Illinois Tool Operating Margin vs. Net Income

ITW Stock  USD 287.55  2.19  0.76%   
Taking into consideration Illinois Tool's profitability measurements, Illinois Tool Works may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in March. Profitability indicators assess Illinois Tool's ability to earn profits and add value for shareholders.

Illinois Tool Operating Profit Margin

0.26

At this time, Illinois Tool's Price To Sales Ratio is fairly stable compared to the past year. Days Sales Outstanding is likely to climb to 73.72 in 2026, whereas Sales General And Administrative To Revenue is likely to drop 0.14 in 2026. At this time, Illinois Tool's Net Income is fairly stable compared to the past year. Non Operating Income Net Other is likely to climb to about 241 M in 2026, whereas Operating Income is likely to drop slightly above 2.1 B in 2026. Gross Profit is likely to drop to about 4.2 B in 2026. Pretax Profit Margin is likely to drop to 0.14 in 2026
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.30.441
Way Down
Slightly volatile
Net Profit Margin0.0960.1911
Way Down
Slightly volatile
Operating Profit Margin0.140.2628
Way Down
Slightly volatile
Pretax Profit Margin0.140.2472
Way Down
Slightly volatile
Return On Assets0.0960.1899
Way Down
Slightly volatile
Return On Equity1.00.9507
Sufficiently Up
Slightly volatile
For Illinois Tool profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Illinois Tool to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Illinois Tool Works utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Illinois Tool's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Illinois Tool Works over time as well as its relative position and ranking within its peers.

Illinois Tool's Revenue Breakdown by Earning Segment

Check out Risk vs Return Analysis.
The next projected EPS of Illinois Tool is estimated to be 2.56 with future projections ranging from a low of 2.53 to a high of 2.6013. Illinois Tool's most recent 12-month trailing earnings per share (EPS TTM) is at 10.49. Please be aware that the consensus of earnings estimates for Illinois Tool Works is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
Illinois Tool is projected to generate 2.56 in earnings per share on the 31st of March 2026. Illinois Tool earnings estimates show analyst consensus about projected Illinois Tool Works EPS (Earning Per Share). It derives the highest and the lowest estimates based on Illinois Tool's historical volatility. Many public companies, such as Illinois Tool, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

Illinois Tool Revenue Breakdown by Earning Segment

By analyzing Illinois Tool's earnings estimates, investors can diagnose different trends across Illinois Tool's analyst sentiment over time as well as compare current estimates against different timeframes.
What growth prospects exist in Industrial Machinery & Supplies & Components sector? Can Illinois capture new markets? Factors like these will boost the valuation of Illinois Tool. Market participants price Illinois higher when confident in its future expansion prospects. Valuation analysis balances hard financial data with qualitative growth assessments. While each Illinois Tool valuation metric matters, prioritizing which indicators carry greater predictive weight remains essential.
Quarterly Earnings Growth
0.073
Dividend Share
6.22
Earnings Share
10.49
Revenue Per Share
55.039
Quarterly Revenue Growth
0.041
The market value of Illinois Tool Works is measured differently than its book value, which is the value of Illinois that is recorded on the company's balance sheet. Investors also form their own opinion of Illinois Tool's value that differs from its market value or its book value, called intrinsic value, which is Illinois Tool's true underlying value. Investment professionals apply varied valuation frameworks to compute inherent worth and acquire positions when market prices trade at discounts to calculated value. Because Illinois Tool's market value can be influenced by many factors that don't directly affect Illinois Tool's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Illinois Tool's value and its price as these two are different measures arrived at by different means. Investors typically determine if Illinois Tool is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. Meanwhile, Illinois Tool's quoted price indicates the marketplace figure where supply meets demand through bilateral consent.

Illinois Tool Works Net Income vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Illinois Tool's current stock value. Our valuation model uses many indicators to compare Illinois Tool value to that of its competitors to determine the firm's financial worth.
Illinois Tool Works is currently regarded as number one stock in operating margin category among its peers. It also is currently regarded as number one stock in net income category among its peers making up about  11,461,682,243  of Net Income per Operating Margin. At this time, Illinois Tool's Operating Profit Margin is fairly stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Illinois Tool by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Illinois Net Income vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Illinois Tool

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.27 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Illinois Tool

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
3.07 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

Illinois Net Income Comparison

Illinois Tool is currently under evaluation in net income category among its peers.

Illinois Tool Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Illinois Tool, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Illinois Tool will eventually generate negative long term returns. The profitability progress is the general direction of Illinois Tool's change in net profit over the period of time. It can combine multiple indicators of Illinois Tool, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-1.8 B-1.7 B
Operating Income4.2 B2.1 B
Income Before TaxB2.1 B
Total Other Income Expense Net-250 M-237.5 M
Net Income3.1 B3.2 B
Income Tax Expense900 M589.4 M
Net Income Applicable To Common Shares3.1 B2.2 B
Net Income From Continuing Ops3.1 B2.5 B
Non Operating Income Net Other229.5 M241 M
Interest Income292 M306.6 M
Net Interest Income-252 M-264.6 M
Change To Netincome-250.2 M-262.7 M
Net Income Per Share 10.49  11.01 
Income Quality 1.02  1.07 
Net Income Per E B T 0.77  0.54 

Illinois Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Illinois Tool. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Illinois Tool position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Illinois Tool's important profitability drivers and their relationship over time.

Illinois Tool Earnings Estimation Breakdown

The calculation of Illinois Tool's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Illinois Tool is estimated to be 2.56 with the future projection ranging from a low of 2.53 to a high of 2.6013. Please be aware that this consensus of annual earnings estimates for Illinois Tool Works is based on EPS before non-recurring items and includes expenses related to employee stock options.
Last Reported EPS
2.72
2.53
Lowest
Expected EPS
2.56
2.60
Highest

Illinois Tool Earnings Projection Consensus

Suppose the current estimates of Illinois Tool's value are higher than the current market price of the Illinois Tool stock. In this case, investors may conclude that Illinois Tool is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Illinois Tool's stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 31st of March 2026Current EPS (TTM)
1896.65%
2.72
2.56
10.49

Illinois Tool Earnings History

Earnings estimate consensus by Illinois Tool Works analysts from Wall Street is used by the market to judge Illinois Tool's stock performance. Investors also use these earnings estimates to evaluate and project the stock performance into the future in order to make their investment decisions. However, we suggest analyzing not only Illinois Tool's upcoming profit reports and earnings-per-share forecasts but also comparing them to our different valuation methods.

Illinois Tool Quarterly Gross Profit

1.81 Billion

At this time, Illinois Tool's Retained Earnings are fairly stable compared to the past year. Earnings Yield is likely to climb to 0.06 in 2026, whereas Retained Earnings Total Equity is likely to drop slightly above 18.7 B in 2026. Common Stock Shares Outstanding is likely to climb to about 364.9 M in 2026, whereas Net Income Applicable To Common Shares is likely to drop slightly above 2.2 B in 2026.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Illinois Tool's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Hype
Prediction
LowEstimatedHigh
287.92289.36290.80
Details
Intrinsic
Valuation
LowRealHigh
260.77305.07306.51
Details
Naive
Forecast
LowNextHigh
277.96279.39280.83
Details
20 Analysts
Consensus
LowTargetHigh
253.55278.62309.27
Details
Note that many institutional investors and large investment bankers can move markets due to the volume of Illinois assets they manage. They also follow analysts to some degree and often drive overall investor sentiments towards Illinois Tool. With so many stockholders watching consensus numbers, the difference between actual and projected earnings is one of the most critical factors driving Illinois Tool's stock price in the short term.

Illinois Tool Earnings per Share Projection vs Actual

Actual Earning per Share of Illinois Tool refers to what the company shows during its earnings calls or quarterly reports. The Expected EPS is what analysts covering Illinois Tool Works predict the company's earnings will be in the future. The higher the earnings per share of Illinois Tool, the better is its profitability. While calculating the Earning per Share, we use the weighted ratio, as the number of shares outstanding can change over time.

Illinois Tool Estimated Months Earnings per Share

For an investor who is primarily interested in generating an income out of investing in entities such as Illinois Tool, the EPS ratio can tell if the company is intending to increase its current dividend. Although EPS is an essential tool for investors, it should not be used in isolation. EPS of Illinois Tool should always be considered in relation to other companies to make a more educated investment decision.

Illinois Quarterly Analyst Estimates and Surprise Metrics

Earnings surprises can significantly impact Illinois Tool's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2026-02-03
2025-12-312.692.720.03
2025-10-24
2025-09-302.722.810.09
2025-07-30
2025-06-302.572.580.01
2025-04-30
2025-03-312.352.380.03
2025-02-05
2024-12-312.52.540.04
2024-10-30
2024-09-302.532.650.12
2024-07-30
2024-06-302.472.540.07
2024-04-30
2024-03-312.362.440.08
2024-02-01
2023-12-312.412.420.01
2023-10-24
2023-09-302.452.550.1
2023-08-01
2023-06-302.412.410.0
2023-05-02
2023-03-312.232.330.1
2023-02-02
2022-12-312.572.950.3814 
2022-10-25
2022-09-302.252.350.1
2022-08-02
2022-06-302.222.370.15
2022-05-03
2022-03-312.072.110.04
2022-02-03
2021-12-311.91.930.03
2021-10-28
2021-09-302.021.96-0.06
2021-07-30
2021-06-302.092.10.01
2021-04-30
2021-03-311.92.110.2111 
2021-02-05
2020-12-311.782.020.2413 
2020-10-23
2020-09-301.451.830.3826 
2020-07-31
2020-06-300.71.010.3144 
2020-05-05
2020-03-311.711.770.06
2020-01-31
2019-12-311.862.210.3518 
2019-10-25
2019-09-301.952.040.09
2019-07-26
2019-06-301.981.91-0.07
2019-04-25
2019-03-311.821.81-0.01
2019-02-01
2018-12-311.821.830.01
2018-10-24
2018-09-301.881.90.02
2018-07-23
2018-06-301.971.970.0
2018-04-26
2018-03-311.861.90.04
2018-01-24
2017-12-311.611.70.09
2017-10-23
2017-09-301.651.710.06
2017-07-24
2017-06-301.631.690.06
2017-04-24
2017-03-311.451.540.09
2017-01-25
2016-12-311.371.390.02
2016-10-20
2016-09-301.491.50.01
2016-07-20
2016-06-301.41.460.06
2016-04-20
2016-03-311.261.290.03
2016-01-27
2015-12-311.211.230.02
2015-10-21
2015-09-301.361.390.03
2015-07-22
2015-06-301.281.30.02
2015-04-21
2015-03-311.171.210.04
2015-01-27
2014-12-311.131.180.05
2014-10-21
2014-09-301.231.340.11
2014-07-29
2014-06-301.21.210.01
2014-04-22
2014-03-310.981.010.03
2014-01-28
2013-12-310.910.920.01
2013-10-21
2013-09-300.920.990.07
2013-07-23
2013-06-301.11.08-0.02
2013-04-23
2013-03-310.960.960.0
2013-01-29
2012-12-310.90.89-0.01
2012-10-23
2012-09-301.061.090.03
2012-07-24
2012-06-301.321.850.5340 
2012-04-24
2012-03-310.950.970.02
2012-01-31
2011-12-310.890.910.02
2011-10-25
2011-09-300.981.00.02
2011-07-26
2011-06-301.020.96-0.06
2011-04-26
2011-03-310.971.240.2727 
2011-01-31
2010-12-310.80.79-0.01
2010-10-19
2010-09-300.820.830.01
2010-07-20
2010-06-300.830.830.0
2010-04-20
2010-03-310.560.630.0712 
2010-01-27
2009-12-310.640.61-0.03
2009-10-20
2009-09-300.530.630.118 
2009-07-22
2009-06-300.350.360.01
2009-04-16
2009-03-310.130.170.0430 
2009-01-29
2008-12-310.480.540.0612 
2008-10-16
2008-09-300.840.850.01
2008-07-17
2008-06-300.971.010.04
2008-04-16
2008-03-310.760.790.03
2008-01-30
2007-12-310.840.870.03
2007-10-17
2007-09-300.870.890.02
2007-07-19
2007-06-300.880.90.02
2007-04-18
2007-03-310.710.710.0
2007-01-30
2006-12-310.730.770.04
2006-10-18
2006-09-300.80.78-0.02
2006-07-20
2006-06-300.790.810.02
2006-04-20
2006-03-310.630.650.02
2006-01-31
2005-12-310.70.710.01
2005-10-19
2005-09-300.680.720.04
2005-07-21
2005-06-300.620.650.03
2005-04-19
2005-03-310.530.530.0
2005-01-27
2004-12-310.610.610.0
2004-10-19
2004-09-300.550.550.0
2004-07-21
2004-06-300.590.58-0.01
2004-04-20
2004-03-310.410.470.0614 
2004-01-29
2003-12-310.460.470.01
2003-10-16
2003-09-300.410.440.03
2003-07-22
2003-06-300.440.460.02
2003-04-16
2003-03-310.320.330.01
2003-01-29
2002-12-310.360.370.01
2002-10-16
2002-09-300.390.40.01
2002-07-18
2002-06-300.420.430.01
2002-04-17
2002-03-310.30.320.02
2002-01-29
2001-12-310.320.31-0.01
2001-10-17
2001-09-300.330.330.0
2001-07-19
2001-06-300.390.38-0.01
2001-04-19
2001-03-310.30.30.0
2001-01-30
2000-12-310.340.33-0.01
2000-10-18
2000-09-300.430.440.01
2000-07-20
2000-06-300.450.450.0
2000-04-19
2000-03-310.350.360.01
2000-02-01
1999-12-310.410.410.0
1999-10-19
1999-09-300.370.370.0
1999-07-20
1999-06-300.390.40.01
1999-04-20
1999-03-310.320.330.01
1999-01-28
1998-12-310.360.370.01
1998-10-20
1998-09-300.330.330.0
1998-07-21
1998-06-300.350.350.0
1998-04-21
1998-03-310.280.30.02
1998-01-28
1997-12-310.320.320.0
1997-10-16
1997-09-300.290.30.01
1997-07-17
1997-06-300.310.310.0
1997-04-16
1997-03-310.240.250.01
1997-01-29
1996-12-310.270.270.0
1996-10-16
1996-09-300.240.250.01
1996-07-18
1996-06-300.260.260.0
1996-04-17
1996-03-310.190.20.01

Use Illinois Tool in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Illinois Tool position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Illinois Tool will appreciate offsetting losses from the drop in the long position's value.

Illinois Tool Pair Trading

Illinois Tool Works Pair Trading Analysis

The ability to find closely correlated positions to Illinois Tool could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Illinois Tool when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Illinois Tool - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Illinois Tool Works to buy it.
The correlation of Illinois Tool is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Illinois Tool moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Illinois Tool Works moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Illinois Tool can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Illinois Tool position

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Communication Services
Communication Services Theme
Companies that provide networking, telecom, and long distance services. The Communication Services theme has 47 constituents at this time.
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Additional Tools for Illinois Stock Analysis

When running Illinois Tool's price analysis, check to measure Illinois Tool's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Illinois Tool is operating at the current time. Most of Illinois Tool's value examination focuses on studying past and present price action to predict the probability of Illinois Tool's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Illinois Tool's price. Additionally, you may evaluate how the addition of Illinois Tool to your portfolios can decrease your overall portfolio volatility.