Xylem (NYSE:XYL) Posts Earnings Results, Misses Estimates By $0.01 EPS

Xylem (NYSE:XYL) issued its quarterly earnings results on Tuesday. The industrial products company reported $1.44 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.45 by ($0.01), FiscalAI reports. The firm had revenue of $2.20 billion during the quarter, compared to analyst estimates of $2.28 billion. During the same quarter in the previous year, the firm posted $1.37 earnings per share. The company’s quarterly revenue was down 3.0% on a year-over-year basis.

Here are the key takeaways from Xylem’s conference call:

• Full-year revenue and EPS guidance were reduced. Reported revenue is now expected to decline about 1% to $8.95 billion, with organic revenue roughly flat, while EPS guidance fell to $5.40–$5.45 from $5.55–$5.70 due to slower revenue conversion in MCS and WSS.
• Orders and backlog remained strong. Third-quarter orders rose 10%, book-to-bill was above one, and ending backlog increased 13% year over year to $5.5 billion, although several large projects are scheduled for later periods.
• Operational execution supported profitability despite weaker revenue. Third-quarter EBITDA margin expanded 70 basis points to 23.9%, EPS increased 5% to $1.44, and full-year margin is still expected to expand by approximately 100 basis points.
• Xylem plans to divest Applied Water International and Specialty Flow Control, which represent about 9% of revenue but less than 5% of EBITDA. Management expects the moves to improve portfolio growth, margins, resilience, and focus while reducing China exposure.
• Data centers, semiconductors, and related infrastructure are emerging growth drivers. Applied Water data-center orders increased more than 200% year over year, data centers are expected to reach about 2% of Xylem revenue on a run-rate basis, and the company cited new ultra-pure water opportunities with semiconductor customers.

Xylem Price Performance

Shares of Xylem stock opened at $93.14 on Wednesday. The firm has a fifty day moving average price of $106.50 and a 200 day moving average price of $118.31. Xylem has a 1 year low of $92.61 and a 1 year high of $154.27.

Xylem Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 24th. Stockholders of record on Thursday, August 27th were paid a $0.43 dividend. The ex-dividend date was Thursday, August 27th. This represents a $1.72 dividend on an annualized basis and a dividend yield of 1.8%.

Key Stories Impacting Xylem

Here are the key news stories impacting Xylem this week:

• Positive Sentiment: Third-quarter adjusted EPS increased to $1.44 from $1.37 a year earlier, while orders reportedly rose 10%, indicating continued underlying demand despite project-timing and metering challenges. Xylem Q3 2026 slides: orders surge 10% but guidance cut sends shares lower
• Positive Sentiment: Xylem reported $747 million in net income for the first nine months of 2026, supporting the company’s longer-term financial strength. Xylem Reports $747 Million Net Income for First Nine Months of 2026
• Neutral Sentiment: Management plans portfolio changes, including divestitures and a segment restructuring, which could improve focus and efficiency over time but may create near-term execution and transition costs. Xylem cuts 2026 outlook, plans divestitures and segment restructure
• Negative Sentiment: Revenue was $2.20 billion, about $80 million below consensus and down 3% year over year. EPS also narrowly missed estimates, reflecting weaker metering activity and delayed projects. Xylem Stock Price Sinks After Q3 Results Miss Revenue Mark
• Negative Sentiment: Xylem lowered its 2026 revenue and profit outlook and issued cautious fourth-quarter expectations, suggesting that customer pullbacks and soft operating conditions may persist. Xylem Stock Plunges to 52-Week Low After Slashing 2026 Profit Outlook
• Negative Sentiment: JPMorgan lowered Xylem’s rating from “overweight” to “neutral” and set a $90 price target, modestly below the current trading level.
• Negative Sentiment: A law firm announced an investigation into potential securities-law violations related to the earnings miss and shareholder losses. The notice does not establish wrongdoing but adds legal and reputational risk. Xylem Inc. Investigation Notice

Analysts Set New Price Targets

XYL has been the topic of several research analyst reports. Jefferies Financial Group boosted their target price on Xylem from $145.00 to $150.00 and gave the stock a “buy” rating in a research note on Monday, August 24th. Royal Bank Of Canada reiterated an “outperform” rating and issued a $125.00 price target on shares of Xylem in a research note on Wednesday. Robert W. Baird raised their price target on Xylem from $163.00 to $165.00 and gave the stock an “outperform” rating in a report on Wednesday, July 29th. Oppenheimer reissued an “outperform” rating and issued a $150.00 price target (down from $158.00) on shares of Xylem in a report on Wednesday, October 14th. Finally, JPMorgan Chase & Co. lowered Xylem from an “overweight” rating to a “neutral” rating and dropped their price target for the stock from $118.00 to $90.00 in a research note on Wednesday. Nine investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat, Xylem currently has a consensus rating of “Moderate Buy” and an average target price of $136.38.

Xylem Company Profile

Xylem Inc (NYSE: XYL) is a global water technology company that develops products and services for the transportation, treatment, testing and efficient use of water and wastewater. Its offerings support municipal water and wastewater utilities, industrial customers, commercial facilities and residential applications.

The company’s products and solutions include water and wastewater pumps, treatment systems, dewatering equipment, smart meters, monitoring and control technologies, leak detection tools, and data-driven analytics.