Key Highlights

  • Xylem delivered Q1 EPS of $1.12, surpassing the analyst consensus of $1.09
  • Quarterly revenue reached $2.1 billion, falling just short of the $2.11 billion forecast
  • New orders amounted to $2.2 billion, representing a 3% increase from the prior year
  • Company elevated its full-year 2026 revenue projection to $9.2B–$9.3B
  • Shares advanced 1.6% during premarket hours before Tuesday’s market opening

Xylem delivered a largely encouraging first-quarter performance Tuesday morning, with profit metrics exceeding Wall Street projections despite revenue landing marginally below target.

The water infrastructure specialist announced adjusted earnings per share of $1.12 for the opening quarter, topping the Street consensus of $1.09. This figure represents growth from the $1.03 recorded in the comparable period last year.

Quarterly revenue reached $2.1 billion, marking a 3% increase on a reported basis compared to the prior year. When measured organically—excluding foreign exchange fluctuations and acquisition impacts—revenue remained unchanged. Wall Street analysts had projected $2.11 billion, making this a narrow shortfall.


XYL Stock Card
Xylem Inc., XYL

New order intake totaled $2.2 billion, climbing 3% year over year on a reported basis, while holding steady organically. Order volumes exceeding revenue figures typically signals positive momentum for upcoming quarters.

Adjusted EBITDA margin improved by 20 basis points versus last year, reaching 20.6%. The company attributed this expansion to efficiency improvements and favorable pricing dynamics, which counterbalanced inflationary pressures and volume softness.

CEO Matthew Pine adopted a cautiously optimistic stance. “We entered the year with sustained momentum and solid demand across key end markets,” he stated. “While the external environment remains dynamic, our teams are executing well, staying close to customers, and advancing long-term priorities.”

Company Lifts Annual Revenue Forecast

Xylem increased its full-year 2026 revenue expectations modestly. Management now anticipates $9.2 billion to $9.3 billion, an upward revision from the previous range of $9.1 billion to $9.2 billion. This outlook implies 2% to 3% expansion on a reported basis.

Full-year adjusted earnings per share guidance remained unchanged at $5.35 to $5.60. The $5.48 midpoint falls marginally beneath the analyst consensus of $5.49.

The organization also projects full-year adjusted EBITDA margin between 22.9% and 23.3%, which would mark an improvement of 70 to 110 basis points compared to 2025 performance.

Jefferies analyst Stephen Volkmann characterized the quarter as “in line.” While hardly effusive praise, investors appeared satisfied with the outcome.

Stock Performance Update

Xylem shares advanced 1.6% during premarket trading, reaching $125.50, even as broader index futures displayed modest weakness.

Heading into Tuesday’s session, XYL had declined 9% year to date and gained just 6% over the trailing twelve months. The stock experienced an 8% pullback following its fourth-quarter announcement in February.

First quarter reported earnings per share registered at $0.79, reflecting a 14% increase from the $0.69 posted during the same quarter one year earlier.

The first-quarter results provided at least temporary stabilization for the stock’s recent struggles.