Xylem (NYSE:XYL) Releases FY 2026 Earnings Guidance

Key Points

• Xylem set FY2026 guidance of EPS 5.350–5.600 (consensus 5.480) and revenue of $9.2–$9.3B (in line with consensus).
• The firm beat Q1 estimates with EPS of $1.12 (vs. $1.09) and revenue of $2.13B, raised its quarterly dividend to $0.43, and authorized a $1.5B share buyback (~4.8% of shares).
• While several analysts have trimmed price targets recently, Xylem's consensus rating remains a Moderate Buy with an average price target of $153.77.

Xylem (NYSE:XYL - Get Free Report) updated its FY 2026 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 5.350-5.600 for the period, compared to the consensus estimate of 5.480. The company issued revenue guidance of $9.2 billion-$9.3 billion, compared to the consensus revenue estimate of $9.2 billion.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on the company. Barclays cut their price objective on Xylem from $166.00 to $156.00 and set an "overweight" rating for the company in a research report on Wednesday, February 11th. JPMorgan Chase & Co. cut their price objective on Xylem from $170.00 to $160.00 and set an "overweight" rating for the company in a research report on Thursday, April 16th. Stifel Nicolaus cut their price objective on Xylem from $175.00 to $163.00 and set a "buy" rating for the company in a research report on Tuesday, April 14th. Mizuho set a $138.00 price target on Xylem in a research note on Wednesday, February 11th. Finally, Weiss Ratings lowered Xylem from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Monday, April 6th. Eight equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Xylem currently has an average rating of "Moderate Buy" and a consensus price target of $153.77.

Xylem Stock Performance

Shares of NYSE:XYL opened at $123.46 on Tuesday. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.62 and a quick ratio of 1.28. The business's 50 day moving average price is $123.99 and its 200-day moving average price is $135.30. The firm has a market capitalization of $30.02 billion, a PE ratio of 31.49, a P/E/G ratio of 1.74 and a beta of 1.18. Xylem has a 1 year low of $114.49 and a 1 year high of $154.27.

Xylem (NYSE:XYL - Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The industrial products company reported $1.12 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.09 by $0.03. The firm had revenue of $2.13 billion for the quarter, compared to analyst estimates of $2.11 billion. Xylem had a return on equity of 11.11% and a net margin of 10.59%.Xylem has set its FY 2026 guidance at 5.350-5.600 EPS. As a group, equities research analysts expect that Xylem will post 5.46 earnings per share for the current fiscal year.

Xylem Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 24th. Stockholders of record on Tuesday, February 24th were paid a $0.43 dividend. This is a boost from Xylem's previous quarterly dividend of $0.40. This represents a $1.72 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date of this dividend was Tuesday, February 24th. Xylem's dividend payout ratio is presently 43.88%.

Xylem declared that its board has authorized a share buyback program on Wednesday, February 25th that authorizes the company to buyback $1.50 billion in outstanding shares. This buyback authorization authorizes the industrial products company to reacquire up to 4.8% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's board believes its stock is undervalued.

Hedge Funds Weigh In On Xylem

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Mairs & Power Inc. acquired a new position in Xylem during the third quarter worth $216,000. Faithward Advisors LLC acquired a new position in Xylem during the third quarter worth $204,000. Brooklyn Investment Group boosted its stake in Xylem by 14.6% during the third quarter. Brooklyn Investment Group now owns 1,384 shares of the industrial products company's stock worth $204,000 after buying an additional 176 shares during the last quarter. Geneos Wealth Management Inc. boosted its stake in Xylem by 13,322.2% during the second quarter. Geneos Wealth Management Inc. now owns 1,208 shares of the industrial products company's stock worth $156,000 after buying an additional 1,199 shares during the last quarter. Finally, EverSource Wealth Advisors LLC boosted its stake in Xylem by 114.0% during the second quarter. EverSource Wealth Advisors LLC now owns 1,192 shares of the industrial products company's stock worth $154,000 after buying an additional 635 shares during the last quarter. Institutional investors and hedge funds own 87.96% of the company's stock.

About Xylem

Xylem Inc NYSE: XYL is a global water technology company that designs, manufactures and services engineered systems and equipment for the transport, treatment, testing and efficient use of water. Its product portfolio spans pumps and pumping systems, valves, filtration and disinfection equipment, sensors and analytical instruments, and digital solutions for monitoring and control of water infrastructure. Xylem serves the full water cycle with offerings for water and wastewater utilities, industrial customers, commercial and residential buildings, and agricultural applications.

The company was established as an independent publicly traded company in 2011 following a corporate spin-off from ITT Corporation and is headquartered in Rye Brook, New York.

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