Abstract

Xylem Inc. will report its Q4 2025 results on February 10, 2026, Pre-Market; consensus looks for higher revenue and EPS versus last year as investors gauge segment execution and pricing resilience.

Market Forecast

Market consensus for the current quarter points to revenue of $2.37 billion, EBIT of $441.69 million, and adjusted EPS of $1.41, implying year-over-year growth of 8.79%, 26.15%, and 25.31%, respectively. Forecasts available emphasize topline and earnings expansion; margin projections are not specified in the current dataset.

Management and market attention remain on execution across end-markets and integration-driven efficiency. The most promising growth platform this quarter is expected to be Water Infrastructure, anchored by revenue of $656.00 million last quarter and continued project momentum.

Last Quarter Review

In the previous quarter, Xylem Inc. delivered revenue of $2.27 billion, a gross profit margin of 38.93%, GAAP net profit attributable to shareholders of $227.00 million (net profit margin 10.01%), and adjusted EPS of $1.37, with year-over-year growth for revenue at 7.80%, EBIT at 22.57%, and adjusted EPS at 23.42%.

Quarterly net profit improved sequentially by 0.44%, underscoring steady profitability amid disciplined cost control and operating leverage. By business line, Water Infrastructure contributed $656.00 million, Water Solutions and Services $634.00 million, Measurement and Control Solutions $522.00 million, and Applied Water $456.00 million, highlighting a balanced revenue mix led by large infrastructure and services exposure.

Current Quarter Outlook (with major analytical insights)

Main business trajectory: Water Infrastructure and Services execution

Water Infrastructure stands as the primary revenue anchor, having generated $656.00 million last quarter and accounting for roughly one-third of the mix. Into the current quarter, the market expects revenue growth of 8.79% year over year to $2.37 billion, with operating expansion implied by the 26.15% EBIT growth forecast. A combination of backlog burn, public utility funding cycles, and continued demand for resilient water networks supports the top line, while scale effects can aid unit margins even without explicit margin guidance. Service-oriented revenue of $634.00 million last quarter, captured within Water Solutions and Services, complements project and equipment cycles by providing recurring support and outcome-based offerings, which can foster revenue durability as large projects phase through.

Highest growth potential: Water Infrastructure platform

Among business lines, Water Infrastructure appears best positioned to extend growth given its $656.00 million base and the spending cadence observed through the last quarter. The segment benefits from municipal and regulated utility programs focused on replacement, efficiency, and resilience, which typically maintain momentum despite macro fluctuations. Within the current quarter, this platform should benefit from project execution and pricing discipline, which together underpin the projected increase in EBIT to $441.69 million and adjusted EPS of $1.41. Any incremental success in converting late-stage bids and accelerating deployments can provide positive operating leverage, particularly if supply chain conditions remain stable.

Key stock price swing factors this quarter: earnings quality and mix

The key factors likely to shape Xylem Inc.’s stock reaction are the quality of the beat or miss versus EPS of $1.41 and revenue of $2.37 billion, as well as the mix between higher-margin equipment and service revenue. If revenue growth tracks the 8.79% projection while EBIT outpaces to the 26.15% growth forecast, investors may reward the stock for expanding operating profit faster than sales. Conversely, any negative surprise on pricing, cost inflation, or execution timing within large infrastructure projects could pressure implied margins and temper enthusiasm. Investors will also watch commentary around project funnel visibility and backlog conversion to gauge the sustainability of earnings momentum into the next fiscal period.

Analyst Opinions

Bullish views dominate the limited set of institutionally published opinions gathered within the current period. A recent note maintained a Buy rating with a target price of $170.00, citing confidence in ongoing execution and the resilience of core water platforms into early 2026. The bullish camp sees support from the forecasted revenue of $2.37 billion and adjusted EPS of $1.41, which imply healthy year-over-year growth and operating leverage that can sustain valuation. The constructive stance emphasizes solid demand across municipal and utility customers, continued integration and scale benefits that underpin the 26.15% EBIT growth estimate, and a balanced revenue mix that includes $656.00 million from Water Infrastructure and $634.00 million from services-related offerings last quarter. On this view, if Xylem Inc. delivers on the projected earnings expansion and provides firm visibility on backlog conversion, the stock’s near-term trajectory could continue to reflect earnings upgrades and confidence in the multiquarter growth cadence.