July 31 (Reuters) - Water technology firm Xylem XYL.N on Thursday raised its annual sales and profit forecasts, citing resilient demand and strong operational performance that helped the company surpass Wall Street estimates for its second-quarter results.

Shares of the company rose about 2% in premarket trading.

The company said productivity savings and strong price realization drove margin expansion that exceeded the impact of inflation.

"Our simplification efforts have already yielded measurable gains in speed, accountability, and customer responsiveness," CEO Matthew Pine said in a statement.

Xylem now expects adjusted earnings per share in 2025 to range between $4.70 and $4.85, up from its prior forecast of between $4.50 and $4.70.

The company projected 2025 sales of $8.90 billion and $9 billion, above its previous expectations of $8.70 billion to $8.80 billion.

Analysts, on average, had expected earnings of $4.64 per share and sales of $8.76 billion, according to LSEG-compiled data.

Sales from Xylem's water infrastructure unit, which sells products like water and wastewater pumps, was $650 million in the quarter, exceeding analysts' expectations of $640.27 million.

Its applied water unit, which sells pumps, valves and other equipment, recorded sales of $483 million, above expectations of $462.27 million.

On an adjusted basis, Xylem earned $1.26 per share for the quarter, while analysts on average expected the company to earn $1.16 per share.

The company reported quarterly revenue of $2.30 billion, compared with analysts' estimates of $2.21 billion.

(Reporting by Kamal Choudhury in Bengaluru; Editing by Vijay Kishore)

((Kamal.Choudhury@thomsonreuters.com;))