Analyst Consensus ?
ConsensusHold39 ratings
Bullish1948.7%
Neutral1948.7%
Bearish12.6%
Xylem Inc. · XYL · FY2026 Q1 · Calendar Q2 2026
Xylem Q1 2026: EPS Beat, Flat Revenue, $850M Outsourced Water Contract
Xylem delivered a solid Q1 2026 with EPS above consensus despite essentially flat revenue, driven by margin expansion and operational discipline. The quarter's standout items — an $850M 20-year outsourced water contract, a $219M German sensor acquisition, and an 8% dividend increase with a $1.5B buyback — signal management's confidence in the business trajectory. However, the market reacted negatively, with the stock down 4.5% on the report and drifting 6.6% lower subsequently, suggesting investors may have expected stronger top-line growth or faster margin progression toward the full-year 22.9-23.0% EBITDA target.
Reported Before market openNYSEIndustrials
$29.03B market cap
100quality score
Company context
Snapshot as of publicationXylem 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.…
Earnings scorecard
Reported versus consensus
Reported EPS
$1.12
Consensus $1
EPS surprise
+3.7%
Reported versus consensus
Reported revenue
$2.12B
Consensus $2.11B
Revenue surprise
+0.7%
Reported versus consensus
Earnings History
Estimate
Beat
Miss
Match
Analyst 52W Price Targets
$117.61Current
$107Low
$149.28Average
$170High
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Jul 30, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| Stifel | Buy | Buy | Maintain | Jul 29, 2026 |
| RBC Capital | Outperform | Outperform | Maintain | Jul 29, 2026 |
| Mizuho | Neutral | Neutral | Maintain | Jul 29, 2026 |
| Barclays | Overweight | Overweight | Maintain | Jul 29, 2026 |
| Baird | Outperform | Outperform | Maintain | Jul 29, 2026 |
| Jefferies | Buy | Hold | Upgrade | Jun 25, 2026 |
| UBS | Neutral | Neutral | Maintain | Apr 29, 2026 |
| Oppenheimer | Outperform | Outperform | Maintain | Apr 29, 2026 |
| Citigroup | Buy | Buy | Maintain | Apr 29, 2026 |
| JP Morgan | Overweight | Overweight | Maintain | Apr 16, 2026 |
| TD Cowen | Hold | Hold | Maintain | Dec 5, 2025 |
| Wolfe Research | Peer Perform | Outperform | Downgrade | Dec 12, 2024 |
| Argus Research | Buy | Buy | Maintain | May 29, 2024 |
| Deutsche Bank | Buy | Hold | Upgrade | Nov 21, 2023 |
| Melius Research | Buy | Hold | Upgrade | Oct 2, 2023 |
| Cowen & Co. | Outperform | Outperform | Maintain | Feb 14, 2023 |
| Morgan Stanley | Overweight | Overweight | Maintain | Jan 18, 2023 |
| Raymond James | Underperform | Market Perform | Downgrade | Jan 4, 2023 |
| Atlantic Equities | Overweight | Neutral | Upgrade | Nov 16, 2022 |
| Goldman Sachs | Neutral | Neutral | Maintain | Nov 3, 2022 |
| Credit Suisse | Neutral | Neutral | Maintain | Nov 2, 2022 |
| Rosenblatt | Hold | Buy | Downgrade | Oct 1, 2021 |
| Janney Montgomery Scott | Neutral | Neutral | Maintain | Jun 3, 2020 |
| Janney Capital | Neutral | Neutral | Maintain | Jun 3, 2020 |
| Canaccord Genuity | Hold | Hold | Maintain | Feb 7, 2020 |
| Seaport Global | Neutral | Buy | Downgrade | Nov 4, 2019 |
| Stifel Nicolaus | Buy | Buy | Maintain | May 3, 2019 |
| BMO Capital | Outperform | Outperform | Maintain | Oct 31, 2018 |
| Vertical Research | Hold | Sell | Upgrade | Oct 18, 2018 |
| Boenning & Scattergood | Neutral | Outperform | Downgrade | Nov 28, 2016 |
| Wedbush | Neutral | Outperform | Downgrade | Apr 11, 2016 |
| Sterne Agee CRT | Buy | Neutral | Upgrade | Apr 5, 2016 |
| Sterne Agee | Buy | Neutral | Upgrade | Apr 5, 2016 |
| DA Davidson | Neutral | Neutral | Maintain | Oct 29, 2014 |
| Keybanc | Hold | Buy | Downgrade | Oct 30, 2013 |
| Brean Capital | Buy | Hold | Upgrade | Oct 29, 2013 |
| BB&T Capital | Hold | Buy | Downgrade | Jul 30, 2013 |
| CL King | Neutral | Buy | Downgrade | Apr 15, 2013 |
| Ladenburg Thalmann | Neutral | Buy | Downgrade | Oct 18, 2012 |
Named analyst price targets
Upside is calculated against the persisted current price $117.6. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| Mizuho Securities | Analyst unavailable | $130 | $124.97 | +10.5% | Jul 29, 2026 |
| Stifel Nicolaus | Analyst unavailable | $160 | $124.97 | +36.0% | Jul 29, 2026 |
| Robert W. Baird | Michael Halloran | $165 | $124.97 | +40.3% | Jul 29, 2026 |
| Barclays | Analyst unavailable | $159 | $124.97 | +35.2% | Jul 29, 2026 |
| Stifel Nicolaus | Analyst unavailable | $157 | $122.78 | +33.5% | Jul 20, 2026 |
| RBC Capital | Analyst unavailable | $159 | $124.53 | +35.2% | Jul 16, 2026 |
| Jefferies | Stephen Volkmann | $140 | $112.04 | +19.0% | Jun 25, 2026 |
| UBS | Analyst unavailable | $133 | $116.4 | +13.1% | Apr 29, 2026 |
| Oppenheimer | Bryan Blair | $158 | $116.4 | +34.3% | Apr 29, 2026 |
| Stifel Nicolaus | Analyst unavailable | $159 | $117.91 | +35.2% | Apr 29, 2026 |
| Barclays | Analyst unavailable | $154 | $117.91 | +30.9% | Apr 29, 2026 |
| UBS | Analyst unavailable | $132 | $120.46 | +12.2% | Apr 21, 2026 |
| Stifel Nicolaus | Nathan Jones | $163 | $128.85 | +38.6% | Apr 14, 2026 |
| UBS | Joshua Spector | $152 | $129.4 | +29.2% | Apr 9, 2026 |
| UBS | Joshua Spector | $155 | $128.2 | +31.8% | Feb 13, 2026 |
| Oppenheimer | Analyst unavailable | $165 | $127.02 | +40.3% | Feb 12, 2026 |
| Goldman Sachs | Analyst unavailable | $158 | $126.77 | +34.3% | Feb 11, 2026 |
| Mizuho Securities | Analyst unavailable | $138 | $128.18 | +17.3% | Feb 11, 2026 |
| Stifel Nicolaus | Analyst unavailable | $175 | $128.92 | +48.8% | Feb 11, 2026 |
| Robert W. Baird | Analyst unavailable | $161 | $128.92 | +36.9% | Feb 11, 2026 |
| Barclays | William Grippin | $166 | $141.33 | +41.2% | Jan 7, 2026 |
| Mizuho Securities | Brett Linzey | $150 | $137.11 | +27.5% | Jan 5, 2026 |
| Stifel Nicolaus | Analyst unavailable | $178 | $153.42 | +51.4% | Oct 29, 2025 |
| Argus Research | Analyst unavailable | $170 | $153.4 | +44.6% | Oct 29, 2025 |
| Mizuho Securities | Brett Linzey | $160 | $150.5 | +36.0% | Oct 29, 2025 |
| RBC Capital | Analyst unavailable | $176 | $153.48 | +49.7% | Oct 29, 2025 |
| Robert W. Baird | Michael Halloran | $178 | $153.48 | +51.4% | Oct 29, 2025 |
| Barclays | William Grippin | $172 | $150.5 | +46.3% | Oct 29, 2025 |
| Barclays | Analyst unavailable | $165 | $142.18 | +40.3% | Sep 18, 2025 |
| UBS | Analyst unavailable | $168 | $143.61 | +42.9% | Aug 5, 2025 |
| UBS | Damian Karas | $165 | $127.5 | +40.3% | Aug 13, 2024 |
| Robert W. Baird | Michael Halloran | $170 | $133.48 | +44.6% | Jul 31, 2024 |
| Oppenheimer | Bryan Blair | $152 | $139.4 | +29.2% | May 31, 2024 |
| Argus Research | John Eade | $165 | $140.36 | +40.3% | May 29, 2024 |
| Mizuho Securities | Brett Linzey | $135 | $135.99 | +14.8% | May 3, 2024 |
| RBC Capital | Deane Dray | $162 | $135.99 | +37.7% | May 3, 2024 |
| Robert W. Baird | Michael Halloran | $155 | $135.99 | +31.8% | May 3, 2024 |
| Wolfe Research | Brad Hewitt | $143 | $128.27 | +21.6% | Apr 8, 2024 |
| RBC Capital | Deane Dray | $153 | $127.25 | +30.1% | Apr 4, 2024 |
| Stifel Nicolaus | Nathan Jones | $133 | $99.8 | +13.1% | Aug 18, 2023 |
| Citigroup | Analyst unavailable | $121 | $106.85 | +2.9% | Feb 8, 2023 |
| Citigroup | Analyst unavailable | $123 | $111.23 | +4.6% | Dec 9, 2022 |
| Atlantic Equities | Richard Radbourne | $129 | $112.13 | +9.7% | Nov 16, 2022 |
| Loop Capital Markets | Scott Graham | $120 | $127.19 | +2.0% | Nov 22, 2021 |
| Argus Research | John Eade | $150 | $129.82 | +27.5% | Nov 12, 2021 |
| Citigroup | Andrew Kaplowitz | $131 | $125.7 | +11.4% | Aug 4, 2021 |
| Goldman Sachs | Brian K. Lee | $107 | $116.2 | -9.0% | May 5, 2021 |
Track every rating change on XYL the moment it posts. Free to start.
Start freeMarket reaction
prior-close to event-session close
Stock move
-4.5%
Event window
SPY move
-0.5%
Same window
Abnormal move
-4.0%
Stock minus SPY
Volume
1.4×
Versus trailing sessions
Subsequent drift
-6.6%
Up to 20 sessions
XYLSPY benchmark
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Try FN2 freeTranscript intelligence
What changed
EPS of $1.12 beat the $1.08 consensus by 3.7%; revenue of $2.125B slightly exceeded the $2.11B estimate. EBITDA margin expanded to 20.6% despite flat revenue. Backlog grew from $4.6B to $4.7B with book-to-bill above 1. The company signed an $850M 20-year outsourced water services contract — the largest in its history. A German submersible water-quality sensor company was acquired for $219M. The dividend was raised approximately 8% and a $1.5B share repurchase authorization was approved. The international metering divestiture was delayed from Q1 to end of Q2 due to regulatory approval. Full-year revenue guidance was lifted from $9.1-$9.2B to $9.2-$9.3B; EPS guidance remained unchanged.
Guidance delta
Full-year revenue guidance lifted to $9.2-$9.3B (from $9.1-$9.2B), implying 2-3% organic growth. Full-year EPS guidance unchanged. EBITDA margin guidance unchanged at 22.9-23.0%.
Key takeaways
- EPS of $1.12 beat the $1.08 consensus by 3.7% on essentially flat revenue of $2.13B, demonstrating margin discipline and operational leverage.
- The $850M 20-year outsourced water services contract — the largest in company history — validates the Water Solutions & Services growth thesis and extends recurring revenue.
- Backlog grew from $4.6B to $4.7B with book-to-bill above 1, indicating continued demand visibility.
- Capital return accelerated: 8% dividend hike and $1.5B share repurchase authorization, alongside the $219M German sensor acquisition.
- The international metering divestiture was delayed from Q1 to end of Q2 due to regulatory approval — a timing issue, not a strategic reversal.
- China and Western Europe remain weak spots pressuring segment revenue.
Management priorities
- Integrate the German water-quality sensor business and capture revenue synergies
- Pursue additional high-margin M&A opportunities at approximately $1B annual pipeline
- Complete the international metering divestiture by end of Q2 2026
- Expand digital and service offerings around the large outsourced water contract
- Continue disciplined capital allocation across dividends, buybacks, and strategic capex
Related earnings events
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Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
- Polygon adjusted daily market bars · 2026-07-30T14:01:15.348789+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-30T14:01:15.344970+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 . For educational purposes only; not investment advice.