Earnings Releases·Oct 27, 2026, 7:01 AM ET

Xylem Inc. — Third Quarter 2026 Earnings Summary

Q3 net income rose 34% year-over-year to $291 million ($1.25/share), while Q3 revenue declined 3% reported to $2.2 billion with flat organic growth; adjusted EBITDA margin expanded 70 basis points to 23.9%.
Full-year 2026 guidance was lowered across the board: revenue forecast to $8.95 billion (down 1% reported, flat organic), adjusted EPS reduced to $5.40–$5.45, and free cash flow margin set at approximately 10.2%.
Strategic realignment announced effective January 1, 2027, consolidating operations into three segments (Treatment and Services, Flow Solutions, Measurement and Analytics) alongside the intent to divest Applied Water International and Specialty Flow Control.
Capital return remained aggressive with $1.58 billion in common stock repurchases and $307 million in dividends paid during the nine-month period, supported by strong order growth of 10% organically in Q3.
Future outlook highlights resilience in high-growth verticals like data centers and microelectronics, though the operating environment remains mixed due to cautious customer spending and project timing.