Illinois Tool Works (ITW) raised its full-year 2026 profit forecast after reporting stronger-than-expected second-quarter earnings, driven by robust demand for its welding, industrial testing, and specialty chemicals businesses. The company’s shares climbed more than 3% in premarket trading following the results.
The industrial equipment maker now expects adjusted earnings of $11.35 to $11.55 per share for 2026, up from its earlier forecast of $11.10 to $11.50 per share. It also increased its annual revenue growth outlook to 4%–5%, compared with the previous guidance of 2%–4%. Second-quarter revenue rose 6.1% to $4.3 billion, while adjusted earnings reached $2.84 per share, surpassing analysts’ expectations of $2.79 per share.
Growth was led by the Test & Measurement and Electronics segment, where revenue increased 12% to $769 million, while the Polymers & Fluids business grew 8.7% to $476 million. Revenue from the automotive OEM segment, which supplies components to automakers such as Ford and BMW, also edged higher to $857 million, reflecting resilient industrial demand despite ongoing economic uncertainty.
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