Illinois Tool Works Inc. (ITW) shares plunged 5.90% in pre-market trading following the release of its first-quarter 2026 financial results.

The industrial manufacturer reported GAAP earnings per share of $2.66, a 12% increase year-over-year and above the analyst estimate of $2.56. Revenue for the quarter climbed 5% to $4.02 billion, also slightly exceeding expectations of $4.01 billion. Operating margin expanded by 60 basis points to 25.4%, and free cash flow increased 6% to $528 million.

However, investors reacted negatively to the company's weak organic growth of just 0.4% for the quarter, which sits at the low end of its full-year organic growth guidance range of 1% to 3%. While ITW raised its full-year 2026 GAAP EPS guidance by $0.10 to a range of $11.10 to $11.50, the midpoint of this range matches the consensus estimate, suggesting the guidance increase was modest relative to market expectations. The company maintained its full-year revenue growth projection of 2% to 4%.

Other positive highlights from the report included a $375 million share repurchase during the quarter and an expectation to buy back approximately $1.5 billion of its own shares for the full year. All seven business segments are projected to deliver both positive organic growth and operating margin expansion in 2026.