Xylem tops Q1 adj EPS estimates; hikes FY sales view

Xylem

28/04/2026 12:03

Overview

Water solutions firm's Q1 revenue grew 3%, a slight miss versus analyst expectations

Q1 adjusted EPS rose 9%, beating analyst expectations

Company cites productivity savings and strong price realization for margin expansion

Outlook

Xylem now sees full-year 2026 revenue of $9.2-$9.3 bln, up 2-3% reported (vs1-3% earlier)

Company expects 2026 adjusted EBITDA margin of 22.9-23.3%, up 70-110 bps from 2025

Xylem maintains full-year 2026 adjusted EPS guidance of $5.35-$5.60

Result Drivers

PRODUCTIVITY SAVINGS - Co said productivity savings contributed to margin expansion in Q1

PRICE REALIZATION - Strong price realization helped expand margins, per co

LOWER LOSS ON SALE OF BUSINESSES - Net income benefited from a reduction in the estimated loss on sale of businesses, partially offset by increased restructuring and realignment costs

Company press release: ID:nBw68f46ma

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Miss*
$2.10 bln
$2.11 bln (18 Analysts)
Q1 Adjusted EPS
Beat
$1.12
$1.08 (18 Analysts)
Q1 EPS
$0.79
Q1 Adjusted Net Income
Beat
$272 mln
$260.79 mln (15 Analysts)

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 9 "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 $156.00, about 26.3% above its April 27 closing price of $123.51

The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 24 three months ago

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.)