Illinois Tool Works Inc. stock research
FY2026 Q1
Illinois Tool Works (ITW) Gross Margin — Quarter Ended Mar 31, 2026
Revenue and gross profit decreased from the prior quarter while cost of revenue was unchanged, leading to a stable gross margin. Compared with the same quarter a year earlier, revenue and gross profit increased and gross margin improved, as cost of revenue grew less than revenue.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue and gross profit decreased from the prior quarter while cost of revenue was unchanged, leading to a stable gross margin. Compared with the same quarter a year earlier, revenue and gross profit increased and gross margin improved, as cost of revenue grew less than revenue.
- The gross margin remained stable sequentially and improved year over year, as cost of revenue increased less than revenue on an annual basis.
- Compared to the prior quarter, revenue and gross profit were slightly lower, but gross margin held steady. Versus the same quarter last year, revenue and gross profit were higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
53.0%
Gross profit
$2.1B
Revenue
$4.0B
Cost of revenue
$1.9B
Quarter-over-quarter change
-0.0 pts
Year-over-year change
+0.4 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2026 | $4.0B | $2.1B | $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
Dec 31, 2025
-0.0 pts
Year-over-year change
Mar 31, 2025
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin remained stable sequentially and improved year over year, as cost of revenue increased less than revenue on an annual basis.
Compared to the prior quarter, revenue and gross profit were slightly lower, but gross margin held steady. Versus the same quarter last year, revenue and gross profit were higher, and gross margin improved.
Monitor whether cost of revenue remains stable relative to revenue in future quarters, as it was unchanged despite a revenue decline this quarter.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Illinois Tool Works Inc. (ITW) | 53.0% |