Open report — full analysis, no account required.
Sign up to generate reports and read filings that aren't on the open list.
Get notified when XYL files again. Create a free account and we'll email you the moment its next filing is analyzed.
Get filing alertsXylem raises full-year EPS guidance on 42% order growth and margin expansion
Filed July 28, 2026 · Period ending July 28, 2026 · ~1 min read
Key Changes
-
high
Q2 orders surged 42% (41% organic) to $3.1B while revenue grew 2% (1% organic) to $2.3B; adjusted EPS rose 16% to $1.46, beating on margin expansion despite modest top-line growth.
Exhibit 99.1 view on EDGAR → -
high
Adjusted EBITDA margin expanded 150 basis points year-over-year to 23.3% in Q2, driven by productivity savings and price realization that more than offset inflation and lower volumes.
Exhibit 99.1 view on EDGAR → -
high
Full-year 2026 adjusted EPS guidance raised to $5.55–$5.70 from prior $5.35–$5.60; adjusted EBITDA margin expected at 23.1–23.5% (up 90–130 bps year-over-year).
Exhibit 99.1 view on EDGAR → -
medium
CEO highlighted AI infrastructure growth driving water demand across semiconductors, power generation, and mining, alongside strength in food & beverage and life sciences sectors.
Exhibit 99.1 view on EDGAR → -
medium
Repurchased $1.24B of common stock in first half 2026, increasing treasury shares from 16.3M to 26.8M shares.
Exhibit 99.1 view on EDGAR →
Summary
Xylem reported second-quarter 2026 results that showcased strong operational execution despite modest revenue growth. Orders jumped 42% year-over-year to $3.1 billion (41% organic), signaling robust demand, while revenue grew 2% to $2.3 billion.
The standout metric was margin expansion: adjusted EBITDA margin widened 150 basis points to 23.3%, driven by productivity gains and pricing discipline that more than offset inflation and volume headwinds. Adjusted EPS rose 16% to $1.46, and management raised full-year guidance to $5.55–$5.70 from $5.35–$5.60.
CEO Matthew Pine framed the results within a broader strategic shift, noting that water is becoming increasingly critical for both utilities and industrial customers. He specifically called out AI infrastructure as a new demand driver, with data centers and related industries (semiconductors, power generation, mining) requiring significant water resources. The company also sees sustained strength in food & beverage and life sciences, where water quality and reliability are essential. Xylem returned $1.24 billion to shareholders via buybacks in the first half, nearly doubling its treasury position. The combination of accelerating orders, margin expansion, and raised guidance suggests the company is capitalizing on structural demand tailwinds.
Section-by-Section Diff
Event · Exhibit 99.1
Xylem reported Q2 2026 results with 42% order growth, 2% revenue growth, and 19% EPS increase, while raising full-year adjusted EPS guidance.
Added in current filing · view on EDGAR →
Orders of $3.1 billion, up 42% on a reported basis and 41% organically
•Revenue of $2.3 billion, up 2% on a reported basis and 1% organically
•Earnings per share of $1.11, up 19%; $1.46 on an adjusted basis, up 16%
Xylem delivered second-quarter 2026 revenue of $2.3 billion (up 2% reported, 1% organic) and orders of $3.1 billion (up 42% reported, 41% organic). Reported EPS was $1.11 (up 19%) and adjusted EPS was $1.46 (up 16%). Net income attributable to Xylem was $263 million, or $1.11 per share, with net income margin increasing 150 basis points to 11.3 percent.
Added in current filing · view on EDGAR →
Second-quarter adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) margin was 23.3 percent, reflecting a year-over-year increase of 150 basis points. Productivity savings, strong price realization and mix drove the margin expansion, exceeding the impact of inflation and lower volumes.
Adjusted EBITDA margin expanded 150 basis points year-over-year to 23.3 percent in Q2 2026. The improvement was driven by productivity savings, strong price realization, and favorable mix, which more than offset inflation and lower volumes.
Added in current filing · view on EDGAR →
Xylem now forecasts full-year 2026 revenue of approximately $9.2 billion, up approximately 2 percent on a reported basis, versus 2 to 3 percent previously guided, and up approximately 2 to 3 percent on an organic basis, versus 2 to 4 percent previously guided.
Full-year 2026 adjusted EBITDA margin is expected to be approximately 23.1 to 23.5 percent, an increase of 90 to 130 basis points from Xylem’s 2025 adjusted results. This results in full-year adjusted earnings per share of $5.55 to $5.70, up from the previous guidance range of $5.35 to $5.60. Full-year free cash flow margin is still expected to be approximately 10.2 to 11.0 percent.
Xylem raised its full-year 2026 adjusted EPS guidance to $5.55 to $5.70 from the prior range of $5.35 to $5.60. Revenue guidance was narrowed to approximately $9.2 billion (up ~2% reported, 2-3% organic) from prior 2-3% reported and 2-4% organic growth. Adjusted EBITDA margin is expected at 23.1 to 23.5 percent (up 90-130 basis points year-over-year), while free cash flow margin guidance of 10.2 to 11.0 percent was unchanged.
Added in current filing · view on EDGAR →
“The demand drivers behind our business continue to strengthen,” said Matthew Pine, Xylem’s CEO. “Water is becoming increasingly strategic for both utilities and industrial customers. We’ve spent the past several years positioning Xylem for this. Now we’re seeing that strategy create new opportunities and strengthen our competitive position. With a resilient municipal foundation, increasing exposure to attractive industrial markets and a more focused portfolio, we believe Xylem is well positioned for long-term growth and profitability.”
“The opportunities we see today extend well beyond any single end market,” Pine continued. “The growth of AI infrastructure is increasing the strategic importance of water across a broader industrial ecosystem from semiconductors and power generation to mining and other critical industries. At the same time, we are seeing increasing demand across sectors such as food and beverage and life sciences, where water quality, reliability and operational performance are essential. These trends are broadening our opportunity set and reinforcing our confidence in the durability of our long-term strategy.”
CEO Matthew Pine highlighted strengthening demand drivers, noting that water is becoming increasingly strategic for utilities and industrial customers. He emphasized that AI infrastructure growth is increasing water's importance across semiconductors, power generation, mining, and other critical industries, while demand is also rising in food and beverage and life sciences sectors. The company believes these trends broaden its opportunity set and support long-term growth.
Added in current filing · view on EDGAR →
Treasury stock – at cost 26.8 shares and 16.3 shares in 2026 and 2025, respectively (2,023) (768)
Treasury stock increased from 16.3 million shares at cost of $768 million at year-end 2025 to 26.8 million shares at cost of $2,023 million as of June 30, 2026. The cash flow statement shows repurchases of common stock totaling $1,243 million for the six months ended June 30, 2026, reflecting significant capital return to shareholders.
Thanks — your feedback helps us improve report quality.
Figures/quotes linked to EDGAR · Narrative written by AI · Jul 29, 2026 · How we verify