01—Abstract
Summary
Summary of the 8-K filed April 28, 2026. Cited figures are marked; the original filing is the authoritative source.
Xylem Inc. reported first-quarter 2026 results on April 28, 2026, via a press release furnished as Exhibit 99.1.
Revenue was $2.1 billiona ($2,125 million), up 3% on a reported basis but flat organically. Orders were $2.2 billion ($2,228 million), also up 3% reported and flat organically. Net income attributable to Xylem was $193 million, or $0.79 per diluted share, compared with $169 million, or $0.69, a year earlier.
Adjusted net income attributable to Xylem was $272 millionb, or $1.12 per share, up 9% from $1.03. The reported EPS gain was helped by a reduction in the estimated loss on sale of businesses, partly offset by higher restructuring and realignment costs. Adjusted EBITDA margin was 20.6% in the quarter, up 20 basis points year over year, with productivity savings and price realization exceeding the effects of inflation, mix and lower volumes.
Operating cash flow was $108 millionc, against $33 million a year earlier, and capital expenditures were $90 million. The company repurchased $563 million of common stock during the quarter, and treasury stock rose to $1,368 million from $768 million at year-end 2025. Cash and cash equivalents fell to $808 million from $1,479 million at December 31, 2025.
For full-year 2026, Xylem raised its reported revenue guidance to approximately $9.2 to $9.3 billiond, up roughly 2% to 3% on a reported basis from the prior 1% to 3%. Organic growth guidance of 2% to 4% was unchanged, and adjusted EPS guidance of $5.35 to $5.60 was reaffirmed. The company also expects an adjusted EBITDA margin of 22.9% to 23.3% and a free cash flow margin of 10.2% to 11.0%.
02—Key points
Key Highlights
- Revenue of $2.1 billion ($2,125 million), up 3% reported and flat organically; orders of $2.2 billion, up 3% reported and flat organically.
- GAAP diluted EPS of $0.79, up from $0.69; adjusted EPS of $1.12, up 9% from $1.03.
- Adjusted EBITDA margin of 20.6%, up 20 basis points year over year, driven by productivity savings and price realization.
- Full-year 2026 reported revenue guidance raised to approximately $9.2 to $9.3 billion (up 2% to 3%, from 1% to 3%); adjusted EPS guidance of $5.35 to $5.60 maintained.
- Repurchased $563 million of common stock in Q1 2026, versus $13 million a year earlier; cash fell to $808 million from $1,479 million at year-end 2025.
- Operating cash flow of $108 million versus $33 million in the prior-year quarter; capital expenditures of $90 million.
03—Questions
Frequently Asked Questions
Did Xylem grow in the first quarter of 2026?
On a reported basis, revenue rose 3% to $2.1 billion and orders rose 3% to $2.2 billion. Organically, both were flat, so the reported growth came from currency and other non-organic effects rather than underlying volume and pricing gains.
Why did reported EPS rise more than adjusted results?
GAAP EPS increased 14% to $0.79, helped by a smaller estimated loss on the sale of businesses, which offset higher restructuring and realignment costs. Adjusted EPS, which excludes those items along with purchase accounting amortization, rose 9% to $1.12.
Did Xylem change its 2026 outlook?
Xylem raised its reported revenue forecast to about $9.2 to $9.3 billion, up 2% to 3%, from a prior 1% to 3%. Organic revenue growth guidance of 2% to 4% and adjusted EPS guidance of $5.35 to $5.60 were unchanged.
How much did Xylem return to shareholders and how did its cash position change?
The company repurchased $563 million of stock and paid $106 million in dividends in the quarter. Cash and equivalents fell to $808 million from $1,479 million at year-end 2025, while treasury stock increased to $1,368 million.
04—Continue