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ITW · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Illinois Tool Works Inc. (ITW) stock moving?
ITW closed at $288.05 on Nov 10, about 3% above its Oct 22 close of $279.24. The stock peaked at a $296.22 intraday high on Nov 4, then fell to $280.95 by Nov 6 before recovering. Volume has faded over the last two sessions (about 1.03M and 0.85M shares) against roughly 1.5M-2.2M earlier in the window, so the recovery is on lighter participation. The fundamental backdrop is solid: Q3 revenue rose 4.4% to $4.24B, operating margin widened 40 bps to 27.8%, free cash flow equaled 100% of net income, and full-year GAAP EPS guidance was raised to $11.45-$11.55. A 7% dividend increase and a $1.72 quarterly dividend declaration support the income case. Analyst views are mixed and mostly cautious. Truist (Hold, $293) and Citi (Neutral, $310) cut targets in late October, and Evercore kept an Underperform rating with a $317 target, which still implies upside. Current price sits between the Truist and Citi targets, and the recent $296 high marks the nearest upper area, with the $280-$281 Nov 6 low as the nearest lower area.
News behind the analysis
- Evercore ISI Group Maintains Underperform on Illinois Tool Works, Raises Price Target to $317Evercore ISI kept its Underperform rating on ITW and raised its price target to $317, still above the recent share price near $288.
- ITW Reports Third Quarter 2026 ResultsQ3 revenue rose 4.4% to $4.24B with organic growth of 4%, operating margin of 27.8%, and GAAP EPS of $3.00. Full-year 2026 GAAP EPS guidance was raised $0.05 at the midpoint to $11.45-$11.55.
- Illinois Tool Works Inc. Declares Quarterly DividendITW declared a quarterly dividend of $1.72 per share for Q4 2026, in line with the 7% dividend increase raised in Q3.
- Citigroup Maintains Neutral on Illinois Tool Works, Lowers Price Target to $310Citi kept a Neutral rating on ITW and cut its price target to $310.
- Truist Securities Reiterates Hold on Illinois Tool Works, Lowers Price Target to $293Truist kept its Hold rating on ITW and lowered its price target to $293 from $297.
- Truist Securities Adjusts Price Target on Illinois Tool Works to $293Truist cut its ITW price target from $297 to $293 and kept its Hold rating.
About Illinois Tool Works Inc.
Illinois Tool Works is a diversified industrial manufacturer, founded in 1912 and based in Glenview, Illinois. It makes a wide range of specialized products across seven segments and is known for its "80/20" business model, high operating margins (roughly 27-28% in 2026), and a dividend it has raised every year for more than 50 years.
How it makes money
It sells engineered products and equipment to manufacturers and businesses through seven segments, each bringing in very roughly 10-20% of revenue. Automotive OEM makes fasteners and components for carmakers. Food Equipment makes commercial kitchen and food-service gear. Test & Measurement and Electronics makes testing tools and electronics-assembly equipment. Welding makes welding machines and consumables. Polymers & Fluids makes adhesives and car-care products. Construction Products makes fasteners and tools. Specialty Products covers everything else. Annual revenue is roughly $16-17 billion, and about half comes from outside the US.
What usually moves ITW
- Industrial and factory capital spending
- Global auto production volumes
- Semiconductor and electronics equipment demand
- Pricing power and margin expansion
- Dividends and share buybacks