Illinois Tool Works Inc. ITW is scheduled to release first-quarter 2026 results on April 30, 2026, before market open.
The Zacks Consensus Estimate for first-quarter earnings has remained steady in the past 30 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters. The average surprise was 2.1%.
The consensus estimate for first-quarter revenues is pegged at $4.00 billion, suggesting growth of 4.1% from the year-ago quarter’s figure. The consensus estimate for adjusted earnings is pinned at $2.55 per share, indicating a 7.1% increase from the year-ago quarter’s number.
Let’s see how things have shaped up for Illinois Tool this earnings season.
Factors to Note Ahead of ITW’s Results
Growth in the institutional and food retail markets in North America, along with higher service revenues and strong demand in the European warewashing equipment market, is likely to have boosted the performance of Illinois Tool’s Food Equipment segment. Our model estimates the segment’s revenues to increase 3.8% year over year to $651.0 million.
Strong momentum in the filter medical and specialty films businesses is likely to have driven its Specialty Products segment’s performance. We expect the Specialty Products segment’s revenues to grow 3.4% year over year to $449.6 million.
Solid momentum in the equipment and filler metals businesses due to higher demand for products in North America is expected to have aided the Welding segment’s performance in the first quarter. Our model estimates the segment’s revenues to increase 5.4% from the year-ago quarter to $497.3 million.
The Automotive OEM segment’s performance is expected to have benefited from growth in auto build rates and strength in the electric vehicles market in China, along with higher demand for products in North America. We expect the segment’s revenues to grow 3.3% year over year to $812.1 million in the first quarter.
Strength in the semiconductor and electronics end markets is expected to boost the Test & Measurement and Electronics segment’s results. We expect the segment’s revenues to increase 4.6% year over year to $681.8 million in the first quarter.
The Polymers & Fluids segment is anticipated to have performed well in the first quarter, driven by new product launches in the automotive aftermarket and recovery in the polymers and fluids businesses.
However, weakness in the residential renovation business, owing to decreasing demand for products across North America, is likely to have hurt the Construction Products segment’s revenues in the first quarter. We expect the segment’s revenues to inch down 0.3% from the year-ago quarter to $441.7 million.
ITW has considerable exposure to overseas markets. Given the company’s substantial international operations, foreign currency headwinds are likely to have marred its profitability.
Illinois Tool Works Inc. Price and EPS Surprise
Illinois Tool Works Inc. price-eps-surprise | Illinois Tool Works Inc. Quote
Earnings Whispers
Our proven model predicts an earnings beat for ITW this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.
Earnings ESP: ITW has an Earnings ESP of +0.30% as the Zacks Consensus Estimate is pegged at $2.56 per share, higher than the Most Accurate Estimate of $2.55. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Illinois Tool presently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here are some other companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
Kennametal Inc. KMT has an Earnings ESP of +5.88% and a Zacks Rank of 1 at present. The company is slated to release third-quarter fiscal 2026 (ended March 2026) results on May 6.
Kennametal’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missing the mark in one, the average surprise being 35.4%.
Stanley Black & Decker SWK has an Earnings ESP of +5.38% and a Zacks Rank of 3 at present. The company is scheduled to release first-quarter 2026 results on April 29.
Stanley Black & Decker’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 56.4%.
Parker-Hannifin Corporation PH has an Earnings ESP of +0.49% and a Zacks Rank of 3 at present. The company is slated to release third-quarter of fiscal 2026 (ended March 2026) results on April 30.
Parker-Hannifin’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.8%.
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Illinois Tool Works Inc. (ITW): Free Stock Analysis Report
Stanley Black & Decker, Inc. (SWK): Free Stock Analysis Report
Parker-Hannifin Corporation (PH): Free Stock Analysis Report
Kennametal Inc. (KMT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).