Xylem raises 2026 outlook despite organic revenue decline; backlog down 7.5% YoY

Filed April 28, 2026 · Period ending March 31, 2026 · Compared to 10-Q Apr 29, 2025 · ~1 min read

Key Changes

• high

  Organic revenue turned negative (-0.4%) in Q1 2026 after +3.3% growth in Q1 2025, driven by reduced capital project revenue and lower backlog execution in western Europe. Management raised full-year total revenue guidance to 2-3% despite the Q1 decline.

  MD&A: Organic Revenue Growth verify on EDGAR →
• high

  Backlog declined 7.5% year-over-year to $4.7B, accelerating from a 3.4% decline in Q1 2025. Company attributes this to revenue outpacing orders and improved lead times; expects 60% of backlog to convert to revenue in remainder of 2026.

  MD&A: Backlog verify on EDGAR →
• high

  Adjusted EPS rose 8.7% to $1.12 from $1.03, driven by operating margin expansion from productivity savings and pricing, offsetting inflation and unfavorable mix. Free cash flow improved to $18M from negative $38M.

  MD&A: Adjusted EPS & Cash Flow verify on EDGAR →