Xylem (NYSE:XYL) Reaches New 1-Year Low Following Weak Earnings

Key Points

• Xylem shares fell to a new 52-week low after the company reported third-quarter revenue of $2.20 billion, down 3% year over year and below the $2.28 billion consensus estimate. EPS was $1.44, narrowly missing expectations of $1.45.
• Management lowered its 2026 revenue and profit outlook and issued a weak fourth-quarter forecast, while planning portfolio divestitures and segment restructuring. JPMorgan also downgraded the stock to “neutral” and cut its price target to $90.
• Despite the setbacks, orders rose 10% year over year and adjusted EPS increased from $1.37 a year earlier. Xylem also maintains a quarterly dividend of $0.43 per share, representing a 2.0% annualized yield.

Xylem Inc. (NYSE:XYL - Get Free Report)'s stock price reached a new 52-week low on Wednesday following a dissappointing earnings announcement. The stock traded as low as $87.51 and last traded at $88.48, with a volume of 2,165,929 shares traded. The stock had previously closed at $92.86.

The industrial products company reported $1.44 earnings per share for the quarter, missing analysts' consensus estimates of $1.45 by ($0.01). The company had revenue of $2.20 billion for the quarter, compared to analyst estimates of $2.28 billion. Xylem's quarterly revenue was down 3.0% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.37 earnings per share.

Xylem Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 24th. Shareholders of record on Thursday, August 27th were given a dividend of $0.43 per share. The ex-dividend date of this dividend was Thursday, August 27th. This represents a $1.72 annualized dividend and a yield of 2.0%. Xylem's dividend payout ratio (DPR) is currently 40.95%.

Trending Headlines about Xylem

Here are the key news stories impacting Xylem this week:

• Positive Sentiment: Orders increased 10% year over year, indicating continued underlying demand for Xylem’s water and infrastructure solutions despite weaker reported sales. Management also highlighted growth opportunities tied to infrastructure investment and data centers. Xylem Q3 2026 slides: orders surge 10% but guidance cut sends shares lower
• Positive Sentiment: Adjusted third-quarter EPS rose to $1.44 from $1.37 a year earlier, while net income for the first nine months reached $747 million. These results show earnings resilience even as revenue weakened. Xylem Reports $747 Million Net Income for First Nine Months of 2026
• Neutral Sentiment: Xylem plans portfolio divestitures and a segment restructuring. The moves could improve focus and efficiency over time, but they also signal a strategic reset and may create near-term execution and restructuring costs. Xylem cuts 2026 outlook, plans divestitures and segment restructure
• Negative Sentiment: Third-quarter revenue fell 3% year over year to $2.20 billion, approximately $80 million below expectations. EPS of $1.44 also missed consensus, with softer metering demand and project timing weighing on sales. Xylem Stock Price Sinks After Q3 Results Miss Revenue Mark
• Negative Sentiment: Management lowered its 2026 revenue and profit outlook and issued a weak fourth-quarter forecast, reinforcing concerns that customer spending and project activity may remain under pressure. Xylem Stock Plunges to 52-Week Low After Slashing 2026 Profit Outlook
• Negative Sentiment: JPMorgan downgraded Xylem from “overweight” to “neutral” and cut its price target from $118 to $90, adding further pressure to investor sentiment.
• Negative Sentiment: Levi & Korsinsky announced an investigation into potential securities-law violations related to the earnings miss and outlook reduction. The notice does not establish wrongdoing but adds legal and reputational risk. Xylem Inc. Investigation Notice

Wall Street Analysts Forecast Growth

Several research firms have weighed in on XYL. Oppenheimer decreased their price target on shares of Xylem from $150.00 to $135.00 and set an "outperform" rating on the stock in a research report on Wednesday. Weiss Ratings reissued a "hold (c)" rating on shares of Xylem in a research report on Wednesday, August 5th. Royal Bank Of Canada reissued an "outperform" rating and set a $125.00 price target on shares of Xylem in a research report on Wednesday. JPMorgan Chase & Co. lowered shares of Xylem from an "overweight" rating to a "neutral" rating and lowered their price objective for the stock from $118.00 to $90.00 in a research note on Wednesday. Finally, UBS Group cut their target price on shares of Xylem from $138.00 to $112.00 and set a "neutral" rating on the stock in a research report on Monday, October 5th. Nine research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $131.15.

Institutional Investors Weigh In On Xylem

A number of institutional investors have recently modified their holdings of the business. William Mack & Associates Inc. purchased a new stake in shares of Xylem during the third quarter worth about $25,000. Dunhill Financial LLC purchased a new stake in shares of Xylem during the 2nd quarter valued at approximately $30,000. Avalon Trust Co purchased a new position in shares of Xylem during the 2nd quarter worth $35,000. Orion Capital Management LLC acquired a new position in Xylem during the 2nd quarter worth about $35,000. Finally, Aventus Investment Advisors Inc. increased its stake in Xylem by 66.7% during the 2nd quarter. Aventus Investment Advisors Inc. now owns 300 shares of the industrial products company's stock worth $35,000 after buying an additional 120 shares during the period. 87.96% of the stock is currently owned by institutional investors and hedge funds.

Xylem Trading Down 5.4%

The company has a fifty day simple moving average of $106.50 and a two-hundred day simple moving average of $118.31. The company has a market cap of $20.52 billion, a PE ratio of 20.91 and a beta of 1.00.

Xylem Company Profile

Xylem Inc NYSE: XYL is a global water technology company that develops products and services for the transportation, treatment, testing and efficient use of water and wastewater. Its offerings support municipal water and wastewater utilities, industrial customers, commercial facilities and residential applications.

The company's products and solutions include water and wastewater pumps, treatment systems, dewatering equipment, smart meters, monitoring and control technologies, leak detection tools, and data-driven analytics.

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