not a forecast or advice. Small changes in assumptions move the answer a lot.
ITW dividend
- Dividend yield
- 2.50%
- Annual dividend
- $6.88
- Years of increases
- 38
- 5-yr dividend growth
- 7.1%
- per year
- Payout ratio
- 58%
- Payments per year
- 4
Regular dividends per share by calendar year; special dividends excluded. Current year omitted until complete.
ITW analyst price targets
14 analysts' average 12-month target is $294.57 (+7% vs. $275.75). Targets range from $249.00 to $326.00. 6% rate it a buy.
ITW earnings
Next report: October 27, 2026. Illinois Tool Works has beaten EPS estimates 8 quarters in a row. Last quarter's revenue was $4.3B (+6% year over year).
| Report date | EPS estimate | EPS actual | Surprise |
|---|---|---|---|
| Jul 28, 2026 | $2.80 | $2.84 | +1.5% |
| Apr 30, 2026 | $2.56 | $2.66 | +3.8% |
| Feb 3, 2026 | $2.69 | $2.72 | +1.1% |
| Oct 24, 2025 | $2.72 | $2.81 | +3.5% |
| Jul 30, 2025 | $2.56 | $2.58 | +0.6% |
| Apr 30, 2025 | $2.35 | $2.38 | +1.1% |
| Feb 5, 2025 | $2.50 | $2.54 | +1.5% |
| Oct 30, 2024 | $2.53 | $2.65 | +4.5% |
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ITW news
- Learn Why The Bull Case For Illinois Tool Works Stock Could Change Following Quarterly Earnings Preview · Oct 23, 2026
- Illinois Tool Works (ITW), What Is Behind The Mixed Signals Now? · Oct 23, 2026
- Seeking Clues to Illinois Tool Works (ITW) Q3 Earnings? A Peek Into Wall Street Projections for Key Metrics · Oct 22, 2026
- Illinois Tool Works (ITW) Earnings Expected to Grow: Should You Buy? · Oct 20, 2026
- Illinois Tool Works Faces Headwinds—2 Alternatives Stand Out · Oct 19, 2026
ITW stock FAQ
What is ITW's market cap?
Illinois Tool Works's market capitalization is $78.53 billion as of October 23, 2026, ranking 163rd in the S&P 500.
What is ITW's P/E ratio?
ITW trades at a trailing price-to-earnings ratio of 25.0x and a forward P/E of 22.3x. Its median P/E over the period we track is 22.8x.
Does ITW pay a dividend?
Yes. Illinois Tool Works pays $6.88 per share a year, a 2.50% yield. It has raised its dividend 38 years in a row. Dividends grew 7.1% a year over the last five years.
How much has ITW stock returned?
Including reinvested dividends, ITW returned +9.9% over one year, +6.7% a year over five years, +11.9% a year over ten years through October 23, 2026.
Is ITW stock overvalued?
At today's price, a reverse discounted cash flow model (10% discount rate, 3% terminal growth) implies Illinois Tool Works must grow free cash flow about 21% a year for the next decade. Its free cash flow grew 1% a year over the last five years. Whether that is achievable decides if the stock is cheap or expensive. This is a model, not advice.
What is the ITW price target?
14 analysts cover ITW with an average 12-month price target of $294.57, +7% from the current price. 6% of them rate it a buy.
When does ITW report earnings?
Illinois Tool Works is expected to report earnings on October 27, 2026. It has beaten EPS estimates 8 quarters in a row.
How many employees does Illinois Tool Works have?
Illinois Tool Works has about 43,000 full-time employees, or $383,000 of revenue per employee.
Sources: SEC EDGAR filings, Yahoo Finance market data (delayed), FI Handbook calculations. Last close October 23, 2026. Methodology