Sherwin-Williams (NYSE:SHW) Posts Earnings Results, Beats Expectations By $0.18 EPS

Sherwin-Williams (NYSE:SHW) announced its earnings results on Tuesday. The specialty chemicals company reported $3.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.52 by $0.18, FiscalAI reports. The company had revenue of $6.79 billion during the quarter, compared to analyst estimates of $6.60 billion. Sherwin-Williams had a net margin of 11.01% and a return on equity of 67.97%. The firm’s quarterly revenue was up 7.5% compared to the same quarter last year. During the same period in the previous year, the business earned $3.38 earnings per share. Sherwin-Williams updated its FY 2026 guidance to 11.800-12.200 EPS.

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

• Sherwin-Williams raised its full-year outlook after strong first-half execution, now expecting consolidated sales growth in the mid- to high-single-digit range and adjusted diluted EPS of $11.80–$12.20.
• Second-quarter adjusted EPS rose approximately 10%, while adjusted EBITDA increased 10.5% to $1.5 billion and EBITDA margin expanded 60 basis points to 21.5%. Operating cash flow improved 21%, and the company returned $1.5 billion to shareholders through dividends and accelerated share repurchases.
• Growth was driven by continued share gains and new account wins despite limited market improvement. Protective & Marine delivered its eighth consecutive quarter of at least high-single-digit growth, while commercial, residential repaint, and Performance Coatings also outperformed their underlying markets.
• Consumer Brands benefited from the Suvinil acquisition and strong North American pro-paint demand, although DIY remained muted and Europe declined due to customer destocking. Suvinil integration is progressing, with management identifying additional synergies but describing its 2026 EPS benefit as immaterial.
• Raw-material inflation is expected to rise at a high-single-digit rate in the second half, prompting an 8% Paint Stores Group price increase effective September 1. Management expects pricing to offset inflation over time, but the timing of realization and higher oil-related costs are expected to pressure second-half EPS growth.

Sherwin-Williams Trading Down 0.5%

Shares of NYSE SHW traded down $1.68 during midday trading on Thursday, hitting $342.20. 465,086 shares of the company traded hands, compared to its average volume of 2,042,155. Sherwin-Williams has a 12-month low of $289.86 and a 12-month high of $379.65. The stock has a 50-day moving average price of $323.07 and a 200 day moving average price of $332.32. The company has a debt-to-equity ratio of 2.16, a quick ratio of 0.53 and a current ratio of 0.73. The firm has a market cap of $84.40 billion, a P/E ratio of 31.50, a P/E/G ratio of 2.73 and a beta of 1.10.

Sherwin-Williams Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, September 11th. Stockholders of record on Friday, August 21st will be paid a dividend of $0.80 per share. The ex-dividend date of this dividend is Friday, August 21st. This represents a $3.20 dividend on an annualized basis and a dividend yield of 0.9%. Sherwin-Williams’s payout ratio is presently 29.49%.

Institutional Investors Weigh In On Sherwin-Williams

A number of institutional investors have recently made changes to their positions in the company. Howe & Rusling Inc. boosted its position in shares of Sherwin-Williams by 2.7% during the fourth quarter. Howe & Rusling Inc. now owns 1,308 shares of the specialty chemicals company’s stock valued at $424,000 after buying an additional 35 shares during the last quarter. Hilltop Holdings Inc. increased its position in Sherwin-Williams by 0.6% in the fourth quarter. Hilltop Holdings Inc. now owns 5,811 shares of the specialty chemicals company’s stock worth $1,883,000 after buying an additional 35 shares in the last quarter. Resources Management Corp CT ADV raised its stake in Sherwin-Williams by 1.0% during the 2nd quarter. Resources Management Corp CT ADV now owns 4,241 shares of the specialty chemicals company’s stock worth $1,456,000 after acquiring an additional 40 shares during the period. L2 Asset Management LLC increased its stake in shares of Sherwin-Williams by 4.3% in the third quarter. L2 Asset Management LLC now owns 1,081 shares of the specialty chemicals company’s stock worth $374,000 after purchasing an additional 45 shares in the last quarter. Finally, Smartleaf Asset Management LLC raised its position in shares of Sherwin-Williams by 1.7% during the 2nd quarter. Smartleaf Asset Management LLC now owns 2,747 shares of the specialty chemicals company’s stock valued at $950,000 after purchasing an additional 46 shares during the period. Hedge funds and other institutional investors own 77.67% of the company’s stock.

Analysts Set New Price Targets

SHW has been the subject of several research analyst reports. UBS Group reaffirmed a “neutral” rating and set a $390.00 price target on shares of Sherwin-Williams in a research note on Wednesday. Evercore reissued an “outperform” rating on shares of Sherwin-Williams in a report on Friday, May 8th. Berenberg Bank set a $380.00 target price on Sherwin-Williams in a research report on Monday, June 8th. The Goldman Sachs Group set a $420.00 price target on shares of Sherwin-Williams in a research report on Wednesday. Finally, Wells Fargo & Company set a $360.00 price objective on shares of Sherwin-Williams and gave the company an “equal weight” rating in a research note on Wednesday. Eight research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat, Sherwin-Williams presently has a consensus rating of “Moderate Buy” and an average target price of $384.47.

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.