Xylem Q2 2026: gross margin jumps to 41.2%, orders rise 42%
Xylem's second quarter was strong where it counts: revenue rose 2.0% to $2.34 billion, gross margin jumped to 41.2%, and adjusted EPS of $1.46 beat the $1.3508 consensus. The bull case now rests on orders of $3.1 billion, up 42%, rather than on modest reported growth. Read the margin and order lines first; the full-year revenue guide was trimmed slightly while the profit guide went up.
1 · Expected vs. Actual
Free preview belowGAAP EPS was $1.11, up 19% from $0.93, while adjusted EPS of $1.46 was up 16% and beat the $1.3508 analyst consensus. The gap between the two numbers is mostly purchase accounting intangible amortization of $52 million, restructuring and realignment costs of $15 million, and a $16 million loss on the sale of businesses. A smaller share count helped: diluted shares fell to 236.6 million from 243.9 million.
Revenue of $2.336 billion was up 2.0% from $2.301 billion a year earlier, but only 1.0% once currency and deal effects are stripped out. The quality of the growth is much better than the quantity: gross margin landed at 41.2% and operating income rose to $390 million from $305 million.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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