Sherwin-Williams (NYSE:SHW) Shares Gap Up After Strong Earnings

Key Points

• Sherwin-Williams beat quarterly expectations: EPS reached $3.70 versus the $3.52 consensus, while revenue rose 7.5% year over year to $6.79 billion, sending shares sharply higher at the open.
• Management raised its 2026 outlook to adjusted EPS of $11.80–$12.20 and upgraded its full-year sales-growth forecast to the mid- to high-single-digit range. Growth was broad-based across its operating segments, though raw-material inflation continues to pressure margins.
• The company declared a quarterly dividend of $0.80 per share, equivalent to a $3.20 annualized payout and a 0.9% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $373.92.

The Sherwin-Williams Company (NYSE:SHW - Get Free Report) gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $327.27, but opened at $347.49. Sherwin-Williams shares last traded at $353.5630, with a volume of 577,685 shares trading hands.

The specialty chemicals company reported $3.70 EPS for the quarter, beating analysts' consensus estimates of $3.52 by $0.18. The business had revenue of $6.79 billion for the quarter, compared to analyst estimates of $6.60 billion. Sherwin-Williams had a net margin of 10.86% and a return on equity of 64.55%. Sherwin-Williams's quarterly revenue was up 7.5% on a year-over-year basis. During the same quarter in the prior year, the business earned $3.38 EPS. Sherwin-Williams has set its FY 2026 guidance at 11.800-12.200 EPS.

Sherwin-Williams Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 11th. Stockholders of record on Friday, August 21st will be issued a dividend of $0.80 per share. This represents a $3.20 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Friday, August 21st. Sherwin-Williams's payout ratio is currently 30.71%.

Key Sherwin-Williams News

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

• Positive Sentiment: Quarterly results exceeded expectations. Adjusted earnings were $3.70 per share, above the $3.52 Zacks consensus and up from $3.38 a year ago. Revenue increased 7.5% year over year to $6.79 billion, beating the $6.60 billion analyst estimate. Sherwin-Williams Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management raised its 2026 outlook. Adjusted EPS guidance is now $11.80-$12.20, above the $11.74 consensus estimate, while expected full-year sales growth increased to the mid- to high-single-digit range from the prior low- to mid-single-digit forecast. Sherwin-Williams Lifts Outlook as Profit, Sales Climb
• Positive Sentiment: Growth was broad-based. Paint Stores Group sales rose 5.1%, same-store sales increased 4.2%, Consumer Brands Group sales jumped 21.5% partly due to the Suvinil acquisition, and Performance Coatings sales grew 6.3%. The company also returned $2.23 billion to shareholders through dividends and buybacks during the first half of 2026. Sherwin-Williams Q2 Sales Rise 7.5 Percent
• Negative Sentiment: Input-cost inflation pressured gross margin. Continued raw-material cost increases could limit profit expansion and remain a key risk to the upgraded earnings outlook. Sherwin-Williams Second Quarter Financial Results

Analysts Set New Price Targets

Several equities analysts recently commented on the stock. Bank of America decreased their price target on shares of Sherwin-Williams from $370.00 to $365.00 and set a "neutral" rating on the stock in a research note on Tuesday, April 21st. JPMorgan Chase & Co. cut their price objective on shares of Sherwin-Williams from $385.00 to $365.00 and set an "overweight" rating for the company in a report on Wednesday, April 29th. Citigroup began coverage on shares of Sherwin-Williams in a research report on Wednesday, June 24th. They set an "overweight" rating on the stock. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $405.00 target price (up from $391.00) on shares of Sherwin-Williams in a report on Wednesday, July 8th. Finally, UBS Group downgraded shares of Sherwin-Williams from a "buy" rating to a "neutral" rating and dropped their price target for the company from $385.00 to $330.00 in a research report on Tuesday, June 2nd. Seven analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $373.92.

Institutional Investors Weigh In On Sherwin-Williams

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Brighton Jones LLC raised its holdings in shares of Sherwin-Williams by 73.6% during the 4th quarter. Brighton Jones LLC now owns 1,545 shares of the specialty chemicals company's stock worth $525,000 after buying an additional 655 shares in the last quarter. Empowered Funds LLC increased its position in Sherwin-Williams by 11.2% during the 1st quarter. Empowered Funds LLC now owns 6,236 shares of the specialty chemicals company's stock worth $2,178,000 after purchasing an additional 626 shares in the last quarter. Jump Financial LLC acquired a new position in Sherwin-Williams during the 2nd quarter worth approximately $1,210,000. Sei Investments Co. lifted its stake in Sherwin-Williams by 43.6% in the 2nd quarter. Sei Investments Co. now owns 196,915 shares of the specialty chemicals company's stock valued at $67,612,000 after purchasing an additional 59,831 shares during the last quarter. Finally, Glenview Trust co lifted its stake in Sherwin-Williams by 4.8% in the 2nd quarter. Glenview Trust co now owns 3,249 shares of the specialty chemicals company's stock valued at $1,116,000 after purchasing an additional 148 shares during the last quarter. 77.67% of the stock is currently owned by institutional investors.

Sherwin-Williams Price Performance

The business has a 50-day moving average of $321.21 and a two-hundred day moving average of $332.13. The firm has a market cap of $87.41 billion, a P/E ratio of 34.01, a price-to-earnings-growth ratio of 2.47 and a beta of 1.10. The company has a current ratio of 0.86, a quick ratio of 0.53 and a debt-to-equity ratio of 2.10.

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.

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