Xylem (NYSE:XYL) Releases FY 2026 Earnings Guidance

Xylem (NYSE:XYL) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 5.350-5.560 for the period, compared to the consensus earnings per share estimate of 5.540. The company issued revenue guidance of $9.1 billion-$9.2 billion, compared to the consensus revenue estimate of $9.3 billion.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on XYL shares. Zacks Research lowered Xylem from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, November 18th. Wall Street Zen lowered Xylem from a “buy” rating to a “hold” rating in a research note on Saturday, December 27th. TD Cowen reiterated a “hold” rating on shares of Xylem in a research report on Friday, December 5th. Mizuho lowered their target price on shares of Xylem from $160.00 to $150.00 and set a “neutral” rating for the company in a research note on Monday, January 5th. Finally, Citigroup reaffirmed a “buy” rating and issued a $174.00 price target (down previously from $182.00) on shares of Xylem in a research note on Wednesday. Nine analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $162.00.

Xylem Stock Down 0.4%

Xylem stock traded down $0.46 during mid-day trading on Wednesday, reaching $128.46. 672,390 shares of the company were exchanged, compared to its average volume of 1,585,738. Xylem has a 12-month low of $100.47 and a 12-month high of $154.27. The business has a fifty day moving average of $139.27 and a 200 day moving average of $142.22. The firm has a market cap of $31.28 billion, a P/E ratio of 33.02, a PEG ratio of 1.99 and a beta of 1.17. The company has a debt-to-equity ratio of 0.17, a quick ratio of 1.50 and a current ratio of 1.96.

Xylem (NYSE:XYL) last released its quarterly earnings results on Tuesday, February 10th. The industrial products company reported $1.42 EPS for the quarter, hitting the consensus estimate of $1.42. Xylem had a return on equity of 10.77% and a net margin of 10.66%.The firm had revenue of $2.40 billion during the quarter, compared to analyst estimates of $2.37 billion. During the same period in the previous year, the company posted $1.18 EPS. The business’s revenue for the quarter was up 6.3% compared to the same quarter last year. Xylem has set its FY 2026 guidance at 5.350-5.560 EPS. Research analysts anticipate that Xylem will post 4.65 earnings per share for the current fiscal year.

Xylem Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 24th. Stockholders of record on Tuesday, February 24th will be issued a $0.43 dividend. The ex-dividend date is Tuesday, February 24th. This represents a $1.72 dividend on an annualized basis and a dividend yield of 1.3%. This is an increase from Xylem’s previous quarterly dividend of $0.40. Xylem’s dividend payout ratio (DPR) is 41.13%.

Key Stories Impacting Xylem

Here are the key news stories impacting Xylem this week:

• Positive Sentiment: Q4 operational results: Revenue of $2.40B (+6.3% YoY) and management cited strong execution and productivity that drove adjusted EPS growth. This supports the company’s underlying business momentum. Xylem Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Dividend increase: Xylem raised its quarterly dividend to $0.43 (7.5% increase), showing cash-flow confidence and returning capital to shareholders ahead of the ex‑dividend date. (Company release)
• Neutral Sentiment: Mixed EPS headlines: Some sources report Q4 adjusted EPS in line with consensus (~$1.42) while at least one earnings transcript excerpt shows a miss (reported $1.37 in the transcript). The variance in reporting contributed to market confusion. Q4 2025 Earnings Call Transcript Company Press Release
• Negative Sentiment: Cautious FY2026 guidance: Xylem updated FY26 EPS to $5.35–$5.56 and revenue to $9.1–$9.2B, both slightly below consensus (revenue vs. ~$9.3B and EPS vs. ~$5.54). The trimmed outlook is the primary driver of the negative market reaction. Xylem beats Q4 expectations, issues cautious 2026 outlook
• Negative Sentiment: Market reaction and analyst coverage: Multiple outlets report shares sliding and the stock underperforming peers after the guidance and cautious commentary on the call, amplifying selling pressure. Xylem Stock Falls as Full-Year Outlook Disappoints Xylem shares slide after cautious 2026 outlook
• Negative Sentiment: Rising short interest: Short interest jumped ~47% in the latest reporting period (to ~4.17M shares, ~1.7% of shares), which can add volatility and downside pressure in the near term.

Institutional Investors Weigh In On Xylem

Several institutional investors have recently bought and sold shares of XYL. State Street Corp increased its position in shares of Xylem by 1.2% during the third quarter. State Street Corp now owns 10,953,206 shares of the industrial products company’s stock worth $1,615,598,000 after purchasing an additional 133,173 shares in the last quarter. Northern Trust Corp grew its stake in Xylem by 1.6% during the 3rd quarter. Northern Trust Corp now owns 3,259,233 shares of the industrial products company’s stock worth $480,737,000 after buying an additional 51,343 shares during the last quarter. Balyasny Asset Management L.P. increased its position in Xylem by 346.2% during 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 buying an additional 553,152 shares in the last quarter. Lazard Asset Management LLC raised its stake in Xylem by 51.4% in the third quarter. Lazard Asset Management LLC now owns 594,173 shares of the industrial products company’s stock valued at $87,641,000 after buying an additional 201,733 shares during the last quarter. Finally, Adage Capital Partners GP L.L.C. acquired a new stake in Xylem in the second quarter worth about $64,407,000. 87.96% of the stock is currently 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.