Xylem (NYSE:XYL) Issues Earnings Results

Xylem (NYSE:XYL) posted 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. Xylem had a return on equity of 11.77% and a net margin of 11.15%. The business had revenue of $2.20 billion during the quarter, compared to the consensus estimate of $2.28 billion. During the same quarter in the previous year, the business posted $1.37 earnings per share. The company’s quarterly revenue was down 3.0% compared to the same quarter last year.

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 Trading Up 0.8%

Shares of NYSE:XYL traded up $0.72 during trading on Thursday, hitting $88.95. 240,288 shares of the company’s stock were exchanged, compared to its average volume of 2,149,202. The firm has a 50-day moving average price of $105.98 and a two-hundred day moving average price of $118.05. The firm has a market cap of $20.77 billion, a P/E ratio of 21.22, a PEG ratio of 1.75 and a beta of 1.00. The company has a current ratio of 1.61, a quick ratio of 1.24 and a debt-to-equity ratio of 0.23. Xylem has a 1-year low of $87.40 and a 1-year high of $154.27.

Xylem Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Shareholders of record on Thursday, August 27th were given a dividend of $0.43 per share. The ex-dividend date was Thursday, August 27th. This represents a $1.72 dividend on an annualized basis and a yield of 1.9%. Xylem’s dividend payout ratio is presently 40.95%.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on XYL. Robert W. Baird set a $123.00 price objective on Xylem in a report on Wednesday. The Goldman Sachs Group reduced their target price on Xylem from $160.00 to $138.00 and set a “buy” rating for the company in a report on Wednesday. UBS Group decreased their price objective on shares of Xylem from $138.00 to $112.00 and set a “neutral” rating for the company in a research note on Monday, October 5th. Oppenheimer dropped their price target on Xylem from $150.00 to $135.00 and set an “outperform” rating on the stock in a research report on Wednesday. Finally, Citigroup cut their target price on shares of Xylem from $148.00 to $130.00 and set a “buy” rating for the company in a research report on Wednesday. Nine analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $122.31.

Key Stories Impacting Xylem

Here are the key news stories impacting Xylem this week:

• Positive Sentiment: Royal Bank of Canada initiated coverage with a “moderate buy” rating and a $125 price target, implying substantial upside from recent levels. Royal Bank of Canada initiates coverage of Xylem
• Positive Sentiment: Xylem said orders increased approximately 10% during the quarter, suggesting underlying demand remains present despite project timing and metering-related weakness. The company also announced divestitures and a new three-segment structure intended to simplify the portfolio and improve focus. Xylem announces divestitures and new segment structure
• Neutral Sentiment: RBC, Oppenheimer, BNP Paribas Exane, Citigroup and Stifel all reduced their price targets but maintained positive ratings, indicating analysts see long-term value while adjusting for weaker near-term expectations. Analyst price-target changes for Xylem
• Negative Sentiment: Third-quarter revenue was about $2.20 billion, below the roughly $2.28 billion consensus estimate, while adjusted EPS of $1.44 also missed expectations. Revenue declined 3% year over year, with soft metering demand and project timing weighing on results. Xylem misses third-quarter earnings and revenue estimates
• Negative Sentiment: Management cut its 2026 revenue and profit outlook and provided weaker fourth-quarter expectations, raising concerns about customer pullbacks and slower near-term growth. Xylem cuts outlook and plans restructuring
• Negative Sentiment: JPMorgan downgraded Xylem to “underweight” and lowered its target to $90 from $118. Heavy put-option buying and a pending securities-law investigation add further risk sentiment around the stock. Xylem stock falls after outlook reduction

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.