01—Abstract
Summary
Summary of the 8-K filed July 28, 2026. Cited figures are marked; the original filing is the authoritative source.
Xylem Inc. (NYSE: XYL) reported second-quarter 2026 results for the quarter ended June 30, 2026, in a press release furnished as Exhibit 99.1 to this Form 8-K.
Revenue was $2.3 billiona, up 2% on a reported basis and 1% organically, while orders were $3.1 billion, up 42% on a reported basis and 41% organically. Net income attributable to Xylem was $263 million, or $1.11 per share, up 19% per share on a reported basis; adjusted EPS was $1.46, up 16%. Management attributed the results to strong operational performance and lower restructuring and realignment costs, partially offset by higher income tax expense and a loss on sale of businesses.
Xylem raised its full-year 2026 adjusted EPS guidance to $5.55 to $5.70b, up from $5.35 to $5.60. It now forecasts full-year revenue of approximately $9.2 billion, up approximately 2% on a reported basis (previously 2 to 3%), and organic growth of approximately 2 to 3% (previously 2 to 4%). The adjusted EBITDA margin outlook is 23.1% to 23.5%, and the free cash flow margin outlook is still 10.2% to 11.0%.
On the balance sheet, cash and cash equivalents were $1.28 billionc at June 30, 2026, and long-term debt rose to $2.40 billion from $1.41 billion at year-end 2025. Treasury stock increased to $2.02 billion from $768 million, reflecting $1.24 billion of common stock repurchases in the first half of 2026. Second-quarter adjusted EBITDA margin was 23.3%, up 150 basis points year over year.
02—Key points
Key Highlights
- Q2 2026 revenue of $2.34 billion rose 2% reported and 1% organically; Q2 orders of $3.09 billion rose 42% reported and 41% organically.
- Q2 GAAP EPS of $1.11 rose 19% from $0.93; adjusted EPS of $1.46 rose 16% from $1.26.
- Full-year 2026 adjusted EPS guidance raised to $5.55–$5.70 from $5.35–$5.60.
- Full-year 2026 revenue outlook narrowed to approximately $9.2 billion, up approximately 2% reported (previously 2–3%) and 2–3% organic (previously 2–4%).
- Q2 adjusted EBITDA margin of 23.3% expanded 150 basis points year over year, driven by productivity savings and price realization.
- Share repurchases of $1.24 billion in the first half of 2026 compared with $13 million in the prior-year period, and long-term debt increased to $2.40 billion from $1.41 billion, with $990 million of long-term debt issued.
- Q2 GAAP net income margin rose 150 basis points to 11.3%, helped by lower restructuring and realignment costs.
03—Questions
Frequently Asked Questions
How did Xylem perform in the second quarter of 2026?
Revenue was $2.3 billion, up 2% on a reported basis and 1% organically. Net income attributable to Xylem was $263 million, or $1.11 per share, and adjusted EPS was $1.46. Orders were $3.1 billion, up 42% reported and 41% organically.
What changed in Xylem's full-year 2026 guidance?
Adjusted EPS guidance was raised to $5.55–$5.70 from $5.35–$5.60. Revenue is now forecast at approximately $9.2 billion, up approximately 2% reported versus 2–3% previously, and organic growth is 2–3% versus 2–4% previously. The adjusted EBITDA margin is expected at 23.1%–23.5%, and the free cash flow margin outlook is unchanged at 10.2%–11.0%.
What drove the margin improvement?
The filing states that productivity savings, strong price realization and mix drove the second-quarter adjusted EBITDA margin expansion, which exceeded the impact of inflation and lower volumes. GAAP net income also benefited from lower restructuring and realignment costs.
How is Xylem using its capital?
In the first half of 2026, Xylem repurchased $1.24 billion of common stock and paid $207 million in dividends. It issued $990 million of long-term debt, and long-term debt on the balance sheet rose to $2.40 billion at June 30, 2026, from $1.41 billion at December 31, 2025.
What did management say about demand drivers?
CEO Matthew Pine said the demand drivers continue to strengthen and that water is becoming increasingly strategic for utilities and industrial customers. He cited growth of AI infrastructure and increasing demand in food and beverage and life sciences as broadening the opportunity set.
04—Continue