Xylem (XYL) is trading higher Tuesday, April 28, 2026, after first-quarter results showed a modest earnings beat and management lifted the company’s full-year revenue outlook. The combination of better-than-expected adjusted profit and a higher top-line forecast is outweighing a slight revenue miss versus consensus estimates.

For the quarter ended March 31, 2026, Xylem reported revenue of $2.125 billion (up 3% year over year) and net income attributable to Xylem of $193 million. Diluted EPS was $0.79, while adjusted diluted EPS was $1.12 (up 9%), with an adjusted EBITDA margin of 20.6%.

Xylem raised its full-year 2026 reported revenue guidance to $9.2–$9.3 billion. The company reiterated its full-year 2026 adjusted EPS guidance of $5.35–$5.60 and maintained its free cash flow margin outlook of about 10.2%–11.0%.

After the initial reaction to the print, investors will focus on whether the higher revenue outlook can translate into sustained margin expansion through the rest of 2026, particularly given the quarter’s flat organic growth and the company’s emphasis on maintaining profitability. Any incremental commentary from management on demand trends across water infrastructure and applied water end markets is likely to set the tone for the next leg of the stock’s move.