ILLINOIS TOOL WORKS INC(ITW)Stock Analysis
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Rank #273 of 2,879 stocksTOP 10%
Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Aug 14, 2026.
Revenue Growth
Profitability
Balance Sheet
Earnings Quality
Free Cash Flow
Institutional Flow
Revenue Scale
Dilution Risk
ITW Stock Analysis & AI Quality Score
AI stock analysis and institutional research for ILLINOIS TOOL WORKS INC (ITW), a Industrials sector company. 13F Pro's AI-powered ranking engine scores ITW at 71.2/100 on a 32-signal composite quality model, placing it at rank #273 of 2,879 stocks — the top 10% of the AI-ranked universe. ITW scores in the top quartile across balance sheet strength (96.2), institutional flow (91.6), revenue scale (91.2). Areas of concern include revenue growth (30.8) and earnings quality (38.2), which score below median versus the broader universe. Based on the latest XBRL financial filings (Q1 2026), ILLINOIS TOOL WORKS INC reports quarterly revenue of $4.0B, net income of $768.0M, an operating margin of 25.4%. Top institutional holders of ITW by reported 13-F value include Briar Hall Management, BlackRock,, STATE FARM MUTUAL AUTOMOBILE INSURANCE CO, based on the most recent SEC filings. ITW trades on the NYSE exchange and files with the SEC under CIK 49826. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate ITW daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for ILLINOIS TOOL WORKS INC directly from SEC EDGAR. ILLINOIS TOOL WORKS INC's 13F Pro composite quality score has ranged between 8 and 76 since 2021, currently 71.2 — an improving long-term trajectory across 56 quarterly and live scoring snapshots.
What's Driving ITW's Business? Latest 10-Q Breakdown
✓ 24/24 datapoints verifiedAI-extracted from ILLINOIS TOOL WORKS INC's 10-Q filed 2026-05-07 — Q1 2026 (quarter ended March 31, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Illinois Tool Works delivered Q1 2026 operating revenue of $4.0B (+4.6% YoY) and operating income of $1.0B (+7.2% YoY), with operating margin expanding 60 basis points to 25.4%.
Biggest Revenue Drivers
Total revenue: $4,016M+4.6% YoY
Higher organic revenue driven by higher demand in semiconductor and electronics end markets, plus acquisition contribution.
Favorable foreign currency translation partially offset by lower organic revenue; organic decline of 0.9% versus worldwide auto builds down 3%.
Favorable FX translation offset by organic revenue decline of 2.8%; equipment down 6.0% but service grew 3.2%.
Higher organic revenue of 6.0% from equipment and consumables growth, plus favorable FX translation.
Favorable FX translation and organic revenue growth of 1.7% across all major regions.
Largest Expense Items
Increase primarily due to higher revenue and higher employee-related expenses, with benefits from enterprise initiatives offset by those headwinds.
Benefits from enterprise initiatives partially offset by higher selling, advertising and R&D expenses.
Increase from prior year period interest expense of $68M.
Margins: Operating margin expanded 60 basis points to 25.4%, driven by 120 basis points of benefits from enterprise initiatives and 30 basis points from lower restructuring expenses, partially offset by higher employee-related expenses. Diluted EPS grew 11.8% to $2.66.
Watch Items from the Filing
- Specialty Products organic revenue declined 4.7% YoY with 200 basis points of product line simplification reduction; segment margin flat at 31.3% despite 80 basis points of unfavorable operating leverage.
- Food Equipment operating income declined 5.3% YoY with operating margin down 180 basis points to 24.7%, driven by product mix, unfavorable operating leverage of 60 basis points, and equipment sales down 6.0%.
- Tariff environment remains uncertain following U.S. Supreme Court invalidation in February 2026 of many tariffs under IEEPA, with new temporary 10% global tariff under Trade Act potentially remaining up to 150 days.
- Russia operations immaterial with $38M net assets and ~$6M quarterly revenue; Company monitors geopolitical risks from Ukraine conflict and Iran situation.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Revenue
Q1 2026
$4.0B
Net Income
Q1 2026
$768.0M
Free Cash Flow
Q1 2026
$528.0M
Operating Margin
Q1 2026
25.4%
D/E Ratio
Q1 2026
2.83
Revenue & Net Income
Earnings Per Share
Key Financials Over Time
Export Financial Table · Pro+Revenue
-1.3% YoYOperating Income
+5.5% YoYEPS (Diluted)
+20.2% YoYTotal Assets
-2.9% YoYTotal Debt
-3.7% YoYOp. Cash Flow
-7.3% YoY| Metric | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|
| Revenue | $15.90B -1.3% | $16.11B +1.1% | $15.93B +10.2% | $14.46B +2.5% | $14.11B -4.5% | $14.77B |
| Operating Income | $4.26B +5.5% | $4.04B +6.6% | $3.79B +9.0% | $3.48B +2.2% | $3.40B -5.1% | $3.58B |
| EPS (Diluted) | $11.71 +20.2% | $9.74 -0.3% | $9.77 +14.8% | $8.51 +9.9% | $7.74 +1.8% | $7.60 |
| Total Assets | $15.07B -2.9% | $15.52B +0.6% | $15.42B -4.1% | $16.08B +6.7% | $15.07B +1.3% | $14.87B |
| Total Debt | $7.86B -3.7% | $8.16B +5.2% | $7.76B +1.0% | $7.69B -0.9% | $7.76B -23.0% | $10.08B |
| Operating Cash Flow | $3.28B -7.3% | $3.54B +50.7% | $2.35B -8.2% | $2.56B -14.6% | $3.00B +6.5% | $2.81B |
AI Insight: ITW Financial Trends
Revenue stabilized near $4B but operating income and cash flow show deteriorating momentum in Q1 2026.
• Operating income declined to $1,020M in Q1 2026 from $1,085M in Q4 2025, extending a softening trend from the Q1 2025 trough.
• Operating cash flow fell to $623M in Q1 2026, lowest since Q2 2025, despite quarterly revenue near $4B.
• Total debt rose to $9,148M in Q1 2026 from $8,969M in Q4 2025, highest level in trailing eight quarters.
⚠ Operating margin compressed to 25.4% in Q1 2026 versus 26.5% in Q4 2025 — sustained margin pressure warrants monitoring.
⚠ Operating cash flow volatility persists (Q1 2026: $623M vs. Q3 2025: $1,021M), signaling potential working capital or collection headwinds.
AI Insight: ITW Ratio Trends
ITW's operating margin and ROIC both deteriorated in Q1 2026, breaking a recovery trend from early 2025.
• Operating margin fell to 25.4% in Q1 2026 from 26.5% in Q4 2025, reversing gains posted through Q3 2025 (27.4% peak).
• ROIC declined to 44.6% in Q1 2026, the lowest reading in the dataset, down 3.8pp from Q4 2025.
• TTM operating margin stable at 26.4%, but masked underlying Q1 2026 weakness amid seasonal or operational headwinds.
⚠ Q1 2026 ROIC collapse to 44.6% — lowest in 9 quarters — signals potential margin or capital efficiency deterioration.
⚠ Operating margin volatility Q4 2024–Q1 2026 (52.4% ROIC → 44.6%) warrants clarity on sustainability of margin recovery.
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Top Institutional Holders of ITW
Briar Hall Management LLC
$6.7B25,835,543 shBlackRock, Inc.
$6.1B23,373,694 shSTATE FARM MUTUAL AUTOMOBILE INSURANCE CO
$5.5B21,029,900 shVANGUARD CAPITAL MANAGEMENT LLC
$4.5B17,427,220 shSTATE STREET CORP
$3.3B12,660,481 shNORTHERN TRUST CORP
$2.9B11,201,579 shGEODE CAPITAL MANAGEMENT, LLC
$1.8B7,059,288 shVANGUARD PORTFOLIO MANAGEMENT LLC
$1.8B6,795,722 shMORGAN STANLEY
$1.4B5,404,241 shCapital Research Global Investors
$1.2B4,758,291 sh
| Fund | Value | Shares |
|---|---|---|
| Briar Hall Management LLC | $6.7B | 25,835,543 |
| BlackRock, Inc. | $6.1B | 23,373,694 |
| STATE FARM MUTUAL AUTOMOBILE INSURANCE CO | $5.5B | 21,029,900 |
| VANGUARD CAPITAL MANAGEMENT LLC | $4.5B | 17,427,220 |
| STATE STREET CORP | $3.3B | 12,660,481 |
| NORTHERN TRUST CORP | $2.9B | 11,201,579 |
| GEODE CAPITAL MANAGEMENT, LLC | $1.8B | 7,059,288 |
| VANGUARD PORTFOLIO MANAGEMENT LLC | $1.8B | 6,795,722 |
| MORGAN STANLEY | $1.4B | 5,404,241 |
| Capital Research Global Investors | $1.2B | 4,758,291 |
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Is ITW a good stock to buy?
13F Pro's AI-powered analysis of ILLINOIS TOOL WORKS INC (ITW) draws on SEC EDGAR-sourced fundamentals, institutional 13F holdings, and insider Form 4 transactions in the Industrials sector (listed on NYSE). The 32-signal AI Quality Score, current rank, and full bull/bear verdict for ITW are available on the ITW stock profile dashboard — with the same data, AI insights, ratios, and institutional activity refreshed after every 10-K, 10-Q, 13F, and Form 4 filing.
Which hedge funds own ITW?
Institutional investors are required to disclose their holdings quarterly via SEC Form 13F. 13F Pro aggregates these filings to show which hedge funds, mutual funds, and asset managers are buying or selling ITW. Combined with insider transaction data from Form 4 filings and AI-powered analysis from 10 specialized research agents, 13F Pro provides a comprehensive view of ILLINOIS TOOL WORKS INC's investment landscape.