Illinois Tool Works Inc. (ITW) Stock Analysis 2026

IndustrialsSpecialty Industrial Machinery
$275.75
as of 2026-10-23
+1.6% (52-week)50D MA $279.84  |  200D MA $266.37

BriMind AI Score

Proprietary
52
Neutral
Price CAGR
11.4%
1Y Return
+9.2%
Analyst Upside
+10.9%
Rev Growth
6.1%

Score based on historical price CAGR, revenue growth, analyst upside, and valuation factors. Updated daily.

AI scores and price targets are for informational and educational purposes only. They do not constitute financial advice or a recommendation to buy or sell any security. Past performance is not indicative of future results. Always conduct your own research before making investment decisions. Full Disclaimer →

ITW Revenue & Profitability Breakdown

This chart shows how ITW's revenue flows through to profit. Each row deducts a layer of costs: first the direct cost of making products/services (Cost of Revenue), then operating expenses like marketing and R&D, then taxes. What remains at the bottom is net income — the actual profit shareholders own. High gross and net margins indicate a business with strong pricing power and efficiency.

Revenue
$16.47B
Cost of Revenue
-$9.20B
Gross Profit
$7.27B44.2% margin
Operating Expenses
-$2.84B
Operating Income
$4.43B26.9% margin
Tax & Other
-$1.24B
Net Income
$3.19B19.4% margin
Gross Margin
44.2%
Operating Margin
26.9%
Net Margin
19.4%

Key Financial Metrics

Illinois Tool Works Inc. trades at a trailing P/E of 25.37x, generates $2.43B in free cash flow, runs a debt/equity ratio of 334.85, and converts shareholder equity into profit at a 104.6% return on equity. For context: P/E ratio measures how much you pay for $1 of earnings (lower = cheaper, but fast-growing companies command higher P/E); Free Cash Flow is the cash left after running the business; Debt/Equity shows how leveraged a company is; Return on Equity shows how efficiently it turns shareholder capital into profit.

Market Cap
$79.77B
P/E (Trailing)
25.37
P/E (Forward)
22.60
PEG Ratio
2.80
Revenue
$16.47B
Revenue Growth
6.1%
Earnings Growth
10.1%
Gross Margin
44.2%
Operating Margin
26.9%
Net Margin
19.4%
Return on Equity
104.6%
Return on Assets
16.9%
Free Cash Flow
$2.43B
Debt / Equity
334.85
Current Ratio
1.11
Quick Ratio
0.74
Beta
1.00
Dividend Yield
2.5%
Payout Ratio
58.3%
Insider Ownership
0.4%
Inst. Ownership
86.9%
Short % Float
3.1%
Book Value / Share
$10.11

Wall Street Analyst Consensus

Wall Street analysts covering Illinois Tool Works Inc. currently haven't converged on a clear consensus rating, with a mean 12-month price target of $301.86 (+9.5% vs the current price). Analysts set these targets after researching a company's earnings, competitive position, and industry trends — Strong Buy / Buy means the majority expect meaningful upside, while Hold means fair value near the current price rather than a sell signal.

Mean Target$301.86+9.5% upside

Technical Price Signals

ITW is currently in a short-term downtrend, trading below its 50-day average of $279.84 and above its 200-day average of $266.37. Moving averages smooth out day-to-day volatility to reveal the underlying trend — a Golden Cross (50MA crosses above 200MA) is a classic bullish signal, a Death Cross is bearish, though both are lagging indicators that confirm trends rather than predict them.

Current Price
$275.75
50-Day MA
$279.84
▼ Price below
200-Day MA
$266.37
▲ Price above
Short-term Downtrend
Below 50-day MA — caution
Read the full ITW in-depth report
Seven-method valuation, AI Score, blended price target, and a 5-year Monte Carlo simulation for ITW.

Compare ITW with Peers

ITW vs PHIllinois Tool Works vs Parker Hannifin — Diversified In
ITW vs EMRIllinois Tool Works vs Emerson Electric — Diversified M
ITW vs HONIllinois Tool Works vs Honeywell — Focused Industrial S
ROK vs ITWRockwell Automation vs Illinois Tool Works — Automation
ITW vs DEIllinois Tool Works vs Deere & Company — Diversified Ma
XYL vs ITWXylem vs Illinois Tool Works — Water Technology Focus v
ITW vs CSXIllinois Tool Works vs CSX — Diversified Manufacturer v
ITW vs DOVIllinois Tool Works vs Dover Corporation — Which Indust

Further Reading

Research and guides that put ITW’s numbers in context — how to read the filings behind them, and the frameworks we use to score them.

SectorsBest Industrial Stocks 2026: GE, CAT, HON, ETN, EMR, PH, ITW, ROKRisk ManagementHow to Build Your First Investment Portfolio: Risk Tolerance, Asset Allocation & Your First 5 FundsFundamentalsWarren Buffett Retired 2026: Berkshire Portfolio Under Greg AbelBeginnerWhat Is an AI Stock Score? How BriMindInvest Ranks Stocks

More Industrials Stock Analysis

In-depth reports on companies operating alongside ITW — business models, bull and bear cases, and the metrics that matter.

CMICummins Inc.Specialty Industrial MachineryETNEaton Corporation plcSpecialty Industrial MachineryJBTMJBT Marel CorporationSpecialty Industrial MachineryROKRockwell Automation, Inc.Specialty Industrial MachineryRRXRegal Rexnord CorporationSpecialty Industrial MachineryNDSNNordson CorporationSpecialty Industrial MachineryGEVGE Vernova Inc.Specialty Industrial MachineryXYLXylem Inc.Specialty Industrial Machinery

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Data sources: Financial metrics and market data sourced from company SEC filings, earnings releases, and investor relations disclosures. Price data, analyst consensus targets, and fundamental financials provided by financial market data providers. ETF data sourced from official fund prospectuses and index provider publications. AI scores and price targets are proprietary estimates — see our Methodology and Disclaimer for details.
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