Illinois Tool Works Inc. (NYSE: ITW) named one of the “14 Best Dividend Growth Stocks to Buy and Hold in 2026.” Goldman Sachs downgraded ITW to Sell from Neutral, citing limited upside potential and reduced price target to $230 from $258. Company reported record operating margin in Q3 2025.

In Q3 2025, Illinois Tool Works Inc. (NYSE: ITW) achieved record operating margin of 27.4%, with 90 basis points increase. Operating cash flow reached $1.0 billion, while free cash flow rose 15% to $904 million. FY25 guidance maintained with operating margin of 26%-27% and EPS target of $10.45.

ITW is a global industrial manufacturer with a diverse product portfolio. While ITW shows investment potential, other AI stocks may offer better returns with less risk. Consider exploring undervalued AI stocks for potential gains. Recommended reading: “12 Best Income Stocks to Buy Now” and “20 Best Performing Dividend Stocks in 2025.”

Read more at Yahoo Finance: Valuation Limits Upside for Illinois Tool Works (ITW), Goldman Says