Illinois Tool Works posts record Q2 profit, raises 2026 revenue and earnings guidance

Illinois Tool Works reported a 6.1% revenue increase to $4.30 billion in Q2 2026, driven by 4.5% organic growth and strong performance in key segments like Welding and Electronics. Operating income rose 7.4% to $1.15 billion, marking the company's most profitable quarter ever, with operating margin expanding to 26.7%. The company raised its full-year 2026 guidance, expecting organic revenue growth of 3.5% and GAAP EPS of $11.45, reflecting confidence in continued growth and profitability. Free cash flow surged 41% to $631 million, supporting $1.2 billion returned to shareholders through dividends and buybacks.