Illinois Tool Works Inc. (ITW) Operating Margin: 26.42%
Is Illinois Tool Works Inc.’s operating margin high or low?
Illinois Tool Works Inc.'s operating margin of 26.42% is in line with its 5-year average of 24.82%, near the high end of its 5-year range (22.92%–26.82%).
The operating margin for Illinois Tool Works Inc. (ITW) is 26.42% as of Wednesday, June 10, 2026. It is below its 12-month average by 0.49% (26.55%).
ITW Operating Margin Chart
ITW Average Operating Margin Chart
ITW Current vs Average Operating Margin Chart
ITW Operating Margin Metrics
OPERATING MARGIN
26.42%
OPERATING MARGIN AVG TTM
26.55%
OPERATING MARGIN AVG 3Y
25.49%
OPERATING MARGIN AVG 5Y
24.82%
OPERATING MARGIN AVG 10Y
24.15%
OPERATING MARGIN AVG 15Y
21.84%
OPERATING MARGIN AVG 20Y
20.24%
CURRENT VS TTM AVG
-0.49%
CURRENT VS 3Y AVG
+3.64%
CURRENT VS 5Y AVG
+6.43%
CURRENT VS 10Y AVG
+9.40%
CURRENT VS 15Y AVG
+20.96%
CURRENT VS 20Y AVG
+30.51%
ITW Competitors' Operating Margin
| NAME | MARKET CAP | OPERATING MARGIN | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| Illinois Tool Works Inc. (ITW) | — | 26.42% | 26.55% | 25.49% | 24.82% |
| Emerson Electric Co. (EMR) | $76.94B | 19.96% | 17.42% | 17.53% | 16.97% |
| 3M Company (MMM) | $81.79B | 19.60% | 19.18% | 16.68% | 18.27% |
| Rocket Lab USA, Inc. (RKLB) | $62.17B | -33.20% | -40.77% | -54.59% | -89.77% |
| PACCAR Inc (PCAR) | $60.21B | 9.68% | 12.47% | 13.66% | 10.74% |
| Johnson Controls International plc (JCI) | $85.03B | 13.57% | 11.27% | 10.80% | 10.46% |
| Cummins Inc. (CMI) | $87.60B | 11.24% | 11.24% | 9.52% | 10.13% |
| United Parcel Service, Inc. (UPS) | $87.79B | 8.46% | 9.21% | 10.43% | 10.75% |
| Fastenal Company (FAST) | $52.90B | 20.25% | 20.10% | 20.46% | 20.38% |
| Automatic Data Processing, Inc. (ADP) | $92.38B | 19.20% | 26.03% | 25.03% | 23.97% |
Operating Efficiency
Gross Margin
44.1%
Operating Margin
26.4%
Illinois Tool Works Inc. Operating Margin Formula & Definition
Operating Margin = Operating Income / Revenue
Operating margin is the percentage of revenue remaining after operating expenses, reflecting operating efficiency.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
Illinois Tool Works Inc. Operating Margin FAQ
- What is the operating margin for Illinois Tool Works Inc. (ITW)?
- The operating margin for ITW stock is 26.42%.
- Is Illinois Tool Works Inc.'s operating margin high or low?
- Illinois Tool Works Inc.'s operating margin of 26.42% is in line with its 5-year average of 24.82%, near the high end of its 5-year range (22.92%–26.82%).
- What is the TTM average operating margin for Illinois Tool Works Inc. (ITW)?
- The TTM average operating margin for ITW stock is 26.55%.
- What is the 3Y average operating margin for Illinois Tool Works Inc. (ITW)?
- The 3Y average operating margin for ITW stock is 25.49%.
- What is the 5Y average operating margin for Illinois Tool Works Inc. (ITW)?
- The 5Y average operating margin for ITW stock is 24.82%.
- What is the 10Y average operating margin for Illinois Tool Works Inc. (ITW)?
- The 10Y average operating margin for ITW stock is 24.15%.
- What is the 15Y average operating margin for Illinois Tool Works Inc. (ITW)?
- The 15Y average operating margin for ITW stock is 21.84%.
- What is the 20Y average operating margin for Illinois Tool Works Inc. (ITW)?
- The 20Y average operating margin for ITW stock is 20.24%.
Illinois Tool Works Inc. Operating Margin History
| DATE | OPERATING MARGIN |
|---|---|
| 2025-12-31 | 26.28% |
| 2024-12-31 | 26.82% |
| 2023-12-31 | 25.08% |
| 2022-12-31 | 23.79% |
| 2021-12-31 | 24.05% |
| 2020-12-31 | 22.92% |
| 2019-12-31 | 24.11% |
| 2018-12-31 | 24.27% |
| 2017-12-31 | 24.41% |
| 2016-12-31 | 22.53% |
| 2015-12-31 | 21.39% |
| 2014-12-31 | 19.94% |
| 2013-12-31 | 17.79% |
| 2012-12-31 | 15.88% |
| 2011-12-31 | 15.35% |
| 2010-12-31 | 14.85% |
| 2009-12-31 | 9.99% |
| 2008-12-31 | 14.73% |
| 2007-12-31 | 16.23% |
| 2006-12-31 | 17.22% |
| 2005-12-31 | 17.48% |
| 2004-12-31 | 17.53% |
| 2003-12-31 | 16.28% |
| 2002-12-31 | 15.90% |
| 2001-12-31 | 14.06% |
| 2000-12-31 | 15.66% |
| 1999-12-31 | 15.93% |
| 1998-12-31 | 19.11% |
| 1997-12-31 | 17.76% |
| 1996-12-31 | 16.02% |
Related Metrics
About Illinois Tool Works Inc.
Illinois Tool Works Inc. is a global enterprise specializing in the production and distribution of a wide array of industrial goods and specialized equipment. The company operates through seven distinct divisions: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM division supplies plastic and metal components, various fastening solutions, and integrated assemblies for automobiles, light-duty trucks, and other industrial applications. Its Food Equipment segment delivers commercial kitchen appliances for washing, refrigeration, cooking, and food processing, alongside comprehensive kitchen exhaust, ventilation, and pollution control systems, and offers related maintenance and repair services. The Test & Measurement and Electronics unit manufactures and sells machinery, expendable supplies, and accompanying software designed for assessing materials and structural integrity, in addition to equipment and consumables critical for the creation of electronic subassemblies and microelectronic components. The Welding division focuses on arc welding apparatus, coupled with metal arc welding consumables and associated accessories. The Polymers & Fluids segment produces adhesives, sealing compounds, lubrication and cutting fluids, and various fluids and polymers intended for automotive aftermarket upkeep and cosmetic purposes. The Construction Products segment provides purpose-engineered fastening systems and comprehensive solutions for new housing, renovation projects, and commercial building industries. Lastly, the Specialty Products segment delivers machinery and supplies for beverage packaging, equipment and expendables for product identification and marking, and specialized components and fasteners for appliances. ITW's broad clientele encompasses sectors such as automotive original equipment manufacturers (OEMs) and their suppliers, the commercial food service industry, construction companies, general industrial enterprises, and the automotive aftermarket. The corporation distributes its offerings directly to industrial manufacturers and via an extensive network of independent distributors. Established in 1912, Illinois Tool Works Inc. is headquartered in Glenview, Illinois.
- Sector
- Industrials
- Industry
- Industrial - Machinery
- CEO
- Christopher A. O'Herlihy