<p>Illinois Tool Works (NYSE:ITW) is preparing to release its quarterly earnings on Tuesday, 2026-02-03. Here's a brief overview of what investors should keep in mind before the announcement.</p>
<p>Analysts expect Illinois Tool Works to report an <strong>earnings per share</strong> (EPS) of $2.68.</p>
<p>The announcement from Illinois Tool Works is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.</p>
<p>It's worth noting for new investors that guidance can be a key determinant of stock price movements.</p>
<h3>Past Earnings Performance</h3>
<p>The company's EPS beat by $0.11 in the last quarter, leading to a 0.0% drop in the share price on the following day.</p>
<p>Here's a look at Illinois Tool Works's past performance and the resulting price change:</p>
<p></p><table>
<thead>
<tr>
<th><strong>Quarter</strong></th>
<th align="right"><strong>Q3 2025</strong></th>
<th align="right"><strong>Q2 2025</strong></th>
<th align="right"><strong>Q1 2025</strong></th>
<th align="right"><strong>Q4 2024</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td><strong>EPS Estimate</strong></td>
<td align="right">2.70</td>
<td align="right">2.56</td>
<td align="right">2.35</td>
<td align="right">2.49</td>
</tr>
<tr>
<td><strong>EPS Actual</strong></td>
<td align="right">2.81</td>
<td align="right">2.58</td>
<td align="right">2.38</td>
<td align="right">2.54</td>
</tr>
<tr>
<td><strong>Price Change %</strong></td>
<td align="right">-5.00</td>
<td align="right">1.00</td>
<td align="right">0.00</td>
<td align="right">0.00</td>
</tr>
</tbody>
</table><p></p>
<p><img src="https://imageproxy.pbkrs.com/https://www.benzinga.com/files/images/story/2026/1770040852_0.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="eps graph" original-src="https://imageproxy.pbkrs.com/https://www.benzinga.com/files/images/story/2026/1770040852_0.png"/></p>

<h3>Tracking Illinois Tool Works's Stock Performance</h3>
<p>Shares of Illinois Tool Works were trading at $261.26 as of January 30. Over the last 52-week period, shares are up 2.58%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release. </p>
<h3>Insights Shared by Analysts on Illinois Tool Works</h3>
<p>Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Illinois Tool Works.</p>
<p>A total of 3 analyst ratings have been received for Illinois Tool Works, with the consensus rating being Neutral. The average one-year price target stands at $245.0, suggesting a potential 6.79% downside.</p>
<h3>Understanding Analyst Ratings Among Peers</h3>
<p>The analysis below examines the analyst ratings and average 1-year price targets of Ingersoll Rand, Xylem and Parker Hannifin, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.</p>
<ul>
<li>Analysts currently favor an Buy trajectory for Ingersoll Rand, with an average 1-year price target of $90.4, suggesting a potential 65.61% downside.</li>
<li>Analysts currently favor an Neutral trajectory for Xylem, with an average 1-year price target of $156.5, suggesting a potential 40.46% downside.</li>
<li>Analysts currently favor an Outperform trajectory for Parker Hannifin, with an average 1-year price target of $995.37, suggesting a potential 278.67% upside.</li>
</ul>
<h3>Peer Metrics Summary</h3>
<p>The peer analysis summary provides a snapshot of key metrics for Ingersoll Rand, Xylem and Parker Hannifin, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.</p>
<p></p><table>
<thead>
<tr>
<th>Company</th>
<th>Consensus</th>
<th>Revenue Growth</th>
<th>Gross Profit</th>
<th>Return on Equity</th>
</tr>
</thead>
<tbody>
<tr>
<td>Illinois Tool Works</td>
<td>Neutral</td>
<td>2.34%</td>
<td>$1.81B</td>
<td>25.58%</td>
</tr>
<tr>
<td>Ingersoll Rand</td>
<td>Buy</td>
<td>5.05%</td>
<td>$855.20M</td>
<td>2.42%</td>
</tr>
<tr>
<td>Xylem</td>
<td>Neutral</td>
<td>7.79%</td>
<td>$883M</td>
<td>2.04%</td>
</tr>
<tr>
<td>Parker Hannifin</td>
<td>Outperform</td>
<td>9.09%</td>
<td>$1.93B</td>
<td>6.02%</td>
</tr>
</tbody>
</table><p></p>
<p>Key Takeaway:</p>
<p>Illinois Tool Works ranks in the middle for consensus rating. It is at the bottom for revenue growth. It is at the top for gross profit. It is at the top for return on equity.</p>
<h3>Get to Know Illinois Tool Works Better</h3>
<p>Founded in 1912, Illinois Tool Works has become a diversified industrial manufacturer through acquisitions and innovations that follow customer needs. ITW operates through seven business segments, with no segment representing more than one-fifth of revenue. ITW' automotive OEM segment sells vehicle components; its food equipment segment sells commercial kitchen appliances; its test and measurement and electronics segment sells inspection and analysis equipment; its welding segment sells welding equipment and consumables; its polymers and fluids segment sells industrial and consumer adhesives, solvents, and coatings; its construction products segment sells building fasteners and tools; and its specialty products segment sells medical, packaging, HVAC, and airport ground equipment.</p>
<h3>A Deep Dive into Illinois Tool Works's Financials</h3>
<p><strong>Market Capitalization Analysis:</strong> With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.</p>
<p><strong>Revenue Growth:</strong> Over the 3 months period, Illinois Tool Works showcased positive performance, achieving a revenue growth rate of <strong>2.34%</strong> as of 30 September, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.</p>
<p><strong>Net Margin:</strong> The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of <strong>20.23%,</strong> the company showcases strong profitability and effective cost control.</p>
<p><strong>Return on Equity (ROE):</strong> Illinois Tool Works's ROE excels beyond industry benchmarks, reaching <strong>25.58%</strong>. This signifies robust financial management and efficient use of shareholder equity capital.</p>
<p><strong>Return on Assets (ROA):</strong> Illinois Tool Works's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of <strong>5.1%,</strong> the company showcases efficient use of assets and strong financial health.</p>
<p><strong>Debt Management:</strong> Illinois Tool Works's debt-to-equity ratio is notably higher than the industry average. With a ratio of <b>2.79</b>, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.</p>
<p>To track all earnings releases for Illinois Tool Works visit their earnings calendar on our site.</p>
<p><em>This article was generated by Benzinga's automated content engine and reviewed by an editor.</em></p>

<p>Illinois Tool Works (NYSE:ITW) is set to announce its quarterly earnings on February 3, 2026, with analysts predicting an EPS of $2.68. The company previously beat EPS estimates by $0.11, but shares dropped 0.0% afterward. Currently trading at $261.26, ITW's stock has risen 2.58% over the past year. Analysts rate ITW as Neutral, with a one-year price target of $245.0, indicating a potential downside. ITW excels in gross profit and return on equity but lags in revenue growth compared to peers. The company has a high debt-to-equity ratio, indicating increased financial risk.</p>

What to Expect from Illinois Tool Works's Earnings