Illinois Tool Works vs Diageo
Diageo plc and Illinois Tool Works Inc. This page compares business models, financial performance and market context of the two companies in a neutral, accessible way. It presents high-level information to help readers understand similarities and differences without making recommendations. Educational content, not financial advice.
Diageo plc and Illinois Tool Works Inc. This page compares business models, financial performance and market context of the two companies in a neutral, accessible way. It presents high-level informati...
Why It's Moving
ITW schedules key update amid steady industrial sector momentum.
- ITW released its event schedule on Jan. 13, highlighting ongoing transparency as the company navigates flat revenue trends.
- Analysts note potential upside from diversified operations in automotive OEM and food equipment, bolstered by a solid 2.35% dividend yield.
- Recent institutional buying by Allspring Global Investments underscores confidence, while technicals show the stock as oversold with RSI at 23.04.
Diageo shares nudge higher amid divestment moves and analyst forecasts.
- Shares climbed 0.34% to $91.49 by January 23, building on gains from $87.87 on January 20, signaling short-term stabilization.
- Diageo is offloading its £2.3bn stake in East African Breweries to Asahi Group, addressing weakness in Latin America and Africa where inflation has curbed premium demand.
- Analyst predictions show January 2026 target at $111.87 with 6% volatility, though long-term views remain cautious on debt and valuation.
ITW schedules key update amid steady industrial sector momentum.
- ITW released its event schedule on Jan. 13, highlighting ongoing transparency as the company navigates flat revenue trends.
- Analysts note potential upside from diversified operations in automotive OEM and food equipment, bolstered by a solid 2.35% dividend yield.
- Recent institutional buying by Allspring Global Investments underscores confidence, while technicals show the stock as oversold with RSI at 23.04.
Diageo shares nudge higher amid divestment moves and analyst forecasts.
- Shares climbed 0.34% to $91.49 by January 23, building on gains from $87.87 on January 20, signaling short-term stabilization.
- Diageo is offloading its £2.3bn stake in East African Breweries to Asahi Group, addressing weakness in Latin America and Africa where inflation has curbed premium demand.
- Analyst predictions show January 2026 target at $111.87 with 6% volatility, though long-term views remain cautious on debt and valuation.
Investment Analysis
Pros
- Achieved record operating margins of 27.4% in Q3 2025, driven by strong operational efficiency and margin expansion initiatives.
- Reported 6% year-over-year increase in earnings per share excluding one-time items, evidencing profitability growth.
- Generated 15% growth in free cash flow with a high conversion rate of 110%, indicating robust cash generation ability.
Considerations
- Revenue growth was modest at 2% in Q3 2025, and organic sales increased only 1%, showing limited top-line momentum.
- Stock price fell despite beating earnings due to investor concerns over revenue performance and mixed analyst sentiment.
- Dividend payout ratio of 56.44% may constrain reinvestment capacity for growth opportunities going forward.
Diageo
DEO
Pros
- Diageo is a global leader in premium alcoholic beverages with strong brand portfolio and geographic diversification.
- Consistent cash generation supports steady dividend payments and potential for share buybacks.
- Operational improvements and focused premiumisation strategies contribute to margin resilience and growth.
Considerations
- Exposure to regulatory changes and taxes on alcohol in various markets creates ongoing compliance and cost risks.
- Growth sensitivity to consumer discretionary spending and macroeconomic fluctuations can impact volumes.
- Currency fluctuations and geopolitical tensions may adversely affect international revenue and profitability.
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Illinois Tool Works (ITW) Next Earnings Date
Illinois Tool Works will release its fourth quarter and full year 2025 earnings results on February 3, 2026, at 7:00 a.m. CST, followed by an earnings webcast at 9:00 a.m. CST. The earnings report will cover the final quarter and complete fiscal year 2025. Analysts currently expect the company to report earnings per share of $2.68 for the quarter.
Diageo (DEO) Next Earnings Date
Diageo plc (DEO) is scheduled to release its next earnings report on February 25, 2026, covering the second fiscal quarter of 2026 (Q2 FY2026). This date aligns with the company's historical pattern of late-January or late-February interim releases, though some estimates indicate a window between mid-February and late February. Investors should monitor for official confirmation as the date approaches.
Illinois Tool Works (ITW) Next Earnings Date
Illinois Tool Works will release its fourth quarter and full year 2025 earnings results on February 3, 2026, at 7:00 a.m. CST, followed by an earnings webcast at 9:00 a.m. CST. The earnings report will cover the final quarter and complete fiscal year 2025. Analysts currently expect the company to report earnings per share of $2.68 for the quarter.
Diageo (DEO) Next Earnings Date
Diageo plc (DEO) is scheduled to release its next earnings report on February 25, 2026, covering the second fiscal quarter of 2026 (Q2 FY2026). This date aligns with the company's historical pattern of late-January or late-February interim releases, though some estimates indicate a window between mid-February and late February. Investors should monitor for official confirmation as the date approaches.
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