Xylem Earnings Preview: What to Expect

Washington, District of Columbia-based Xylem Inc. (XYL) engages in the design, manufacture, and servicing of engineered products and solutions for utility, industrial, residential, and commercial building services settings worldwide. The company has a market cap of $23.8 billion and operates through the Water Infrastructure; Applied Water; Measurement and Control Solutions; and Water Solutions and Services segments. XYL is expected to release its Q3 2026 earnings on Tuesday, October 27, before the market opens. 

Ahead of this event, analysts anticipate the company will generate earnings of $1.47 per share, representing a rise of 7.3% from $1.37 per share reported in the same quarter last year. The company has met or surpassed the Street’s bottom-line estimates in each of the past four quarters.

For fiscal 2026, analysts expect the company to report an EPS of $5.66, indicating a 11.4% rise from $5.08 reported in fiscal 2025. Moreover, its EPS is expected to rise nearly 9.5% year over year (YoY) to $6.20 in fiscal 2027. 

XYL stock has declined 31.3% over the past 52 weeks, underperforming the S&P 500 Index’s ($SPX) 16.2% rise and the State Street Industrial Select Sector SPDR ETF’s (XLI) 8.8% rise during the same time frame.   

On July 28, XYL stock rose 4% following the release of its Q2 2026 earnings. The company’s revenue for the quarter amounted to $2.3 billion and surpassed the Street’s estimates. Moreover, its adjusted EPS for the period also came in at $1.46, topping the consensus estimates. The company expects its full-year EPS to be in the range of $5.55 to $5.70. Despite an upbeat earnings beat in the quarter, the company’s revenue guidance for the whole year came in at $9.2 billion, below what analysts expected. 

Analysts’ consensus opinion on the stock is moderately bullish, with a “Moderate Buy” rating overall. Of the 20 analysts covering the stock, 11 recommend a “Strong Buy,” one suggests a “Moderate Buy,” and eight rate it a “Hold.” XYL’s average analyst price target is $147.50, indicating an upside of 44.9% from the current levels.