Xylem (NYSE:XYL) Issues FY 2026 Earnings Guidance

Xylem (NYSE:XYL) issued an update on its FY 2026 earnings guidance on Tuesday. The company provided EPS guidance of 5.550-5.700 for the period, compared to the consensus EPS estimate of 5.530. The company issued revenue guidance of $9.2 billion-$9.2 billion, compared to the consensus revenue estimate of $9.2 billion.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on XYL shares. Jefferies Financial Group upgraded shares of Xylem from a “hold” rating to a “buy” rating and upped their price target for the company from $130.00 to $140.00 in a report on Thursday, June 25th. Stifel Nicolaus lowered their target price on shares of Xylem from $159.00 to $157.00 and set a “buy” rating on the stock in a report on Monday, July 20th. Oppenheimer decreased their price objective on Xylem from $160.00 to $158.00 and set an “outperform” rating on the stock in a research note on Wednesday, April 29th. Royal Bank Of Canada increased their price target on shares of Xylem from $157.00 to $159.00 and gave the company an “outperform” rating in a report on Thursday, July 16th. Finally, Weiss Ratings lowered shares of Xylem from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday, May 8th. Eight analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Xylem currently has an average rating of “Moderate Buy” and an average target price of $153.15.

Xylem Price Performance

Shares of Xylem stock traded up $6.25 during trading on Tuesday, reaching $126.41. The company’s stock had a trading volume of 370,792 shares, compared to its average volume of 1,996,577. The company has a quick ratio of 1.10, a current ratio of 1.46 and a debt-to-equity ratio of 0.13. The business has a 50 day moving average price of $114.27 and a 200-day moving average price of $122.55. Xylem has a 12-month low of $105.29 and a 12-month high of $154.27. The company has a market capitalization of $30.05 billion, a P/E ratio of 31.18, a price-to-earnings-growth ratio of 1.70 and a beta of 1.03.

Xylem (NYSE:XYL) last released its quarterly earnings results on Tuesday, July 28th. The industrial products company reported $1.46 earnings per share for the quarter, beating analysts’ consensus estimates of $1.34 by $0.12. Xylem had a net margin of 10.79% and a return on equity of 11.26%. The business had revenue of $2.34 billion during the quarter, compared to analyst estimates of $2.34 billion. During the same period last year, the business earned $1.26 EPS. The business’s revenue was up 1.5% on a year-over-year basis. Xylem has set its FY 2026 guidance at 5.550-5.700 EPS. As a group, sell-side analysts anticipate that Xylem will post 5.52 EPS for the current year.

Xylem Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, June 25th. Investors of record on Thursday, May 28th were paid a $0.43 dividend. The ex-dividend date of this dividend was Thursday, May 28th. This represents a $1.72 dividend on an annualized basis and a yield of 1.4%. Xylem’s dividend payout ratio is presently 42.79%.

Insider Buying and Selling at Xylem

In other news, CAO Geri-Michelle Mcshane sold 4,269 shares of Xylem stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $117.46, for a total transaction of $501,436.74. Following the completion of the transaction, the chief accounting officer directly owned 3,605 shares in the company, valued at $423,443.30. This trade represents a 54.22% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Jerome A. Peribere purchased 1,210 shares of the stock in a transaction dated Monday, May 4th. The stock was acquired at an average cost of $116.61 per share, for a total transaction of $141,098.10. Following the transaction, the director owned 27,209 shares of the company’s stock, valued at approximately $3,172,841.49. This trade represents a 4.65% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 0.32% of the stock is owned by company insiders.

Key Headlines Impacting Xylem

Here are the key news stories impacting Xylem this week:

• Positive Sentiment: Adjusted earnings beat estimates: Xylem reported second-quarter adjusted EPS of $1.46, compared with the $1.34 analyst consensus and $1.26 a year earlier. Profitability benefited from cost savings and pricing actions. Xylem Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Profit forecast raised: Management now expects 2026 adjusted EPS of $5.55 to $5.70, above the prior outlook and slightly ahead of the approximately $5.53 consensus estimate. Full-year revenue guidance is about $9.2 billion, broadly matching expectations. Xylem Raises Annual Profit Forecast
• Positive Sentiment: Demand indicators strengthened: Second-quarter orders rose 41% organically, or 42% on a reported basis, to $3.1 billion. Xylem cited accelerating demand for water-treatment equipment from AI data-center and infrastructure projects. Adjusted EBITDA margin expanded 150 basis points year over year to 23.3%. Xylem Reports Second Quarter 2026 Results
• Neutral Sentiment: Revenue growth remained modest: Quarterly revenue increased approximately 1% to $2.34 billion, essentially in line with analyst expectations. This means the positive market reaction is driven primarily by earnings quality, margins, orders and guidance rather than near-term sales acceleration. Xylem Reports Q2 CY2026 In Line With Expectations

Institutional Investors Weigh In On Xylem

A number of large investors have recently made changes to their positions in the company. State Street Corp increased its holdings in shares of Xylem by 2.6% in the 4th quarter. State Street Corp now owns 11,233,427 shares of the industrial products company’s stock valued at $1,529,768,000 after acquiring an additional 280,221 shares during the period. Amundi boosted its holdings in shares of Xylem by 5.3% during the 4th quarter. Amundi now owns 5,221,509 shares of the industrial products company’s stock worth $711,006,000 after purchasing an additional 264,693 shares during the last quarter. Morgan Stanley grew its stake in shares of Xylem by 3.4% in the 4th quarter. Morgan Stanley now owns 4,541,906 shares of the industrial products company’s stock valued at $618,517,000 after buying an additional 150,207 shares during the period. Northern Trust Corp increased its position in shares of Xylem by 4.6% during the fourth quarter. Northern Trust Corp now owns 3,409,621 shares of the industrial products company’s stock valued at $464,322,000 after acquiring an additional 150,388 shares during the last quarter. Finally, Dimensional Fund Advisors LP increased its stake in Xylem by 0.8% during the fourth quarter. Dimensional Fund Advisors LP now owns 2,036,433 shares of the industrial products company’s stock worth $277,341,000 after purchasing an additional 16,626 shares during the period. 87.96% of the stock is currently owned by institutional investors.

About Xylem

Xylem Inc (NYSE: XYL) is a global water technology company that designs, manufactures and services engineered systems and equipment for the transport, treatment, testing and efficient use of water. Its product portfolio spans pumps and pumping systems, valves, filtration and disinfection equipment, sensors and analytical instruments, and digital solutions for monitoring and control of water infrastructure. Xylem serves the full water cycle with offerings for water and wastewater utilities, industrial customers, commercial and residential buildings, and agricultural applications.

The company was established as an independent publicly traded company in 2011 following a corporate spin-off from ITT Corporation and is headquartered in Rye Brook, New York.