Access comprehensive financial analyses and make smarter investments - get the Manual of Investments on Amazon!

XYL

Xylem Reports Strong Q1 Growth, Raises Full-Year Outlook

Xylem reported first-quarter 2026 orders of $2.2 billion, up 3% from a year earlier, with organic orders flat. Revenue rose 3% to $2.1 billion, while organic revenue was unchanged.

Net income attributable to Xylem was $193 million, or $0.79 per share, up 14% from the prior year on a per-share basis. Adjusted net income was $272 million, or $1.12 per share, up 9%.

Net income margin increased 90 basis points to 9.1%. Adjusted EBITDA margin improved 20 basis points to 20.6%.

Xylem said productivity savings and price realization more than offset inflation, mix and lower volumes, helping drive the margin expansion.

For the full year, the company raised its reported revenue outlook to about $9.2 billion to $9.3 billion, from a prior range of 1% to 3% growth to a new range of 2% to 3% growth. Organic revenue growth guidance remained at 2% to 4%.

Adjusted EBITDA margin is now expected at 22.9% to 23.3%, up 70 to 110 basis points from 2025 adjusted results. Full-year adjusted earnings per share guidance remained at $5.35 to $5.60. Free cash flow margin was left unchanged at 10.2% to 11.0%. Following these announcements, the company's shares moved -0.19%, and are now trading at a price of $121.46. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

IN FOCUS