By Kelly Cloonan

Shares of Xylem declined after the company's outlook came in short of Wall Street's expectations as it continues to work on simplifying its business.

The stock fell 6.3% to $131.35 on Tuesday. Shares are roughly flat over the last 12 months.

The water solutions company guided for adjusted earnings per share of $5.35 to $5.60 for the full year, the midpoint of which came in below analyst expectations of $5.56, according to FactSet.

The company forecasts revenue of $9.1 billion to $9.2 billion, below analyst expectations of $9.32 billion.

Finance Chief Bill Grogan said the projection is at the low end of the company's long-term target due to efforts it is taking to boost the quality of its earnings and simplify its businesses.

The company is working to evaluate its product portfolio and identify underperforming geographies and low-margin parts of its business, Grogan said. Such actions take time, he said.

"Ultimately I think it's going to free up our organizational and economical capacity to better support and facilitate our longer-term growth trajectory," he said.

The guidance comes after the company logged higher profit and revenue in its latest quarter, helped by growth in orders.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

February 10, 2026 11:31 ET (16:31 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.