Xylem to Report Third-Quarter Results After Analysts Forecast $1.45 a Share
Key Facts
Xylem is scheduled to report third-quarter 2026 results on October 27 at 6:55 a.m. Eastern, followed by a management call with investors at 9:00 a.m., according to a company announcement issued on September 29. Ahead of the report, analysts expected adjusted earnings of $1.45 a share and revenue of $2.28 billion, according to an Investing.com report attributed to Reuters. The expected figures come after the stock closed at $108.24 on October 26, according to EL7 data. Xylem reported second-quarter revenue of $2.3 billion, up 2% year over year on a reported basis and 1% organically. The available information does not include third-quarter results or new company guidance, leaving analyst estimates as the pre-report benchmark.
In the second quarter, reported earnings per share were $1.11, up 19%, while adjusted earnings per share reached $1.46, up 16%, according to Xylem. Those results put the prior quarter's adjusted EPS slightly above analysts' $1.45 estimate for the third quarter, though the periods differ and the comparison is between a reported result and a forecast. The company also posted an adjusted EBITDA margin of 23.3%, up 150 basis points year over year. Xylem attributed the margin improvement to productivity savings, price realization and product mix. That provides context on profitability and operating performance in the previous quarter ahead of the new figures.
Demand strength was clearer in orders, which reached $3.1 billion in the second quarter, up 42% on a reported basis and 41% organically from the same period a year earlier, the company said. Chief Executive Matthew Pine said, "The demand drivers behind our business continue to strengthen," adding that water is becoming more strategically important to utilities and industrial customers. The comments put order growth in context with the company's performance, but do not by themselves specify how much of it translated into revenue or earnings in the third quarter. Before the results, Investing.com reported, citing Reuters, that the stock had lost 25% year to date through October 26. The shares closed at $108.74 on October 23 and $108.24 on October 26, according to EL7 data.
Xylem updated its 2026 outlook on July 28, lowering its expected organic revenue growth range to 2%–3% from 2%–4% previously. At the same time, it raised its adjusted EPS outlook to $5.55–$5.70, compared with the prior range of $5.35–$5.60, according to its second-quarter results announcement. The revision reflects two different trends in the company's outlook: slower revenue growth than previously forecast, and higher expected adjusted earnings. The results and guidance announced on October 27 will provide the latest opportunity to reassess those annual estimates. The available information does not indicate any further update to these ranges before the report.
Markets are also tracking a deal Xylem announced on August 11 to acquire Cornell Pump and Roper Pump from Indicor for $1.46 billion. The company said at the time that it expected the deal to add to adjusted EPS in 2027. It is expected to close in the fourth quarter of 2026, subject to required regulatory approvals and customary closing conditions. The expected closing date puts the deal among the events to watch after the third-quarter results, while its earnings impact is tied to the company's stated 2027 expectation. Management will hold its investor call on October 27 at 9:00 a.m. Eastern, according to Xylem.