Xylem Cuts 2026 Revenue Outlook to $8.95 Billion, Adjusted EPS to $5.40-$5.45

Xylem lowered its 2026 revenue and adjusted earnings forecasts on Oct. 27, citing slower project ramps and utility affordability pressures as third-quarter reported revenue fell 3% year over year.

The company now expects reported revenue of about $8.95 billion, a 1% decline from 2025. Its previous forecast called for growth of about 2%. Xylem also cut its forecast for organic revenue to flat from expected growth of 2%-3%.

The 2026 adjusted earnings-per-share forecast is now $5.40-$5.45, down from $5.55-$5.70. Adjusted EPS is a non-GAAP measure.

Revenue for the quarter ended Sept. 30 was $2.201 billion, down 3% on a reported basis and flat organically. Orders increased 7% on a reported basis to $2.331 billion and rose 10% organically. Reported EPS was $1.25, up 34% from a year earlier, while adjusted EPS rose 5% to $1.44. Adjusted EBITDA margin was 23.9%, an increase of 70 basis points.

Xylem cited lower book-and-ship volume in Measurement and Control Solutions and slower project ramps in Water Solutions and Services. It also said more backlog was scheduled to ship in later periods. Affordability pressures affecting utility spending were another factor in the revised outlook.

“The resilience we’ve built, evident this quarter, allows us to make those choices deliberately and from a position of strength,” Xylem President and CEO Matthew Pine said.

Xylem plans to divest Applied Water International and Specialty Flow Control and move from four business segments to three beginning Jan. 1, 2027. The planned segments are Treatment and Services, Flow Solutions, and Measurement and Analytics. The planned changes aim to increase Xylem’s focus on markets such as data centers and microelectronics.