Did Sherwin-Williams change its 2026 earnings guidance?

No. The company reaffirmed its full-year 2026 guidance: GAAP diluted EPS of $10.70 to $11.10 and adjusted diluted EPS of $11.50 to $11.90, which excludes $0.80 per share of Valspar amortization. It expects full-year net sales to rise a low to mid-single-digit percentage and will update guidance with second-quarter results in July.

What is driving the sales growth and how much came from the Suvinil acquisition?

Sales growth came from selling price increases, low-single-digit volume growth, the Suvinil acquisition (completed October 2025) and a 1.7% favorable foreign currency impact. The filing does not separately quantify Suvinil's contribution to consolidated sales, but it is the main driver of the Consumer Brands Group's 19.2% sales increase alongside favorable currency and European growth.

Why did margins and interest costs change?

Gross margin improved to 49.1% from 48.2% as raw material costs moderated and supply chain efficiencies helped. However, SG&A rose to 34.8% of sales from 33.8% due to sales-support costs, Suvinil expenses and new headquarters and technology center costs. Interest expense increased about 27% to $131.6 million, reflecting higher short-term borrowings and long-term debt.

What is management's outlook on demand and pricing?

Management expects little to no recovery in most end markets this year because of weak customer sentiment and geopolitical uncertainty. To offset expected inflation in raw materials, energy, logistics and packaging, it is raising prices across businesses and now expects full-year price/mix at the high end of its low-single-digit range, while also pursuing cost reductions and ready to add further price increases if needed.

How is the company's cash generation and capital allocation holding up?

Operating cash flow was $139.1 million in the quarter, well below the $772.7 million returned to shareholders via dividends and repurchases of 1.6 million shares. Capital expenditures were $138.3 million, down from $189.3 million a year earlier. Investors should monitor whether shareholder returns continue to exceed free cash flow as debt rises, since the company has 28.0 million shares remaining under its repurchase authorization.

SHW 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed April 28, 2026. Cited figures are marked; the original filing is the authoritative source.

The Sherwin-Williams Company (SHW) reported first quarter 2026 results that beat its own sales expectations, with consolidated Net sales up 6.8% to $5.67 billion^a, helped by the October 2025 Suvinil acquisition and a 1.7% favorable foreign currency impact.

Diluted EPS rose 7.5% to $2.15^b, while adjusted diluted EPS (excluding Valspar acquisition-related amortization) rose 4.4% to $2.35. Net income increased 6.1% to $534.7 million and EBITDA increased 8.8% to $998.2 million. Same-store sales in the Paint Stores Group grew 2.4%, and the Consumer Brands and Performance Coatings groups both posted higher segment profit.

Margin and cost picture was mixed. Gross margin expanded to 49.1% from 48.2%, but SG&A rose to 34.8% of sales from 33.8%, and interest expense climbed to $131.6 million^c from $103.8 million as borrowings increased. Management said it expects little to no recovery in most end markets this year, citing geopolitical uncertainty and potential inflation in raw materials, energy and logistics.

It is pursuing targeted price increases, now expected to push full-year price/mix to the high end of its low-single-digit range, and reaffirmed full-year 2026 adjusted diluted EPS guidance of $11.50 to $11.90^d and GAAP diluted EPS guidance of $10.70 to $11.10. Second-quarter net sales are expected to rise a mid-single-digit percentage. Balance sheet leverage increased, with long-term debt of $9.3 billion and short-term borrowings of $2.4 billion against shareholders' equity of $4.4 billion.

Cash returned to shareholders was $772.7 million, including dividends and repurchases of 1.6 million shares, while operating cash flow was only $139.1 million for the quarter. The company furnished this information under Item 2.02 and did not file it for liability purposes under the Exchange Act.

02—Key points

Key Highlights

Consolidated net sales rose 6.8% to $5.67 billion, with all three reportable segments contributing to growth and Suvinil adding to results.
Diluted EPS increased 7.5% to $2.15; adjusted diluted EPS rose 4.4% to $2.35, excluding Valspar amortization.
Paint Stores Group same-store sales grew 2.4%, with selling price increases and low-single-digit volume growth; segment profit rose 3.3%.
Consumer Brands Group net sales rose 19.2% and segment profit rose 49.5%, driven by the Suvinil acquisition, favorable currency and Europe.
Full-year 2026 guidance was reaffirmed: GAAP diluted EPS of $10.70 to $11.10 and adjusted diluted EPS of $11.50 to $11.90.
Interest expense rose to $131.6 million from $103.8 million, and long-term debt reached $9.3 billion, increasing financial leverage.
Operating cash flow was $139.1 million, while $772.7 million was returned to shareholders through dividends and buybacks, which is well above operating cash flow for the quarter.

03—Questions

Frequently Asked Questions

Did Sherwin-Williams change its 2026 earnings guidance?
No. The company reaffirmed its full-year 2026 guidance: GAAP diluted EPS of $10.70 to $11.10 and adjusted diluted EPS of $11.50 to $11.90, which excludes $0.80 per share of Valspar amortization. It expects full-year net sales to rise a low to mid-single-digit percentage and will update guidance with second-quarter results in July.
What is driving the sales growth and how much came from the Suvinil acquisition?
Sales growth came from selling price increases, low-single-digit volume growth, the Suvinil acquisition (completed October 2025) and a 1.7% favorable foreign currency impact. The filing does not separately quantify Suvinil's contribution to consolidated sales, but it is the main driver of the Consumer Brands Group's 19.2% sales increase alongside favorable currency and European growth.
Why did margins and interest costs change?
Gross margin improved to 49.1% from 48.2% as raw material costs moderated and supply chain efficiencies helped. However, SG&A rose to 34.8% of sales from 33.8% due to sales-support costs, Suvinil expenses and new headquarters and technology center costs. Interest expense increased about 27% to $131.6 million, reflecting higher short-term borrowings and long-term debt.
What is management's outlook on demand and pricing?
Management expects little to no recovery in most end markets this year because of weak customer sentiment and geopolitical uncertainty. To offset expected inflation in raw materials, energy, logistics and packaging, it is raising prices across businesses and now expects full-year price/mix at the high end of its low-single-digit range, while also pursuing cost reductions and ready to add further price increases if needed.
How is the company's cash generation and capital allocation holding up?
Operating cash flow was $139.1 million in the quarter, well below the $772.7 million returned to shareholders via dividends and repurchases of 1.6 million shares. Capital expenditures were $138.3 million, down from $189.3 million a year earlier. Investors should monitor whether shareholder returns continue to exceed free cash flow as debt rises, since the company has 28.0 million shares remaining under its repurchase authorization.

04—Continue

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