Sherwin-Williams (NYSE:SHW) Issues Quarterly Earnings Results, Misses Expectations By $0.06 EPS

Sherwin-Williams (NYSE:SHW) released its quarterly earnings results on Tuesday. The specialty chemicals company reported $3.63 earnings per share for the quarter, missing the consensus estimate of $3.69 by ($0.06), FiscalAI reports. The firm had revenue of $6.86 billion for the quarter, compared to analyst estimates of $6.78 billion. Sherwin-Williams had a return on equity of 67.97% and a net margin of 11.01%. The business’s revenue for the quarter was up 7.9% on a year-over-year basis. During the same period in the previous year, the business posted $3.59 earnings per share.

Sherwin-Williams Price Performance

Sherwin-Williams stock traded down $10.99 during trading hours on Tuesday, reaching $324.17. 356,397 shares of the stock were exchanged, compared to its average volume of 1,917,243. The company has a current ratio of 0.73, a quick ratio of 0.46 and a debt-to-equity ratio of 2.16. Sherwin-Williams has a twelve month low of $289.86 and a twelve month high of $377.77. The company has a market cap of $78.70 billion, a P/E ratio of 29.85, a price-to-earnings-growth ratio of 2.63 and a beta of 1.08. The stock has a 50 day moving average of $331.59 and a two-hundred day moving average of $333.53.

Sherwin-Williams Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 4th. Shareholders of record on Friday, November 13th will be paid a dividend of $0.80 per share. This represents a $3.20 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Friday, November 13th. Sherwin-Williams’s dividend payout ratio is presently 29.49%.

Key Sherwin-Williams News

Here are the key news stories impacting Sherwin-Williams this week:

• Positive Sentiment: Third-quarter revenue increased 7.9% year over year to $6.86 billion, exceeding analyst estimates of approximately $6.78 billion. The sales performance indicates continued demand across Sherwin-Williams’ business despite cost pressures. SHW Q3 Earnings Lag Estimates on Higher Costs, Sales Beat
• Positive Sentiment: Evercore ISI upgraded SHW to Outperform ahead of the earnings release, providing a supportive analyst view of the company’s longer-term prospects. Evercore ISI Upgrades Sherwin-Williams to Outperform
• Neutral Sentiment: Management projected 2026 adjusted earnings per share of $11.85 to $12.15. The range brackets the FactSet consensus estimate of $12.09, but its midpoint is slightly below expectations, limiting the positive impact of the guidance. Sherwin-Williams Expects 2026 Adjusted EPS Range
• Negative Sentiment: Third-quarter adjusted EPS was $3.63, below consensus estimates ranging from $3.65 to $3.69, although it improved from $3.59 a year earlier. The miss ended the company’s recent earnings-beat streak and raised concerns about profitability. Sherwin-Williams Stock Drops on Earnings Miss
• Negative Sentiment: Higher costs pressured margins, offsetting the revenue beat. With Sherwin-Williams trading at a relatively elevated earnings multiple, investors appear particularly sensitive to evidence that input and operating-cost inflation could restrict future earnings growth. Sherwin-Williams Q3 Earnings Miss Estimates

Wall Street Analyst Weigh In

Several research analysts have weighed in on SHW shares. Bank of America increased their price objective on Sherwin-Williams from $369.00 to $383.00 and gave the stock a “neutral” rating in a research report on Friday, July 17th. Morgan Stanley reissued an “overweight” rating and set a $395.00 target price (up from $385.00) on shares of Sherwin-Williams in a report on Wednesday, July 29th. Melius Research started coverage on shares of Sherwin-Williams in a research report on Tuesday, October 6th. They issued a “hold” rating and a $367.00 target price for the company. JPMorgan Chase & Co. upped their price target on shares of Sherwin-Williams from $365.00 to $380.00 and gave the company an “overweight” rating in a research note on Wednesday, July 29th. Finally, Wells Fargo & Company set a $340.00 price target on shares of Sherwin-Williams and gave the stock an “equal weight” rating in a research report on Friday, September 25th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and ten have issued a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $381.17.

Insider Buying and Selling

In other news, insider Karl J. Jorgenrud sold 7,886 shares of the business’s stock in a transaction on Friday, August 7th. The stock was sold at an average price of $368.30, for a total transaction of $2,904,413.80. Following the completion of the transaction, the insider owned 11,944 shares of the company’s stock, valued at approximately $4,398,975.20. The trade was a 39.77% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Justin Binns sold 13,500 shares of the company’s stock in a transaction on Monday, August 17th. The stock was sold at an average price of $352.70, for a total value of $4,761,450.00. Following the sale, the insider owned 21,937 shares of the company’s stock, valued at approximately $7,737,179.90. This represents a 38.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.23% of the company’s stock.

About Sherwin-Williams

The Sherwin-Williams Company (NYSE: SHW) develops, manufactures, distributes and sells paints, coatings and related products. Its offerings include architectural paints, industrial coatings, wood finishes, protective coatings, automotive refinishing products, floor coatings and related supplies marketed under brands such as Sherwin-Williams, Valspar, Minwax, Krylon and Dutch Boy.

Founded in 1866 and headquartered in Cleveland, Ohio, Sherwin-Williams serves professional contractors, do-it-yourself consumers, industrial manufacturers, commercial businesses and other customers.