Xylem raises annual profit forecast as AI growth lifts demand for water-treatment equipment

Xylem

28/07/2026 12:47

July 28 (Reuters) - Xylem XYL.N on Tuesday raised its 2026 profit forecast after its second-quarter results beat Wall Street estimates, as cost savings and price increases boosted profitability amid strengthening AI infrastructure demand.
Shares of the company rose more than 2% in premarket trading.
The water-management company now expects 2026 adjusted earnings of $5.55 to $5.70 per share, compared with its previous forecast of $5.35 to $5.60 per share.
CEO Matthew Pine said the expansion of AI infrastructure has increased demand for water solutions across semiconductor manufacturing, power generation, mining and other industries.
"The demand drivers behind our business continue to strengthen," Pine said, citing growing investment by utilities and industrial customers.
Xylem now expects annual revenue of about $9.2 billion compared to its prior range of $9.2 billion to $9.3 billion.
Analysts on average expect 2026 adjusted profit of $5.54 per share and revenue of $9.25 billion, according to data compiled by LSEG.
On an adjusted basis, quarterly profit stood at $1.46 per share, above analysts' estimate of $1.34 per share.
Xylem's quarterly revenue rose 2% to $2.34 billion, in line with analysts' estimates.
Revenue in Xylem's water infrastructure business rose 5% to $683 million. 
Its water solutions and services segment recorded a 3% increase in revenue to $644 million.

 (Reporting by Kunal Das in Bengaluru; Editing by Pooja Desai)
 ((Kunal.Das2@thomsonreuters.com;))