Evercore ISI Trims Outlook for Illinois Tool Works (ITW) with Lower PT

Evercore ISI Trims Outlook for Illinois Tool Works (ITW) with Lower PT Vardah Gill Tue, May 26, 2026 at 3:49 PM GMT+2 2 min read ITW Illinois Tool Works Inc. (NYSE: ITW ) is included among the Dividend Stock Portfolio For Retirement: Top 12 Stock Picks . Evercore ISI Trims Outlook for Illinois Tool Works (ITW) with Lower PT Photo by Vitaly Taranov on Unsplash On May 11, Evercore ISI lowered its price recommendation on Illinois Tool Works Inc.

(NYSE:ITW) to $272 from $296. It reiterated an Underperform rating on the shares. During the Q1 2026 earnings call, President, CEO & Director Christopher O’Herlihy said the company delivered a solid start to the year, with results generally in line with expectations.

He noted that revenue increased 5% during the quarter, while GAAP earnings per share climbed 12% to $2. 66. Operating margin also improved by 60 basis points to 25.

4%. O’Herlihy added that the company raised its full-year GAAP EPS guidance by $0. 10 while keeping its organic growth outlook unchanged at 1% to 3% for 2026.

Management also continued to expect operating margin expansion of around 100 basis points and projected that all seven business segments would deliver positive organic growth and margin expansion during the year. Senior VP & CFO Michael Larsen said revenue growth reached 4. 6%, supported by 0.

4% organic growth, a 3. 9% benefit from foreign currency translation, and a 0. 3% contribution from an acquisition.

He also explained that product line simplification initiatives, PLS efforts, and delayed sales to the Middle East reduced the company’s organic growth rate by about one percentage point. Illinois Tool Works Inc. (NYSE:ITW) is a global manufacturer of a diversified portfolio of industrial products and equipment.

While we acknowledge the potential of ITW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the   best short-term AI stock . READ NEXT:  10 High Yield Stocks For Lasting Retirement Income  and  10 Best Stocks Under $15 to Buy Right Now Disclosure: None.

Follow Insider Monkey on Google News .