A maker of industrial tools, equipment and specialty products, ITW builds everything from welding gear (Miller, Hobart) and food-service equipment to construction fasteners and testing machines used by manufacturers worldwide. It started in 1912 when Chicago financier Byron L. Smith answered a newspaper ad seeking tool inventors and opened a small Chicago machine shop. Today the company runs through a famously decentralized "80/20" approach, and its Paslode brand helped invent the cordless nail gun that construction crews still use.
ITW Q2 2026 organic revenue rose 4.5%, the fastest in over two years, lifting revenue 6.1% to $4.3B.
accelerated to 4.5%, the strongest reading since at least early 2024. rose 6.1% to $4.3 billion and widened 0.3 points to 26.7% as enterprise initiatives and volume more than offset higher employee costs and unfavorable . The broad-based demand pickup leaves the company on firmer footing even as tariff uncertainty persists.
Key takeaways
rose 4.5%, led by Welding (+13.9%) on North American industrial and infrastructure demand, Test & Measurement and Electronics (+10.0%) on semiconductor and electronics strength, and Polymers & Fluids (+7.3%).
expanded 0.3 points to 26.7% as 120 from enterprise initiatives and 90 basis points of positive were partly offset by higher employee-related costs and 40 basis points of unfavorable .
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 6.1% to $4.3B and operating margin expanded 40 bps to 26.7%, driven by organic growth and enterprise initiatives.
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Consolidated organic grew 4.5% in Q2, led by Test & Measurement and Electronics (+10.0%), Welding (+13.9%), and Polymers & Fluids (+7.3%).
Test & Measurement and Electronics rose 24.0% and margin widened 2.4 points to 25.2%, driven by the same semiconductor and electronics demand that lifted .
Welding rose 13.9% but margin dipped 0.7 points to 32.4% as higher costs and unfavorable weighed on the result.
was $631 million, up 40.5% from $449 million a year earlier, and the company repurchased $750 million of stock during the quarter.
Management reiterated that its local-manufacturing model and pricing actions can mitigate direct tariff cost impacts, though policy uncertainty could still affect customer demand.
What changed
of 4.5% built on the 0.4% gain in Q1 2026, confirming the inflection flagged after four quarters of decline through Q1 2025, and accelerated well past the flat reading for all of 2025.
of 26.7% extended the Q1 2026 expansion of 60 , with enterprise initiative benefits holding at 120 basis points while added 90 basis points that were absent in Q1.
of $631 million rebounded from $528 million in Q1 2026, and the $750 million in buybacks doubled the $375 million quarterly pace maintained since early 2024.
What to watch
Q3 2026 to see if the 4.5% Q2 gain holds or builds, particularly in Welding and Test & Measurement and Electronics where demand drove the quarter.
Q3 2026 to see if the 90 of positive persist as volume grows, or if unfavorable widens beyond 40 basis points.
Pace of buybacks after the $750 million spent in Q2 against the remaining 2023 authorization.
Tariff policy developments and whether price recovery through local manufacturing offsets any demand impact as flagged by management.
improved 40 to 26.7%, as 120 bps from enterprise initiatives and 90 bps of positive were partly offset by higher employee costs and 40 bps of unfavorable .
Test & Measurement and Electronics surged 24.0% on strong semiconductor and electronics demand, with margin up 240 to 25.2%.
Welding organic jumped 13.9% on robust North American industrial and infrastructure demand, though margin dipped 70 to 32.4% on higher costs and unfavorable .
was $631 million in Q2, and the company repurchased $750 million of stock; total debt to stood at 2.0x.
The company noted tariff policy uncertainty but believes its local-manufacturing model and pricing actions can mitigate direct cost impacts.
Quantitative and Qualitative Disclosures About Market Risk
For a discussion of the Company's quantitative and qualitative disclosures about market risk, see Part I - Item 7A - Quantitative and Qualitative Disclosures About Market Risk in the Company's 2025 Annual Report on Form 10-K. Additionally, refer to Note 8. Debt and Note 9. Accum…
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For a discussion of the Company's quantitative and qualitative disclosures about market risk, see Part I - Item 7A - Quantitative and Qualitative Disclosures About Market Risk in the Company's 2025 Annual Report on Form 10-K. Additionally, refer to Note 8. Debt and Note 9. Accumulated Other Comprehensive Income (Loss) in Item 1. Financial Statements for further information regarding the Company's outstanding debt and net investment hedge.
None. The Company's threshold for disclosing environmental legal proceedings involving a governmental authority where potential monetary sanctions are involved is $1 million.
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None. The Company's threshold for disclosing environmental legal proceedings involving a governmental authority where potential monetary sanctions are involved is $1 million.
The Company's business, financial condition, results of operations and cash flows are subject to various risks which could cause actual results to vary materially from recent results or from anticipated future results. Refer to the description of the Company's risk factors previ…
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The Company's business, financial condition, results of operations and cash flows are subject to various risks which could cause actual results to vary materially from recent results or from anticipated future results. Refer to the description of the Company's risk factors previously disclosed in Part I - Item 1A - Risk Factors in the Company's 2025 Annual Report on Form 10-K. There have been no material changes to the risk factors described therein.