Xylem Inc. (XYL), headquartered in Washington, District of Columbia, designs, manufactures, and services engineered products and solutions. With a market cap of $28.7 billion, the company's products include water and wastewater pumps, treatment and testing equipment, industrial pumps, valves, heat exchangers, and dispensing equipment. The leading global water technology company is expected to announce its fiscal second-quarter earnings for 2026 before the market opens on Tuesday, Jul. 28.
Ahead of the event, analysts expect XYL to report a profit of $1.34 per share on a diluted basis, up 6.4% from $1.26 per share in the year-ago quarter. The company has consistently surpassed or met Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect XYL to report EPS of $5.51, up 8.5% from $5.08 in fiscal 2025. Its EPS is expected to rise 9.6% year over year to $6.04 in fiscal 2027.
XYL stock has underperformed the S&P 500 Index’s ($SPX) 20.2% gains over the past 52 weeks, with shares down 9.7% during this period. Similarly, it underperformed the State Street Industrial Select Sector SPDR ETF’s (XLI) 21.2% gains over the same time frame.
XYL’s underperformance was driven by project timing delays in the Water Solutions and Services segment, continued weakness in China, and ongoing portfolio simplification efforts.
On Apr. 28, XYL shares closed down by 4.5% after reporting its Q1 results. Its adjusted EPS of $1.12 exceeded Wall Street expectations of $1.09. The company’s revenue was $2.13 billion, topping Wall Street forecasts of $2.11 billion. XYL expects full-year adjusted EPS in the range of $5.35 to $5.60, and revenue in the range of $9.2 billion to $9.3 billion.
Analysts’ consensus opinion on XYL stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 22 analysts covering the stock, 13 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and eight give a “Hold.” XYL’s average analyst price target is $147.29, indicating a potential upside of 24.2% from the current levels.
