Revenue Growth Remains Modest
ITW's total revenue grew +0.9% year-over-year to $16.04B in FY2025, up from $15.90B in FY2024, indicating resilient but slow top-line expansion across its diversified industrial segments.
Source: 10-K Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
ITW delivered modest revenue growth of +0.9% to $16.0B in FY2025, but EPS declined sharply by -10.5% to $10.52, reflecting higher costs and a lower share base benefit, while operating margin compressed slightly to 26.3%.
Revenue
$16.04B
+0.92% YoY
EPS (Diluted)
$10.49
-10.42% YoY
Operating Income
$4.22B
-1.13% YoY
Source: SEC XBRL
Illinois Tool Works (ITW) reported FY2025 revenue of $16.04B, up 0.9% year over year. Operating margin was 26.3%, down 0.5 points from 26.8% a year earlier. Operating cash flow was $3.13B, down 4.7% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 2.84 | 2.82 | Beat +0.6% |
| Mar 2026 | 2.66 | 2.59 | Beat +2.7% |
| Dec 2025This filing | 2.72 | 2.71 | Beat +0.3% |
| Sep 2025 | 2.81 | 2.74 | Beat +2.5% |
Reported EPS of $2.72 versus the $2.71 analyst consensus — a +0.3% beat for Dec 2025.
Compiled by AI from this SEC filing
ITW's total revenue grew +0.9% year-over-year to $16.04B in FY2025, up from $15.90B in FY2024, indicating resilient but slow top-line expansion across its diversified industrial segments.
Source: 10-K Income Statement
Cost of revenue fell -0.6% to $7.56B, suggesting modest improvement in input costs or product mix, which partially offset operating expense pressures and helped sustain gross profit levels.
Source: 10-K Income Statement
Operating margin declined from 26.8% to 26.3% (-0.5 percentage points), with operating income falling -1.1% to $4.22B, indicating that SG&A or other operating costs grew faster than revenue.
Source: 10-K Income Statement / Key Ratios
Basic EPS dropped -10.5% to $10.52 from $11.75, a steeper decline than operating income, suggesting higher interest expense on growing long-term debt ($7.68B, +8.4%) or other below-the-line charges impacted net income materially.
Source: 10-K Income Statement / Balance Sheet
R&D expense increased +3.4% to $302M in FY2025, reflecting ITW's continued commitment to innovation and product development to sustain its competitive differentiation across industrial segments.
Source: 10-K Income Statement
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
Long-term debt increased +8.4% to $7.68B in FY2025, while cash declined -10.2% to $851M. This growing leverage, combined with a higher interest rate environment, likely contributed to the sharp EPS decline and could constrain financial flexibility going forward.
Source: 10-K Balance Sheet
Current liabilities jumped +19.0% to $5.13B, while current assets grew only +5.9% to $6.20B, compressing the current ratio to 1.21. This narrowing liquidity cushion warrants monitoring, particularly if operating cash flows continue to decline.
Source: 10-K Balance Sheet / Key Ratios
Operating cash flow fell -4.7% to $3.13B from $3.28B, reducing free cash flow generation capacity. Sustained declines in cash generation could limit ITW's ability to fund dividends, buybacks, and debt repayment simultaneously.
Source: 10-K Cash Flow Statement
The -10.5% drop in basic EPS significantly outpaced the -1.1% decline in operating income, suggesting meaningful exposure to interest expense or tax/other charges. As debt levels rise, this gap between operating and net income performance may widen.
Source: 10-K Income Statement
ITW maintained $1.5B in share buybacks and increased investing outflows to -$521M (from -$144M), while organic revenue growth remained below 1%. Aggressive capital return in a slow-growth environment could strain the balance sheet if conditions deteriorate.
Source: 10-K Cash Flow Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 16.04 $B | 15.90 $B | +0.92% |
Cost of Revenue $B | 7.56 $B | 7.60 $B | -0.63% |
Operating Income $B | 4.22 $B | 4.26 $B | -1.13% |
EPS (Basic) $ | 10.52 $ | 11.75 $ | -10.47% |
EPS (Diluted) $ | 10.49 $ | 11.71 $ | -10.42% |
R&D Expense $M | 302.00 $M | 292.00 $M | +3.42% |
Answers draw on this SEC filing and the data on this page
ITW's Q2 FY2026 featured 4.5% organic revenue growth and 40 basis points of operating margin expansion, driven by strong demand in semiconductor and welding markets and sustained execution of its 80/20 Front-to-Back process.
ITW delivered solid Q1 FY2026 results with revenue up 4.6% YoY to $4.02B and operating margin expanding to 25.4%, while EPS grew 11.3% to $2.66 driven by operational efficiency and share repurchases.
Other companies in Industrial Machinery & Supplies & Components