Water solutions firm Xylem Q3 revenue misses on project timing, cautious spending
XYL•Xylem’s third-quarter revenue fell 3% to $2.20 billion, below analyst expectations, while adjusted EPS was $1.44. The company lowered its 2026 revenue and adjusted EPS forecasts and plans to divest two business units.
1. Quarterly results
Xylem said third-quarter revenue fell 3% to $2.20 billion, below the $2.28 billion analyst consensus. Adjusted EPS was $1.44, also below expectations of $1.45; reported EPS was $1.25. The company cited project timing and more cautious spending decisions for the revenue decline.
2. Outlook and restructuring
Xylem lowered its 2026 revenue forecast to about $8.95 billion, down 1% year over year, and now expects adjusted EPS of $5.40 to $5.45, compared with its previous range of $5.55 to $5.70. It expects an adjusted EBITDA margin of about 23.2%, up 100 basis points from 2025, and plans to divest two business units and move to a three-segment structure in 2027.
3. Orders and margins
Third-quarter orders rose 7% as reported and 10% organically. Xylem said productivity savings and strong price realization drove margin expansion, offsetting inflation and lower volumes.
