Sherwin-Williams Narrows 2026 Adjusted EPS Outlook as Q3 Net Income Falls

Sherwin-Williams narrowed its 2026 adjusted diluted earnings-per-share outlook after third-quarter net income declined, as sales rose and gross margin slipped. The company also flagged muted demand through the rest of the year and into 2027.

For the three months ended Sept. 30, net sales reached $6.86 billion, up 7.9% from $6.3582 billion a year earlier. Net income fell 1.5% to $821 million from $833.1 million. Diluted EPS rose to $3.38 from $3.35, and adjusted diluted EPS increased to $3.63 from $3.59. Those gains were 0.9% and 1.1%, respectively. Gross margin was 47.8%, compared with 49.2% in the year-earlier quarter.

Price increases contributed a mid-single-digit percentage to sales growth. Results also included sales from Suvinil, which Sherwin-Williams acquired in October 2025. Paint Stores Group sales grew 4.7% to $4.0158 billion, and same-store sales rose 3.9%. Consumer Brands Group sales increased 21.7% to $937.4 million, while its segment profit declined 7.1% to $146.2 million. Performance Coatings Group sales climbed 8.8% to $1.9033 billion, and segment profit rose 6.2% to $255.2 million.

Sherwin-Williams attributed the lower gross margin to raw-material and supply-chain costs and product mix. The mix included dilution related to Suvinil and faster growth in lower-margin segments. Chair, President and CEO Heidi G. Petz said, “Customer sentiment and the leading indicators we track point to muted demand over the remainder of the year and into 2027.”

The company’s 2026 adjusted diluted EPS range is now $11.85 to $12.15, compared with $11.80 to $12.20 in July. Its diluted EPS outlook is $10.92 to $11.22, with the lower end unchanged and the upper end down from $11.32. The adjusted measure excludes $0.82 per share in Valspar acquisition-related amortization and $0.11 per share in severance and other restructuring expenses.

Sherwin-Williams kept its full-year sales growth outlook at mid- to high-single digits and expects fourth-quarter sales to increase at a mid-single-digit rate. The company issued its results at 7 a.m. ET on Oct. 27 and scheduled an earnings call for 10 a.m. ET that day.