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With a market cap of $71.4 billion, Illinois Tool Works Inc. (ITW) is a global manufacturer of a diversified range of industrial products and equipment. The company operates across seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products, serving customers worldwide through both direct sales and independent distributors.
The Glenview, Illinois-based company is expected to release its fiscal Q3 2025 results before the market opens on Friday, Oct. 24. Ahead of this event, analysts project Illinois Tool Works to report an EPS of $2.69, a 1.5% rise from $2.65 in the year-ago quarter. It has exceeded Wall Street's bottom-line estimates in the last four quarters.
For fiscal 2025, analysts forecast the equipment manufacturer to report EPS of $10.39, up 2.4% from $10.15 in fiscal 2024. Looking forward, EPS is projected to increase 8.1% year-over-year to $11.23 in fiscal 2026.
ITW stock has declined 5.7% over the past 52 weeks, lagging behind the broader S&P 500 Index's ($SPX) 14.1% return and the Industrial Select Sector SPDR Fund's (XLI) 9.1% gain over the same period.
Despite Illinois Tool Works beating Q2 2025 expectations with EPS of $2.58 and revenue of $4.05 billion, shares fell 2.3% on Jul. 30. Organic sales were flat, and several key segments, including Construction Products and Polymers & Fluids, posted year-over-year declines. Additionally, free cash flow dropped 11.1% to $945 million, and long-term debt rose to $7.7 billion.
Analysts' consensus view on ITW stock is cautious, with an overall "Hold" rating. Among 19 analysts covering the stock, two suggest a "Strong Buy," 12 give a "Hold," one provides a "Moderate Sell" rating, and four have a "Strong Sell." The average analyst price target for Illinois Tool Works is $262.81, indicating a potential upside of 6.8% from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
