Corrected: Xylem Q2 revenue misses estimates

Xylem

28/07/2026 12:05

Corrects to remove extraneous word "rises" from headline

Overview
Water solutions provider's Q2 revenue up 2% yr/yr, missed analyst expectations
Adjusted EPS for Q2 rose 16%, beating analyst expectations
Company cites productivity savings and strong price realization for margin expansion

Outlook
Xylem forecasts 2026 revenue of about $9.2 bln, up 2% on a reported basis
Company raises 2026 adjusted EPS guidance to $5.55-$5.70 from $5.35-$5.60
Xylem expects 2026 adjusted EBITDA margin of 23.1%-23.5%, up 90-130 basis points from 2025

Result Drivers
PRODUCTIVITY AND PRICING - Margin expansion driven by productivity savings and strong price realization, per company
INDUSTRIAL DEMAND - CEO said demand is increasing from industrial sectors including AI infrastructure, semiconductors, power generation, and life sciences
LOWER RESTRUCTURING COSTS - Improved net income attributed in part to lower restructuring and realignment costs

Company press release: ID:nBw9hLpnma

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$2.30 bln
$2.34 bln (18 Analysts)
Q2 Adjusted EPS
Beat
$1.46
$1.34 (18 Analysts)
Q2 EPS
 
$1.11
 
Q2 Adjusted Net Income
Beat
$345 mln
$323.71 mln (15 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy"
Wall Street's median 12-month price target for Xylem Inc is $154.00, about 28.2% above its July 27 closing price of $120.16
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 21 three months ago

Reuters Recommended Reads
July 27 - H2O America Q2 adjusted EPS beats estimates 
July 27 - Applied Digital beats quarterly revenue estimates on surging AI infrastructure demand
July 28 - Largest US power grid moves ahead with plan to meet swelling demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

 (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)