Xylem (NYSE:XYL) Updates FY 2026 Earnings Guidance

Xylem (NYSE:XYL) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 5.350-5.600 for the period, compared to the consensus earnings per share estimate of 5.480. The company issued revenue guidance of $9.2 billion-$9.3 billion, compared to the consensus revenue estimate of $9.2 billion.

Xylem Stock Down 4.0%

NYSE:XYL traded down $5.00 on Tuesday, hitting $118.51. 889,782 shares of the company’s stock traded hands, compared to its average volume of 2,002,192. The company has a current ratio of 1.62, a quick ratio of 1.28 and a debt-to-equity ratio of 0.12. Xylem has a 1 year low of $115.29 and a 1 year high of $154.27. The firm has a 50-day moving average price of $123.99 and a 200-day moving average price of $135.30. The company has a market cap of $28.81 billion, a PE ratio of 30.23, a price-to-earnings-growth ratio of 1.74 and a beta of 1.18.

Xylem (NYSE:XYL) last announced its quarterly earnings results on Tuesday, April 28th. The industrial products company reported $1.12 EPS for the quarter, beating the consensus estimate of $1.09 by $0.03. The business had revenue of $2.13 billion during the quarter, compared to analysts’ expectations of $2.11 billion. Xylem had a return on equity of 11.11% and a net margin of 10.59%.The firm’s quarterly revenue was up 2.7% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.03 EPS. Xylem has set its FY 2026 guidance at 5.350-5.600 EPS. Equities analysts anticipate that Xylem will post 5.46 EPS for the current fiscal year.

Xylem Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 24th. Investors of record on Tuesday, February 24th were paid a $0.43 dividend. This represents a $1.72 annualized dividend and a dividend yield of 1.5%. The ex-dividend date of this dividend was Tuesday, February 24th. This is a positive change from Xylem’s previous quarterly dividend of $0.40. Xylem’s dividend payout ratio (DPR) is presently 43.88%.

Xylem announced that its Board of Directors has approved a stock buyback plan on Wednesday, February 25th that permits the company to repurchase $1.50 billion in shares. This repurchase authorization permits the industrial products company to buy up to 4.8% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on XYL. Weiss Ratings cut Xylem from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Monday, April 6th. The Goldman Sachs Group set a $158.00 price target on Xylem in a research note on Wednesday, February 11th. Oppenheimer reissued an “outperform” rating and issued a $160.00 price target (down from $165.00) on shares of Xylem in a research note on Wednesday, April 1st. Jefferies Financial Group reissued a “hold” rating and issued a $130.00 price target (down from $140.00) on shares of Xylem in a research note on Tuesday, March 31st. Finally, Barclays lowered their price target on Xylem from $166.00 to $156.00 and set an “overweight” rating for the company in a research note on Wednesday, February 11th. Eight investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. According to MarketBeat, Xylem has a consensus rating of “Moderate Buy” and an average price target of $153.77.

Key Stories Impacting Xylem

Here are the key news stories impacting Xylem this week:

• Positive Sentiment: Q1 EPS beat and solid profitability: Xylem reported $1.12 EPS (above consensus ~$1.08–$1.09) with a net margin ~10.6% and ROE ~11.1%; management highlighted strong execution and demand, supporting the upside to EPS. Xylem Reports First Quarter Results
• Positive Sentiment: Order trends are a focus and viewed positively by the market: media coverage notes that backlog/orders and continued demand in key end markets are driving confidence in near‑term growth, helping lift the stock. Xylem Stock Pops After Earnings Beat. The Water Tech Company’s Orders Are Key.
• Neutral Sentiment: FY‑2026 guidance largely inline: Xylem set EPS guidance of $5.35–$5.60 and revenue guidance roughly $9.2–$9.3B, which sits close to consensus (~$5.48 EPS, ~$9.2B rev). The range keeps guidance credible but gives analysts limited upside to materially raise numbers. View Press Release (Q1 Results and Guidance)
• Neutral Sentiment: Revenue essentially in line: reported revenue was about $2.1–$2.12B (close to analysts’ ~$2.11B expectation), so top‑line execution didn’t materially surprise in either direction. View Slide Deck
• Negative Sentiment: Some outlets flagged a revenue “miss” narrative and pre‑earnings analyst cuts: a few reports characterized the top line as disappointing versus expectations and noted analysts trimmed forecasts into the print, which could cap upside if convergence to consensus continues. Xylem beats earnings but revenue misses estimates
• Negative Sentiment: Analyst scrutiny remains: coverage ahead of and after the release emphasized trimmed expectations and the need for sustained order momentum to justify multiple expansion, leaving room for downside if orders or margins weaken. Xylem faces earnings test with analysts trimming expectations

Institutional Investors Weigh In On Xylem

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. State Street Corp lifted its holdings in Xylem by 2.6% in the 4th quarter. State Street Corp now owns 11,233,427 shares of the industrial products company’s stock worth $1,529,768,000 after purchasing an additional 280,221 shares during the last quarter. Amundi lifted its holdings in Xylem by 5.3% in the 4th quarter. Amundi now owns 5,221,509 shares of the industrial products company’s stock worth $711,006,000 after purchasing an additional 264,693 shares during the last quarter. Morgan Stanley lifted its holdings in Xylem by 3.4% in the 4th quarter. Morgan Stanley now owns 4,541,906 shares of the industrial products company’s stock worth $618,517,000 after purchasing an additional 150,207 shares during the last quarter. Northern Trust Corp lifted its holdings in Xylem by 4.6% in the 4th quarter. Northern Trust Corp now owns 3,409,621 shares of the industrial products company’s stock worth $464,322,000 after purchasing an additional 150,388 shares during the last quarter. Finally, Dimensional Fund Advisors LP lifted its holdings in Xylem by 0.8% in the 4th quarter. Dimensional Fund Advisors LP now owns 2,036,433 shares of the industrial products company’s stock worth $277,341,000 after purchasing an additional 16,626 shares during the last quarter. 87.96% of the stock is currently owned by institutional investors and hedge funds.

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.