** Shares of water technology firm Xylem XYL.N rise 2.5% to $118.79

** Co raises FY revenue forecast to $8.7 billion to $8.8 billion, compared to a previous range of $8.6 billion to $8.7 billion

** Analysts, on average, were estimating annual revenue of $8.74 billion, according to data compiled by LSEG

** XYL posts Q1 revenue of $2.1 billion, compared with estimates of $2.04 billion

** Co reports quarterly profit of $1.03 per share on an adjusted basis, surpassing estimates of 95 cents per share

** Up to last close, XYL stock up 2.5% YTD

(Reporting by Padmanabhan Ananthan)

((Padmanabhan.Ananthan@thomsonreuters.com))