Sherwin-Williams (NYSE:SHW) Issues Quarterly Earnings Results

Key Points

• Beat Q1 estimates: Sherwin‑Williams reported EPS of $2.35 (vs. $2.27 consensus) and revenue of $5.67B (+6.9% YoY), with gross margin expanding ~90 bps and adjusted EBITDA rising high‑single‑digits.
• Inflation and demand risk: Management raised its full‑year raw‑material inflation outlook to up low‑to‑mid single digits, warned of softer demand (notably DIY/housing) and said further targeted price increases may be needed, yet reiterated FY2026 guidance of $11.50–$11.90 EPS.
• Stronger cash flow and shareholder returns: Net operating cash improved by $200M, the company returned $773M to shareholders, announced a $0.80 quarterly dividend (1.0% yield), and reported net debt/adjusted EBITDA of 2.5x.

Sherwin-Williams (NYSE:SHW - Get Free Report) announced its quarterly earnings results on Tuesday. The specialty chemicals company reported $2.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.27 by $0.08, FiscalAI reports. The business had revenue of $5.67 billion during the quarter, compared to the consensus estimate of $5.57 billion. Sherwin-Williams had a return on equity of 65.26% and a net margin of 10.90%.The company's quarterly revenue was up 6.9% on a year-over-year basis. During the same quarter last year, the firm posted $2.25 EPS. Sherwin-Williams updated its FY 2026 guidance to 11.500-11.900 EPS.

Here are the key takeaways from Sherwin-Williams' conference call:

• Consolidated sales grew by a high single-digit percentage, beating guidance across all three reportable segments, with a low-single-digit contribution from the Suvinil acquisition.
• Profitability and cash flow strengthened — gross margin expanded ~90 bps (14 of 15 quarters with year-over-year expansion), adjusted diluted EPS rose mid-single-digits, adjusted EBITDA increased high-single-digits, net operating cash improved by $200M, and the company returned $773M to shareholders; net debt/adjusted EBITDA was 2.5x.
• Management raised its full-year raw-material inflation outlook to up low-to-mid single digits, expects inflationary cost pressure to hit more materially in Q2 and the back half of the year, and said further targeted price increases may be needed.
• Demand remains soft across most end markets and the Middle East conflict adds uncertainty, but full-year consolidated sales and earnings guidance were left unchanged while the company plans to pursue aggressive share gains and open 80–100 new stores.
• Several end markets outperformed — Protective & Marine and Automotive Refinish saw double-digit growth, and Consumer Brands margin improvement was driven by Suvinil and supply‑chain efficiencies, reinforcing the company’s targeted growth initiatives.

Sherwin-Williams Stock Down 3.5%

NYSE SHW opened at $324.43 on Wednesday. The business has a fifty day moving average price of $332.95 and a two-hundred day moving average price of $338.30. The stock has a market capitalization of $80.25 billion, a PE ratio of 31.59, a PEG ratio of 2.89 and a beta of 1.27. Sherwin-Williams has a fifty-two week low of $301.58 and a fifty-two week high of $379.65. The company has a debt-to-equity ratio of 2.03, a current ratio of 0.87 and a quick ratio of 0.53.

Sherwin-Williams Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 5th. Shareholders of record on Friday, May 22nd will be paid a dividend of $0.80 per share. The ex-dividend date is Friday, May 22nd. This represents a $3.20 annualized dividend and a yield of 1.0%. Sherwin-Williams's dividend payout ratio is presently 31.16%.

More Sherwin-Williams News

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

• Positive Sentiment: Q1 results beat expectations — EPS $2.35 (above consensus) and revenue $5.67B, driven by pricing and acquisition-related volume; the stronger-than-expected quarter supports near-term earnings visibility. PR Newswire Q1 Release
• Positive Sentiment: Pricing actions and the Suvinil buyout lifted sales and margins — management cited price increases as a key driver of year‑over‑year revenue growth. MSN: Sales Growth on Price Hikes
• Neutral Sentiment: FY‑2026 guidance reiterated (EPS $11.50–$11.90), roughly in line with Street expectations — provides guidance stability but offers limited upside surprise. PR Newswire Q1 Release
• Neutral Sentiment: Investors can review management commentary and Q&A for color on demand trends — full earnings and call transcripts are available for detail on segment performance and margin drivers. Yahoo Finance: Q1 Transcript
• Negative Sentiment: Management warned of persistent weakness in end markets (DIY and housing-related demand) — described as “little to no recovery,” which raises concerns about volume sustainability and the need for further price increases that could pressure demand. Benzinga: Little to No Recovery
• Negative Sentiment: CEO cautioned about weak DIY market and potential for continued price increases to offset inflation/energy costs — the cautious tone likely trimmed investor enthusiasm despite the beat. WSJ: Warns on Weak DIY Market

Analysts Set New Price Targets

SHW has been the topic of a number of recent research reports. Wells Fargo & Company lowered shares of Sherwin-Williams from an "overweight" rating to an "equal weight" rating and lowered their price target for the stock from $410.00 to $365.00 in a research report on Friday, April 10th. Weiss Ratings restated a "hold (c+)" rating on shares of Sherwin-Williams in a research report on Friday, March 27th. Citigroup lowered their target price on shares of Sherwin-Williams from $410.00 to $385.00 and set a "buy" rating on the stock in a report on Wednesday, April 1st. Zacks Research upgraded Sherwin-Williams from a "strong sell" rating to a "hold" rating in a research note on Tuesday, March 31st. Finally, UBS Group reduced their target price on Sherwin-Williams from $420.00 to $380.00 and set a "buy" rating on the stock in a report on Thursday, April 2nd. Nine analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $379.08.

Insider Buying and Selling at Sherwin-Williams

In other news, SVP Bryan J. Young sold 2,513 shares of the firm's stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $364.47, for a total value of $915,913.11. Following the sale, the senior vice president directly owned 10,045 shares in the company, valued at approximately $3,661,101.15. This trade represents a 20.01% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Colin M. Davie sold 2,976 shares of the stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $359.50, for a total transaction of $1,069,872.00. Following the completion of the transaction, the insider directly owned 5,365 shares of the company's stock, valued at approximately $1,928,717.50. The trade was a 35.68% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.23% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Kemnay Advisory Services Inc. bought a new stake in Sherwin-Williams during the 4th quarter worth $30,000. Meeder Asset Management Inc. bought a new position in Sherwin-Williams in the fourth quarter valued at about $33,000. JPL Wealth Management LLC acquired a new stake in shares of Sherwin-Williams during the third quarter valued at about $45,000. IFC & Insurance Marketing Inc. acquired a new stake in shares of Sherwin-Williams during the fourth quarter valued at about $48,000. Finally, Transamerica Financial Advisors LLC grew its holdings in shares of Sherwin-Williams by 37.9% during the fourth quarter. Transamerica Financial Advisors LLC now owns 182 shares of the specialty chemicals company's stock worth $59,000 after purchasing an additional 50 shares during the last quarter. 77.67% of the stock is currently owned by institutional investors and hedge funds.

Sherwin-Williams Company Profile

Sherwin-Williams NYSE: SHW is a global manufacturer and distributor of paints, coatings and related products. Founded in 1866 and headquartered in Cleveland, Ohio, the company supplies a broad range of coatings for residential, commercial and industrial applications. Its product offering includes architectural paints and stains, industrial and protective coatings, automotive finishes, and a variety of sundry products such as primers, sealants and specialty treatments used by professionals and consumers.

The company sells through multiple channels, including a large network of company-operated retail paint stores that serve professional contractors and do-it-yourself consumers, as well as through distributors and mass retailers.