Reading the tape
NYSE: ITW
Illinois Tool Works Inc.
Industrials · Industrial - Machinery
Market Cap
$73.63B
52w High
$303.16
52w Low
$236.68
P/E
23.50
Volume
1.74M
Outstanding Shares
288.20M
Price vs Fundamentals
Why The Stock Is Moving
Mixed / unclearLow confidence
1Y Price: 6.78%Revenue (TTM): 2.9%FCF (TTM): -22.31%P/FCF: 93rd pct
What changed
The stock rose 6.78% over the last year. Revenue grew 2.9% over the trailing twelve months. Operating margin moved from 25.93% to 26.42%. Free cash flow declined 22.31% over the trailing twelve months.
What the market seems to be pricing
The stock has moved higher against modestly weakening underlying metrics. The operating data does not yet tell a clear story — the move may reflect sentiment, sector rotation, or macro factors rather than company-specific earnings power.
What would invalidate this read
Operating margin currently stands at 26.42%. A decisive move in revenue — currently up 2.9% — would be the clearest signal to resolve the ambiguity.
Company profile
Illinois Tool Works Inc. manufactures and sells industrial products and equipment worldwide.
CEOChristopher A. O'Herlihy
SectorIndustrials
IndustryIndustrial - Machinery
Employees44,000
IPO dateMar 13, 1973
Valuation
Forward P/E—
EV/EBITDA17.23
Enterprise value$80.11B
Stock splits
May 26, 2006↑ Forward
Every 1 shares became 2
May 28, 1997↑ Forward
Every 1 shares became 2
Jun 21, 1993↑ Forward
Every 1 shares became 2
May 27, 1987↑ Forward
Every 1 shares became 2
May 23, 1984↑ Forward
Every 1 shares became 2
Profitability & growth
Revenue growth4.61%
Gross margin44.12%▲1.03%vs FY2024
Operating margin26.42%▼2.03%vs FY2024
ROE95.07%▼9.62%vs FY2024
Analyst consensus
RatingHold
Target price$273.67▲7.12%
6
Buy
13
Hold
9
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Jul 29, 2026
Q3 FY26 · EPS est $2.83 · Revenue est $4.18B
View
Dividends
$6.33/shareQuarterlyDividend Aristocrat · 30yrSafeITW pays a dividend with a 2.48% dividend yield, 30 consecutive years of growth, growing at 7.07% annually, covered 1.5× by free cash flow.
Dividend Yield
2.48%
Annual Div / Share
$6.33
5yr CAGR
+7.07%
Doubles every ~10.1yr
Payout Ratio
42.88%
Safe
Dividend Growth Rate
3yr CAGR
+7.12%
5yr CAGR
+7.07%
10yr CAGR
+11.63%
Dividend Safety
8/10Safe
Dividend History
Annual dividends paid per share
YearAnnual DivYoY
2025$6.22+7.2%
2024$5.80+7.0%
2023$5.42+7.1%
2022$5.06+7.2%
2021$4.72+6.8%
2020$4.42+6.8%
2019$4.14+16.3%
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$25/yr
$2/mo
In 5 yrs
$35/yr+41%
$3/mo
In 10 yrs
$49/yr+98%
$4/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$25/yr $2/mo | $35/yr+41% $3/mo | $49/yr+98% $4/mo |
Yield-on-cost grows from 2.48% → 4.91% over 10yr
Analysis
Dividend Strengths
Dividend Aristocrat
ITW has raised its dividend for 30 consecutive years — qualifying as a Dividend Aristocrat, demonstrating long-term commitment to shareholder income.
Well-covered by free cash flow
The dividend is covered 1.5× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.
Strong dividend growth rate
The 5-year CAGR of 7.07% meaningfully outpaces inflation, compounding real income growth for long-term holders.
Risks to Watch
No strong risk signal stands out from the latest period pair.
Congressional Activity
Congress Trades in ITW
STOCK Act disclosures from senators and representatives.
Shelley Moore Capito
WVsenateRepublicanSaleSpouse2026-02-24$1,001 - $15,000+8d to disclose