ILLINOIS TOOL WORKS INC
For the period ended Sep 30, 2026. Filed Oct 28, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 28, 2026
ITW$280.95-1.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0000049826-26-000049
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-28.
0000049826-26-000060
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 198 previous paragraphs and 201 current paragraphs.
112 unchanged; 63 reworded; 23 added; 23 removed; 0 previous and 3 current paragraphs rearranged.
Tables are not compared: 26 previous and 26 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (23)
Current report
•Organic revenue increased 3.8% in the third quarter and 2.9% in the year-to-date period primarily due to growth in the Test & Measurement and Electronics, Polymers & Fluids and Welding segments, partially offset by a decline in the Automotive OEM and Specialty Products segments. Organic revenue for the Food Equipment segment increased in the third quarter and declined in the year-to-date period. Organic revenue for the Construction Products segment declined in the third quarter and was flat in the year-to-date period. Product line simplification activities reduced organic revenue by 40 basis points in the third quarter and 60 basis points in the year-to-date period.
Current report
◦North American organic revenue grew 6.0% in the third quarter and 4.6% in the year-to-date period as growth in the Test & Measurement and Electronics, Welding and Polymers & Fluids segments was partially offset by a decrease in the Food Equipment and Automotive OEM segments. Organic revenue for the Specialty Products segment increased in the third quarter and declined in the year-to-date period. Organic revenue for the Construction Products segment declined in the third quarter and grew in the year-to-date period.
Current report
•Operating revenue declined in the third quarter due to lower organic revenue, partially offset by the favorable effect of foreign currency translation. In the year-to-date period, operating revenue increased due to the favorable effect of foreign currency translation, partially offset by lower organic revenue.
Current report
◦North American organic revenue declined 1.1% and 1.6% in the third quarter and year-to-date periods, respectively, compared to North American auto builds which decreased 5% in the third quarter and 2% in the year-to-date period. Auto builds for the Detroit 3, where the Company has higher content, declined 7% in the third quarter and 2% in the year-to-date period. The business outperformed the market due to share gains and customer mix.
Current report
•Operating revenue grew in the third quarter due to higher organic revenue and the favorable effect of foreign currency translation. In the year-to-date period, operating revenue increased due to the favorable effect of foreign currency translation, partially offset by lower organic revenue.
Current report
•Organic revenue increased 0.5% in the third quarter as equipment organic revenue declined 1.8% and service organic revenue increased 4.6%. In the year-to-date period, organic revenue declined 0.7% as equipment organic revenue decreased 3.3% and service organic revenue grew 4.3%.
Current report
•Operating revenue grew in the third quarter and year-to-date periods due to higher organic revenue, despite temporary disruptions resulting from a severe weather event in the third quarter, and the favorable effect of foreign currency translation.
Current report
•Organic revenue increased 6.9% in the third quarter as equipment and consumables grew 5.2% and 10.0%, respectively. In the year-to-date period, organic revenue grew 9.0% as equipment and consumables increased 10.7% and 6.1%, respectively.
Current report
◦International organic revenue grew 3.0% in the third quarter due to growth in Asia Pacific and Europe. In the year-to-date period, international organic revenue decreased 3.3% primarily due to lower demand in Asia Pacific and Europe.
Current report
•Operating margin was 36.3% in the third quarter. The increase of 370 basis points was primarily due to an insurance recovery related to the severe weather event, while higher employee-related expenses and unfavorable price/cost of 10 basis points partially offset positive operating leverage of 130 basis points and benefits from the Company's enterprise initiatives.
Current report
•In the year-to-date period, operating margin of 33.6% increased 80 basis points primarily due to an insurance recovery related to the severe weather event in the third quarter, while higher employee-related expenses and unfavorable price/cost of 20 basis points partially offset positive operating leverage of 140 basis points and benefits from the Company's enterprise initiatives.
Current report
•Operating revenue grew in the third quarter primarily due to higher organic revenue. In the year-to-date period, operating revenue increased due to higher organic revenue and the favorable effect of foreign currency translation.
Current report
•In the year-to-date period, operating margin of 29.6% increased 200 basis points primarily due to benefits from the Company's enterprise initiatives, positive operating leverage of 110 basis points and favorable price/cost of 50 basis points, partially offset by higher employee-related expenses.
Current report
The results of operations for the Construction Products segment for the third quarter and year-to-date periods of 2026 and 2025 were as follows:
Current report
•Operating revenue was flat in the third quarter as the favorable effect of foreign currency translation offset lower organic revenue. In the year-to-date period, operating revenue increased due to the favorable effect of foreign currency translation.
Current report
◦North American organic revenue decreased 0.4% in the third quarter primarily due to a decline in the United States residential end market of 3.1%, partially offset by an increase of 18.7% in the United States commercial end market. In the year-to-date period, organic revenue grew 0.6% primarily due to growth of 10.2% in the commercial end market, partially offset by lower demand in the residential end market and in Canada of 0.6% and 2.1%, respectively.
Current report
◦International organic revenue decreased 1.2% in the third quarter and 0.7% in the year-to-date period. European organic revenue declined 2.2% and 1.4% in the third quarter and year-to-date periods, respectively, primarily due to lower demand in the residential end market, partially offset by higher demand in the commercial end market. Asia Pacific organic revenue was flat in the third quarter and grew 0.2% in the year-to-date period with higher demand in the Australia and New Zealand residential end markets in both respective periods.
Current report
•Operating margin was 29.9% in the third quarter. The decrease of 170 basis points was primarily due to higher employee-related expenses and unfavorable price/cost of 60 basis points, partially offset by benefits from the Company's enterprise initiatives and lower restructuring expenses of 40 basis points.
Current report
•In the year-to-date period, operating margin of 30.0% decreased 60 basis points primarily due to higher employee-related expenses and unfavorable price/cost of 30 basis points, partially offset by benefits from the Company's enterprise initiatives.
Current report
•Operating revenue declined in the third quarter primarily due to lower organic revenue. In the year-to-date period, operating revenue increased due to the favorable effect of foreign currency translation, partially offset by lower organic revenue.
Current report
•Organic revenue decreased 1.2% in the third quarter as equipment sales declined 15.1% compared to the prior year period which benefitted from 14.2% growth, partially offset by consumables which increased 3.2%. In the year-to-date period, organic revenue declined 1.4% as equipment sales decreased 8.3%, partially offset by consumables which grew 0.7%. Product line simplification activities reduced organic revenue by 130 basis points and 160 basis points in the third quarter and year-to-date periods, respectively.
Current report
•Operating margin was 31.4% in the third quarter. The decrease of 90 basis points was primarily due to higher employee-related expenses and unfavorable operating leverage of 20 basis points, partially offset by benefits from the Company's enterprise initiatives and favorable price/cost of 60 basis points.
Current report
On August 13, 2026, the Company issued $1.5 billion of 4.65% notes due August 13, 2029 at 99.748% of face value. Proceeds from the issuance were used to repay a portion of the indebtedness under the Company's commercial paper program.
Removed paragraphs (23)
Previous report
•Organic revenue increased 4.5% in the second quarter and 2.5% in the year-to-date period primarily driven by growth in the Test & Measurement and Electronics, Welding and Polymers & Fluids segments. Product line simplification activities reduced organic revenue by 60 basis points in both the second quarter and year-to-date periods.
Previous report
◦North American organic revenue grew 6.4% in the second quarter as growth in the Welding, Test & Measurement and Electronics, Polymers & Fluids, Construction Products, Specialty Products and Automotive OEM segments was partially offset by a decrease in the Food Equipment segment. In the year-to-date period, organic revenue increased 3.8% due to growth in the Welding, Test & Measurement and Electronics, Polymers & Fluids and Construction Products segments, partially offset by a decline in the Food Equipment, Specialty Products and Automotive OEM segments.
Previous report
•Operating revenue grew in the second quarter and year-to-date periods due to the favorable effect of foreign currency translation, partially offset by lower organic revenue.
Previous report
◦North American organic revenue grew 1.3% and decreased 1.8% in the second quarter and year-to-date periods, respectively, compared to North American auto builds which were flat in the second quarter and declined 1% in the year-to-date period, primarily due to product line simplification activities and customer mix.
Previous report
•Operating margin was 21.6% in the second quarter. The increase of 30 basis points was primarily due to benefits from the Company's enterprise initiatives, partially offset by unfavorable price/cost of 90 basis points, higher employee-related expenses and continued investment in the business.
Previous report
•In the year-to-date period, operating margin of 21.3% increased 100 basis points primarily due to benefits from the Company's enterprise initiatives and lower restructuring expenses of 40 basis points, partially offset by higher employee-related expenses, continued investment in the business and unfavorable price/cost of 50 basis points.
Previous report
•Operating revenue grew in the second quarter due to the favorable effect of foreign currency translation. In the year-to-date period, operating revenue increased due to the favorable effect of foreign currency translation, partially offset by lower organic revenue.
Previous report
•Organic revenue was flat in the second quarter as equipment organic revenue declined 2.4% and service organic revenue increased 5.0%. In the year-to-date period, organic revenue declined 1.3% as equipment organic revenue decreased 4.1% and service organic revenue grew 4.1%.
Previous report
•In the year-to-date period, operating margin of 26.0% decreased 110 basis points primarily due to higher employee-related expenses, product mix and unfavorable operating leverage of 20 basis points, partially offset by benefits from the Company's enterprise initiatives.
Previous report
•Operating revenue grew in the second quarter and year-to-date periods due to higher organic revenue and the favorable effect of foreign currency translation.
Previous report
•Organic revenue increased 13.9% in the second quarter as equipment and consumables grew 18.7% and 6.0%, respectively. In the year-to-date period, organic revenue grew 10.0% as equipment increased 13.4% and consumables grew 4.1%.
Previous report
◦International organic revenue declined 6.4% in the second quarter and 6.3% in the year-to-date period primarily due to lower demand in Asia Pacific and Europe.
Previous report
•Operating margin was 32.4% in the second quarter. The decrease of 70 basis points was primarily due to higher employee-related expenses, unfavorable price/cost of 50 basis points and higher restructuring expenses of 30 basis points, partially offset by positive operating leverage of 220 basis points and benefits from the Company's enterprise initiatives.
Previous report
•Operating revenue grew in the second quarter and year-to-date periods due to higher organic revenue and the favorable effect of foreign currency translation.
Previous report
•In the year-to-date period, operating margin of 28.7% increased 160 basis points primarily due to benefits from the Company's enterprise initiatives and positive operating leverage of 90 basis points, partially offset by higher employee-related expenses.
Previous report
The results of operations for the Construction Products segment for the second quarter and year-to-date periods of 2026 and 2025 were as follows:
Previous report
•Operating revenue grew in the second quarter and year-to-date periods due to the favorable effect of foreign currency translation and higher organic revenue.
Previous report
◦North American organic revenue increased 2.2% in the second quarter primarily due to growth of 12.9% and 0.8% in the United States commercial and residential end markets, respectively. In the year-to-date period, organic revenue grew 1.1% primarily due to growth in the commercial and residential end markets of 6.0% and 0.7%, respectively, partially offset by a decline in Canada of 2.8%.
Previous report
◦International organic revenue increased 1.8% in the second quarter. European organic revenue grew 1.4% primarily due to higher demand in continental Europe in the commercial and residential end markets, partially offset by a decline in the United Kingdom. Asia Pacific organic revenue increased 2.4% primarily due to higher demand in the Australia and New Zealand commercial and residential end markets. In the year-to-date period, organic revenue declined 0.4%. European organic revenue decreased 1.0% primarily due to lower demand in the United Kingdom, partially offset by an increase in continental Europe in the commercial and residential end markets. Asia Pacific organic revenue grew 0.4% primarily due to higher demand in the Australia and New Zealand commercial and residential end markets.
Previous report
•Operating margin was 30.6% in the second quarter. The decrease of 20 basis points was primarily due to higher employee-related expenses, partially offset by benefits from the Company's enterprise initiatives and positive operating leverage of 40 basis points.
Previous report
•In the year-to-date period, operating margin of 30.0% was flat as benefits from the Company's enterprise initiatives and positive operating leverage of 20 basis points were offset by higher employee-related expenses.
Previous report
•Operating revenue grew in the second quarter due to higher organic revenue and the favorable effect of foreign currency translation. In the year-to-date period, operating revenue increased due to the favorable effect of foreign currency translation, partially offset by lower organic revenue.
Previous report
•Organic revenue increased 1.6% in the second quarter as consumables increased 4.1%, partially offset by a decline in equipment sales of 6.3%. In the year-to-date period, organic revenue declined 1.5% as equipment sales and consumables declined 4.7% and 0.5%, respectively. Product line simplification activities reduced organic revenue by 140 basis points and 170 basis points in the second quarter and year-to-date periods, respectively.
Reworded paragraphs (63)
Previous wording
During the first quarter of 2022, Russian military forces invaded Ukraine. In response, the United States and several other countries imposed economic and other sanctions on Russia. The Company has four immaterial Russian subsidiaries with net assets of approximately $42 million as of June 30, 2026. The revenue for these four subsidiaries for the three and six months ended June 30, 2026 was approximately $8 million and $14 million, respectively. These subsidiaries are not material to the Company's results of operations or financial position.
Current wording
During the first quarter of 2022, Russian military forces invaded Ukraine. In response, the United States and several other countries imposed economic and other sanctions on Russia. The Company has four immaterial Russian subsidiaries with net assets of approximately $41 million as of September 30, 2026. The revenue for these four subsidiaries for the three and nine months ended September 30, 2026 was approximately $6 million and $20 million, respectively. These subsidiaries are not material to the Company's results of operations or financial position.
Previous wording
On October 1, 2025, the Company completed the acquisition of one business in the Test & Measurement and Electronics segment for $120 million, net of cash acquired, and subject to certain closing adjustments. The allocation of purchase price for this acquisition will be completed as soon as practicable, but no later than one year from the acquisition date. This acquisition was not material to the Company's results of operations, financial position or cash flows. Refer to Note 2. Acquisitions in Item 1. Financial Statements for further information regarding this acquisition.
Current wording
On October 1, 2025, the Company completed the acquisition of one business in the Test & Measurement and Electronics segment for $120 million, net of cash acquired, and subject to certain closing adjustments. This acquisition was not material to the Company's results of operations, financial position or cash flows. Refer to Note 2. Acquisitions in Item 1. Financial Statements for further information regarding this acquisition.
Previous wording
The Company delivered solid financial results in the second quarter and year-to-date periods of 2026 primarily due to the continued successful execution of enterprise initiatives and continued focus on the highly differentiated ITW Business Model.
Current wording
The Company delivered strong financial results in the third quarter and year-to-date periods of 2026 primarily due to the continued successful execution of enterprise initiatives and continued focus on the highly differentiated ITW Business Model.
Previous wording
Refer to the "Results of Operations for Total Company" and the "Results of Operations by Segment" sections for discussion of changes in operating revenue for the second quarter and year-to-date periods of 2026 compared to 2025.
Current wording
Refer to the "Results of Operations for Total Company" and the "Results of Operations by Segment" sections for discussion of changes in operating revenue for the third quarter and year-to-date periods of 2026 compared to 2025.
Previous wording
Cost of revenue was $2.4 billion and $2.3 billion in the second quarter of 2026 and 2025, respectively, an increase of 5.8%, primarily due to higher revenue and higher employee-related expenses. Cost of revenue as a percent of operating revenue was lower in the second quarter of 2026 compared to 2025 as benefits from the Company's enterprise initiatives were partially offset by higher employee-related expenses. In the year-to-date period, Cost of revenue was $4.7 billion and $4.4 billion in 2026 and 2025, respectively, an increase of 5.1%, primarily due to higher revenue and higher employee-related expenses. Cost of revenue as a percent of operating revenue was lower in the year-to-date period of 2026 compared to 2025 as benefits from the Company's enterprise initiatives were partially offset by higher employee-related expenses.
Current wording
Cost of revenue increased 3.2% and 4.5% in the third quarter and year-to-date periods of 2026, respectively, primarily due to higher revenue and higher employee-related expenses. Cost of revenue as a percent of operating revenue was lower in the third quarter and year-to-date periods of 2026 as benefits from the Company's enterprise initiatives were partially offset by higher employee-related expenses.
Previous wording
Selling, administrative, and research and development expenses were $735 million and $693 million in the second quarter of 2026 and 2025, respectively, an increase of 6.1%. Selling, administrative, and research and development expenses as a percent of operating revenue was flat in 2026 compared to 2025 as benefits from the Company's enterprise initiatives were offset by higher selling, advertising and employee-related expenses. In the year-to-date period, Selling, administrative, and research and development expenses were $1.5 billion and $1.4 billion in 2026 and 2025, respectively, an increase of 4.1%. Selling, administrative, and research and development expenses as a percent of operating revenue were lower in the year-to-date period of 2026 compared to 2025 primarily due to benefits from the Company's enterprise initiatives, partially offset by higher selling, advertising and employee-related expenses.
Current wording
Selling, administrative, and research and development expenses increased 6.1% and 4.8% in the third quarter and year-to-date periods of 2026, respectively. In the third quarter, Selling, administrative, and research and development expenses as a percent of operating revenue was higher in 2026 primarily due to higher employee-related expenses and selling and advertising expenses, partially offset by benefits from the Company's enterprise initiatives. In the year-to-date period, Selling, administrative, and research and development expenses as a percent of operating revenue were lower in 2026 primarily due to benefits from the Company's enterprise initiatives, partially offset by higher selling, advertising and employee-related expenses as well as higher research and development expenses.
Previous wording
Amortization and impairment of intangible assets was lower in the second quarter and year-to-date periods of 2026 compared to 2025 primarily due to fully amortized intangible assets.
Current wording
Amortization and impairment of intangible assets was lower in the third quarter and year-to-date periods of 2026 primarily due to fully amortized intangible assets.
Previous wording
Refer to the "Results of Operations for Total Company" and the "Results of Operations by Segment" sections for additional discussion of operating results for the second quarter and year-to-date periods of 2026 compared to 2025.
Current wording
Refer to the "Results of Operations for Total Company" and the "Results of Operations by Segment" sections for additional discussion of operating results for the third quarter and year-to-date periods of 2026 compared to 2025.
Previous wording
The Company's consolidated results of operations for the second quarter and year-to-date periods of 2026 and 2025 were as follows:
Current wording
The Company's consolidated results of operations for the third quarter and year-to-date periods of 2026 and 2025 were as follows:
Previous wording
•Operating revenue grew in the second quarter and year-to-date periods due to higher organic and acquisition revenues and the favorable effect of foreign currency translation.
Current wording
•Operating revenue grew in the third quarter and year-to-date periods due to higher organic and acquisition revenues and the favorable effect of foreign currency translation.
Previous wording
◦Europe, Middle East and Africa organic revenue was flat in the second quarter as growth in the Food Equipment, Polymers & Fluids, Construction Products and Specialty Products segments was offset by a decline in the Automotive OEM, Test & Measurement and Electronics and Welding segments. In the year-to-date period, organic revenue declined 1.1% as a decrease in the Test & Measurement and Electronics, Automotive OEM, Welding and Construction Products segments was partially offset by growth in the Food Equipment, Polymers & Fluids and Specialty Products segments.
Current wording
◦Europe, Middle East and Africa organic revenue decreased 0.4% in the third quarter as a decline in the Automotive OEM, Specialty Products and Construction Products segments was partially offset by growth in the Food Equipment, Polymers & Fluids, Test & Measurement and Electronics and Welding segments. In the year-to-date period, organic revenue declined 0.8% as a decrease in the Automotive OEM, Test & Measurement and Electronics, Specialty Products, Construction Products and Welding segments was partially offset by growth in the Food Equipment and Polymers & Fluids segments.
Previous wording
◦Asia Pacific organic revenue grew 5.6% in the second quarter and increased 4.1% in the year-to-date period primarily due to growth in the Test & Measurement and Electronics segment. Organic revenue in China increased 3.4% in the second quarter as growth in the Test & Measurement and Electronics, Food Equipment, Specialty Products and Automotive OEM segments was partially offset by a decline in the Polymers & Fluids, Welding and Construction Products segments. In the year-to-date period, organic revenue grew 1.0% as growth in the Test & Measurement and Electronics, Food Equipment and Welding segments was partially offset by a decrease in the Automotive OEM, Specialty Products, Polymers & Fluids and Construction Products segments.
Current wording
◦Asia Pacific organic revenue grew 3.4% in the third quarter and 3.8% in the year-to-date period primarily due to growth in the Test & Measurement and Electronics segment. Organic revenue in China decreased 2.3% in the third quarter, which had a challenging comparison in the prior year third quarter of 10.1% growth, as a decline in the Test & Measurement and Electronics, Automotive OEM, Specialty Products, Polymers & Fluids and Construction Products segments was partially offset by growth in the Food Equipment and Welding segments. In the year-to-date period, organic revenue in China declined 0.2%, which had a challenging comparison in the prior year of 12.2%, as a decrease in the Automotive OEM, Specialty Products, Polymers & Fluids and Construction Products segments was partially offset by growth in the Test & Measurement and Electronics, Food Equipment and Welding segments.
Previous wording
•Operating income of $1.1 billion and $2.2 billion in the second quarter and year-to-date periods, respectively, increased 7.4% and grew 7.3%, respectively, compared to the prior year primarily due to higher organic revenue and the favorable effect of foreign currency translation.
Current wording
•Operating income of $1.2 billion and $3.3 billion in the third quarter and year-to-date periods, respectively, increased 5.9% and 6.8%, respectively, compared to the prior year primarily due to higher organic revenue, lower restructuring expenses and the favorable effect of foreign currency translation.
Previous wording
•Operating margin was 26.7% in the second quarter. The increase of 40 basis points was primarily due to benefits from the Company's enterprise initiatives of 120 basis points and positive operating leverage of 90 basis points, partially offset by higher employee-related expenses and unfavorable price/cost of 40 basis points.
Current wording
•Operating margin was 27.8% in the third quarter. The increase of 40 basis points was primarily due to benefits from the Company's enterprise initiatives of 130 basis points, positive operating leverage of 80 basis points and favorable price/cost of 40 basis points, partially offset by higher overhead costs, including higher employee-related expenses.
Previous wording
•In the year-to-date period, operating margin of 26.1% increased 50 basis points primarily due to benefits from the Company's enterprise initiatives of 120 basis points and positive operating leverage of 50 basis points, partially offset by higher employee-related expenses and unfavorable price/cost of 20 basis points.
Current wording
•In the year-to-date period, operating margin of 26.6% increased 40 basis points primarily due to benefits from the Company's enterprise initiatives of 120 basis points and positive operating leverage of 60 basis points, partially offset by higher overhead costs, including higher employee-related expenses.
Previous wording
•The Company's effective tax rate for the second quarter of 2026 and 2025 was 24.4% in both periods and 22.6% and 23.1% for the year-to-date periods of 2026 and 2025, respectively. The effective tax rate for the year-to-date period of 2026 included a discrete tax benefit of $34 million in the first quarter of 2026 primarily related to the resolution of a U.S. tax audit. Additionally, the effective tax rate for the year-to-date period of 2025 included a discrete tax benefit of $21 million in the first quarter of 2025 related to the reversal of a valuation allowance on net operating loss carryforwards. The effective tax rates for 2026 and 2025 also included excess tax benefits from stock-based compensation of $1 million for the second quarter of 2025, and $4 million and $5 million for the year-to-date periods of 2026 and 2025, respectively.
Current wording
•The Company's effective tax rate for the third quarter of 2026 and 2025 was 24.4% and 21.8%, respectively, and 23.3% and 22.7% for the year-to-date periods of 2026 and 2025, respectively. The effective tax rate for the year-to-date period of 2026 included a discrete tax benefit of $34 million in the first quarter of 2026 primarily related to the resolution of a U.S. tax audit. The effective tax rates for the third quarter and year-to-date periods of 2025 benefited from a discrete tax benefit of $43 million related to the estimated U.S. federal tax liability for 2024, partially offset by a $16 million discrete tax expense related primarily to the resolution of a foreign tax audit. Additionally, the effective tax rate for the year-to-date period of 2025 included a discrete tax benefit of $21 million in the first quarter of 2025 related to the reversal of a valuation allowance on net operating loss carryforwards. The effective tax rates for 2026 and 2025 also included excess tax benefits from stock-based compensation of $1 million and $2 million for the third quarter of 2026 and 2025, respectively, and $5 million and $7 million for the year-to-date periods of 2026 and 2025, respectively.
Previous wording
•Diluted earnings per share ("EPS") of $2.84 for the second quarter and $5.50 for the year-to-date period of 2026 increased 10.1% and 11.1%, respectively.
Current wording
•Diluted earnings per share ("EPS") of $3.00 for the third quarter and $8.49 for the year-to-date period of 2026 increased 6.8% and 9.3%, respectively.
Previous wording
•The Company repurchased approximately 2.9 million and 4.3 million shares of its common stock in the second quarter and year-to-date periods of 2026, respectively, for approximately $750 million and $1.1 billion, respectively.
Current wording
•The Company repurchased approximately 0.7 million and 5.0 million shares of its common stock in the third quarter and year-to-date periods of 2026, respectively, for approximately $187 million and $1.3 billion, respectively.
Previous wording
Total operating revenue and operating income for the second quarter and year-to-date periods of 2026 and 2025 were as follows:
Current wording
Total operating revenue and operating income for the third quarter and year-to-date periods of 2026 and 2025 were as follows:
Previous wording
Segments are allocated a fixed overhead charge based on the segment's revenue. Expenses not charged to the segments are reported separately as Unallocated. Because the Unallocated category includes a variety of items, it is subject to fluctuations on a quarterly and annual basis.
Current wording
Segments are allocated a fixed overhead charge based on the segment's revenue. Expenses not charged to the segments are reported separately as Unallocated. Because the Unallocated category includes a variety of items, it is subject to fluctuations on a quarterly and annual basis. Unallocated in the three and nine months ended September 30, 2026 included higher employee-related expenses as compared to the prior year.
Previous wording
The results of operations for the Automotive OEM segment for the second quarter and year-to-date periods of 2026 and 2025 were as follows:
Current wording
The results of operations for the Automotive OEM segment for the third quarter and year-to-date periods of 2026 and 2025 were as follows:
Previous wording
•Organic revenue decreased 0.4% in the second quarter and 0.6% in the year-to-date period compared to worldwide auto builds which were flat in the second quarter and decreased 1% in the year-to-date period. Product line simplification activities reduced organic revenue by 80 basis points in the second quarter and 90 basis points in the year-to-date period.
Current wording
•Organic revenue decreased 2.1% in the third quarter and 1.1% in the year-to-date period compared to worldwide auto builds which declined 2% in the third quarter and 1% in the year-to-date period. Product line simplification activities reduced organic revenue by 60 basis points in the third quarter and 80 basis points in the year-to-date period.
Previous wording
◦European organic revenue decreased 5.3% in the second quarter and 2.7% in the year-to-date period compared to European auto builds which declined 1% in the second quarter and were flat in the year-to-date period, primarily due to customer mix and product line simplification activities.
Current wording
◦European organic revenue decreased 6.9% in the third quarter and 4.1% in the year-to-date period compared to European auto builds which grew 1% in the third quarter and year-to-date periods, primarily due to customer mix and product line simplification activities.
Previous wording
◦Asia Pacific organic revenue grew 3.1% and 2.9% in the second quarter and year-to-date periods, respectively, primarily due to market growth and penetration gains in India. Organic revenue in China increased 0.5% and declined 1.2% in the second quarter and year-to-date periods, respectively, compared to China auto builds which declined 3% in the second quarter and 5% in the year-to-date period. Auto builds of foreign automotive manufacturers in China decreased 31% in the second quarter and 23% in the year-to-date period. The business outperformed the market primarily due to customer mix including growth in the electric vehicle end market.
Current wording
◦Asia Pacific organic revenue grew 1.6% and 2.5% in the third quarter and year-to-date periods, respectively, primarily due to market growth and penetration gains in India. Organic revenue in China decreased 1.4% and 1.3% in the third quarter and year-to-date periods, respectively, compared to China auto builds which declined 6% in the third quarter and 6% in the year-to-date period. Auto builds of foreign automotive manufacturers in China decreased 39% in the third quarter and 28% in the year-to-date period. The business outperformed the market primarily due to customer mix including continued growth in the electric vehicle end market.
Previous wording
•Operating margin was 31.5% in the second quarter. The decrease of 110 basis points was primarily due to unfavorable price/cost of 160 basis points and higher employee-related expenses, partially offset by benefits from the Company's enterprise initiatives and positive operating leverage of 20 basis points.
Current wording
•Operating margin was 20.1% in the third quarter. The decrease of 170 basis points was primarily due to unfavorable price/cost of 100 basis points, higher overhead costs, including higher employee-related expenses, and unfavorable operating leverage of 40 basis points, partially offset by benefits from the Company's enterprise initiatives.
Previous wording
•In the year-to-date period, operating margin of 32.3% decreased 50 basis points primarily due to higher employee-related expenses, unfavorable price/cost of 20 basis points and higher restructuring expenses of 20 basis points, partially offset by positive operating leverage of 160 basis points and benefits from the Company's enterprise initiatives.
Current wording
•In the year-to-date period, operating margin of 20.9% increased 10 basis points primarily due to benefits from the Company's enterprise initiatives and lower restructuring expenses of 40 basis points, partially offset by higher overhead costs, including higher employee-related expenses, unfavorable price/cost of 70 basis points and unfavorable operating leverage of 20 basis points.
Previous wording
The results of operations for the Food Equipment segment for the second quarter and year-to-date periods of 2026 and 2025 were as follows:
Current wording
The results of operations for the Food Equipment segment for the third quarter and year-to-date periods of 2026 and 2025 were as follows:
Previous wording
◦North American organic revenue decreased 3.5% in the second quarter and 4.1% in the year-to-date period. Equipment organic revenue declined 8.2% and 9.1% in the second quarter and year-to-date periods, respectively, primarily due to lower demand in the institutional end market and independent and quick service restaurants within the noninstitutional end market. Service organic revenue increased 4.9% in the second quarter and 4.5% in the year-to-date period.
Current wording
◦North American organic revenue decreased 2.8% in the third quarter and 3.6% in the year-to-date period. Equipment organic revenue declined 6.9% and 8.3% in the third quarter and year-to-date periods, respectively, primarily due to lower demand in the institutional end market and independent and quick service restaurants within the noninstitutional end market, partially offset by higher demand in the food retail end market. Service organic revenue increased 4.1% in the third quarter and 4.4% in the year-to-date period.
Previous wording
◦International organic revenue grew 5.7% and 3.1% in the second quarter and year-to-date periods, respectively. Equipment organic revenue increased 6.2% in the second quarter and 3.0% in the year-to-date period primarily due to higher demand in the European warewash end market and higher demand in Asia, partially offset by lower demand in the European cooking and refrigeration end markets. Service organic revenue grew 5.3% in the second quarter and 3.4% in the year-to-date period.
Current wording
◦International organic revenue grew 5.4% in the third quarter. Equipment organic revenue increased 5.5% primarily due to higher demand in the European warewash, cooking and refrigeration end markets and higher demand in Asia. Service organic revenue grew 5.5%. In the year-to-date period, international organic revenue increased 3.9%. Equipment organic revenue grew 3.8% primarily driven by higher demand in the European warewash end market and higher demand in Asia, partially offset by lower demand in the European cooking and refrigeration end markets. Service organic revenue increased 4.1%.
Previous wording
•Operating margin was 27.1% in the second quarter. The decrease of 60 basis points was primarily due to higher employee-related expenses and product mix, partially offset by benefits from the Company's enterprise initiatives and favorable price/cost of 10 basis points.
Current wording
•Operating margin was 29.8% in the third quarter. The increase of 60 basis points was primarily due to benefits from the Company's enterprise initiatives and favorable price/cost of 120 basis points, partially offset by higher employee-related expenses and product mix.
Previous wording
The results of operations for the Test & Measurement and Electronics segment for the second quarter and year-to-date periods of 2026 and 2025 were as follows:
Current wording
The results of operations for the Test & Measurement and Electronics segment for the third quarter and year-to-date periods of 2026 and 2025 were as follows:
Previous wording
•Operating revenue grewin the second quarter and year-to-date periodsdue to higher organic and acquisition revenues, and the favorable effect of foreign currency translation.
Current wording
•Operating revenue grewin the third quarterdue to higher organic and acquisition revenues, partially offset by the unfavorable effect of foreign currency translation. In the year-to-date period, operating revenue increased due to higher organic and acquisition revenues and the favorable effect of foreign currency translation.
Previous wording
•Organic revenue increased 10.0% in the second quarter and 7.4% in the year-to-date period primarily due to higher demand in the semiconductor and electronics end markets.
Current wording
•Organic revenue increased 15.8% in the third quarter and 10.3% in the year-to-date period primarily due to higher demand in the semiconductor and electronics end markets.
Previous wording
◦Organic revenue for the test and measurement businesses increased 4.2% in the second quarter and 2.9% in the year-to-date period primarily driven by higher demand in the semiconductor end market, primarily in North America and Asia Pacific, and growth in Instron, partially offset by a decline in the MTS Test & Simulation business.
Current wording
◦Organic revenue for the test and measurement businesses increased 8.1% in the third quarter and 4.7% in the year-to-date period primarily driven by higher demand in the semiconductor end market, primarily in North America and Asia Pacific, partially offset by a decline in the MTS Test & Simulation business.
Previous wording
◦Electronics organic revenue grew 21.0% in the second quarter and increased 15.7% in the year-to-date period primarily due to higher demand in the semiconductor end market. The electronics assembly businesses grew 49.2% in the second quarter and increased 36.9% in the year-to-date period primarily due to higher demand across all major regions. The other electronics businesses, which include the contamination control, static control and pressure sensitive adhesives businesses, increased 11.3% in the second quarter and 8.3% in the year-to-date period primarily due to higher demand in North America and Asia Pacific, partially offset by a decline in Europe.
Current wording
◦Electronics organic revenue grew 30.5% in the third quarter and 20.7% in the year-to-date period primarily due to higher demand in the semiconductor end market. The electronics assembly businesses grew 86.0% in the third quarter and 53.5% in the year-to-date period due to higher demand across all major regions. The other electronics businesses, which include contamination control, static control and pressure sensitive adhesives, increased 10.8% in the third quarter and 9.2% in the year-to-date period primarily due to growth in North America and Asia Pacific.
Previous wording
•Operating margin was 25.2% in the second quarter. The increase of 240 basis points was primarily due to positive operating leverage of 250 basis points and benefits from the Company's enterprise initiatives, partially offset by higher employee-related expenses and the dilutive impact of 20 basis points from an acquisition.
Current wording
•Operating margin was 28.7% in the third quarter. The increase of 330 basis points was primarily due to positive operating leverage of 370 basis points, favorable price/cost of 110 basis points and benefits from the Company's enterprise initiatives, partially offset by higher overhead costs, including higher employee-related expenses, and the dilutive impact of 60 basis points from an acquisition.
Previous wording
•In the year-to-date period, operating margin of 24.1% increased 200 basis points primarily due to positive operating leverage of 200 basis points and benefits from the Company's enterprise initiatives, partially offset by higher employee-related expenses and the dilutive impact of 40 basis points from an acquisition.
Current wording
•In the year-to-date period, operating margin of 25.7% increased 250 basis points primarily due to positive operating leverage of 260 basis points, benefits from the Company's enterprise initiatives and favorable price/cost of 40 basis points, partially offset by higher overhead costs, including higher employee-related expenses, and the dilutive impact of 50 basis points from an acquisition.
Previous wording
The results of operations for the Welding segment for the second quarter and year-to-date periods of 2026 and 2025 were as follows:
Current wording
The results of operations for the Welding segment for the third quarter and year-to-date periods of 2026 and 2025 were as follows:
Previous wording
◦North American organic revenue increased 18.5% and 13.5% in the second quarter and year-to-date periods, respectively, primarily due to growth in the industrial end market of 16.7% and 11.9%, respectively, and in the commercial end market of 14.2% and 9.9%, respectively. The growth in both periods was primarily due to higher demand in the infrastructure, energy, aerospace and defense end markets.
Current wording
◦North American organic revenue increased 7.7% primarily due to growth in both the industrial and commercial end markets of 5.6% and 3.8%, respectively. In the year-to-date period, organic revenue grew 11.5% primarily due to growth in the industrial and commercial end markets of 9.8% and 7.9%, respectively. The growth in both periods was primarily due to higher demand in the infrastructure, energy, semiconductor, aerospace and defense end markets.
Previous wording
The results of operations for the Polymers & Fluids segment for the second quarter and year-to-date periods of 2026 and 2025 were as follows:
Current wording
The results of operations for the Polymers & Fluids segment for the third quarter and year-to-date periods of 2026 and 2025 were as follows:
Showing the first 40 of 63 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
•In the year-to-date period, operating margin of 27.3% decreased 50 basis points primarily due to higher employee-related expenses and product mix, partially offset by benefits from the Company's enterprise initiatives and favorable price/cost of 50 basis points.
Current report — wording carried from elsewhere
On August 7, 2026, the Company announced that its Board of Directors approved a new authorization for the Company to repurchase up to an additional $6.0 billion of the Company's common stock over an open-ended period of time (the "2026 Program"). As of September 30, 2026, there were $6.0 billion of authorized repurchases remaining under the 2026 Program.
Current report — wording carried from elsewhere
Agreement with an interest rate of 2.77%, which was included in Long-term debt. The Company intends to exercise its option to extend the termination date to September 15, 2027.