ITW delivered solid top- and bottom-line growth in Q1 FY2026, with revenue up 4.6% to $4.0B and net income up 9.7% to $768.0M, reflecting improved operating leverage and disciplined cost management across the portfolio.
Key takeaways
Revenue was $4.0B (up 4.6% YoY), supported by organic growth in electronics businesses—including contamination control and static control—driven by higher demand in North America and Asia Pacific.
Gross profit was $1.8B (up 4.9% YoY) and gross margin held at 43.8%, consistent with pricing discipline and stable input cost recovery amid tariff-related pressures.
Operating income was $1.0B (up 7.3% YoY) and operating margin expanded to 25.4%, reflecting benefits from enterprise initiatives and the short-term margin enhancement effect of product line simplification (PLS).
Net income was $768.0M (up 9.7% YoY) and diluted EPS was $2.66 (up 11.8% YoY), aided by strong operating performance and a stable tax rate.
Free cash flow was $528.0M, generated from $623.0M in operating cash flow less $95.0M in capital expenditures—supporting continued shareholder returns while maintaining financial flexibility.