Xylem reported second-quarter 2026 results with revenue of $2.336 billion and net income attributable to Xylem of $263 million (diluted EPS $1.11). Adjusted diluted EPS for the quarter was $1.46 and adjusted EBITDA margin for Q2 was 23.3%. The company raised its full-year adjusted EPS guidance to $5.55–$5.70 while forecasting approximately $9.2 billion in revenue for 2026.

Financial Highlights

  • Total revenue: $2,336 million for Q2 2026 (Q2 2025: $2,301 million).
  • Gross profit: $963 million for Q2 2026 (gross margin implied by reported figures shown in release).
  • Operating income: $390 million for Q2 2026.
  • Net income attributable to Xylem: $263 million for Q2 2026; diluted EPS $1.11.
  • Adjusted diluted EPS: $1.46 for Q2 2026; Q2 adjusted EBITDA margin: 23.3%.

Business Highlights

  • Orders grew strongly: Q2 orders of $3.086 billion, up 42% reported and 41% organically, driven by broad demand across end markets.
  • Management cited strengthening demand from utilities and industrial customers, including increased strategic water needs tied to AI infrastructure, semiconductors, power generation, mining, food & beverage and life sciences.
  • Operational performance benefited from productivity savings, price realization and favorable mix that drove margin expansion versus prior year, despite inflation and lower volumes.
  • Portfolio focus and strategic positioning over recent years contributed to a resilient municipal foundation and increasing exposure to attractive industrial markets.
  • Company guidance updated: full-year 2026 revenue ~ $9.2 billion and full-year free cash flow margin expected ~10.2–11.0% (with adjusted EBITDA margin ~23.1–23.5%).

Original SEC Filing:

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