Sherwin-Williams (NYSE:SHW) Announces Quarterly Earnings Results, Beats Estimates By $0.07 EPS

Sherwin-Williams (NYSE:SHW) announced its quarterly earnings results on Thursday. The specialty chemicals company reported $2.23 EPS for the quarter, topping analysts’ consensus estimates of $2.16 by $0.07, FiscalAI reports. The firm had revenue of $5.60 billion during the quarter, compared to analysts’ expectations of $5.57 billion. Sherwin-Williams had a net margin of 11.05% and a return on equity of 66.75%. The company’s revenue for the quarter was up 5.6% compared to the same quarter last year. During the same quarter last year, the company earned $2.09 earnings per share.

Here are the key takeaways from Sherwin-Williams’ conference call:

• Record 2025 results — Sherwin-Williams delivered record full-year consolidated sales and record adjusted diluted EPS, expanded adjusted EBITDA margin, and strong cash generation (net operating cash $3.5B; free cash flow $2.7B), returning $2.5B to shareholders via buybacks and dividend.
• 2026 guidance is cautious — management expects consolidated sales up low- to mid-single-digit and adjusted diluted EPS of $11.50–$11.90 (ex acquisition amortization), citing a “softer-for-longer” demand backdrop but saying they would outperform if markets improve.
• Suvinil integration weighs on near-term margins — the Suvinil acquisition contributed low-single-digit sales but was dilutive to reported gross and segment margins in Q4 and will incur transaction, integration, and purchase-accounting impacts through 2026.
• Pricing and cost actions to offset raw‑material pressure — a 7% Paint Stores price increase effective Jan 1 (low-single-digit realization expected), targeted price moves in other segments, and accelerated simplification are intended to overcome a low-single-digit raw‑material basket increase and expand gross margin.
• Higher operating costs and interest headwinds — GAAP SG&A is guided to grow low-single-digits (including Suvinil) and interest expense is rising by roughly $90M (new HQ lease, delayed draw term loan, refinancing), which will pressure near-term earnings despite disciplined cost controls and a target net debt/EBITDA of 2.0–2.5x.

Sherwin-Williams Price Performance

Shares of NYSE SHW traded up $0.54 during mid-day trading on Friday, reaching $355.12. 433,783 shares of the company were exchanged, compared to its average volume of 1,784,518. The company’s 50 day moving average price is $337.79 and its 200 day moving average price is $343.75. The stock has a market capitalization of $88.03 billion, a PE ratio of 34.69, a PEG ratio of 5.06 and a beta of 1.26. Sherwin-Williams has a 52 week low of $308.84 and a 52 week high of $379.65. The company has a quick ratio of 0.52, a current ratio of 0.82 and a debt-to-equity ratio of 2.11.

Wall Street Analysts Forecast Growth

SHW has been the topic of several analyst reports. Bank of America cut their price target on shares of Sherwin-Williams from $375.00 to $368.00 and set a “neutral” rating on the stock in a research report on Tuesday, October 14th. Royal Bank Of Canada set a $390.00 price target on shares of Sherwin-Williams in a research note on Friday. UBS Group reissued a “buy” rating and issued a $415.00 target price (down previously from $422.00) on shares of Sherwin-Williams in a research report on Monday, January 12th. Wells Fargo & Company set a $410.00 price objective on Sherwin-Williams and gave the stock an “overweight” rating in a research note on Wednesday, October 29th. Finally, Citigroup reaffirmed a “buy” rating on shares of Sherwin-Williams in a report on Monday, January 19th. Eleven investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, Sherwin-Williams has an average rating of “Moderate Buy” and a consensus price target of $385.00.

Institutional Investors Weigh In On Sherwin-Williams

Institutional investors and hedge funds have recently modified their holdings of the stock. Brighton Jones LLC grew its stake in Sherwin-Williams by 73.6% in the 4th quarter. Brighton Jones LLC now owns 1,545 shares of the specialty chemicals company’s stock worth $525,000 after acquiring an additional 655 shares in the last quarter. Empowered Funds LLC lifted its position in Sherwin-Williams by 11.2% during the first quarter. Empowered Funds LLC now owns 6,236 shares of the specialty chemicals company’s stock valued at $2,178,000 after acquiring an additional 626 shares during the last quarter. Jump Financial LLC acquired a new stake in shares of Sherwin-Williams in the 2nd quarter worth $1,210,000. Sei Investments Co. boosted its holdings in Sherwin-Williams by 43.6% in the second quarter. Sei Investments Co. now owns 196,915 shares of the specialty chemicals company’s stock worth $67,612,000 after acquiring an additional 59,831 shares in the last quarter. Finally, Glenview Trust co increased its holdings in Sherwin-Williams by 4.8% in the 2nd quarter. Glenview Trust co now owns 3,249 shares of the specialty chemicals company’s stock worth $1,116,000 after buying an additional 148 shares during the period. 77.67% of the stock is owned by hedge funds and other institutional investors.

Key Sherwin-Williams News

Here are the key news stories impacting Sherwin-Williams this week:

• Positive Sentiment: Q4 beat on earnings and revenue, delivered record results and strong margins — supports near-term earnings credibility. PR Newswire Results
• Positive Sentiment: Morgan Stanley maintained a Buy rating and $385 price target, citing medium‑term upside from share gains, Suvinil synergies and margin expansion — a constructive analyst view for upside. Morgan Stanley Note
• Positive Sentiment: Management says it is considering acquisitions as the next phase of growth, indicating potential M&A-led expansion that could boost medium-term growth and synergy opportunities. Yahoo Finance Article
• Neutral Sentiment: Analyst coverage is mixed: Bank of America reaffirmed a Hold with a $370 target, reflecting balanced near‑term expectations. BofA Note
• Neutral Sentiment: Transcripts, slide deck and call recordings are available for deeper detail on guidance assumptions and segment performance if you want to dig into management’s commentary. Earnings Call Transcript
• Negative Sentiment: FY2026 EPS guidance of $11.50–$11.90 was below consensus (~$12.36), and management warned housing demand is “hard to predict,” creating downside risk to near‑term estimates and investor sentiment. Benzinga Coverage
• Negative Sentiment: Company struck a guarded tone on 2026 despite record 2025 results — conservative guidance and macro uncertainty could limit near-term multiple expansion. Earnings Call Highlights

About Sherwin-Williams

Sherwin-Williams (NYSE: SHW) is a global manufacturer and distributor of paints, coatings and related products. Founded in 1866 and headquartered in Cleveland, Ohio, the company supplies a broad range of coatings for residential, commercial and industrial applications. Its product offering includes architectural paints and stains, industrial and protective coatings, automotive finishes, and a variety of sundry products such as primers, sealants and specialty treatments used by professionals and consumers.

The company sells through multiple channels, including a large network of company-operated retail paint stores that serve professional contractors and do-it-yourself consumers, as well as through distributors and mass retailers.