Xylem (NYSE:XYL) Issues FY 2026 Earnings Guidance

Xylem (NYSE:XYL) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided EPS guidance of 5.350-5.600 for the period, compared to the consensus EPS 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 Up 1.5%

Xylem stock traded up $1.73 during trading on Thursday, reaching $117.13. The stock had a trading volume of 795,420 shares, compared to its average volume of 2,026,413. Xylem has a 52-week low of $114.15 and a 52-week high of $154.27. The business has a 50 day moving average price of $123.51 and a 200 day moving average price of $134.98. The company has a quick ratio of 1.28, a current ratio of 1.62 and a debt-to-equity ratio of 0.12. The stock has a market cap of $28.48 billion, a PE ratio of 29.89, a P/E/G ratio of 1.77 and a beta of 1.18.

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

Xylem Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 24th. Stockholders of record on Tuesday, February 24th were given a dividend of $0.43 per share. The ex-dividend date was Tuesday, February 24th. This represents a $1.72 annualized dividend and a dividend yield of 1.5%. This is a boost from Xylem’s previous quarterly dividend of $0.40. Xylem’s payout ratio is presently 43.88%.

Xylem announced that its Board of Directors has authorized a stock repurchase program on Wednesday, February 25th that authorizes the company to buyback $1.50 billion in shares. This buyback authorization authorizes the industrial products company to buy up to 4.8% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s management believes its shares are undervalued.

Analyst Ratings Changes

XYL has been the subject of several recent analyst reports. Weiss Ratings downgraded shares of Xylem from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday, April 6th. Jefferies Financial Group restated a “hold” rating and set a $130.00 price objective (down from $140.00) on shares of Xylem in a research report on Tuesday, March 31st. Oppenheimer reduced their price objective on shares of Xylem from $160.00 to $158.00 and set an “outperform” rating for the company in a research report on Wednesday. Barclays reduced their price objective on shares of Xylem from $156.00 to $154.00 and set an “overweight” rating for the company in a research report on Wednesday. Finally, The Goldman Sachs Group set a $158.00 price objective on shares of Xylem in a research report on Wednesday, February 11th. Seven analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, Xylem currently has a consensus rating of “Moderate Buy” and a consensus price target of $152.77.

Hedge Funds Weigh In On Xylem

A number of institutional investors have recently modified their holdings of XYL. Balyasny Asset Management L.P. increased its holdings in shares of Xylem by 346.2% in the 3rd quarter. Balyasny Asset Management L.P. now owns 712,950 shares of the industrial products company’s stock valued at $105,160,000 after acquiring an additional 553,152 shares during the period. Adage Capital Partners GP L.L.C. acquired a new position in Xylem in the 2nd quarter valued at $64,407,000. Schroder Investment Management Group increased its stake in Xylem by 29.8% in the 4th quarter. Schroder Investment Management Group now owns 1,548,508 shares of the industrial products company’s stock valued at $210,876,000 after buying an additional 355,826 shares during the period. Lazard Asset Management LLC increased its stake in Xylem by 844.4% in the 2nd quarter. Lazard Asset Management LLC now owns 392,440 shares of the industrial products company’s stock valued at $50,765,000 after buying an additional 350,887 shares during the period. Finally, Zurich Insurance Group Ltd FI acquired a new position in Xylem in the 3rd quarter valued at $45,172,000. 87.96% of the stock is owned by institutional investors and hedge funds.

Xylem Company Profile

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.