Illinois Tool Works (ITW) Q1 FY2026 earnings: revenue $4.0 billion, up 4.6% on the year

Illinois Tool Works Inc. (ITW) reported revenue of $4.0 billion for Q1 FY2026, the quarter ended 31 March 2026, up 4.6% on the same quarter a year earlier. Net income was $768 million, up 9.7% on the year, and diluted earnings per share $2.66. The figures are the company's own, from the 10-Q it filed with the SEC on 7 May 2026.

Revenue

$4.0 billion

+4.6% on the year · -1.9% on the quarter

Q2 FY2024Q1 FY2026

Operating margin

25.4%

24.8% a year earlier

Q2 FY2024Q1 FY2026

Net income

$768 million

+9.7% on the year · -2.8% on the quarter

Q2 FY2024Q1 FY2026

Diluted EPS

$2.66

+11.8% on the year · -2.2% on the quarter

Q2 FY2024Q1 FY2026

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

What management said

Guidance figures: 1 raised, 1 lowered, 5 kept.

Revenue rose, organic growth small: Revenue totaled $4.02 billion. Organic growth contributed 0.4 points of the increase; currency and an acquisition supplied the rest.
Earnings per share grew 12 percent: Diluted EPS was $2.66, against $2.38 a year earlier, and operating income reached $1.02 billion.
Capex-linked segments grew organically: Management said demand stayed positive in capex-related segments, with Welding and Test & Measurement and Electronics leading the growth.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q1 FY2026	Q4 FY2025	Q1 FY2025	On the quarter	On the year
Revenue	4,016	4,093	3,839	-1.9%	+4.6%
Cost of revenue	1,887	1,923	1,821	-1.9%	+3.6%
Gross profit	2,129	2,170	2,018	-1.9%	+5.5%
Gross margin	53.0%	53.0%	52.6%
Operating income	1,020	1,085	951	-6.0%	+7.3%
Operating margin	25.4%	26.5%	24.8%
Interest expense	73.0	75.0	68.0	-2.7%	+7.4%
Income tax	199	234	195	-15.0%	+2.1%
Net income	768	790	700	-2.8%	+9.7%
Net margin	19.1%	19.3%	18.2%
Diluted EPS	$2.66	$2.72	$2.38	-2.2%	+11.8%

$ 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	Q1 FY2026	Q4 FY2025	Q1 FY2025	On the quarter	On the year
Operating cash flow	623	963	592	-35.3%	+5.2%
Capital expenditure	95.0	105	96.0	-9.5%	-1.0%
Free cash flow	528	858	496	-38.5%	+6.5%
Free cash flow margin	13.1%	21.0%	12.9%
Cash from investing	-99.0	-221	-92.0
Cash from financing	-547	-818	-588
Share-based compensation	18.0	17.0	16.0	+5.9%	+12.5%
Buybacks	375	375	375	0.0%	0.0%
Dividends paid	465	467	441	-0.4%	+5.4%
Dividend per share	$1.61	n/a	$1.50		+7.3%
Diluted shares, weighted	289m	292m	294m	-1.1%	-1.8%
Shares outstanding at period end	288m	289m	293m	-0.3%	-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	Q1 FY2026	Q4 FY2025	Q1 FY2025	On the quarter	On the year
Shareholders' equity	3,230	3,226	3,242	+0.1%	-0.4%
Debt	9,148	8,969	8,263	+2.0%	+10.7%
Operating lease liabilities	n/a	180	n/a
Other liabilities	3,886	3,773	3,963	+3.0%	-1.9%
Total liabilities and equity	16,264	16,148	15,468	+0.7%	+5.1%
Fixed assets	2,230	2,230	2,085	0.0%	+7.0%
Goodwill	5,083	5,098	4,903	-0.3%	+3.7%
Intangible assets	574	591	572	-2.9%	+0.3%
Cash and equivalents	827	851	873	-2.8%	-5.3%
Receivables	3,380	3,227	3,153	+4.7%	+7.2%
Inventory	1,726	1,659	1,663	+4.0%	+3.8%
Other assets	2,444	2,492	2,219	-1.9%	+10.1%
Total assets	16,264	16,148	15,468	+0.7%	+5.1%

Questions

What was Illinois Tool Works' revenue in Q1 FY2026?

Illinois Tool Works (ITW) reported revenue of $4.0 billion for Q1 FY2026, the quarter ended 31 March 2026, up 4.6% on the same quarter a year earlier.

How much did Illinois Tool Works earn in Q1 FY2026?

Net income for Q1 FY2026 was $768 million, up 9.7% on the year, and diluted earnings per share $2.66.

When did Illinois Tool Works report Q1 FY2026 results?

Illinois Tool Works filed its 10-Q for the quarter ended 31 March 2026 with the SEC on 7 May 2026.

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-Q for the period ended 31 March 2026, filed 7 May 2026: the filing.