A reciprocating saw includes a housing, a motor, and a drive mechanism. The motor is configured to operate in a forward mode corresponding to a first rotational direction, and in a reverse mode corresponding to a second rotational direction opposite the first rotational direction. The drive mechanism includes a driven gear, a connecting rod, an output shaft, and a counterweight. The driven gear is rotated by the motor and has an upper portion and a lower portion. The output shaft reciprocates through a cutting stroke and a return stroke. The counterweight is coupled to the driven gear and rotating with the driven gear. When the motor is operated in the forward mode, the counterweight moves through the upper portion of the driven gear during the cutting stroke of the output shaft, and moves through the lower portion of the driven gear during a return stroke of the output shaft.