Xylem Q4 Sales Jump 6.3% to $2.4B, FY26 Guidance Falls Short
Xylem’s Q4 CY2025 revenue rose 6.3% year on year to $2.40 billion, beating estimates by 1.1%, while adjusted EPS of $1.42 topped consensus by 0.8%. Full-year revenue guidance midpoint of $9.15 billion falls 1.9% below analysts’ projections, and FY2026 adjusted EPS guidance of $5.48 misses by 1.3%.
1. Q4 CY2025 Financial Performance
Xylem delivered $2.40 billion in Q4 CY2025 revenue, up 6.3% year on year and 1.1% above analyst forecasts. Adjusted EPS reached $1.42, beating consensus by 0.8%, while adjusted EBITDA of $557 million generated a 23.2% margin, exceeding estimates by 2%.
2. Full-Year 2025 Guidance vs Expectations
For the full year 2025, Xylem set revenue guidance at a midpoint of $9.15 billion, which is 1.9% below Wall Street’s forecast. The company also projected FY2026 adjusted EPS of $5.48 at midpoint, missing estimates by 1.3%, signaling more conservative growth expectations.
3. Profitability and Cash Flow Metrics
Operating margin expanded to 14.7% from 11.8% a year earlier, reflecting improved cost efficiency. However, free cash flow margin dipped to 19.2% from 21.1%, highlighting a slight pullback in cash conversion despite 7% organic revenue growth.