Xylem Q4 revenue beats on demand across markets

Xylem

10/02/2026 12:03

Overview

Water solutions firm's Q4 revenue rose 6%, beating analyst expectations

Adjusted EPS for Q4 beat analyst expectations, rising 20%

Company increased quarterly dividend by 8%

Outlook

Xylem forecasts 2026 revenue of $9.1 to $9.2 bln, up 1% to 3% reported

Company expects 2026 adjusted EBITDA margin of 22.9% to 23.3%

Xylem anticipates 2026 free cash flow margin of 10.2% to 11%

Result Drivers

PRODUCTIVITY AND PRICING - Adjusted EPS growth driven by productivity savings and strong price realization

DEMAND ACROSS MARKETS - Broad-based demand across largest end markets supported revenue growth

PORTFOLIO SIMPLIFICATION - Co plans to simplify product portfolio to deliver essential technologies

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$2.40 bln
$2.37 bln (18 Analysts)
Q4 Adjusted EPS
Beat
$1.42
$1.41 (18 Analysts)
Q4 EPS
$1.37
Q4 Adjusted Net Income
Beat
$348 mln
$341.55 mln (15 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 7 "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 $170.00, about 21.3% above its February 9 closing price of $140.19

The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 28 three months ago

Press Release: ID:nBw7DCV7Ma

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(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.)