Xylem (NYSE:XYL) Announces Earnings Results, Hits Expectations

Xylem (NYSE:XYL) released its quarterly earnings data on Tuesday. The industrial products company reported $1.42 EPS for the quarter, meeting the consensus estimate of $1.42, FiscalAI reports. The business had revenue of $2.40 billion during the quarter, compared to analyst estimates of $2.37 billion. Xylem had a net margin of 10.59% and a return on equity of 11.11%. Xylem’s quarterly revenue was up 6.3% compared to the same quarter last year. During the same quarter last year, the business earned $1.18 earnings per share. Xylem updated its FY 2026 guidance to 5.350-5.560 EPS.

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

• Record 2025 results — Xylem closed the year with record revenue, EBITDA and EPS, expanded full-year EBITDA margin to 22.2%, a net debt/adjusted EBITDA of 0.2x, and a backlog of $4.6 billion.
• 2026 guidance calls for $9.1–$9.2 billion revenue (1%–3% reported; 2%–4% organic), EBITDA margin of 22.9%–23.3% (70–110 bps expansion) and EPS of $5.35–$5.60, reflecting continued margin improvement and profitable growth plans.
• Management will accelerate its 80/20 product/customer simplification, which creates an elevated ~2% one-year top-line headwind in 2026 as lower-quality revenues are intentionally walked away to raise long-term earnings quality.
• Near-term risks include project-timing variability in smart meters, pronounced weakness in China (notably Water Infrastructure and Applied Water), and quarter-to-quarter lumpiness in WSS, pressuring Q1 and early‑2026 cadence.

Xylem Trading Up 1.4%

Shares of NYSE:XYL traded up $1.80 during trading on Thursday, reaching $128.57. 624,526 shares of the company were exchanged, compared to its average volume of 1,651,449. The business’s fifty day simple moving average is $138.99 and its 200-day simple moving average is $142.11. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.62 and a quick ratio of 1.50. Xylem has a 12-month low of $100.47 and a 12-month high of $154.27. The firm has a market capitalization of $31.30 billion, a PE ratio of 32.80, a P/E/G ratio of 1.84 and a beta of 1.17.

Xylem Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 24th. Shareholders of record on Tuesday, February 24th will be paid a $0.43 dividend. The ex-dividend date is Tuesday, February 24th. This represents a $1.72 dividend on an annualized basis and a yield of 1.3%. This is an increase from Xylem’s previous quarterly dividend of $0.40. Xylem’s payout ratio is currently 41.13%.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Occudo Quantitative Strategies LP bought a new position in Xylem in the second quarter worth about $223,000. HUB Investment Partners LLC acquired a new stake in Xylem during the 2nd quarter worth about $260,000. Glenview Trust co boosted its position in Xylem by 37.7% in the second quarter. Glenview Trust co now owns 2,558 shares of the industrial products company’s stock valued at $331,000 after buying an additional 701 shares during the last quarter. Faithward Advisors LLC purchased a new position in shares of Xylem during the third quarter worth $204,000. Finally, Brooklyn Investment Group lifted its holdings in shares of Xylem by 14.6% in the 3rd quarter. Brooklyn Investment Group now owns 1,384 shares of the industrial products company’s stock valued at $204,000 after buying an additional 176 shares during the period. 87.96% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

XYL has been the subject of several recent research reports. Barclays dropped their price target on Xylem from $166.00 to $156.00 and set an “overweight” rating for the company in a research report on Wednesday. Weiss Ratings restated a “buy (b-)” rating on shares of Xylem in a report on Monday, December 29th. Zacks Research downgraded Xylem from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, November 18th. The Goldman Sachs Group set a $158.00 price objective on shares of Xylem in a research report on Wednesday. Finally, Stifel Nicolaus reduced their target price on shares of Xylem from $178.00 to $175.00 and set a “buy” rating on the stock in a research note on Wednesday. Nine investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $159.75.

Xylem News Roundup

Here are the key news stories impacting Xylem this week:

• Positive Sentiment: Xylem raised its quarterly dividend 7.5% to $0.43 (annualized yield ~1.4%) and reported record results for 2025 — a fundamental support for income-focused and long-term investors.
• Positive Sentiment: Some analysts remain constructive: William Blair kept a Buy rating, citing momentum in measurement & control and a conservative 2026 outlook that could allow upside if execution improves. Xylem: Strong Measurement & Control Momentum and Conservative 2026 Outlook Underpin Buy Rating
• Neutral Sentiment: Company set 2026 revenue guidance of $9.1B–$9.2B and provided EPS guidance of $5.350–$5.560, while highlighting margin expansion via portfolio simplification — guidance gives a roadmap but is conservative versus some investor expectations. Xylem outlines 2026 revenue guidance of $9.1B–$9.2B
• Negative Sentiment: Market reaction: the stock fell sharply after management’s cautious tone on 2026 despite strong 2025 results — investors sold on growth/earnings uncertainty. Xylem (XYL) Is Down 9.3% After Cautious 2026 Guidance Despite Record 2025 Results And Dividend Hike
• Negative Sentiment: Analyst reactions trimmed optimism — several firms lowered forecasts and price targets (RBC, Barclays among them), which increases near-term pressure on the stock even when ratings remain generally constructive. Xylem Analysts Lower Their Forecasts After Q4 Results
• Negative Sentiment: Q4 clarity: transcripts and some reports indicate EPS/metrics were mixed versus expectations (some outlets flagged a slight EPS miss), which combined with conservative FY guidance amplified selling. Xylem Inc. Q4 2025 Earnings Call Transcript
• Negative Sentiment: Short interest rose materially in January (a ~47% increase to ~4.17M shares), which can amplify downside on negative news and volatility around earnings/guidance updates.

About Xylem

Xylem Inc (NYSE: XYL) is a global water technology company that designs, manufactures and services engineered systems and equipment for the transport, treatment, testing and efficient use of water. Its product portfolio spans pumps and pumping systems, valves, filtration and disinfection equipment, sensors and analytical instruments, and digital solutions for monitoring and control of water infrastructure. Xylem serves the full water cycle with offerings for water and wastewater utilities, industrial customers, commercial and residential buildings, and agricultural applications.

The company was established as an independent publicly traded company in 2011 following a corporate spin-off from ITT Corporation and is headquartered in Rye Brook, New York.