Xylem Inc. · XYL · FY2025 Q3 · Calendar Q4 2025

Xylem raises 2025 outlook as margins and water demand strengthen

The supplied analysis supports a constructive near-term operating thesis: resilient water-infrastructure and AMI demand, together with 80/20 simplification, supported stronger margins and a full-year guidance raise. The main test is whether these gains persist while Xylem manages tariffs, China softness and execution risks.

Reported Before market openNYSEIndustrials $23.78B market cap
90quality score

Earnings scorecard

Reported versus consensus
Reported EPS $1.37 Consensus $1.23
EPS surprise +11.4% Reported versus consensus
Reported revenue $2.27B Consensus $2.22B
Revenue surprise +2.0% Reported versus consensus

Market reaction

prior-close to event-session close
Stock move +0.7% Event window
SPY move +0.3% Same window
Abnormal move +0.5% Stock minus SPY
Volume 2.1× Versus trailing sessions
Subsequent drift -6.0% Up to 20 sessions
XYLSPY benchmark

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Transcript intelligence

What changed

Compared with the supplied event baseline, management's message was a stronger operating outlook: Q3 growth and record EBITDA margin were paired with higher full-year guidance. The company also emphasized its planned international metering divestiture, North American focus and Amazon analytics partnership.

Guidance delta

Management raised full-year 2025 guidance to approximately $9 billion of revenue, a 22%–22.3% EBITDA margin and $5.03–$5.08 EPS.

Key takeaways

  • Q3 revenue grew 7% year over year, while EBITDA margin exceeded 23% and EPS increased 23%.
  • Management cited 80/20 simplification, AMI smart-meter demand and water infrastructure activity as key supports.
  • China softness, tariff exposure, FX headwinds and EPA grant-review delays remain offsets.

Management priorities

  • Complete the planned divestiture of the international metering business and focus on North American metering.
  • Expand Vue water analytics, including the Amazon partnership in Mexico City.
  • Continue 80/20 simplification and pursue small-to-medium bolt-on acquisitions with disciplined capital deployment.

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Earnings History

Estimate Beat Miss Match
XYL REVENUE earnings history estimate and actual scatter chart 9 reported fiscal quarters and 3 future estimate-only quarters. Q1 '24 estimate $2B Q1 '24 actual $2B, beat Q2 '24 estimate $2B Q2 '24 actual $2B, beat Q3 '24 estimate $2B Q3 '24 actual $2B, miss Q2 '25 estimate $2B Q2 '25 actual $2B, beat Q3 '25 estimate $2B Q3 '25 actual $2B, beat Q4 '25 estimate $2B Q4 '25 actual $2B, beat Q1 '26 estimate $2B Q1 '26 actual $2B, beat Q2 '26 estimate $2B Q2 '26 actual $2B, miss Q3 '26 estimate $2B Q4 '26 estimate $2B Q1 '27 estimate $2B
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Analyst Consensus ?

ConsensusHold39 ratings
Bullish1948.7%
Neutral1948.7%
Bearish12.6%

Analyst 52W Price Targets

$103.19Current
$107Low
$148.85Average
$170High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 5, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
Jefferies Buy BuyMaintainAug 24, 2026
UBS Neutral NeutralMaintainAug 13, 2026
Stifel Buy BuyMaintainJul 29, 2026
RBC Capital Outperform OutperformMaintainJul 29, 2026
Mizuho Neutral NeutralMaintainJul 29, 2026
Show 34 more rating actions

Named analyst price targets

Upside is calculated against the persisted current price $103.18. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
JefferiesAnalyst unavailable$150$113.87 +45.4%Aug 24, 2026
UBSAnalyst unavailable$138$121.93 +33.7%Aug 13, 2026
UBSJoshua Spector$135$116.48 +30.8%Jul 30, 2026
Mizuho SecuritiesAnalyst unavailable$130$124.97 +26.0%Jul 29, 2026
Stifel NicolausAnalyst unavailable$160$124.97 +55.1%Jul 29, 2026
See 45 more

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Company context

Snapshot as of publication

Xylem Inc., together with its subsidiaries, engages in the design, manufacture, and servicing of engineered products and solutions for utility, industrial, and residential and commercial building services settings worldwide. It operates through Water Infrastructure; Applied Water; Measurement and Control Solutions; and Water Solutions and Services segments. The company offers water, wastewater, and storm water pumps and controls and systems; filtration, disinfection, and biological treatment equipment under the Flygt, Ionpure, Leopold, Neptune Benson, Sanitare, Wallace & Tiernan, and Wedeco brands; and pumps, valves, heat exchangers, controls, and dispensing equipment used for water and focuses on the residential, commercial and industrial markets under the Rule, Bell & Gossett, Flojet, Goulds Water Technology, Jabsco, and Lowara brands.…

Historical context

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
  3. Polygon adjusted daily market bars · 2026-10-05T17:10:42.792934+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-05T17:10:42.789826+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-10-05. For educational purposes only; not investment advice.