Shares of Illinois Tool Works (NYSE: ITW) plunged 5.03% in pre-market trading on Wednesday following the release of its first-quarter 2025 earnings report. The industrial manufacturer reported declining revenue and weak organic growth, disappointing investors despite beating earnings per share expectations.

Illinois Tool Works announced Q1 revenue of $3.84 billion, down 3.4% compared to the same period last year. Organic growth declined by 1.6%, indicating challenges in the company's core business. Despite these headwinds, the company reported earnings per share of $2.38, slightly above the analyst consensus of $2.35. Illinois Tool Works maintained its full-year 2025 guidance, projecting earnings per share between $10.15 and $10.55.

"ITW commenced 2025 with solid execution, achieving financial results ahead of plan expectations as we continued to outperform underlying end markets," said Christopher A. O'Herlihy, President and Chief Executive Officer. However, the market's negative reaction suggests that investors were looking for stronger growth and may be concerned about the company's ability to navigate ongoing economic uncertainties and inflationary pressures.