Xylem (NYSE:XYL – Get Free Report) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided EPS guidance of 5.550-5.700 for the period, compared to the consensus earnings per share estimate of 5.530. The company issued revenue guidance of $9.2 billion-$9.2 billion, compared to the consensus revenue estimate of $9.2 billion.
Wall Street Analyst Weigh In
A number of research firms have commented on XYL. Weiss Ratings lowered shares of Xylem from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday, May 8th. Stifel Nicolaus set a $160.00 price objective on shares of Xylem in a report on Wednesday. UBS Group boosted their price objective on shares of Xylem from $132.00 to $133.00 and gave the company a “neutral” rating in a research report on Wednesday, April 29th. CLSA upgraded shares of Xylem to a “hold” rating in a report on Thursday, June 25th. Finally, Citigroup reaffirmed a “buy” rating on shares of Xylem in a research report on Wednesday. Nine investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $153.85.
Get Our Latest Stock Report on Xylem
Xylem Price Performance
Xylem (NYSE:XYL – Get Free Report) last posted its earnings results on Tuesday, July 28th. The industrial products company reported $1.46 earnings per share for the quarter, topping analysts’ consensus estimates of $1.34 by $0.12. The firm had revenue of $2.34 billion for the quarter, compared to analyst estimates of $2.34 billion. Xylem had a net margin of 10.79% and a return on equity of 11.26%. The company’s revenue for the quarter was up 1.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.26 EPS. Xylem has set its FY 2026 guidance at 5.550-5.700 EPS. Equities research analysts forecast that Xylem will post 5.52 earnings per share for the current fiscal year.
Xylem Announces Dividend
The business also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Investors of record on Thursday, May 28th were issued a dividend of $0.43 per share. The ex-dividend date was Thursday, May 28th. This represents a $1.72 annualized dividend and a yield of 1.4%. Xylem’s dividend payout ratio is 42.79%.
Insider Transactions at Xylem
In other Xylem news, Director Jerome A. Peribere bought 1,210 shares of Xylem stock in a transaction dated Monday, May 4th. The stock was purchased at an average price of $116.61 per share, for a total transaction of $141,098.10. Following the completion of the purchase, the director directly owned 27,209 shares of the company’s stock, valued at approximately $3,172,841.49. This trade represents a 4.65% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CAO Geri-Michelle Mcshane sold 4,269 shares of the stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $117.46, for a total transaction of $501,436.74. Following the completion of the sale, the chief accounting officer owned 3,605 shares in the company, valued at $423,443.30. This represents a 54.22% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.32% of the stock is owned by insiders.
Xylem News Summary
Here are the key news stories impacting Xylem this week:
- Positive Sentiment: Raised profit outlook: Xylem lifted its 2026 adjusted EPS guidance to $5.55-$5.70 from $5.35-$5.60, above the roughly $5.53 analyst consensus. Revenue guidance remained approximately $9.2 billion, although some coverage characterized it as lower than previously expected. Reuters article
- Positive Sentiment: Quarterly earnings beat: Second-quarter adjusted EPS was $1.46, exceeding the $1.34 consensus and rising from $1.26 a year earlier. Revenue reached $2.34 billion, broadly in line with expectations and up about 1.5% year over year. Xylem second-quarter results
- Positive Sentiment: Orders and margins strengthened: Second-quarter orders jumped 42% reported, or 41% organically, while adjusted EBITDA margin expanded 150 basis points to 23.3%. Cost savings, pricing and favorable mix supported the improvement. Zacks earnings article
- Positive Sentiment: AI infrastructure demand: Management said data-center and AI investment is increasing water-related spending across semiconductors, power generation, mining, food and beverage, and life sciences, offsetting weakness in utility markets. Yahoo Finance article
- Positive Sentiment: Analyst support: Robert W. Baird raised its price target to $165 from $163 and upgraded its stance to “Outperform,” implying substantial upside from the referenced price. William Blair also reaffirmed a Buy rating based on water-infrastructure and data-center demand. Ticker Report article
- Neutral Sentiment: At approximately 31 times earnings, XYL’s valuation leaves the stock dependent on continued earnings growth and successful conversion of its strong order pipeline.
- Negative Sentiment: Utility-market weakness and the softer sales outlook could limit near-term revenue growth, despite the improved profit forecast.
Institutional Trading of Xylem
Large investors have recently bought and sold shares of the company. Compound Planning Inc. increased its holdings in shares of Xylem by 4.2% in the 4th quarter. Compound Planning Inc. now owns 2,258 shares of the industrial products company’s stock worth $308,000 after purchasing an additional 91 shares in the last quarter. Axxcess Wealth Management LLC bought a new position in shares of Xylem in the fourth quarter worth about $538,000. Corient Private Wealth LLC boosted its holdings in shares of Xylem by 152.4% during the 4th quarter. Corient Private Wealth LLC now owns 110,578 shares of the industrial products company’s stock valued at $15,059,000 after purchasing an additional 66,761 shares during the last quarter. Achmea Investment Management B.V. increased its position in Xylem by 2.1% in the fourth quarter. Achmea Investment Management B.V. now owns 306,723 shares of the industrial products company’s stock worth $41,770,000 after purchasing an additional 6,189 shares during the last quarter. Finally, Beacon Pointe Advisors LLC lifted its position in Xylem by 27.1% in the fourth quarter. Beacon Pointe Advisors LLC now owns 3,596 shares of the industrial products company’s stock worth $490,000 after buying an additional 766 shares during the last quarter. 87.96% of the stock is owned by 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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