Xylem Inc. (XYL) Earnings Call Transcripts

Xylem Inc.'s Latest Earnings Call - Q3 FY2026

In the third quarter of fiscal year 2026, Xylem Inc. reported revenue of $8.95 billion, reflecting a decline of approximately 1% year-over-year, and adjusted EPS of $1.44, which was a 5% increase compared to the previous year. Management lowered full-year revenue guidance from a prior expectation of 2-3% growth to flat year-over-year, citing slower revenue conversion from strong order growth and cautious utility spending. The company announced plans to divest Applied Water International and Specialty Flow Control, which are noncore to its long-term strategy, aiming to sharpen focus on higher-growth markets.

Reported metrics

Guidance from management

Management has lowered full-year revenue guidance to approximately $8.95 billion, expecting flat organic revenue growth. Fourth quarter revenue is anticipated to decline roughly 5%, with EPS guidance set at $1.39 to $1.44.

What management said

And Joe, on the MCS margin profile, 1 of the biggest drivers of the margin profile that will benefit MCS is on the international metrology divestiture. And then also, as I mentioned, on water projects, water metering backlog was up sequentially, and it's up year-over-year. So we continue to see strength on water metering. It's just that book and ship business in the near term. Mix will be the biggest driver or variab...

No, great question. And as a reminder as well, we'll be closing the Cornell & Roper acquisition in Q4 too, which will be adding additional revenue, and that's accretive to our growth in margin as well. And then we continue on our transformation. So we will still continue to have benefits from structural cost actions as 80/20 continues to be embedded in our operating model.

What analysts pressed on

Analysts expressed concerns about the timing of project conversions and the potential for continued softness in utility spending. Questions were raised regarding how these factors might impact revenue in the first half of 2027, as well as the implications of the divestitures on future growth.

Main topics on the call

• Revenue Guidance Reduction — Management reduced full-year revenue guidance to approximately $8.95 billion, down from previous expectations of 2-3% growth, now forecasting flat organic revenue. Andrea van Berg stated, "We expect fourth quarter revenu...
• Strong Order Growth — Despite revenue challenges, Xylem reported a 10% increase in orders year-over-year, with a backlog of $5.5 billion, up 13%. Matthew Pine noted, "Demand for water infrastructure and technology remains strong, which was ev...
• Divestiture Announcement — Xylem plans to divest Applied Water International and Specialty Flow Control, which represent approximately 9% of revenue but less than 5% of EBITDA. This move is aimed at focusing on higher-margin, higher-growth markets...
• Operational Resilience — Xylem's operational model allowed it to maintain an EBITDA margin of 23.9%, up 70 basis points year-over-year, despite revenue challenges. Andrea van Berg emphasized, "Through productivity improvements and price, we more...

Read the full Xylem Inc. transcript (Q3 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 49 Xylem Inc. earnings call transcripts on record, spanning February 6, 2020 to October 27, 2026. Based on this history, Xylem Inc. reports quarterly. The most recent call on file is dated October 27, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

XYL

Exchange

NYSE

Country

US

Sector

Industrials

Industry

Machinery

Calls on record

49

First call

February 6, 2020

Most recent

October 27, 2026

Reporting cadence

quarterly