Overview
Water solutions firm's Q4 revenue rose 6%, beating analyst expectations
Adjusted EPS for Q4 beat analyst expectations, rising 20%
Company increased quarterly dividend by 8%
Outlook
Xylem forecasts 2026 revenue of $9.1 to $9.2 bln, up 1% to 3% reported
Company expects 2026 adjusted EBITDA margin of 22.9% to 23.3%
Xylem anticipates 2026 free cash flow margin of 10.2% to 11%
Result Drivers
PRODUCTIVITY AND PRICING - Adjusted EPS growth driven by productivity savings and strong price realization
DEMAND ACROSS MARKETS - Broad-based demand across largest end markets supported revenue growth
PORTFOLIO SIMPLIFICATION - Co plans to simplify product portfolio to deliver essential technologies
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $2.40 bln | $2.37 bln (18 Analysts) |
Q4 Adjusted EPS | Beat | $1.42 | $1.41 (18 Analysts) |
Q4 EPS | $1.37 | ||
Q4 Adjusted Net Income | Beat | $348 mln | $341.55 mln (15 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy"
Wall Street's median 12-month price target for Xylem Inc is $170.00, about 21.3% above its February 9 closing price of $140.19
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 28 three months ago
Press Release: ID:nBw7DCV7Ma
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)