The U.S. stock market is experiencing mixed trading patterns on Wednesday, February 4th, 2026, with a notable rotation out of technology giants and into broader market sectors. While the Dow Jones Industrial Average shows resilience, major tech stocks continue to weigh heavily on the S&P 500 and Nasdaq Composite, marking a second consecutive day of pressure for the tech-heavy indexes. Investors are closely monitoring a flurry of earnings reports and key economic data releases, which are shaping midday marke ...

Goldman Sachs set a price target of $253 for NYSE:ITW, indicating a potential downside, while the stock was trading at $278.91.ITW's adjusted earnings per share (EPS) rose by 7% to $2.72, surpassing estimates, with revenues reaching $4.09 billion, a 4% increase.The company projects EPS for 2026 to be between $11.00 and $11.40, anticipating a 24% growth in revenue and plans for $1.5 billion in share buybacks.Illinois Tool Works Inc. (NYSE:ITW) is a global manufacturer of industrial products and equipment, op ...

Key Takeaways ITW beat Q4 estimates as adjusted EPS rose 7% and revenues grew 4%, aided by FX and acquisitions.Illinois Tool lifted operating margin to 26.5%, up 30 bps, with enterprise initiatives adding 140 bps.ITW guides 2026 EPS of $11.00-$11.40, sees 24% revenue growth, over 100% FCF and $1.5B buybacks.Illinois Tool Works Inc. (ITW) reported fourth-quarter 2025 adjusted earnings of $2.72 per share, which surpassed the Zacks Consensus Estimate of $2.68. Earnings increased 7% year over year.Illinois Tool ...

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved revenue growth of over 4% and a 7% increase in GAAP EPS to $2.72, with organic growth of 1.3% marking the best quarterly performance of the year [3][4] - Operating income reached $1.1 billion, an increase of 5%, with segment margins at 27.7%, up 120 basis points [4][7] - Free cash flow conversion to net income was 109% for the quarter, and the company repurchased $375 million of its shares [8] Business Line Data and Key Metrics Changes - **Automotive OEM**: Revenue increased by 6%, with organic revenue up 2%. North America grew 2%, while Europe declined 1% [9] - **Food Equipment**: Revenue growth of 4% with organic growth of 1%, driven by a 3% growth in service [10] - **Test and Measurement and Electronics**: Revenue up 6% with organic revenue up 2%, showing improvement in semiconductor activity [10] - **Welding**: Revenue grew 3% with organic growth of 2%, and operating margin reached 33.3%, a 210 basis points improvement [11] - **Polymers and Fluids**: Strong top-line growth of 5% organic growth, supported by new product launches [11] - **Construction Products**: Organic growth down 4%, but margins expanded by 100 basis points to 29% [12] Market Data and Key Metrics Changes - North America grew about 2%, Asia Pacific was up 3%, while Europe declined 2% [7] - China showed strong growth in the automotive sector, with expectations of mid to high single-digit growth in 2026 [80][81] Company Strategy and Development Direction - The company aims for organic growth of 1%-3% in 2026, with a focus on customer-backed innovation (CBI) as a key growth driver [6][14] - The company plans to invest approximately $800 million in high-return internal projects to accelerate organic growth [13] - The company is open to M&A opportunities but remains selective, focusing on high-quality acquisitions that extend long-term growth potential [63][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of the semiconductor market recovery and the overall improvement in demand for industrial markets [23][24] - The company expects to maintain high-quality growth with attractive incremental margins in the mid to high forties for 2026 [14][93] - Management noted that inflation in employee-related costs could offset some margin improvements, but overall margins are expected to improve [99] Other Important Information - The company achieved a 2.4% CBI-fueled revenue growth in 2025, with a goal of 3%+ by 2030 [5][6] - Patent filings increased by 9% in 2025, indicating a strong pipeline for future revenue growth [5][56] Q&A Session Summary Question: Improvement in Test and Measurement Segment - Management noted a solid quarter for Test and Measurement, with improvements in semiconductor demand and general industrial bookings [22][24] Question: Margin Expansion Across Businesses - Management expects all segments to improve operating margins in 2026, driven by enterprise initiatives and improved CBI contributions [26][28] Question: Price-Cost Dynamics - Management indicated that price-cost dynamics are expected to be slightly favorable in 2026, but not a major driver of margin improvement [35][36] Question: Seasonality Expectations - Management confirmed typical seasonality for 2026, with Q1 expected to contribute about 23% of the full year EPS [47][48] Question: CBI Contribution and Product Lifecycle Management - Management expressed confidence in achieving a higher CBI contribution in 2026, with ongoing improvements in product lifecycle management [55][57] Question: Growth in China and the U.S. - Management expects strong growth in China, particularly in the EV space, while North America is projected to show encouraging growth [76][81] Question: Sequential Revenue Growth - Management attributed the 4% sequential revenue growth in Q4 to a combination of ITW-specific factors and broader market improvements [86][95]

Illinois Tool Works (NYSE:ITW) Q4 2025 Earnings call February 03, 2026 10:00 AM ET Company ParticipantsChris O'Herlihy - CEOErin Linehan - VP of Investor RelationsMichael Larsen - CFOConference Call ParticipantsAndrew Kaplowitz - AnalystDavid Raso - AnalystJamie Cook - AnalystJoe Ritchie - AnalystJulian Mitchell - AnalystSabrina Abrams - AnalystScott Davis - AnalystSteven Fisher - AnalystTami Zakaria - AnalystOperatorGood morning. My name is Regina, and I will be your conference operator today. At this time ...

Illinois Tool Works (NYSE:ITW) Q4 2025 Earnings call February 03, 2026 10:00 AM ET Speaker3Good morning. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the ITW's fourth quarter and full year earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press Star, followed by ...

Illinois Tool Works (ITW) came out with quarterly earnings of $2.72 per share, beating the Zacks Consensus Estimate of $2.69 per share. This compares to earnings of $2.54 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +1.32%. A quarter ago, it was expected that this equipment manufacturer for the transportation, power, food and construction industries would post earnings of $2.69 per share when it actually produced earnings o ...

February 3, 2026 Never stronger. Never better positioned for the future. Forward-Looking Statements Safe Harbor Statement This presentation and related conference call contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements regarding the potential impact of tariffs, the Company's projected pricing actions, the impact of enterprise initiatives, future financial and operating performance, free ca ...

Financial Performance - Fourth quarter revenue reached $4.1 billion, an increase of 4.1%, with organic revenue growth of 1.3%[6] - GAAP EPS for the fourth quarter was $2.72, reflecting a 7% increase, while full year GAAP EPS was $10.49, exceeding the prior guidance midpoint of $10.45[7][9] - Full year revenue totaled $16 billion, a 0.9% increase, with organic revenue growth flat[8] - Q4 2025 operating revenue increased by 4.1% compared to Q4 2024, with organic growth of 1.3% and a translation impact of 2.5%[25] - Full Year 2025 operating revenue grew by 0.9% compared to Full Year 2024, with organic growth of 0% and a translation impact of 0.8%[27] - Net income for Q4 2025 was $790 million, up from $750 million in Q4 2024, while full year net income decreased to $3,066 million from $3,488 million in 2024[28] - Adjusted net income per share for the twelve months ended December 31, 2024, was reported at $10.15 after accounting for specific adjustments[33] Operating Margin - Operating margin for the fourth quarter was 26.5%, up 30 basis points, with enterprise initiatives contributing 140 basis points[7] - The total operating margin for Q4 2025 was 26.5%, reflecting a 30 basis points increase from the previous year, despite an unfavorable impact of 50 basis points from amortization expenses related to acquisition-related intangible assets[25] - The total operating margin for Full Year 2025 was 26.3%, which includes a 50 basis points unfavorable impact from amortization expenses related to acquisition-related intangible assets[27] - Operating margin for 2026 is expected to be in the range of 26.5% to 27.5%, with enterprise initiatives contributing 100 basis points[13] - All seven segments are anticipated to deliver positive organic growth and operating margin expansion in 2026[14] - Operating leverage improved in several segments, with Automotive OEM and Measurement & Electronics both seeing a 40 basis points increase in operating margin[25] Cash Flow and Investments - Free cash flow is projected to exceed 100% of net income, with plans to repurchase approximately $1.5 billion of shares[14] - Net cash provided by operating activities for Q4 2025 was $963 million, compared to $1,114 million in Q4 2024, reflecting a decrease of 13.5%[31] - Free cash flow for the twelve months ended December 31, 2025, was $2,707 million, down from $2,844 million in 2024, indicating a decline of 4.8%[31] - The net cash provided by operating activities to net income conversion rate improved to 122% in Q4 2025, compared to 149% in Q4 2024[31] - The free cash flow to net income conversion rate was 109% for Q4 2025, down from 133% in Q4 2024[31] - The average invested capital for the twelve months ended December 31, 2025, was $10,959 million, with a return on average invested capital of 29.3%[28] - The company reported a total invested capital of $11,344 million as of December 31, 2025, compared to $10,232 million in 2024[28] Tax and Projections - The effective tax rate for 2026 is projected to be between 23.5% and 24.5%[14] - The effective tax rate for the twelve months ended December 31, 2025, was reported at 22.7%, adjusted to 23.9% after accounting for discrete tax benefits[29] Revenue Growth Initiatives - Customer-Back Innovation initiatives contributed 2.4% to revenue growth in 2025, enhancing overall performance[5][11] - The company projects 2026 revenue growth of 2% to 4% and organic growth of 1% to 3%[12] Nonrecurring Items - The impact of the sale of noncontrolling interest in Wilsonart reduced the reported net income per share by $1.26[33] - A cumulative effect of change in inventory accounting method resulted in a reduction of $0.30 in net income per share, net of tax[33] - The pre-tax gain on the sale of noncontrolling interest in Wilsonart was $363 million, contributing to the adjusted net income[33] - The change from LIFO to FIFO accounting method for certain U.S. businesses had a pre-tax impact of $117 million[33]

Illinois Tool Works Inc. (NYSE:ITW) is included among the Dividend Growth Stocks: 25 Aristocrats. Illinois Tool Works (ITW) Maintains Dividend Growth Through Business Cycles Illinois Tool Works has been operating for more than a century and has built a business that is difficult to replicate. Its competitive edge comes from scale, deep customer relationships, and a sizable intellectual property portfolio with more than 17,000 granted and pending patents. The company’s dividend history stands out even am ...