Illinois Tool Works (ITW) Q4 FY2025 earnings: revenue $4.1 billion, up 4.1% on the year

Illinois Tool Works Inc. (ITW) reported revenue of $4.1 billion for Q4 FY2025, the quarter ended 31 December 2025, up 4.1% on the same quarter a year earlier. Net income was $790 million, up 5.3% on the year, and diluted earnings per share $2.72. The figures are the company's own, from the 10-K it filed with the SEC on 13 February 2026.

Revenue

$4.1 billion

+4.1% on the year · +0.8% on the quarter

Q1 FY2024Q4 FY2025

Operating margin

26.5%

26.2% a year earlier

Q1 FY2024Q4 FY2025

Net income

$790 million

+5.3% on the year · -3.8% on the quarter

Q1 FY2024Q4 FY2025

Diluted EPS

$2.72

+7.1% on the year · -3.2% on the quarter

Q1 FY2024Q4 FY2025

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 7 new, 1 kept.

Fourth quarter revenue rose 4.1 percent: Revenue was $4.1 billion; currency translation added 2.5 percent and acquisitions added 0.3 percent.
Operating margin rose on enterprise initiatives: GAAP EPS was $2.72, up 7 percent; management said operating margin and income reached record levels in the quarter.
Six of seven segments expanded margins: For 2025, six segments raised operating margin; Welding, Specialty Products and Construction Products each exceeded 30 percent.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q4 FY2025	Q3 FY2025	Q4 FY2024	On the quarter	On the year
Revenue	4,093	4,059	3,932	+0.8%	+4.1%
Cost of revenue	1,923	1,898	1,884	+1.3%	+2.1%
Gross profit	2,170	2,161	2,048	+0.4%	+6.0%
Gross margin	53.0%	53.2%	52.1%
Operating income	1,085	1,112	1,031	-2.4%	+5.2%
Operating margin	26.5%	27.4%	26.2%
Interest expense	75.0	75.0	68.0	0.0%	+10.3%
Income tax	234	228	233	+2.6%	+0.4%
Net income	790	821	750	-3.8%	+5.3%
Net margin	19.3%	20.2%	19.1%
Diluted EPS	$2.72	$2.81	$2.54	-3.2%	+7.1%

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	Q4 FY2025	Q3 FY2025	Q4 FY2024	On the quarter	On the year
Operating cash flow	963	1,021	1,114	-5.7%	-13.6%
Capital expenditure	105	117	118	-10.3%	-11.0%
Free cash flow	858	904	996	-5.1%	-13.9%
Free cash flow margin	21.0%	22.3%	25.3%
Cash from investing	-221	-116	-117
Cash from financing	-818	-775	-943
Share-based compensation	17.0	17.0	13.0	0.0%	+30.8%
Buybacks	375	375	375	0.0%	0.0%
Dividends paid	467	438	443	+6.6%	+5.4%
Dividend per share	n/a	$1.61	n/a
Diluted shares, weighted	292m	292m	298m	+0.2%	-1.8%
Shares outstanding at period end	289m	290m	294m	-0.5%	-1.8%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q4 FY2025	Q3 FY2025	Q4 FY2024	On the quarter	On the year
Shareholders' equity	3,226	3,209	3,317	+0.5%	-2.7%
Debt	8,969	8,942	7,863	+0.3%	+14.1%
Operating lease liabilities	180	n/a	158		+13.9%
Other liabilities	3,773	3,984	3,729	-5.3%	+1.2%
Total liabilities and equity	16,148	16,135	15,067	+0.1%	+7.2%
Fixed assets	2,230	2,203	2,036	+1.2%	+9.5%
Goodwill	5,098	5,028	4,839	+1.4%	+5.4%
Intangible assets	591	540	592	+9.4%	-0.2%
Cash and equivalents	851	924	948	-7.9%	-10.2%
Receivables	3,227	3,255	2,991	-0.9%	+7.9%
Inventory	1,659	1,725	1,605	-3.8%	+3.4%
Other assets	2,492	2,460	2,056	+1.3%	+21.2%
Total assets	16,148	16,135	15,067	+0.1%	+7.2%

Questions

What was Illinois Tool Works' revenue in Q4 FY2025?

Illinois Tool Works (ITW) reported revenue of $4.1 billion for Q4 FY2025, the quarter ended 31 December 2025, up 4.1% on the same quarter a year earlier.

How much did Illinois Tool Works earn in Q4 FY2025?

Net income for Q4 FY2025 was $790 million, up 5.3% on the year, and diluted earnings per share $2.72.

When did Illinois Tool Works report Q4 FY2025 results?

Illinois Tool Works filed its 10-K for the year that ended with the quarter on 13 February 2026; the fourth quarter is the year less the first three.

Quarterly results, the last 20 quarters

	Q4 FY2021 *	Q1 FY2022	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	3,679	3,939	4,011	4,011	3,971	4,019	4,074	4,031	3,983	3,973	4,027	3,966	3,932	3,839	4,053	4,059	4,093	4,016	4,301	4,236
Cost of revenue	2,191	2,357	2,392	2,371	2,309	2,341	2,344	2,319	2,312	1,917	1,919	1,884	1,884	1,821	1,914	1,898	1,923	1,887	2,033	1,964
Gross profit	1,488	1,582	1,619	1,640	1,662	1,678	1,730	1,712	1,671	2,056	2,108	2,082	2,048	2,018	2,139	2,161	2,170	2,129	2,268	2,272
Gross margin	40%	40%	40%	41%	42%	42%	42%	42%	42%	52%	52%	52%	52%	53%	53%	53%	53%	53%	53%	54%
Operating income	834	895	926	983	986	972	1,010	1,070	988	1,127	1,054	1,052	1,031	951	1,068	1,112	1,085	1,020	1,147	1,177
Operating margin	23%	23%	23%	25%	25%	24%	25%	27%	25%	28%	26%	27%	26%	25%	26%	27%	27%	25%	27%	28%
Interest expense	49.0	48.0	47.0	52.0	56.0	60.0	69.0	67.0	70.0	71.0	75.0	69.0	68.0	68.0	74.0	75.0	75.0	73.0	79.0	83.0
Pre-tax income	792	861	903	957	1,121	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Tax rate	23%	23%	18%	24%	19%	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Net income	609	662	738	727	907	714	754	772	717	819	759	1,160	750	700	755	821	790	768	815	855
Net margin	17%	17%	18%	18%	23%	18%	19%	19%	18%	21%	19%	29%	19%	18%	19%	20%	19%	19%	19%	20%
Diluted EPS	$1.93	$2.11	$2.37	$2.35	$2.95	$2.33	$2.48	$2.55	$2.38	$2.73	$2.54	$3.91	$2.54	$2.38	$2.58	$2.81	$2.72	$2.66	$2.84	$3.00
Operating cash flow	774	323	501	713	811	728	790	982	1,039	589	687	891	1,114	592	550	1,021	963	623	723	953
Capital expenditure	79.0	74.0	81.0	101	156	113	85.0	126	131	95.0	116	108	118	96.0	101	117	105	95.0	92.0	102
Free cash flow	695	249	420	612	655	615	705	856	908	494	571	783	996	496	449	904	858	528	631	851
Buybacks	250	375	375	500	500	375	375	375	375	375	375	375	375	375	375	375	375	375	750	187
Dividends paid	383	382	380	377	403	400	398	396	421	419	418	415	443	441	439	438	467	465	463	458
Shares outstanding	313m	311m	310m	307m	305m	304m	302m	301m	299m	298m	297m	295m	294m	293m	292m	290m	289m	288m	285m	284m
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-K for the period ended 31 December 2025, filed 13 February 2026: the filing.