XYL · Xylem Inc.

Xylem Inc. delivered first-quarter 2026 results with revenue of $2.1 billion, up 3% on a reported basis and flat organically, driven by strong execution amid sustained momentum in key end markets. Orders reached $2.2 billion, also up 3% reported and flat organically, reflecting solid demand. GAAP net income attributable to Xylem rose to $193 million or $0.79 per share, a 14% increase, while adjusted EPS of $1.12 increased 9%, excluding loss on sale of businesses, purchase accounting amortization, restructuring costs, and special charges. Net income margin expanded 90 basis points to 9.1%, supported by operational performance and a reduced estimated loss on business sales, despite higher restructuring expenses. Adjusted EBITDA margin improved 20 basis points to 20.6%, fueled by productivity savings and price realization that more than offset inflation, mix shifts, and volume pressures. CEO Matthew Pine highlighted the company's multi-year operating transformation gaining traction through disciplined execution and customer focus. Balance sheet as of March 31, 2026, showed cash and equivalents at $808 million, down from $1,479 million at year-end due to $563 million in common stock repurchases and $106 million in dividends, with operating cash flow of $108 million. The company raised its full-year 2026 revenue outlook to approximately $9.2 to $9.3 billion, implying 2-3% reported growth versus prior 1-3% guidance, while maintaining organic growth at 2-4%. Adjusted EBITDA margin guidance expanded to 22.9-23.3%, up 70-110 basis points from 2025 adjusted results, supporting adjusted EPS of $5.35 to $5.60 and free cash flow margin of 10.2-11.0%. These updates signal confidence in ongoing transformation and market positioning.