Xylem (NYSE:XYL) Releases Q3 2026 Earnings Guidance

Key Points

• Xylem guided for third-quarter 2026 EPS of $1.42–$1.47, compared with the $1.46 analyst consensus, while revenue guidance of approximately $2.3 billion matched expectations.
• The company reaffirmed full-year 2026 EPS guidance of $5.55–$5.70. Its latest quarter beat EPS estimates, reporting $1.46 versus consensus of $1.34, while revenue rose 1.5% year over year to $2.34 billion.
• Shares fell to $113.31 in Tuesday trading, while analysts maintained a “Moderate Buy” consensus with an average price target of $154.23. Xylem also declared a quarterly dividend of $0.43 per share, yielding about 1.5% annually.

Xylem (NYSE:XYL - Get Free Report) updated its third quarter 2026 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 1.420-1.470 for the period, compared to the consensus earnings per share estimate of 1.460. The company issued revenue guidance of $2.3 billion-$2.3 billion, compared to the consensus revenue estimate of $2.3 billion.

Xylem Stock Performance

Shares of NYSE XYL traded down $4.16 during trading on Tuesday, reaching $113.31. 934,509 shares of the stock traded hands, compared to its average volume of 1,981,568. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.61 and a quick ratio of 1.24. The stock has a market capitalization of $26.46 billion, a P/E ratio of 26.95, a price-to-earnings-growth ratio of 1.66 and a beta of 1.02. Xylem has a 52-week low of $105.29 and a 52-week high of $154.27. The company has a 50-day moving average of $117.63 and a 200-day moving average of $120.33.

Xylem (NYSE:XYL - Get Free Report) last announced its quarterly earnings data on Tuesday, July 28th. The industrial products company reported $1.46 earnings per share for the quarter, topping the consensus estimate of $1.34 by $0.12. The company had revenue of $2.34 billion during the quarter, compared to analyst estimates of $2.34 billion. Xylem had a return on equity of 11.77% and a net margin of 11.15%.The firm's revenue for the quarter was up 1.5% on a year-over-year basis. During the same quarter last year, the firm posted $1.26 EPS. Xylem has set its FY 2026 guidance at 5.550-5.700 EPS. Analysts forecast that Xylem will post 5.67 EPS for the current fiscal year.

Xylem Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, August 27th will be paid a $0.43 dividend. This represents a $1.72 annualized dividend and a dividend yield of 1.5%. The ex-dividend date is Thursday, August 27th. Xylem's dividend payout ratio is 40.95%.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the stock. CLSA raised shares of Xylem to a "hold" rating in a research note on Thursday, June 25th. Weiss Ratings restated a "hold (c)" rating on shares of Xylem in a research note on Wednesday, August 5th. Barclays increased their price target on Xylem from $154.00 to $159.00 and gave the stock an "overweight" rating in a report on Wednesday, July 29th. Mizuho boosted their price objective on Xylem from $124.00 to $130.00 and gave the company a "neutral" rating in a report on Wednesday, July 29th. Finally, Jefferies Financial Group raised Xylem from a "hold" rating to a "buy" rating and upped their target price for the stock from $130.00 to $140.00 in a research report on Thursday, June 25th. Nine equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $154.23.

Institutional Trading of Xylem

Institutional investors and hedge funds have recently modified their holdings of the stock. Orion Porfolio Solutions LLC boosted its position in shares of Xylem by 1.0% during the third quarter. Orion Porfolio Solutions LLC now owns 7,802 shares of the industrial products company's stock valued at $1,151,000 after buying an additional 74 shares during the last quarter. Quest Investment Management LLC raised its holdings in shares of Xylem by 1.0% in the third quarter. Quest Investment Management LLC now owns 7,588 shares of the industrial products company's stock valued at $1,119,000 after purchasing an additional 77 shares during the last quarter. Compound Planning Inc. raised its holdings in shares of Xylem by 4.2% in the fourth quarter. Compound Planning Inc. now owns 2,258 shares of the industrial products company's stock valued at $308,000 after purchasing an additional 91 shares during the last quarter. Smartleaf Asset Management LLC lifted its position in shares of Xylem by 14.5% during the fourth quarter. Smartleaf Asset Management LLC now owns 725 shares of the industrial products company's stock valued at $100,000 after purchasing an additional 92 shares in the last quarter. Finally, Crawford Investment Counsel Inc. boosted its holdings in Xylem by 1.2% during the fourth quarter. Crawford Investment Counsel Inc. now owns 8,934 shares of the industrial products company's stock worth $1,217,000 after purchasing an additional 105 shares during the last quarter. 87.96% of the stock is owned by hedge funds and other institutional investors.

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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