The EPS beat and guidance raise are positive signals, but the extremely low organic growth (0.4%) and heavy reliance on FX tailwinds warrant caution. Watch for demand trends in the Automotive OEM and Food Equipment segments, which posted negative organic growth, and monitor whether the capex-led segments (Welding, Test & Electronics) can sustain their momentum. The $1.5B buyback plan provides a floor.
Price Chart
Executive Summary
ITW reported Q1 2026 GAAP EPS of $2.66, a 12% YoY increase and a 3.7% beat vs the $2.56 consensus estimate. Revenue of $4.016B grew 4.6% YoY, slightly above the $4.01B consensus, driven by a 3.9% FX tailwind and 0.3% from acquisitions, though organic growth was only 0.4%. The company raised its full-year 2026 GAAP EPS guidance by $0.10 to $11.10-$11.50, representing 8% growth at the midpoint, while maintaining its revenue growth outlook of 2-4%.
Key Financial Metrics
Key Facts
- Q1 2026 GAAP EPS of $2.66 beat consensus of $2.56 by 3.7%
- Revenue of $4.016B grew 4.6% YoY, slightly above $4.01B consensus
- Organic revenue growth was only 0.4%; FX contributed 3.9% and acquisitions 0.3%
- Operating margin expanded 60 bps to 25.4%, with enterprise initiatives contributing 120 bps
- Full-year 2026 GAAP EPS guidance raised by $0.10 to $11.10-$11.50 (8% growth at midpoint)
- Revenue growth guidance maintained at 2-4%; organic growth at 1-3%
- Operating cash flow of $623M; free cash flow of $528M (69% conversion of net income)
- Company repurchased $375M of shares in Q1; plans ~$1.5B for full year
- Effective tax rate was 20.6% in Q1, benefiting from a $34M discrete tax benefit
Financial Impact
GAAP EPS beat consensus by $0.10 (3.7%); full-year guidance raised by $0.10 at midpoint
Risk Factors
- Organic growth of only 0.4% suggests underlying demand is weak; FX tailwinds are not sustainable
- Automotive OEM (-0.9% organic) and Food Equipment (-2.8% organic) segments are contracting
- Guidance raise was modest ($0.10) and may already be priced in
- Tariff and inflation risks remain, though management claims pricing actions offset them in 2025
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000049826-26-000025 |
| Document: itw-20260430.htm | 0000049826-26-000025 |
| Document: 0000049826-26-000025-index-headers.html | 0000049826-26-000025 |
| Document: 0000049826-26-000025-index.html | 0000049826-26-000025 |
| Document: 0000049826-26-000025.txt | 0000049826-26-000025 |
| 8-K Data (Synthetic) | 0000049826-26-000025 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 21, 2026 6w ago | Insider Cluster | $282.29 $267.52 | ▼ −5.23% | ▼ −4.71% | $262.92 (−6.86%) |
Aug 11, 2026 7w ago | 424B5 | $293.15 $263.99 | ▼ −9.95% | ▼ −8.89% | $262.92 (−10.31%) |
Aug 7, 2026 8w ago | Press Release | $296.36 $270.12 | ▼ −8.85% | ▼ −8.46% | $262.92 (−11.28%) |
Jul 28, 2026 9w ago | Press Release | $295.16 $281.65 | ▼ −4.58% | ▼ −7.96% | $262.92 (−10.92%) |
Jul 9, 2026 12w ago | S-3ASR | $265.48 $294.70 | ▲ +11.01% | ▲ +8.76% | $262.92 (−0.96%) |
Jul 8, 2026 12w ago | Press Release | $265.48 $294.70 | ▲ +11.01% | ▲ +8.76% | $262.92 (−0.96%) |
May 8, 2026 21w ago | Press Release | $254.34 $252.72 | ▼ −0.64% | ▼ −0.66% | $262.92 (+3.37%) |
Apr 30, 2026 22w ago | 8-K | $257.89 $247.04 | ▼ −4.21% | ▼ −9.43% | $262.92 (+1.95%) |
Apr 30, 2026 22w ago | Press Release | $257.89 $247.04 | ▼ −4.21% | ▼ −9.43% | $262.92 (+1.95%) |
Apr 10, 2026 25w ago | Press Release | $270.34 $255.53 | ▼ −5.48% | ▼ −14.01% | $262.92 (−2.75%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access