Xylem reported a mixed third quarter 2026, with revenue missing analyst estimates due to project timing and more cautious customer spending. While organic revenue growth stagnated, strong order activity and margin expansion from productivity gains provided some operational resilience.
Key Highlights
- Revenue of $2.2 billion fell short of the $2.28 billion estimate, representing flat organic growth compared to the 4.5% expected.
- Management lowered full-year 2026 adjusted EPS guidance to a range of $5.40 to $5.45, down from the previous $5.55 to $5.70.
- Orders reached $2.3 billion, up 10% organically, indicating a healthy backlog despite the cautious spending environment.
- The company announced plans to divest its Applied Water International and Specialty Flow Control businesses to focus on higher-growth verticals like data centers.