Xylem (NYSE:XYL) Announces Earnings Results, Beats Expectations By $0.12 EPS

Posted by George Bondi on Jul 29th, 2026

Xylem (NYSE:XYL – Get Free Report) issued its quarterly earnings data on Tuesday. The industrial products company reported $1.46 EPS for the quarter, topping analysts’ consensus estimates of $1.34 by $0.12, Zacks reports. The business had revenue of $2.34 billion during the quarter, compared to analysts’ expectations of $2.34 billion. Xylem had a net margin of 10.79% and a return on equity of 11.26%. The business’s revenue was up 1.5% on a year-over-year basis. During the same period last year, the company posted $1.26 EPS. Xylem updated its FY 2026 guidance to 5.550-5.700 EPS.

Here are the key takeaways from Xylem’s conference call:

Q2 profitability and EPS exceeded expectations: Revenue rose 1% year over year, EBITDA margin expanded 150 basis points to 23.3%, and adjusted EPS increased 16% to a record $1.46. Ending backlog was $5.3 billion, with quarterly book-to-bill well above one.
Data-center and industrial demand is accelerating: Applied Water data-center orders increased more than 300% in Q2, while full-year data-center revenue is expected to rise approximately 200%. Xylem also cited major industrial wins, including an approximately $850 million, 23-year outsourced-water project and a 20-year chemical-sector commitment.
Electric-metering project delays reduced the growth outlook: Xylem lowered its full-year organic revenue-growth range to 2%-3% from 2%-4%, citing affordability concerns and more cautious utility spending ahead of elections. MCS full-year revenue growth is now expected to be in the low double digits.
Despite lower revenue expectations, full-year EPS guidance increased: The company raised its adjusted EPS range to $5.55-$5.70 from $5.35-$5.60, supported by stronger margins and share repurchases. Full-year EBITDA margin guidance also increased to 23.1%-23.5%, and Xylem remains on track for a low-double-digit free-cash-flow margin.
China remains a material headwind: Q2 China sales declined nearly 30%, including a 40% drop in Water Infrastructure, with the market expected to represent roughly 2% of total sales this year. Xylem said it has narrowed its China exposure and is being more selective about business pursued there.

Xylem Stock Performance

XYL stock opened at $124.87 on Wednesday. The firm has a market cap of $29.68 billion, a price-to-earnings ratio of 31.06, a PEG ratio of 1.71 and a beta of 1.03. Xylem has a twelve month low of $105.29 and a twelve month high of $154.27. The company has a quick ratio of 1.10, a current ratio of 1.46 and a debt-to-equity ratio of 0.13. The business’s fifty day simple moving average is $114.64 and its two-hundred day simple moving average is $122.45.

Xylem Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, June 25th. Shareholders of record on Thursday, May 28th were given a $0.43 dividend. This represents a $1.72 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend was Thursday, May 28th. Xylem’s dividend payout ratio is 42.79%.

Insider Transactions at Xylem

In related news, Director Jerome A. Peribere bought 1,210 shares of the company’s stock in a transaction on Monday, May 4th. The shares were acquired at an average cost of $116.61 per share, for a total transaction of $141,098.10. Following the purchase, the director directly owned 27,209 shares of the company’s stock, valued at approximately $3,172,841.49. The trade was a 4.65% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CAO Geri-Michelle Mcshane sold 4,269 shares of the firm’s stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $117.46, for a total value of $501,436.74. Following the transaction, the chief accounting officer owned 3,605 shares in the company, valued at $423,443.30. The trade was a 54.22% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.32% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Xylem

A number of institutional investors have recently added to or reduced their stakes in the stock. Mairs & Power Inc. purchased a new position in Xylem in the third quarter worth $216,000. SeaCrest Wealth Management LLC purchased a new stake in Xylem during the 3rd quarter worth approximately $208,000. Faithward Advisors LLC purchased a new stake in Xylem during the 3rd quarter worth approximately $204,000. Brooklyn Investment Group increased its stake in Xylem by 14.6% during the 3rd quarter. Brooklyn Investment Group now owns 1,384 shares of the industrial products company’s stock valued at $204,000 after purchasing an additional 176 shares in the last quarter. Finally, EverSource Wealth Advisors LLC increased its stake in Xylem by 114.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,192 shares of the industrial products company’s stock valued at $154,000 after purchasing an additional 635 shares in the last quarter. Institutional investors own 87.96% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the company. Oppenheimer reduced their price objective on Xylem from $160.00 to $158.00 and set an “outperform” rating on the stock in a research note on Wednesday, April 29th. Jefferies Financial Group upgraded Xylem from a “hold” rating to a “buy” rating and lifted their target price for the stock from $130.00 to $140.00 in a report on Thursday, June 25th. Barclays reissued an “overweight” rating and set a $159.00 target price (up from $154.00) on shares of Xylem in a research report on Wednesday. Robert W. Baird raised their price target on Xylem from $163.00 to $165.00 and gave the stock an “outperform” rating in a research report on Wednesday. Finally, Citigroup reaffirmed a “buy” rating on shares of Xylem in a research note on Wednesday. Nine research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, Xylem has a consensus rating of “Moderate Buy” and a consensus target price of $153.85.

Get Our Latest Analysis on XYL

Key Xylem News

Here are the key news stories impacting Xylem this week:

Positive Sentiment: Quarterly earnings beat expectations: Xylem reported adjusted EPS of $1.46, above the $1.34 consensus and up from $1.26 a year earlier. Revenue was $2.34 billion, roughly in line with estimates and up about 1.5% year over year. Reuters article
Positive Sentiment: Higher full-year guidance: Management raised 2026 adjusted EPS guidance to $5.55-$5.70 from $5.35-$5.60, while maintaining revenue guidance of approximately $9.2 billion. The increase was above the analyst consensus cited in the reports, improving expectations for future profitability. Zacks earnings article
Positive Sentiment: Margins and orders strengthened: Adjusted EBITDA margin expanded 150 basis points to 23.3%, supported by productivity savings, pricing, and favorable mix. Orders surged 42% reported, or 41% organically, signaling strong demand momentum. Quiver Quantitative results article
Positive Sentiment: AI-related demand is a growth catalyst: Xylem said data centers and broader AI infrastructure are increasing water-treatment and management spending across semiconductors, power generation, mining, food and beverage, and life sciences. William Blair reaffirmed a Buy rating, citing water-infrastructure growth and data-center demand. TipRanks analyst article
Neutral Sentiment: At a reported P/E of approximately 31, XYL is valued at a premium, making sustained earnings growth and execution important for further gains. Analyst price targets remain generally above the current share price, but institutional ownership changes were mixed.

Xylem Company Profile

(Get Free Report)

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.