EL7.AI
StocksMedium•28 July 2026•
1 min read

Xylem raises 2026 profit forecast on AI-driven data center demand

Key Facts

1Xylem raised its 2026 adjusted earnings forecast to a range of $5.55 to $5.70 per share.
2The company expects annual revenue to reach $9.2 billion, driven by increased demand from utilities and industrial customers.
3Cost savings, price increases, and AI infrastructure growth boosted the company's profitability and helped it beat analyst estimates.

As the rapid expansion of AI data centers drives unprecedented demand for advanced water treatment and cooling solutions, Xylem has upwardly revised its 2026 financial outlook. According to analyst reports, the company raised its adjusted earnings forecast to a range of $5.55 to $5.70 per share, with annual revenue expected to reach $9.2 billion. This update follows second-quarter results that exceeded Wall Street expectations, fueled by robust demand from utilities and industrial customers.

The improved guidance is attributed to the company's cost-saving initiatives and strategic price increases, combined with the growth of AI infrastructure which significantly boosted profitability. Per market data, these operational factors allowed the company to beat previous analyst estimates. Xylem is increasingly positioning itself as a critical provider of water solutions essential for data center operations, demonstrating resilience and a clear path for sustained revenue growth.

XYL shares stood at $120.16 at close on July 27, 2026, after reaching a session high of $121.68 per market data. In the absence of immediate upcoming catalysts in the economic calendar, investors will focus on the sustainability of profit margins derived from cost-cutting measures and the company's ability to meet surging demand from the technology infrastructure sector.