01—Abstract
Summary
Summary of the 10-Q filed April 28, 2026. Cited figures are marked; the original filing is the authoritative source.
Sherwin-Williams Company reported a solid first quarter for 2026, with consolidated net sales increasing by 6.8% to $5.667 billiona, driven by growth across all reportable segments.
This top-line expansion, aided by a 1.7% favorable foreign currency impact and the inclusion of the October 2025 Suvinil acquisition, translated into a 7.5% increase in diluted net income per share to $2.15b. The company also demonstrated an improved cash flow generation, with net operating cash turning positive at $139.1 million, a significant improvement from the prior year's usage. This performance reflects the company's ongoing execution of its "Success by Design" strategy amidst an uncertain demand environment, with a continued focus on pricing, cost management, and strategic investments.
The company maintains a strong financial position with $216.9 millionc in cash and substantial unused credit capacity. Despite persistent demand uncertainty and potential inflationary pressures, Sherwin-Williams is actively managing its business through pricing adjustments and cost-saving initiatives.
The company also continues to prioritize shareholder returns through dividends and share repurchases, while strategically pursuing acquisitions that align with its long-term growth objectives. The positive financial results and robust outlook underscore Sherwin-Williams' resilience and strategic positioning in the market.
02—Key points
Key Highlights
- Consolidated Net sales grew 6.8% year-over-year to $5.667 billion, driven by increases across all reportable segments and favorable foreign currency translation.
- Diluted net income per share rose 7.5% to $2.15, compared to $2.00 in the prior year period, demonstrating improved profitability.
- Net operating cash flow turned positive, reaching $139.1 million, a substantial improvement from a usage of $61.1 million in Q1 2025, highlighting enhanced cash generation capabilities.
- The Paint Stores Group saw a 3.7% increase in net sales, with same-store sales up 2.4%, indicating steady performance in its core retail operations.
- The Consumer Brands Group experienced significant growth of 19.2% in net sales, largely attributed to the acquisition of Suvinil and favorable currency movements.
- Gross profit margin improved to 49.1% from 48.2% in the prior year, driven by higher sales, moderating raw material costs, and efficiencies from acquisitions.
- The company maintained strong liquidity with $216.9 million in cash and cash equivalents and $2.443 billion in unused credit facilities.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 28, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $5.67B$5.31B | +6.8% |
| Cost of Revenue | $2.89B$2.75B | +5.1% |
| Gross Profit | $2.78B$2.56B | +8.7% |
| SG&A Expenses | $1.97B$1.79B | +9.8% |
| Net Income | $534.70M$503.90M | +6.1% |
| EPS (Basic) | $2.18$2.02 | +7.9% |
| EPS (Diluted) | $2.15$2.00 | +7.5% |
| Shares Outstanding (Basic) | 245.70M249.40M | −1.5% |
| Shares Outstanding (Diluted) | 248.10M252.50M | −1.7% |
05—Questions
Frequently Asked Questions
What were the primary drivers of revenue growth in the first quarter of 2026?
Revenue growth was primarily driven by higher net sales across all reportable segments, including the Paint Stores Group (3.7%), Consumer Brands Group (19.2%), and Performance Coatings Group (6.5%). This growth was supported by selling price increases, sales volume growth, the acquisition of Suvinil, and a favorable foreign currency translation impact of 1.7%.
How did the company's profitability change compared to the previous year?
Profitability improved significantly. Diluted net income per share increased by 7.5% to $2.15. The gross profit margin also expanded to 49.1% from 48.2%, attributed to higher sales, moderating raw material costs, and efficiencies gained from acquisitions.
What is the company's current financial health and liquidity position?
Sherwin-Williams maintains a strong financial position and liquidity. As of March 31, 2026, the company had $216.9 million in cash and cash equivalents and $2.443 billion in unused capacity under its credit facilities, indicating ample resources to fund operations and strategic initiatives.
How did the acquisition of Suvinil impact the financial results?
The acquisition of Suvinil, which closed in October 2025, had a substantial positive impact, particularly on the Consumer Brands Group, contributing significantly to its 19.2% net sales growth. It also increased cost of goods sold and SG&A expenses, but the overall impact on gross profit and net income was positive due to its integration into the company's operations.
06—Continue