Sherwin-Williams NYSE:SHW, a global producer of paints, coatings and specialty materials, jumped 5.6% in Tuesday's premarket trading after raising its annual profit forecast. The company now expects 2026 adjusted earnings between $11.80 and $12.20 per share, compared with its previous range of $11.50 to $11.90. The revised outlook exceeded the $11.76 analyst estimate even as demand remained subdued across many of the company's end markets.
Sherwin-Williams plans to increase prices by 8% across its Paint Stores Group beginning September 1. Management attributed the action to inflation affecting raw materials, energy, logistics and packaging, with supply-chain pressures increasing during the continuing U.S.-Israeli conflict with Iran. The company also expects second-quarter restructuring actions to generate approximately $17 million in annual savings. Sherwin-Williams raised its annual net-sales-growth expectation to a mid-to-high-single-digit range from its earlier low-to-mid-single-digit projection.
Second-quarter net sales increased 7.5% to $6.79 billion, supported by earlier pricing actions. Adjusted earnings reached $3.70 per share, exceeding the $3.52 analyst estimate. The midpoint of Sherwin-Williams' annual earnings forecast increased by $0.30 per share, while its planned 8% price increase may help defend margins against higher input costs. However, the company will still need to balance pricing with muted customer demand across construction, industrial and consumer markets. Investors may focus on whether customers accept the September increase without materially reducing purchase volumes, since that response could influence whether the upgraded profit forecast is achieved.