Xylem (NYSE:XYL) Updates FY 2026 Earnings Guidance

Xylem (NYSE:XYL) updated its FY 2026 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 5.350-5.560 for the period, compared to the consensus estimate of 5.540. The company issued revenue guidance of $9.1 billion-$9.2 billion, compared to the consensus revenue estimate of $9.3 billion.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on XYL. Oppenheimer set a $165.00 price objective on Xylem in a report on Thursday. Zacks Research cut Xylem from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, November 18th. TD Cowen reiterated a “hold” rating on shares of Xylem in a report on Friday, December 5th. Barclays reduced their price objective on Xylem from $166.00 to $156.00 and set an “overweight” rating for the company in a report on Wednesday. Finally, The Goldman Sachs Group set a $158.00 price target on shares of Xylem in a research report on Wednesday. Nine analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $159.75.

Xylem Trading Up 0.5%

XYL traded up $0.64 during midday trading on Thursday, hitting $127.41. The company’s stock had a trading volume of 951,861 shares, compared to its average volume of 1,663,848. The company has a current ratio of 1.62, a quick ratio of 1.50 and a debt-to-equity ratio of 0.12. The firm has a market cap of $31.02 billion, a P/E ratio of 32.50, a PEG ratio of 1.84 and a beta of 1.17. Xylem has a 52-week low of $100.47 and a 52-week high of $154.27. The firm has a 50-day moving average price of $138.99 and a two-hundred day moving average price of $142.11.

Xylem (NYSE:XYL) last posted its earnings results on Tuesday, February 10th. The industrial products company reported $1.42 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $1.42. The firm had revenue of $2.40 billion during the quarter, compared to the consensus estimate of $2.37 billion. Xylem had a net margin of 10.59% and a return on equity of 11.11%. The company’s revenue was up 6.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.18 EPS. Xylem has set its FY 2026 guidance at 5.350-5.560 EPS. On average, research analysts anticipate that Xylem will post 4.65 earnings per share for the current year.

Xylem Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 24th. Shareholders of record on Tuesday, February 24th will be paid a dividend of $0.43 per share. The ex-dividend date is Tuesday, February 24th. This is an increase from Xylem’s previous quarterly dividend of $0.40. This represents a $1.72 annualized dividend and a yield of 1.3%. Xylem’s payout ratio is currently 41.13%.

Key Headlines Impacting Xylem

Here are the key news stories impacting Xylem this week:

• Positive Sentiment: Raised dividend and shareholder return — Xylem declared a quarterly dividend of $0.43 (7.5% increase), reinforcing cash flow and shareholder returns which is supportive for the stock.
• Positive Sentiment: Operational momentum in Measurement & Control — Analysts (e.g., William Blair) highlighted continued strength in Measurement & Control and kept a Buy stance, citing business momentum that could underpin longer‑term growth. Xylem: Strong Measurement & Control Momentum and Conservative 2026 Outlook Underpin Buy Rating
• Neutral Sentiment: 2026 revenue guidance set — Management outlined revenue guidance of $9.1B–$9.2B for 2026 with an emphasis on margin expansion via portfolio simplification; the range provides a framework but is conservative relative to some street expectations. Xylem outlines 2026 revenue guidance of $9.1B–$9.2B
• Neutral Sentiment: Quarterly results mixed — Company reported a strong revenue print/record 2025 results and issued FY 2026 EPS guidance (management range noted elsewhere), but transcripts show some variance in EPS beats/misses across sources — investors should focus on management’s guidance and margin commentary. Xylem Inc. 2025 Q4 – Results – Earnings Call Presentation
• Negative Sentiment: Cautious 2026 outlook drove a sharp selloff — The conservative tone in the full‑year outlook prompted a large intraday decline (reports noted a ~9% drop), as investors repriced future growth/earnings assumptions. Xylem (XYL) Is Down 9.3% After Cautious 2026 Guidance Despite Record 2025 Results And Dividend Hike
• Negative Sentiment: Analysts trimmed forecasts and price targets — Multiple brokers lowered earnings forecasts and cut price targets (e.g., RBC $176→$162, Barclays $166→$156), reflecting the more conservative outlook and reducing near‑term upside expectations. Xylem Analysts Lower Their Forecasts After Q4 Results
• Negative Sentiment: Short interest rose ahead of the print — Short interest jumped ~47% in January, increasing potential downside pressure and volatility around quarterly news and guidance.
• Negative Sentiment: Mixed signals on EPS — Some transcripts and newsfeeds indicate an EPS miss versus consensus in Q4, which, combined with cautious guidance, amplified investor concern about near‑term growth. Xylem Inc. (XYL) Q4 2025 Earnings Call Transcript

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in XYL. Balyasny Asset Management L.P. increased its stake in shares of Xylem by 346.2% during the third quarter. Balyasny Asset Management L.P. now owns 712,950 shares of the industrial products company’s stock valued at $105,160,000 after acquiring an additional 553,152 shares during the period. Adage Capital Partners GP L.L.C. bought a new stake in shares of Xylem in the 2nd quarter worth $64,407,000. Lazard Asset Management LLC lifted its holdings in shares of Xylem by 844.4% in the second quarter. Lazard Asset Management LLC now owns 392,440 shares of the industrial products company’s stock valued at $50,765,000 after buying an additional 350,887 shares during the period. Zurich Insurance Group Ltd FI bought a new position in Xylem during the third quarter valued at about $45,172,000. Finally, Man Group plc grew its holdings in Xylem by 90.9% during the second quarter. Man Group plc now owns 493,406 shares of the industrial products company’s stock worth $63,827,000 after acquiring an additional 234,979 shares during the period. Institutional investors and hedge funds own 87.96% of the company’s stock.

Xylem Company Profile

Xylem Inc (NYSE: XYL) is a global water technology company that designs, manufactures and services engineered systems and equipment for the transport, treatment, testing and efficient use of water. Its product portfolio spans pumps and pumping systems, valves, filtration and disinfection equipment, sensors and analytical instruments, and digital solutions for monitoring and control of water infrastructure. Xylem serves the full water cycle with offerings for water and wastewater utilities, industrial customers, commercial and residential buildings, and agricultural applications.

The company was established as an independent publicly traded company in 2011 following a corporate spin-off from ITT Corporation and is headquartered in Rye Brook, New York.