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Get filing alertsIllinois Tool Works reports Q1 2026 earnings, excludes $34M discrete tax benefit
Filed April 30, 2026 · Period ending April 30, 2026 · ~1 min read
Key Changes
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ITW announced first quarter 2026 financial results on April 30, 2026. Full details are in the attached press release, which is not included in the 8-K filing text.
Item 2.02 verify on EDGAR → -
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Company recorded a one-time $34 million tax benefit in Q1 2026, which it excluded from non-GAAP performance metrics to show underlying operational results more clearly.
Item 2.02: Tax adjustment verify on EDGAR → -
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ITW defines free cash flow as operating cash flow minus capital expenditures, representing cash available for dividends, buybacks, acquisitions, and debt repayment.
Item 2.02: Non-GAAP metrics verify on EDGAR →
Summary
Illinois Tool Works filed its routine quarterly earnings 8-K on April 30, 2026, announcing first quarter 2026 results. The filing itself contains minimal detail, with actual financial performance disclosed in an attached press release (Exhibit 99.1) that is not included in the 8-K body text.
The most notable item is a $34 million discrete tax benefit recorded in the quarter—a one-time favorable adjustment that boosted reported net income. ITW excluded this benefit from its non-GAAP return on invested capital calculation to provide investors with a clearer view of underlying operational performance.
The company also reiterated its definition of free cash flow, emphasizing cash generation available for shareholder returns and strategic investments. Retail investors should review the actual press release (Exhibit 99.1) for Q1 revenue, earnings, and guidance details. Watch for management commentary on how the company plans to deploy its free cash flow and whether the tax benefit signals any broader tax strategy changes.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
ITW announced Q1 2026 earnings results and disclosed non-GAAP financial measure definitions including free cash flow and after-tax ROIC.
Added in current filing · verify on EDGAR →
On April 30, 2026, Illinois Tool Works Inc. (the "Company") announced its 2026 first quarter results of operations in the press release furnished as Exhibit 99.1.
The company announced its first quarter 2026 financial results on April 30, 2026. The actual results are contained in the press release attached as Exhibit 99.1, which is not included in this 8-K body text.
Added in current filing · verify on EDGAR →
For comparability, the Company also excluded the discrete tax benefit of $34 million in the first quarter of 2026 from net income and the effective tax rate for the three months ended March 31, 2026.
The company recorded a discrete tax benefit of $34 million in Q1 2026, which it excluded from its non-GAAP after-tax ROIC calculation for comparability purposes. This represents a one-time favorable tax adjustment that improved reported net income but is excluded from operational performance metrics.
Added in current filing · verify on EDGAR →
The Company uses free cash flow to measure cash flow generated by operations that is available for dividends, share repurchases, acquisitions and debt repayment. The Company believes this non-GAAP financial measure, along with free cash flow to net income conversion rate, are useful to investors in evaluating the Company’s financial performance and measures the Company's ability to generate cash internally to fund Company initiatives. Free cash flow represents net cash provided by operating activities less additions to plant and equipment.
The company defines its free cash flow metric as operating cash flow minus capital expenditures (plant and equipment additions). This non-GAAP measure shows cash available for capital allocation decisions including dividends, buybacks, acquisitions, and debt reduction.
Event · Item 9.01 — Financial Statements and Exhibits
ITW filed an 8-K furnishing a press release dated April 30, 2026 under Item 2.02, typically indicating earnings or financial results disclosure.
Added in current filing · verify on EDGAR →
Press Release issued by Illinois Tool Works Inc. dated April 30, 2026 (furnished pursuant to Item 2.02).
The company furnished a press release dated April 30, 2026 under Item 2.02, which typically covers disclosure of material non-public information such as earnings results, financial performance, or other significant financial updates. The actual content of the press release is not included in this 8-K body, only referenced as Exhibit 99.1.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 2, 2026 · How we verify