Illinois Tool Works Inc. stock research
FY2025 Q4
Illinois Tool Works (ITW) Gross Margin — Quarter Ended Dec 31, 2025
In the most recent quarter, revenue and gross profit were relatively stable compared to the preceding quarter, while gross margin slightly decreased, but compared to the same quarter one year earlier, revenue and gross profit were higher, leading to an improved gross margin. The filing discusses liquidity and capital resources, noting cash on hand and access to credit facilities.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
In the most recent quarter, revenue and gross profit were relatively stable compared to the preceding quarter, while gross margin slightly decreased, but compared to the same quarter one year earlier, revenue and gross profit were higher, leading to an improved gross margin. The filing discusses liquidity and capital resources, noting cash on hand and access to credit facilities.
- The year-over-year increase in gross margin was the most notable change, as revenue grew while cost of revenue remained at a similar level.
- Sequentially, gross margin weakened slightly from the prior quarter. Year over year, gross margin improved from the same period last year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
53.0%
Gross profit
$2.2B
Revenue
$4.1B
Cost of revenue
$1.9B
Quarter-over-quarter change
-0.2 pts
Year-over-year change
+0.9 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2025 | $3.8B | $2.0B | $1.8B | 52.6% |
| Jun 30, 2025 | $4.1B | $2.1B | $1.9B | 52.8% |
| Sep 30, 2025 | $4.1B | $2.2B | $1.9B | 53.2% |
| Dec 31, 2025 | $4.1B | $2.2B | $1.9B | 53.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-0.2 pts
Year-over-year change
Dec 31, 2024
+0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year increase in gross margin was the most notable change, as revenue grew while cost of revenue remained at a similar level.
Sequentially, gross margin weakened slightly from the prior quarter. Year over year, gross margin improved from the same period last year.
Monitor the stability of cost of revenue relative to revenue in future quarters, and consider the liquidity position outlined in the filing.