Illinois Tool Works Inc. (NYSE:ITW) reported Thursday first-quarter 2026 results, with GAAP EPS of $2.66, beating the $2.56 estimate.

Revenue of $4.016 billion topped the $4.008 billion estimate, rising about 5% year over year, while shares traded lower.

Margins And Cash Flow Performance

Operating income increased 7% to $1.02 billion, while margin expanded 60 basis points to 25.4%, driven by enterprise initiatives. Organic growth was 0.4%, with foreign exchange contributing 3.9%.

Operating cash flow totaled $623 million, and free cash flow was $528 million.

The company held $827 million in cash and reported total debt of $9.15 billion.

Segment Performance Breakdown

Segment results showed Automotive OEM revenue of $820 million with a 21.0% margin, and Food Equipment $637 million at 24.7%.

Test & Measurement and Electronics generated $715 million ...