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

Key Points

• Sherwin-Williams reported adjusted EPS of $3.63, missing the $3.69 consensus estimate by $0.06, though earnings improved from $3.59 a year earlier.
• Revenue rose 7.9% year over year to $6.86 billion, exceeding analysts’ $6.78 billion estimate, but higher costs pressured margins and profitability.
• The stock fell $10.99 to $324.17 following the results. Sherwin-Williams also declared a quarterly dividend of $0.80 per share, representing a 1.0% annualized yield.

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

Sherwin-Williams Stock Performance

SHW traded down $10.99 during trading hours on Tuesday, reaching $324.17. The company's stock had a trading volume of 356,397 shares, compared to its average volume of 1,917,243. Sherwin-Williams has a 52 week low of $289.86 and a 52 week high of $377.77. The company's 50-day moving average is $331.59 and its 200-day moving average is $333.53. The company has a debt-to-equity ratio of 2.16, a quick ratio of 0.46 and a current ratio of 0.73. The firm has a market cap of $78.70 billion, a PE ratio of 29.85, a price-to-earnings-growth ratio of 2.63 and a beta of 1.08.

Sherwin-Williams Announces Dividend

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

Sherwin-Williams News Summary

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

Insider Buying and Selling at Sherwin-Williams

In other Sherwin-Williams news, insider Justin T. Binns sold 13,500 shares of Sherwin-Williams stock in a transaction on Monday, August 17th. The shares were sold at an average price of $352.70, for a total transaction of $4,761,450.00. Following the completion of the transaction, the insider directly owned 21,937 shares of the company's stock, valued at $7,737,179.90. The trade was a 38.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Karl Jorgenrud sold 7,886 shares of the company's stock in a transaction on Friday, August 7th. The shares were 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 in the company, valued at approximately $4,398,975.20. This represents a 39.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.23% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on SHW shares. Stephens dropped their price objective on Sherwin-Williams from $375.00 to $353.00 and set a "hold" rating on the stock in a research note on Tuesday, September 22nd. KeyCorp initiated coverage on shares of Sherwin-Williams in a research note on Thursday, September 10th. They issued a "sector weight" rating for the company. Weiss Ratings upgraded shares of Sherwin-Williams from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, October 9th. Argus upped their price target on shares of Sherwin-Williams from $355.00 to $380.00 in a research report on Thursday, August 27th. Finally, The Goldman Sachs Group reiterated a "buy" rating and issued a $415.00 price target (up from $390.00) on shares of Sherwin-Williams in a research note on Friday, October 9th. 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 company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $381.17.

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.

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