Key Takeaways Xylem is expected to post higher Q2 revenues and earnings, led by infrastructure and water solution demand.XYL may benefit from smart metering demand, backlog execution and contributions from the Vacom acquisition.Xylem faces margin pressure from higher material, labor, freight and strategic investment costs. Xylem Inc. (XYL - Free Report) is scheduled to release second-quarter 2026 results on July 28, before market open.
The Zacks Consensus Estimate for XYL’s second-quarter revenues is pegged at $2.33 billion, indicating growth of 1.2% from the prior-year quarter’s number. The consensus mark for earnings is pinned at $1.34 per share, which has been stable in the past 60 days. The figure indicates an increase of 6.4% from the year-ago quarter’s figure.
The company’s earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters and matched the mark in one, the average surprise being 5.9%.
Let’s see how things have shaped up for Xylem this earnings season.
Factors Likely to Have Shaped XYL’s Quarterly PerformanceStrength in the transport application business, aided by increased infrastructure projects in the United States, is likely to have supported the Water Infrastructure segment’s performance. The Zacks Consensus Estimate for the Water Infrastructure segment’s revenues is pegged at $664 million, indicating 2.2% growth from the year-ago figure.
An increase in demand for advanced metering infrastructure solutions, like smart and energy metering, and strong backlog execution are likely to have augmented the performance of the Measurement & Control Solutions (M&CS) segment. The Zacks Consensus Estimate for the M&CS segment’s revenues is pinned at $538 million, almost in line with the year-ago quarter’s figure.
Strength in the Applied Water segment, supported by higher demand for commercial building solutions applications, including pumps, valves and dispensing equipment, is likely to augment the segment’s results. The Zacks Consensus Estimate for the Applied Water segment’s revenues is pegged at $492 million, indicating 1.9% growth from the year-ago figure.
Recovery in Xylem’s dewatering applications business across utility and power end markets is likely to augment the Water Solutions and Services segment’s results. The Zacks Consensus Estimate for the Water Solutions and Services segment’s revenues is pegged at $636 million, indicating 1.3% growth year over year.
The company’s acquisition of Vacom Systems (in April 2025), a wastewater treatment company, enhanced its capabilities in providing sustainable water solutions. This buyout is expected to bolster the company’s top-line results in the to-be-reported quarter.
However, XYL’s bottom line is likely to have reflected the impact of high raw material costs, labor, freight and overhead costs in the second quarter. Also, increased spending on strategic investments is expected to have hurt its margins.
Earnings WhisperOur proven model does not conclusively predict an earnings beat for Xylem this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: Xylem has an Earnings ESP of -0.34%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: XYL presently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to ConsiderHere are some companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
Crane Company (CR - Free Report) has an Earnings ESP of +4.73% and a Zacks Rank of 2 at present. The company is scheduled to release second-quarter 2026 results on July 28.
Crane’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 11.3%.
Ingersoll Rand Inc. (IR - Free Report) has an Earnings ESP of +0.61% and a Zacks Rank of 3 at present. The company is slated to release second-quarter 2026 results on July 30.
Ingersoll Rand’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters while matching the mark in two, the average surprise being 2.4%.
Illinois Tool Works Inc. (ITW - Free Report) has an Earnings ESP of +0.31% and a Zacks Rank of 3 at present. The company is slated to release second-quarter 2026 results on July 28.
Illinois Tool’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 2.8%.
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Stock to Watch: Xylem (XYL - Free Report) Headquartered in Rye Brook, NY, Xylem Inc. is one of the leading providers of water solutions worldwide. Xylem is involved in the full water-process cycle, including collection, distribution and returning of water to the environment. It has significant presence in the United States, the Asia Pacific, Europe and various other nations.
XYL is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Business Services stock. XYL has a Momentum Style Score of B, and shares are up 6% over the past four weeks.
One analyst revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.00 to $5.51 per share. XYL also boasts an average earnings surprise of +5.9%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, XYL should be on investors' short list.
ABN Amro Investment Solutions raised its holdings in shares of Xylem Inc. (NYSE:XYL – Free Report) by 53.1% in the 1st quarter, according to its most recent 13F filing with the SEC. The fund owned 370,627 shares of the industrial products company’s stock after acquiring an additional 128,480 shares during the period. ABN Amro Investment Solutions owned approximately 0.16% of Xylem worth $44,290,000 at the end of the most recent reporting period.
Other large investors also recently made changes to their positions in the company. Orion Porfolio Solutions LLC increased its holdings in Xylem by 1.0% in the third quarter. Orion Porfolio Solutions LLC now owns 7,802 shares of the industrial products company’s stock valued at $1,151,000 after purchasing an additional 74 shares during the last quarter. Quest Investment Management LLC boosted its stake in Xylem by 1.0% during the 3rd quarter. Quest Investment Management LLC now owns 7,588 shares of the industrial products company’s stock worth $1,119,000 after acquiring an additional 77 shares during the last quarter. SWS Partners grew its holdings in Xylem by 1.1% during the fourth quarter. SWS Partners now owns 7,402 shares of the industrial products company’s stock valued at $1,008,000 after purchasing an additional 82 shares during the period. Notis McConarty Edward grew its holdings in shares of Xylem by 0.3% in the 4th quarter. Notis McConarty Edward now owns 31,678 shares of the industrial products company’s stock valued at $4,314,000 after buying an additional 86 shares during the period. Finally, Moneco Advisors LLC grew its stake in Xylem by 4.6% in the fourth quarter. Moneco Advisors LLC now owns 2,049 shares of the industrial products company’s stock valued at $279,000 after acquiring an additional 90 shares during the period. Institutional investors and hedge funds own 87.96% of the company’s stock.
Xylem Stock Performance XYL opened at $116.91 on Wednesday. The business’s 50-day simple moving average is $113.51 and its 200 day simple moving average is $123.12. Xylem Inc. has a 52-week low of $105.29 and a 52-week high of $154.27. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.10 and a current ratio of 1.46. The firm has a market capitalization of $27.79 billion, a PE ratio of 29.08, a PEG ratio of 1.72 and a beta of 1.03.
Xylem (NYSE:XYL – Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The industrial products company reported $1.12 earnings per share for the quarter, topping the consensus estimate of $1.09 by $0.03. Xylem had a return on equity of 11.26% and a net margin of 10.79%.The firm had revenue of $2.12 billion for the quarter, compared to analyst estimates of $2.11 billion. During the same quarter in the previous year, the firm earned $1.03 EPS. The business’s quarterly revenue was up 2.7% on a year-over-year basis. Xylem has set its FY 2026 guidance at 5.350-5.600 EPS. As a group, sell-side analysts expect that Xylem Inc. will post 5.51 earnings per share for the current fiscal year.
Xylem Announces Dividend The company also recently announced a quarterly dividend, which was paid on Thursday, June 25th. Investors of record on Thursday, May 28th were issued a dividend of $0.43 per share. This represents a $1.72 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date was Thursday, May 28th. Xylem’s payout ratio is presently 42.79%.
Analyst Ratings Changes Several brokerages have commented on XYL. Jefferies Financial Group upgraded shares of Xylem from a “hold” rating to a “buy” rating and raised their target price for the stock from $130.00 to $140.00 in a report on Thursday, June 25th. Stifel Nicolaus reduced their target price on shares of Xylem from $159.00 to $157.00 and set a “buy” rating for the company in a research note on Monday. Barclays lowered their target price on Xylem from $156.00 to $154.00 and set an “overweight” rating for the company in a report on Wednesday, April 29th. Weiss Ratings cut Xylem from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday, May 8th. Finally, Royal Bank Of Canada increased their price objective on Xylem from $157.00 to $159.00 and gave the stock an “outperform” rating in a report on Thursday, July 16th. Eight equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, Xylem presently has an average rating of “Moderate Buy” and a consensus price target of $153.15.
Read Our Latest Report on Xylem
Insider Transactions at Xylem In other Xylem news, Director Jerome A. Peribere bought 1,210 shares of the firm’s stock in a transaction that occurred on Monday, May 4th. The shares were acquired at an average cost of $116.61 per share, with a total value of $141,098.10. Following the acquisition, the director owned 27,209 shares of the company’s stock, valued at $3,172,841.49. The trade was a 4.65% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Geri-Michelle Mcshane sold 4,269 shares of the stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $117.46, for a total value of $501,436.74. Following the completion of the sale, the chief accounting officer owned 3,605 shares in the company, valued at approximately $423,443.30. This trade represents a 54.22% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 0.32% of the company’s stock.
Xylem Company Profile (Free Report)
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.
See Also Five stocks we like better than Xylem Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible Want to see what other hedge funds are holding XYL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Xylem Inc. (NYSE:XYL – Free Report).
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Xylem (XYL - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 28. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis water and wastewater treatment company is expected to post quarterly earnings of $1.34 per share in its upcoming report, which represents a year-over-year change of +6.4%.
Revenues are expected to be $2.33 billion, up 1.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.08% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Xylem?For Xylem, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.60%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Xylem will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Xylem would post earnings of $1.09 per share when it actually produced earnings of $1.12, delivering a surprise of +2.75%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Xylem doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Allspring Global Investments Holdings LLC boosted its position in Xylem Inc. (NYSE:XYL – Free Report) by 7.1% in the 1st quarter, according to its most recent filing with the SEC. The fund owned 177,679 shares of the industrial products company’s stock after purchasing an additional 11,711 shares during the period. Allspring Global Investments Holdings LLC owned about 0.07% of Xylem worth $21,762,000 as of its most recent filing with the SEC.
Other hedge funds and other institutional investors have also bought and sold shares of the company. Commonwealth Retirement Investments LLC acquired a new position in Xylem during the fourth quarter worth approximately $27,000. Wexford Capital LP acquired a new stake in shares of Xylem in the third quarter valued at approximately $27,000. Global Assets Advisory LLC bought a new position in shares of Xylem during the 1st quarter worth approximately $40,000. FWL Investment Management LLC acquired a new position in shares of Xylem during the 2nd quarter worth approximately $43,000. Finally, Entrust Financial LLC acquired a new position in shares of Xylem during the 4th quarter worth approximately $45,000. Institutional investors own 87.96% of the company’s stock.
Insider Activity In other Xylem news, Director Jerome A. Peribere bought 1,210 shares of the firm’s stock in a transaction on Monday, May 4th. The shares were purchased at an average price of $116.61 per share, for a total transaction of $141,098.10. Following the transaction, the director directly owned 27,209 shares in the company, valued at approximately $3,172,841.49. This trade represents a 4.65% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Geri-Michelle Mcshane sold 4,269 shares of the firm’s stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $117.46, for a total transaction of $501,436.74. Following the transaction, the chief accounting officer directly owned 3,605 shares in the company, valued at $423,443.30. This represents a 54.22% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.32% of the stock is owned by insiders.
Xylem Stock Performance XYL opened at $120.82 on Tuesday. The business has a fifty day simple moving average of $113.40 and a 200 day simple moving average of $123.26. The company has a market capitalization of $28.72 billion, a PE ratio of 30.05, a price-to-earnings-growth ratio of 1.75 and a beta of 1.03. Xylem Inc. has a 1 year low of $105.29 and a 1 year high of $154.27. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.46 and a quick ratio of 1.10.
Xylem (NYSE:XYL – Get Free Report) last posted its quarterly earnings data on Tuesday, April 28th. The industrial products company reported $1.12 earnings per share for the quarter, topping the consensus estimate of $1.09 by $0.03. Xylem had a return on equity of 11.26% and a net margin of 10.79%.The firm had revenue of $2.12 billion for the quarter, compared to analysts’ expectations of $2.11 billion. During the same quarter last year, the business earned $1.03 EPS. The company’s quarterly revenue was up 2.7% compared to the same quarter last year. Xylem has set its FY 2026 guidance at 5.350-5.600 EPS. Research analysts expect that Xylem Inc. will post 5.51 EPS for the current year.
Xylem Announces Dividend The firm also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Investors of record on Thursday, May 28th were given a dividend of $0.43 per share. This represents a $1.72 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date of this dividend was Thursday, May 28th. Xylem’s dividend payout ratio (DPR) is currently 42.79%.
Analyst Ratings Changes XYL has been the subject of several research reports. Stifel Nicolaus cut their price target on Xylem from $159.00 to $157.00 and set a “buy” rating for the company in a report on Monday. JPMorgan Chase & Co. decreased their price objective on shares of Xylem from $170.00 to $160.00 and set an “overweight” rating on the stock in a report on Thursday, April 16th. Weiss Ratings lowered shares of Xylem from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday, May 8th. CLSA upgraded shares of Xylem to a “hold” rating in a research note on Thursday, June 25th. Finally, Royal Bank Of Canada lifted their target price on shares of Xylem from $157.00 to $159.00 and gave the stock an “outperform” rating in a report on Thursday. Eight analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $153.15.
Read Our Latest Stock Report on Xylem
Xylem Profile (Free Report)
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.
Read More Five stocks we like better than Xylem The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story Want to see what other hedge funds are holding XYL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Xylem Inc. (NYSE:XYL – Free Report).
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California Public Employees Retirement System trimmed its position in Xylem Inc. (NYSE:XYL – Free Report) by 3.0% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 431,886 shares of the industrial products company’s stock after selling 13,176 shares during the period. California Public Employees Retirement System owned approximately 0.18% of Xylem worth $51,610,000 as of its most recent SEC filing.
A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. J. Stern & Co. LLP boosted its holdings in Xylem by 12,326.6% during the fourth quarter. J. Stern & Co. LLP now owns 45,448,168 shares of the industrial products company’s stock worth $6,189,132,000 after buying an additional 45,082,435 shares in the last quarter. Vanguard Group Inc. increased its holdings in shares of Xylem by 0.5% in the fourth quarter. Vanguard Group Inc. now owns 30,054,743 shares of the industrial products company’s stock valued at $4,092,855,000 after buying an additional 152,507 shares in the last quarter. State Street Corp increased its holdings in shares of Xylem by 2.6% in the fourth quarter. State Street Corp now owns 11,233,427 shares of the industrial products company’s stock valued at $1,529,768,000 after buying an additional 280,221 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of Xylem by 2.4% during the 4th quarter. Geode Capital Management LLC now owns 6,357,278 shares of the industrial products company’s stock valued at $862,364,000 after acquiring an additional 151,754 shares during the last quarter. Finally, Swedbank AB lifted its position in shares of Xylem by 0.3% during the 1st quarter. Swedbank AB now owns 5,526,725 shares of the industrial products company’s stock valued at $660,444,000 after acquiring an additional 18,759 shares during the last quarter. 87.96% of the stock is owned by institutional investors.
Xylem Price Performance XYL opened at $120.82 on Tuesday. The firm has a market capitalization of $28.72 billion, a P/E ratio of 30.05, a PEG ratio of 1.75 and a beta of 1.03. The stock has a fifty day moving average of $113.40 and a 200-day moving average of $123.26. The company has a quick ratio of 1.10, a current ratio of 1.46 and a debt-to-equity ratio of 0.13. Xylem Inc. has a 12-month low of $105.29 and a 12-month high of $154.27.
Xylem (NYSE:XYL – Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The industrial products company reported $1.12 earnings per share for the quarter, beating analysts’ consensus estimates of $1.09 by $0.03. The business had revenue of $2.12 billion for the quarter, compared to the consensus estimate of $2.11 billion. Xylem had a return on equity of 11.26% and a net margin of 10.79%.Xylem’s revenue for the quarter was up 2.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.03 earnings per share. Xylem has set its FY 2026 guidance at 5.350-5.600 EPS. Equities analysts forecast that Xylem Inc. will post 5.51 EPS for the current fiscal year.
Xylem Dividend Announcement The firm also recently announced a quarterly dividend, which was paid on Thursday, June 25th. Shareholders of record on Thursday, May 28th were paid a dividend of $0.43 per share. This represents a $1.72 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend was Thursday, May 28th. Xylem’s payout ratio is 42.79%.
Insider Transactions at Xylem In other news, CAO Geri-Michelle Mcshane sold 4,269 shares of the stock in a transaction that occurred on Thursday, May 7th. The shares were sold at an average price of $117.46, for a total value of $501,436.74. Following the completion of the sale, the chief accounting officer directly owned 3,605 shares of the company’s stock, valued at $423,443.30. This represents a 54.22% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Jerome A. Peribere purchased 1,210 shares of the firm’s stock in a transaction that occurred on Monday, May 4th. The shares were bought at an average price of $116.61 per share, with a total value of $141,098.10. Following the completion of the acquisition, the director owned 27,209 shares of the company’s stock, valued at $3,172,841.49. This trade represents a 4.65% increase in their position. The SEC filing for this purchase provides additional information. 0.32% of the stock is owned by corporate insiders.
Wall Street Analyst Weigh In A number of equities analysts recently weighed in on the company. Weiss Ratings lowered Xylem from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday, May 8th. UBS Group boosted their price objective on Xylem from $132.00 to $133.00 and gave the stock a “neutral” rating in a report on Wednesday, April 29th. Oppenheimer reduced their price objective on shares of Xylem from $160.00 to $158.00 and set an “outperform” rating for the company in a research note on Wednesday, April 29th. Royal Bank Of Canada raised their target price on shares of Xylem from $157.00 to $159.00 and gave the stock an “outperform” rating in a report on Thursday. Finally, Stifel Nicolaus dropped their target price on shares of Xylem from $159.00 to $157.00 and set a “buy” rating on the stock in a research report on Monday. Eight research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $153.15.
Read Our Latest Stock Analysis on XYL
Xylem Profile (Free Report)
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.
See Also Five stocks we like better than Xylem The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story Want to see what other hedge funds are holding XYL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Xylem Inc. (NYSE:XYL – Free Report).
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Broderick Brian C raised its stake in shares of Xylem Inc. (NYSE:XYL – Free Report) by 6.1% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 74,481 shares of the industrial products company’s stock after buying an additional 4,280 shares during the period. Xylem accounts for approximately 1.6% of Broderick Brian C’s portfolio, making the stock its 21st biggest holding. Broderick Brian C’s holdings in Xylem were worth $8,900,000 as of its most recent SEC filing.
Other institutional investors and hedge funds also recently made changes to their positions in the company. KBC Group NV increased its holdings in shares of Xylem by 30.3% during the 1st quarter. KBC Group NV now owns 447,389 shares of the industrial products company’s stock valued at $53,463,000 after acquiring an additional 103,987 shares during the last quarter. SEB Asset Management AB acquired a new stake in Xylem in the 1st quarter worth approximately $66,700,000. Swiss National Bank boosted its position in Xylem by 7.1% during the first quarter. Swiss National Bank now owns 714,592 shares of the industrial products company’s stock worth $85,394,000 after purchasing an additional 47,500 shares during the period. AIA Group Ltd boosted its position in Xylem by 108.1% during the first quarter. AIA Group Ltd now owns 10,539 shares of the industrial products company’s stock worth $1,259,000 after purchasing an additional 5,475 shares during the period. Finally, Ascent Wealth Partners LLC grew its holdings in Xylem by 5.1% during the first quarter. Ascent Wealth Partners LLC now owns 15,310 shares of the industrial products company’s stock valued at $1,830,000 after purchasing an additional 736 shares during the last quarter. Institutional investors and hedge funds own 87.96% of the company’s stock.
Insider Buying and Selling at Xylem In related news, Director Jerome A. Peribere purchased 1,210 shares of the firm’s stock in a transaction on Monday, May 4th. The shares were bought at an average cost of $116.61 per share, for a total transaction of $141,098.10. Following the transaction, the director directly owned 27,209 shares of the company’s stock, valued at approximately $3,172,841.49. This trade represents a 4.65% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CAO Geri-Michelle Mcshane sold 4,269 shares of the business’s stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $117.46, for a total transaction of $501,436.74. Following the transaction, the chief accounting officer owned 3,605 shares in the company, valued at approximately $423,443.30. The trade was a 54.22% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 0.32% of the company’s stock.
Xylem Stock Performance Shares of NYSE XYL opened at $122.96 on Monday. Xylem Inc. has a 12 month low of $105.29 and a 12 month high of $154.27. The company has a market cap of $29.23 billion, a P/E ratio of 30.59, a P/E/G ratio of 1.75 and a beta of 1.03. The business’s 50 day moving average is $113.23 and its two-hundred day moving average is $123.37. The company has a quick ratio of 1.10, a current ratio of 1.46 and a debt-to-equity ratio of 0.13.
Xylem (NYSE:XYL – Get Free Report) last posted its quarterly earnings data on Tuesday, April 28th. The industrial products company reported $1.12 earnings per share for the quarter, beating the consensus estimate of $1.09 by $0.03. The company had revenue of $2.12 billion during the quarter, compared to analysts’ expectations of $2.11 billion. Xylem had a return on equity of 11.26% and a net margin of 10.79%.Xylem’s revenue for the quarter was up 2.7% compared to the same quarter last year. During the same period in the prior year, the business earned $1.03 earnings per share. Xylem has set its FY 2026 guidance at 5.350-5.600 EPS. On average, equities analysts expect that Xylem Inc. will post 5.51 EPS for the current year.
Xylem Announces Dividend The business also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Shareholders of record on Thursday, May 28th were issued a $0.43 dividend. The ex-dividend date of this dividend was Thursday, May 28th. This represents a $1.72 dividend on an annualized basis and a yield of 1.4%. Xylem’s dividend payout ratio is 42.79%.
Wall Street Analyst Weigh In A number of equities analysts have recently commented on the stock. Citigroup dropped their price target on shares of Xylem from $174.00 to $168.00 and set a “buy” rating on the stock in a research report on Wednesday, April 29th. UBS Group upped their price objective on shares of Xylem from $132.00 to $133.00 and gave the stock a “neutral” rating in a report on Wednesday, April 29th. JPMorgan Chase & Co. lowered their target price on shares of Xylem from $170.00 to $160.00 and set an “overweight” rating on the stock in a research note on Thursday, April 16th. Stifel Nicolaus dropped their target price on shares of Xylem from $163.00 to $159.00 and set a “buy” rating on the stock in a report on Wednesday, April 29th. Finally, Barclays cut their target price on shares of Xylem from $156.00 to $154.00 and set an “overweight” rating for the company in a research report on Wednesday, April 29th. Eight investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $153.31.
Get Our Latest Stock Report on Xylem
Xylem Company Profile (Free Report)
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.
Featured Stories Five stocks we like better than Xylem Strait of Hormuz Tensions Spike Tanker Trade: These 2 Stocks Are Set to Benefit Shopify’s Quiet AI Strategy Could Be Its Biggest Advantage Yet Why These 3 Nuclear ETFs Are Getting a Fresh Look as AI Power Demand Rises 3 Aerospace Suppliers That Could Benefit as Aircraft Makers Face Bottlenecks Want to see what other hedge funds are holding XYL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Xylem Inc. (NYSE:XYL – Free Report).
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The bacteria showed up in late February 2026, in routine wastewater samples pulled by the Cheyenne Board of Public Utilities. The public did not hear about it until June 26, 2026. On July 9, 2026, Wyoming Representative Harriet Hageman sent Mark Zuckerberg a letter demanding to know why. The contamination at Meta (NASDAQ:META | META Price Prediction)’s $800 million Cheyenne data center, known during development as Project Cosmo, is months old. The political story is only starting.
What Project Cosmo Actually Is The campus sits in south Cheyenne, spans roughly 715,000 to 800,000 square feet, and is not yet online, with operations expected in 2027. Meta builds through Goat Systems, a construction entity. That name matters because the Cheyenne Board of Public Utilities identified Goat Systems as the party on July 2, 2026 as the contamination source.
The mechanism was a fill-and-flush, a routine procedure to prep cooling pipes before launch. Water from the BOPU was cycled through the cooling system, flushed to clear construction debris, and discharged into Cheyenne’s reclaimed water system. What came back carried Cupriavidus gilardii, a soil-and-water bacterium rare in municipal systems. The BOPU revoked Goat Systems’ industrial discharge privileges effective March 24, 2026. Officials still do not know where the bacterium originated. Crucially, the contaminated water did not enter Cheyenne’s drinking water supply.
The Bacteria, In Proportion A March 2026 study in the International Journal of Infectious Diseases documented only 32 human cases of Cupriavidus infection worldwide, with 10 deaths, nearly all in patients with weakened immune systems. This is a regulatory and disclosure story. Meta, through Fortis, said: “When the board shared that it found a substance in the city’s wastewater, not public drinking water, Fortis immediately stopped discharging industrial wastewater and began hauling it offsite. Fortis also began its own water testing with an independent environmental specialist which has found no trace of the substance.”
The Gap Congress Is Focused On Discharge privileges were pulled March 24. The public was told June 26. Hageman flagged that roughly three-month gap and asked Zuckerberg where wastewater is now going and whether closed-loop cooling can scale water use down safely. “Many are rightfully concerned about high water consumption rates by data centers in our communities where every drop of water is accounted for and needed, so I am even more concerned that this contamination seemingly came from your facility’s closed-loop cooling system, a technology that is marketed as being a solution to high data center water consumption,” she wrote, concluding: “Wyoming deserves information and consultation from the industries which plan to call our state home.” Cheyenne councilman Mark Laybourn was blunter: “It’s about the last thing we need right now. But it’s a reality we’re going to have to work through.”
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Cheyenne receives roughly 15 inches of rainfall a year, making it one of America’s driest state capitals. The BOPU has now suspended industrial wastewater acceptance from all data center fill-and-flush operations in the city. That is a policy response.
What Investors Should Take From This Project Cosmo is a rounding error inside Meta’s $125 to $145 billion 2026 capex program. Meta shares closed at $631.48 on July 9, up 8.33% on the week. Prediction markets on Polymarket assigned a 91.5% probability of Meta hitting $640 in July. One contamination event at one Wyoming construction site will not dent that.
The systemic read is different. The same water and environmental exposure attaches to Microsoft (NASDAQ:MSFT), whose Q3 capex ran tens of billions, and Alphabet (NASDAQ:GOOGL), guiding to a comparably large sum in 2026 capex. A Benzinga tally put $130 billion in data center projects delayed or blocked in Q1 2026, with 71% of Americans opposed to data centers near their homes. Cheyenne is the first case where a bacterial incident produced congressional scrutiny and a systemwide industrial discharge suspension.
The beneficiary trade is water infrastructure. Xylem (NYSE:XYL), a $28.2 billion market cap water technology company, is already partnered with Dow on advanced water systems for data center cooling. Jefferies upgraded XYL to Buy with a $140 target on July 2. Shares closed at $118.89, still down 12.06% year to date. Watch over the next quarter whether other municipalities, particularly in Texas and Arizona, impose their own discharge suspensions. If they do, the AI infrastructure buildout meets its first hard local constraint, and water treatment names get repriced accordingly.
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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Xylem (XYL - Free Report) Headquartered in Rye Brook, NY, Xylem Inc. is one of the leading providers of water solutions worldwide. Xylem is involved in the full water-process cycle, including collection, distribution and returning of water to the environment. It has significant presence in the United States, the Asia Pacific, Europe and various other nations.
XYL is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Business Services stock. XYL has a Momentum Style Score of A, and shares are up 7.4% over the past four weeks.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.00 to $5.51 per share. XYL also boasts an average earnings surprise of +5.9%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, XYL should be on investors' short list.
WASHINGTON--(BUSINESS WIRE)--Xylem Inc. (NYSE: XYL), a leading global water solutions company that empowers customers and communities to build a more water-secure world, will release its second quarter 2026 results at 6:55 a.m. (ET) on July 28, 2026. At 9:00 a.m. (ET), Xylem’s senior management team will host a conference call with investors.
The call can be accessed by calling +1 (866) 777-2509 (US) or +1 (412) 317-5413 (INTL) or by visiting Investors Events | Xylem US.
A replay of the briefing will be available on Investors Events | Xylem US and via telephone from July 28, 2026, 1:00 p.m. (ET) until August 11, 2026, at 11:59 p.m. (ET). The telephone replay will be available at +1 (855) 669-9658 or +1 (412) 317-0088 (INTL) (Access Code #8084219).
About Xylem
Xylem (XYL) is a Fortune 500 global water solutions company that empowers customers and communities to build a more water-secure world. Our 22,000 employees delivered revenue of $9 billion in 2025, optimizing water and resource management with innovation and expertise. Join us at www.xylem.com and Let’s Solve Water.
DES MOINES, Iowa--(BUSINESS WIRE)--Gross-Wen Technologies (GWT), a provider of advanced wastewater treatment solutions, today announced a commercial partnership with Xylem, a global leader in water technology. The agreement positions GWT to accelerate expansion into the industrial wastewater sector, where tightening nutrient regulations and sustainability demands are driving adoption of integrated treatment solutions. As part of the partnership, Xylem and GWT have entered into a commercial agre.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Xylem (XYL - Free Report) Headquartered in Rye Brook, NY, Xylem Inc. is one of the leading providers of water solutions worldwide. Xylem is involved in the full water-process cycle, including collection, distribution and returning of water to the environment. It has significant presence in the United States, the Asia Pacific, Europe and various other nations.
XYL is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Business Services stock. XYL has a Momentum Style Score of B, and shares are up 5.4% over the past four weeks.
For fiscal 2026, nine analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $5.51 per share. XYL boasts an average earnings surprise of +5.9%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, XYL should be on investors' short list.
Xylem is a US-based global water technology company. Founded in 2011, it is now a $26 billion (by market cap) major water tech provider employing more than 20,000 people. Xylem has increased its dividend for 16 consecutive years. Its 10-year dividend growth rate of 11% is fairly impressive. Xylem escalated its revenue from $3.8 billion in FY 2016 to $9 billion in FY 2025. That's a compound annual growth rate of 10.1%.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Xylem (XYL - Free Report) Headquartered in Rye Brook, NY, Xylem Inc. is one of the leading providers of water solutions worldwide. Xylem is involved in the full water-process cycle, including collection, distribution and returning of water to the environment. It has significant presence in the United States, the Asia Pacific, Europe and various other nations.
XYL is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 19.96; value investors should take notice.
For fiscal 2026, nine analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $5.51 per share. XYL boasts an average earnings surprise of +5.9%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, XYL should be on investors' short list.
AEGON ASSET MANAGEMENT UK Plc lifted its holdings in shares of Xylem Inc. (NYSE:XYL – Free Report) by 3.6% in the 4th quarter, according to its most recent Form 13F filing with the SEC. The firm owned 432,870 shares of the industrial products company’s stock after buying an additional 15,219 shares during the period. AEGON ASSET MANAGEMENT UK Plc owned approximately 0.18% of Xylem worth $58,931,000 at the end of the most recent quarter.
Several other hedge funds have also made changes to their positions in the business. Vanguard Group Inc. lifted its position in Xylem by 0.5% in the fourth quarter. Vanguard Group Inc. now owns 30,054,743 shares of the industrial products company’s stock valued at $4,092,855,000 after purchasing an additional 152,507 shares during the period. State Street Corp lifted its position in Xylem by 1.2% in the third quarter. State Street Corp now owns 10,953,206 shares of the industrial products company’s stock valued at $1,615,598,000 after purchasing an additional 133,173 shares during the period. Northern Trust Corp lifted its position in Xylem by 1.6% in the third quarter. Northern Trust Corp now owns 3,259,233 shares of the industrial products company’s stock valued at $480,737,000 after purchasing an additional 51,343 shares during the period. Legal & General Group Plc lifted its position in Xylem by 12.2% in the third quarter. Legal & General Group Plc now owns 2,029,272 shares of the industrial products company’s stock valued at $299,318,000 after purchasing an additional 220,246 shares during the period. Finally, Dimensional Fund Advisors LP lifted its position in Xylem by 9.2% in the third quarter. Dimensional Fund Advisors LP now owns 2,019,807 shares of the industrial products company’s stock valued at $297,857,000 after purchasing an additional 169,688 shares during the period. Institutional investors and hedge funds own 87.96% of the company’s stock.
Wall Street Analysts Forecast Growth A number of equities research analysts have recently issued reports on XYL shares. Robert W. Baird set a $161.00 price target on shares of Xylem in a research report on Wednesday, February 11th. Mizuho set a $138.00 price target on shares of Xylem in a research report on Wednesday, February 11th. JPMorgan Chase & Co. reduced their price target on shares of Xylem from $170.00 to $160.00 and set an “overweight” rating for the company in a research report on Thursday, April 16th. Stifel Nicolaus reduced their price target on shares of Xylem from $175.00 to $163.00 and set a “buy” rating for the company in a research report on Tuesday, April 14th. Finally, Oppenheimer reiterated an “outperform” rating and set a $160.00 price target (down from $165.00) on shares of Xylem in a research report on Wednesday, April 1st. Eight investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $153.77.
Get Our Latest Stock Analysis on XYL
Xylem Trading Down 0.1% Shares of XYL opened at $121.56 on Friday. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.62 and a quick ratio of 1.28. The firm has a 50 day simple moving average of $124.09 and a 200-day simple moving average of $135.56. Xylem Inc. has a 1-year low of $114.49 and a 1-year high of $154.27. The stock has a market cap of $29.56 billion, a price-to-earnings ratio of 31.01, a price-to-earnings-growth ratio of 1.75 and a beta of 1.18.
Xylem (NYSE:XYL – Get Free Report) last issued its quarterly earnings data on Tuesday, February 10th. The industrial products company reported $1.42 earnings per share for the quarter, hitting analysts’ consensus estimates of $1.42. Xylem had a net margin of 10.59% and a return on equity of 11.11%. During the same quarter in the previous year, the business posted $1.18 earnings per share. The business’s quarterly revenue was up 6.3% on a year-over-year basis. Xylem has set its FY 2026 guidance at 5.350-5.560 EPS. Equities analysts forecast that Xylem Inc. will post 5.47 EPS for the current fiscal year.
Xylem Increases Dividend The company also recently announced a quarterly dividend, which was paid on Tuesday, March 24th. Shareholders of record on Tuesday, February 24th were paid a $0.43 dividend. This represents a $1.72 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend was Tuesday, February 24th. This is an increase from Xylem’s previous quarterly dividend of $0.40. Xylem’s dividend payout ratio is presently 43.88%.
Xylem announced that its board has approved a stock buyback program on Wednesday, February 25th that permits the company to repurchase $1.50 billion in shares. This repurchase authorization permits the industrial products company to repurchase up to 4.8% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board believes its shares are undervalued.
Xylem Company Profile (Free Report)
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.
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Arizona State Retirement System lowered its holdings in Xylem Inc. (NYSE:XYL – Free Report) by 6.9% during the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 66,806 shares of the industrial products company’s stock after selling 4,951 shares during the quarter. Arizona State Retirement System’s holdings in Xylem were worth $9,098,000 at the end of the most recent quarter.
A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in XYL. Chicago Partners Investment Group LLC lifted its holdings in shares of Xylem by 27.6% during the fourth quarter. Chicago Partners Investment Group LLC now owns 3,274 shares of the industrial products company’s stock worth $462,000 after buying an additional 708 shares during the last quarter. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA lifted its holdings in shares of Xylem by 1.9% during the fourth quarter. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA now owns 7,900 shares of the industrial products company’s stock worth $1,109,000 after buying an additional 144 shares during the last quarter. Teacher Retirement System of Texas lifted its holdings in shares of Xylem by 42.2% during the fourth quarter. Teacher Retirement System of Texas now owns 74,407 shares of the industrial products company’s stock worth $10,133,000 after buying an additional 22,065 shares during the last quarter. HB Wealth Management LLC lifted its holdings in shares of Xylem by 3.4% during the fourth quarter. HB Wealth Management LLC now owns 7,140 shares of the industrial products company’s stock worth $972,000 after buying an additional 232 shares during the last quarter. Finally, Boston Trust Walden Corp lifted its holdings in shares of Xylem by 102.1% during the fourth quarter. Boston Trust Walden Corp now owns 7,542 shares of the industrial products company’s stock worth $1,027,000 after buying an additional 3,810 shares during the last quarter. Institutional investors and hedge funds own 87.96% of the company’s stock.
Xylem Stock Performance NYSE:XYL opened at $121.56 on Friday. Xylem Inc. has a 12-month low of $114.49 and a 12-month high of $154.27. The company has a quick ratio of 1.28, a current ratio of 1.62 and a debt-to-equity ratio of 0.12. The firm has a market capitalization of $29.56 billion, a PE ratio of 31.01, a price-to-earnings-growth ratio of 1.75 and a beta of 1.18. The firm has a 50-day moving average price of $124.09 and a 200 day moving average price of $135.56.
Xylem (NYSE:XYL – Get Free Report) last posted its quarterly earnings results on Tuesday, February 10th. The industrial products company reported $1.42 earnings per share (EPS) for the quarter, hitting the consensus estimate of $1.42. Xylem had a net margin of 10.59% and a return on equity of 11.11%. During the same period last year, the firm earned $1.18 earnings per share. Xylem’s revenue for the quarter was up 6.3% on a year-over-year basis. Xylem has set its FY 2026 guidance at 5.350-5.560 EPS. Research analysts anticipate that Xylem Inc. will post 5.47 earnings per share for the current fiscal year.
Xylem declared that its board has initiated a stock buyback program on Wednesday, February 25th that allows the company to repurchase $1.50 billion in shares. This repurchase authorization allows the industrial products company to buy up to 4.8% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s leadership believes its stock is undervalued.
Xylem Increases Dividend The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 24th. Investors of record on Tuesday, February 24th were given a $0.43 dividend. This represents a $1.72 annualized dividend and a yield of 1.4%. This is a boost from Xylem’s previous quarterly dividend of $0.40. The ex-dividend date of this dividend was Tuesday, February 24th. Xylem’s dividend payout ratio (DPR) is currently 43.88%.
Analysts Set New Price Targets XYL has been the subject of several research reports. Weiss Ratings cut shares of Xylem from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Monday, April 6th. UBS Group reiterated a “neutral” rating and issued a $132.00 target price (down from $152.00) on shares of Xylem in a research note on Tuesday. JPMorgan Chase & Co. reduced their target price on shares of Xylem from $170.00 to $160.00 and set an “overweight” rating for the company in a research note on Thursday, April 16th. Jefferies Financial Group reiterated a “hold” rating and issued a $130.00 target price (down from $140.00) on shares of Xylem in a research note on Tuesday, March 31st. Finally, Wall Street Zen cut shares of Xylem from a “buy” rating to a “hold” rating in a research note on Saturday, December 27th. Eight analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $153.77.
Check Out Our Latest Stock Analysis on XYL
Xylem Profile (Free Report)
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.
Further Reading Five stocks we like better than Xylem Want to see what other hedge funds are holding XYL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Xylem Inc. (NYSE:XYL – Free Report).
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WASHINGTON--(BUSINESS WIRE)--In the Xylem Inc. Non-GAAP Reconciliation Reported vs. Organic Revenue table, the last column in the fourth row, Measurement and Control Solutions, should read 1% (instead of (1%)).
The updated release reads:
XYLEM REPORTS FIRST QUARTER RESULTS
First-Quarter Highlights
Orders of $2.2 billion, up 3% on a reported basis and flat organically Revenue of $2.1 billion, up 3% on a reported basis and flat organically Earnings per share of $0.79, up 14%; $1.12 on an adjusted basis, up 9% Xylem Inc. (NYSE: XYL), a leading global water solutions company dedicated to solving the world’s most challenging water issues, today reported first-quarter 2026 results. The Company delivered total revenue of $2.1 billion, on strong execution. First-quarter earnings per share were up 14 percent on a reported basis and 9 percent on an adjusted basis.
“We entered the year with sustained momentum and solid demand across key end markets,” said Matthew Pine, Xylem’s CEO. “While the external environment remains dynamic, our teams are executing well, staying close to customers, and advancing long-term priorities.” Pine added, “Our steady progress this quarter demonstrates that our multi-year operating transformation is gaining traction, with disciplined execution and operational rigor.”
Net income attributable to Xylem for the quarter was $193 million, or $0.79 per share. Net income margin increased 90 basis points to 9.1 percent. These results are driven by strong operational performance and a reduction in the estimated loss on sale of businesses, partially offset by increased restructuring and realignment costs. Adjusted net income attributable to Xylem was $272 million, or $1.12 per share, which excludes the loss on sale of businesses, purchase accounting intangible amortization, restructuring and realignment costs, and special charges.
First-quarter adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) margin was 20.6 percent, reflecting a year-over-year increase of 20 basis points. Productivity savings and strong price realization drove the margin expansion, exceeding the impact of inflation, mix, and lower volumes.
Outlook
Xylem now forecasts full-year 2026 revenue of approximately $9.2 to $9.3 billion, up approximately 2 to 3 percent on a reported basis, versus 1 to 3 percent previously guided, and up approximately 2 to 4 percent on an organic basis, as previously guided.
Full-year 2026 adjusted EBITDA margin is expected to be approximately 22.9 to 23.3 percent, an increase of 70 to 110 basis points from Xylem’s 2025 adjusted results. This results in full-year adjusted earnings per share of $5.35 to $5.60, in line with the previous guidance range. Full-year free cash flow margin is still expected to be approximately 10.2 to 11.0 percent.
Further 2026 planning assumptions are included in Xylem’s first-quarter 2026 earnings materials posted at www.xylem.com/investors. Excluding revenue, Xylem provides guidance only on a non-GAAP basis due to the inherent difficulty in forecasting certain amounts that would be included in GAAP earnings, such as discrete tax items, without unreasonable effort.
Supplemental information on Xylem’s first-quarter earnings, as well as definitions of and reconciliations for certain non-GAAP items is posted at www.xylem.com/investors.
About Xylem
Xylem (XYL) is a Fortune 500 global water solutions company that empowers customers and communities to build a more water-secure world. Our 22,000 employees delivered revenue of $9 billion in 2025, optimizing water and resource management with innovation and expertise. Join us at www.xylem.com and Let’s Solve Water.
Xylem uses our Investor Relations website, www.xylem.com/en-us/investors, as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, webcasts, and social media.
Forward-Looking Statements
This press release contains “forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Generally, the words “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” "contemplate," "predict," “forecast,” “likely,” “believe,” “target,” “goal,” “objective,” “will,” “could,” “would,” “should,” "potential," "may" and similar expressions or their negative, may, but are not necessary to, identify forward-looking statements. By their nature, forward-looking statements address uncertain matters and include any statements that: are not historical, such as statements about our strategy, financial plans, outlook, objectives, plans, intentions or goals (including those related to our social, environmental and other sustainability goals); or address possible or future results of operations or financial performance, including statements relating to orders, revenues, operating margins and earnings per share growth.
Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, many of which are beyond our control. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in or implied by our forward-looking statements include, among others, the following: the impact of overall industry and general economic conditions, including industrial, governmental, and public and private sector spending, interest rates, availability of funding for our customers, inflation and governments’ related monetary policy in response, and the strength of the real estate markets, on economic activity and our operations; geopolitical matters, including nationalism, protectionism and anti-global sentiment, volatility involving the U.S. and other governments, ongoing, escalation or outbreak of international conflicts, and regulatory, trade protection, economic and other risks associated with our global sales and operations; manufacturing and operating cost increases due to macroeconomic conditions, including inflation, energy supply, supply chain shortages, logistics challenges, labor shortages, trade agreements, tariffs, and other trade protection measures, and other factors; demand for our products, disruption, competition or pricing pressures in the markets we serve; cybersecurity incidents, data breaches, or other disruptions of information technology systems on which we or our customers rely, or involving our connected products and services; lack of availability or delays in receiving parts and raw materials from our supply chain, including semiconductors or other key components; operational disruptions at our facilities or that of third parties upon which we rely; safe and compliant treatment and handling of water, wastewater and hazardous materials; failure to successfully execute large projects, including as respects performance guarantees and customers’ budgets, timelines and safety requirements; our ability to retain, compete for and attract leadership, other key talent and labor; defects, security, warranty and liability claims, and recalls related to our products; uncertainty around productivity, simplification, restructuring and realignment actions and related costs and savings; our ability to execute strategic investments for growth, including acquisitions and divestitures; availability, regulation or interference with radio spectrum used by certain of our products; volatility in served markets or impacts on our business and operations due to weather conditions, volatile weather events, or changing climate patterns; risks related to our sustainability efforts and related disclosures; fluctuations in foreign currency exchange rates; difficulty predicting our financial results; risk of future impairments to goodwill and other intangible assets; changes in our effective tax rates or tax expenses; failure to comply with, or changes in, laws or regulations, pertaining to our business conduct, operations, products and services, including anti-corruption, artificial intelligence, data privacy and security, trade, competition, the environment, and health and safety; legal, governmental or regulatory claims, investigations or proceedings and associated contingent liabilities; matters related to intellectual property infringement or expiration of rights; and other factors set forth under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 and in subsequent filings we make with the Securities and Exchange Commission (“SEC”).
Forward-looking and other statements in this press release regarding our environmental and other sustainability plans and goals are not an indication that these statements are necessarily material to investors, to our business, operating results, financial condition, outlook, or strategy, to our impacts on sustainability matters or other parties, or are required to be disclosed in our filings with the SEC or other regulatory authorities, and are not intended to create legal rights or obligations. In addition, historical, current, and forward-looking social, environmental and sustainability-related statements may be based on: standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future.
All forward-looking statements made herein are based on information currently available to us as of the date of this press release. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
XYLEM INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited)
(in millions, except per share data)
For the three months ended March 31,
2026
2025
Revenue from products
$
1,757
$
1,709
Revenue from services
368
360
Revenue
2,125
2,069
Cost of revenue from products
1,057
1,041
Cost of revenue from services
265
260
Cost of revenue
1,322
1,301
Gross profit
803
768
Selling, general and administrative expenses
472
460
Research and development expenses
56
56
Restructuring and asset impairment charges
31
21
Operating income
244
231
Interest expense
(4
)
(8
)
Other non-operating income, net
—
4
Gain/(Loss) on sale of businesses
4
(10
)
Income before taxes
244
217
Income tax expense
(55
)
(50
)
Net income
$
189
$
167
Net loss attributable to non-controlling interests
4
2
Net income attributable to Xylem
$
193
$
169
Earnings per share:
Basic
$
0.79
$
0.69
Diluted
$
0.79
$
0.69
Weighted average number of shares:
Basic
242.8
243.1
Diluted
243.4
243.8
XYLEM INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in millions)
March 31,
2026
December 31,
2025
ASSETS
Current assets:
Cash and cash equivalents
$
808
$
1,479
Receivables, less allowances for discounts, returns and credit losses of $53 and $68 in 2026 and 2025, respectively
1,796
1,759
Inventories
991
983
Prepaid and other current assets
243
244
Assets held for sale
192
176
Total current assets
4,030
4,641
Property, plant and equipment, net
1,151
1,159
Goodwill
8,292
8,332
Other intangible assets, net
2,213
2,272
Other non-current assets
1,268
1,230
Total assets
$
16,954
$
17,634
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
969
$
1,013
Accrued and other current liabilities
1,182
1,237
Short-term borrowings and current maturities of long-term debt
531
534
Liabilities held for sale
73
72
Total current liabilities
2,755
2,856
Long-term debt
1,407
1,408
Accrued post-retirement benefit obligations
308
317
Deferred income tax liabilities
437
405
Other non-current accrued liabilities
818
899
Total liabilities
5,725
5,885
Redeemable non-controlling interest
249
258
Stockholders’ equity:
Common stock – par value $0.01 per share:
Authorized 750.0 shares, issued 260.3 shares and 259.9 shares in 2026 and 2025, respectively
3
3
Capital in excess of par value
8,772
8,759
Retained earnings
3,794
3,706
Treasury stock – at cost 21.2 shares and 16.3 shares in 2026 and 2025, respectively
(1,368
)
(768
)
Accumulated other comprehensive loss
(229
)
(220
)
Total stockholders’ equity
10,972
11,480
Non-controlling interests
8
11
Total equity
10,980
11,491
Total liabilities, redeemable non-controlling interest, and stockholders’ equity
$
16,954
$
17,634
XYLEM INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in millions)
For the three months ended March 31,
2026
2025
Operating Activities
Net income
$
189
$
169
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation
65
68
Amortization
75
77
Share-based compensation
13
12
Restructuring and asset impairment charges
31
21
(Gain) Loss from sale of businesses
(4
)
10
Other, net
(8
)
11
Payments for restructuring
(37
)
(21
)
Changes in assets and liabilities (net of acquisitions):
Changes in receivables
(58
)
(48
)
Changes in inventories
(18
)
(9
)
Changes in accounts payable
(61
)
(64
)
Changes in long term receivables
(31
)
(32
)
Other, net
(48
)
(161
)
Net Cash – Operating activities
108
33
Investing Activities
Capital expenditures
(90
)
(71
)
Acquisitions of businesses, net of cash acquired
—
(7
)
Proceeds from sale of businesses, net of cash disposed
—
48
Proceeds from the sale of property, plant and equipment
1
5
Cash paid for investments
—
(1
)
Cash paid for asset acquisition
(1
)
—
Cash received from cross-currency swaps
14
12
Other, net
—
(1
)
Net Cash – Investing activities
(76
)
(15
)
Financing Activities
Short-term debt issued, net
—
1
Long-term debt repaid
(4
)
(4
)
Repurchase of common stock
(563
)
(13
)
Proceeds from exercise of employee stock options
—
6
Dividends paid
(106
)
(98
)
Other, net
(10
)
(8
)
Net Cash – Financing activities
(683
)
(116
)
Effect of exchange rate changes on cash
(15
)
25
Increase in cash classified within assets held for sale
(5
)
—
Decrease in cash classified within assets held for sale
—
11
Changes in cash classified within assets held for sale
(5
)
11
Net change in cash and cash equivalents
(671
)
(62
)
Cash and cash equivalents at beginning of year
1,479
1,121
Cash and cash equivalents at end of period
$
808
$
1,059
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest
$
11
$
12
Income taxes (net of refunds received)
$
28
$
37
Xylem Inc. Non-GAAP Reconciliation Reported vs. Organic Orders ($ Millions) (As Reported - GAAP)
(As Adjusted - Organic)
(A)
(B)
(C)
(D)
(E)
(F) = B+C+D+E
(G) = F/(A-D)
Change
% Change
Acquisitions
Divestitures
Change
% Change
Orders
Orders
2026 v. 2025
2026 v. 2025
Book-to-Bill
FX Impact
Adj. 2026 v. 2025
Adj. 2026 v. 2025
2026
2025
Quarter Ended March 31 Xylem Inc. 2,228
2,158
70
3
%
105
%
(12
)
5
(70
)
(7
)
0
%
Water Infrastructure 675
626
49
8
%
112
%
(8
)
5
(32
)
14
2
%
Applied Water 512
486
26
5
%
114
%
-
-
(15
)
11
2
%
Measurement and Control Solutions 475
402
73
18
%
94
%
-
-
(11
)
62
15
%
Water Solutions and Services 566
644
(78
)
(12
%)
100
%
(4
)
-
(12
)
(94
)
(15
%)
Xylem Inc. Non-GAAP Reconciliation Reported vs. Organic Revenue ($ Millions) (As Reported - GAAP)
(As Adjusted - Organic)
(A)
(B)
(C)
(D)
(E)
(F) = B+C+D+E
(G) = F/(A-D)
Change
% Change
Acquisitions
Divestitures
Change
% Change
Revenue
Revenue
2026 v. 2025
2026 v. 2025
FX Impact
Adj. 2026 v. 2025
Adj. 2026 v. 2025
2026
2025
Quarter Ended March 31 Xylem Inc. 2,125
2,069
56
3
%
(5
)
5
(65
)
(9
)
0
%
Water Infrastructure 603
581
22
4
%
(3
)
5
(29
)
(5
)
(1
%)
Applied Water 448
435
13
3
%
-
-
(14
)
(1
)
0
%
Measurement and Control Solutions 508
490
18
4
%
-
-
(11
)
7
1
%
Water Solutions and Services 566
563
3
1
%
(2
)
-
(11
)
(10
)
(2
%)
Xylem Inc. Non-GAAP Reconciliation Adjusted Diluted EPS ($ Millions, except per share amounts) Q1 2026 Q1 2025 As Reported Adjustments Adjusted As Reported Adjustments Adjusted Total Revenue 2,125
-
2,125
2,069
-
2,069
Operating Income 244
98
a
342
231
94
a
325
Operating Margin 11.5
%
16.1
%
11.2
%
15.7
%
Interest Expense (4
)
-
(4
)
(8
)
-
(8
)
Other Non-Operating Income (Expense) -
5
b
5
4
-
4
Gain/(Loss) From Sale of Businesses 4
(4
)
c
-
(10
)
10
c
-
Income before Taxes 244
99
343
217
104
321
Provision for Income Taxes (55
)
(20
)
d
(75
)
(50
)
(22
)
d
(72
)
Net Income 189
79
268
167
82
249
Net Loss Attributable to Non-controlling Interests 4
Special charges: 2026 - $5 million of acquisition, divestiture & integration costs; 2025 - $8 million of acquisition, divestiture & integration costs and $4 million of intangible asset impairment charges
Gain/(Loss) from sale of businesses as per income statement for all periods presented
d
2026 - Net tax impact on pre-tax adjustments (notes a, b and c) of $21 million and $1 million of other tax special expense items; 2025 - Net tax impact on pre-tax adjustments (note a and b) of $22 million
Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) 2026
Q1 Q2 Q3 Q4 Total Net Income attributable to Xylem 193
193
Net Income margin 9.1
%
9.1
%
Depreciation 65
65
Amortization 75
75
Interest Expense (Income), net (4
)
(4
)
Income Tax Expense 55
55
EBITDA 384
384
Share-based Compensation 13
13
Restructuring & Realignment 38
38
Special Charges 10
10
Loss/(Gain) from sale of businesses (4
)
(4
)
Loss attributable to non-controlling interest (4
)
(4
)
Adjusted EBITDA 437
437
Revenue 2,125
2,125
Adjusted EBITDA Margin 20.6
%
20.6
%
2025
Q1 Q2 Q3 Q4 Total Net Income attributable to Xylem 169
Revenue was $2.125 billion. The figure is above the $2,110.15 million analyst estimate.GAAP diluted EPS was $0.79. The figure is below the $0.85 analyst estimate.Adjusted EPS was $1.12. The figure is above the $0.85 analyst estimate.Orders were $2.228 billion, up 3% reported; book-to-bill was 105%.Adjusted EBITDA margin was 20.6%, up 20 basis points year over year.Operating cash flow was $108 million; free cash flow was approximately $18 million.Share repurchases were $563 million; period-end cash was $808 million; long-term debt was $1.407 billion. On April 28, 2026, Xylem Inc XYL released its 8-K filing detailing first-quarter 2026 results. The company reported revenue of $2.125 billion and GAAP diluted EPS of $0.79, with adjusted EPS of $1.12. Management cited strong execution and price realization amid a dynamic operating environment.
Xylem is a global leader in water technology and offers a wide range of solutions, including the transport, treatment, testing, and efficient use of water for customers in the utility, industrial, commercial, and residential sectors. Xylem was spun off from ITT in 2011. Based in Rye Brook, New York, Xylem has a presence in over 150 countries and employs 16,200. The company generated $9 billion in revenue in 2025.
Quarter at a Glance Revenue increased 3% year over year on a reported basis to $2.125 billion, and was flat organically. GAAP diluted EPS was $0.79, up 14% year over year. Adjusted EPS was $1.12, up 9% year over year.
Revenue was above the $2,110.15 million analyst estimate. GAAP diluted EPS was below the $0.85 analyst estimate. Adjusted EPS was above the $0.85 analyst estimate.
Metric (Q1 2026) Result YoY Change Analyst Estimate Comparison to Estimate Revenue $2,125 million +3% $2,110.15 million Above GAAP Diluted EPS $0.79 +14% $0.85 Below Adjusted EPS $1.12 +9% $0.85 Above Net Income Attributable to Xylem $193 million vs. $169 million N/A N/A Net Income Margin 9.1% +90 bps N/A N/A Adjusted EBITDA Margin 20.6% +20 bps N/A N/A Orders $2,228 million +3% reported N/A N/A Book-to-Bill 105% N/A N/A N/A Operating Cash Flow $108 million vs. $33 million N/A N/A Free Cash Flow (CFO - capex) ~$18 million N/A N/A N/AManagement Commentary and Operating Dynamics Management highlighted execution against a mixed demand backdrop, pointing to ongoing transformation initiatives and price/mix discipline.
“We entered the year with sustained momentum and solid demand across key end markets.”“Our steady progress this quarter demonstrates that our multi-year operating transformation is gaining traction, with disciplined execution and operational rigor.”On drivers of margin and earnings, Xylem cited productivity savings and strong price realization, which more than offset inflation, mix, and lower volumes. A reduction in the estimated loss on sale of businesses benefited results. Increased restructuring and realignment costs were a partial offset.
Income Statement, Balance Sheet, and Cash Flow Highlights Gross profit was $803 million versus $768 million a year ago. Operating income was $244 million compared with $231 million. Interest expense decreased to $4 million from $8 million. A $4 million gain on sale of businesses compared with a $10 million loss in the prior-year period contributed to higher pre-tax income.
Operating cash flow improved to $108 million from $33 million, reflecting better working capital movements versus last year. Capital expenditures were $90 million, resulting in approximately $18 million in free cash flow for the quarter based on management’s free cash flow definition.
On the balance sheet, cash and cash equivalents were $808 million, down from $1.479 billion at year-end, reflecting $563 million of share repurchases and dividend payments of $106 million. Long-term debt was stable at $1.407 billion. Total liabilities decreased modestly to $5.725 billion, while total equity was $10.980 billion.
Key Metrics and Segment Trends Company-wide orders were $2.228 billion, up 3% on a reported basis and flat organically, yielding a 105% book-to-bill. Revenue was $2.125 billion, up 3% reported and flat organically, with products contributing $1.757 billion and services $368 million.
Adjusted EBITDA margin expanded by 20 basis points to 20.6% as productivity and pricing offset inflation and volume headwinds. Net income margin increased by 90 basis points to 9.1%. Segment detail from the company’s reconciliation indicates largely flat organic revenue performance, with reported growth aided by currency and portfolio effects varying by segment.
Analysis for Investors The quarter’s mixed comparison to estimates underscores both resilience and near-term challenges. Revenue exceeded expectations, indicating steady demand and effective price realization. GAAP EPS lagged consensus due to restructuring and realignment costs. Adjusted EPS exceeded consensus, reflecting underlying operating improvements.
Key positives include a 105% book-to-bill, margin expansion on both a GAAP and adjusted basis, and a sharp improvement in operating cash flow. Challenges center on flat organic growth and lower volumes in parts of the portfolio, as well as elevated restructuring activity. The sizable share repurchase reduced cash balances, but share count drifted lower, which can benefit per-share metrics over time.
For context, analysts’ current annual estimates call for EPS of 4.64 and revenue of $9,195.30 million. These benchmarks help frame how early-year results relate to full-year expectations.
GuruFocus Valuation Check Based on GuruFocus proprietary metrics, Xylem Inc XYL appears undervalued relative to GF Value. The GF Value stands at $135.08 versus a current price of $123.51, suggesting the shares are approximately 8.6% undervalued. This indicates a modest margin of safety on valuation using GuruFocus’s intrinsic value framework.
The company’s GF Score of 91/100 is categorized as Strong, supported by an 8/10 Financial Strength score and an 8/10 Profitability Rank. The Growth Rank is also 8/10, signaling healthy expansion potential within the Industrial Products space. Predictability is rated at 3 stars, which implies a moderate level of consistency in business performance. A Moat Score of 7/10 points to durable competitive advantages in water technologies and solutions.
Insider Activity shows no insider transactions in the last 3 months. The absence of notable insider buys or sells offers a neutral signal. For a deeper dive, visit the Xylem Inc stock page on GuruFocus.
Explore the complete 8-K earnings release (here) from Xylem Inc for further details.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Tuesday, Xylem reported earnings per share of $1.12 from sales of $2.1 billion. Wall Street was looking for earnings per share of $1.08 from sales of $2.1 billion.
Xylem (XYL) came out with quarterly earnings of $1.12 per share, beating the Zacks Consensus Estimate of $1.09 per share. This compares to earnings of $1.03 per share a year ago.
WASHINGTON--(BUSINESS WIRE)-- #LetsSolveWater--In the Xylem Inc. Non-GAAP Reconciliation Reported vs. Organic Revenue table, the last column in the fourth row, Measurement and Control Solutions, should read 1% (instead of (1%)). The updated release reads: XYLEM REPORTS FIRST QUARTER RESULTS First-Quarter Highlights Orders of $2.2 billion, up 3% on a reported basis and flat organically Revenue of $2.1 billion, up 3% on a reported basis and flat organically Earnings per share of $0.79, up 14%; $1.12 on an adjusted.
While the top- and bottom-line numbers for Xylem (XYL) give a sense of how the business performed in the quarter ended March 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Xylem trades at a modest premium, with shares flat despite continued growth and improving operating momentum. Full-year guidance projects 2–4% organic sales growth, adjusted EBITDA margin expansion to 23.1%, and adjusted EPS of $5.35–$5.60. Capital allocation is active: A $1.5B buyback program, $219M German acquisition, and a record $850M Water Solutions & Services order.
WASHINGTON--(BUSINESS WIRE)-- #LetsSolveWater--As global water challenges intensify, efficient and resilient water management is more critical than ever. Xylem (NYSE: XYL), a leader in global water solutions, has released its 2025 Sustainability Report, demonstrating how customer-driven innovation is transforming sustainability commitments into measurable performance outcomes for communities and the environment. Performance Highlights 20 million people reached with access to clean water, sanitation, and hygiene.
WASHINGTON--(BUSINESS WIRE)-- #LetsSolveWater--The Board of Directors of Xylem Inc. (NYSE: XYL), has declared a second quarter dividend of $0.43 per share payable on June 25, 2026, to shareholders on record as of May 28, 2026. About Xylem Xylem (XYL) is a Fortune 500 global water solutions company that empowers customers and communities to build a more water-secure world. Our 22,000 employees delivered revenue of $9 billion in 2025, optimizing water and resource management with innovation and expertise. Join us.
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Stock to Watch: Xylem (XYL - Free Report) Headquartered in Rye Brook, NY, Xylem Inc. is one of the leading providers of water solutions worldwide. Xylem is involved in the full water-process cycle, including collection, distribution and returning of water to the environment. It has significant presence in the United States, the Asia Pacific, Europe and various other nations.
XYL is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 19.64; value investors should take notice.
Nine analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.03 to $5.51 per share. XYL also boasts an average earnings surprise of +5.9%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, XYL should be on investors' short list.
Xylem offers a compelling, discounted entry into water technology, transitioning from hardware to high-margin, digital-first service solutions. XYL's growth is underpinned by federal infrastructure funding, recurring software revenues, and a robust 9.2% annual EPS growth consensus through 2028. Trading at a forward PE of 19.6, nearly two standard deviations below its 10-year average, XYL provides a margin of safety with strong dividend growth.
WASHINGTON--(BUSINESS WIRE)--Xylem Inc. (NYSE: XYL) today announced the completion of the previously disclosed sale of Sensus International, its water and heat metering operations outside North America, to AURELIUS. Xylem retains its North America Sensus business, which continues to play a strategic role in the company’s portfolio.
For product inquiries or support related to Sensus International, please visit www.sensus-international.com or contact [email protected].
About Xylem
Xylem (XYL) is a Fortune 500 global water solutions company that empowers customers and communities to build a more water-secure world. Our 22,000 employees delivered revenue of $9 billion in 2025, optimizing water and resource management with innovation and expertise. Join us at www.xylem.com and Let’s Solve Water.
WASHINGTON--(BUSINESS WIRE)-- #LetsSolveWater--Xylem today announced an agreement with Dow to design, build and operate advanced water systems at its industrial complex in Fort Saskatchewan.
