Key Highlights

  • Xylem lowered 2026 adjusted EPS guidance to $5.40 to $5.45 from $5.55 to $5.70, even as organic orders rose 10%.
  • Sherwin-Williams narrowed its 2026 adjusted EPS range to $11.85 to $12.15, leaving the midpoint at $12.00 (calculated).
  • PPG narrowed 2026 adjusted EPS guidance to $7.90 to $8.10 from $7.70 to $8.10, lifting the low end by $0.20.
  • Armstrong World Industries trimmed its adjusted EPS range to $8.30 to $8.40 from $8.30 to $8.50.
  • Logitech guided third-quarter sales to $1,360 million to $1,430 million after a $70 million to $80 million supplier-related hit.

Which Companies Cut or Narrowed Their Guidance With Earnings on October 27?

Six reporters changed their outlooks on Tuesday, October 27, and the direction differed by company. Xylem (NYSE:XYL) cut 2026 adjusted EPS guidance to $5.40 to $5.45 and plans two divestitures. Sherwin-Williams (NYSE:SHW) narrowed its range to $11.85 to $12.15 and was quoted about 5.4% lower pre-market. PPG (NYSE:PPG) raised the low end of its range to $7.90, while Armstrong World Industries (NYSE:AWI) lowered the top end of its EPS and EBITDA ranges.

Applied Industrial Technologies (NYSE:AIT) lifted fiscal 2027 EPS guidance by $0.05 at both ends to $11.70 to $12.20. Logitech (NASDAQ:LOGI) gave no full-year outlook but guided third-quarter sales to $1,360 million to $1,430 million.

Xylem: Why Did Management Lower 2026 EPS Guidance While Orders Rose 10%?

Xylem reported third-quarter adjusted EPS of $1.44, up 5% from $1.37, on revenue of $2.201 billion, which was flat organically. Organic orders rose 10% to $2.331 billion. Full-year organic revenue is now expected to be flat, against an earlier outlook of 2% to 3% growth.

Management said municipal utilities are deferring metering purchases amid affordability pressure and large industrial projects are ramping more slowly, which it described as pace rather than demand. It plans to divest Applied Water International and Specialty Flow Control, about 9% of revenue, with proceeds not expected until late 2027 or early 2028. Detailed 2027 guidance is due in February.

Sherwin-Williams: How Wide Is the Narrowed Range After a Gross Margin Squeeze?

Sherwin-Williams reported third-quarter adjusted EPS of $3.63, up 1.1% from $3.59 and below a $3.69 estimate as screened. Net sales rose 7.9% to $6,860.0 million, but gross margin fell to 47.8% from 49.2% on raw material and supply chain costs and mix, including Suvinil dilution. Shares were quoted at $317.69 pre-market on October 27, about 5.4% below the prior close of $335.79.

The 2026 adjusted EPS range of $11.85 to $12.15 replaces $11.80 to $12.20. Management said customer sentiment points to muted demand for the rest of 2026 and into 2027, and expects fourth-quarter net sales up mid-single digits.

Armstrong World Industries: Why Did an EPS Miss Come With a Narrowed 2026 Outlook?

Armstrong reported third-quarter net sales of $475.8 million, up 11.9%, and adjusted EPS of $2.26, up 10.2% but below a $2.39 estimate as screened. Architectural Specialties sales rose 21.5% to $183.7 million.

Adjusted EPS guidance is now $8.30 to $8.40, adjusted EBITDA is $602 million to $612 million from $605 million to $620 million, and net sales are $1,788 million to $1,803 million. Management cited freight and raw material inflation, tariffs and Mineral Fiber mix timing. The company bought back $75 million of stock in the quarter, with about $1.1 billion of authorization remaining.

PPG: What Is Behind the Raised Low End of the 2026 EPS Outlook?

PPG reported third-quarter adjusted EPS of $2.25, up 6% from $2.13, on net sales of $4,353 million, up 7% with organic growth of 5%. Management said pricing fully offset cost inflation, with price adding 3% to sales. Industrial Coatings was the soft spot, with segment EBITDA down 11% and its margin 260 basis points lower at 14.4%.

Full-year adjusted EPS is guided to $7.90 to $8.10, and the fourth quarter is guided to low single-digit organic growth with an adjusted EBITDA margin flat to up 100 basis points. Net debt was $5.2 billion.

Applied Industrial Technologies: Why Was the Fiscal 2027 Raise Only $0.05 After a Strong Quarter?

Fiscal first-quarter diluted EPS was $2.97, up from $2.63 and above a $2.89 estimate as screened, on sales of $1,291.2 million, up 7.6%. The release attributes the $0.05 guidance increase to a slightly lower share count after buybacks of $80.0 million. Sales growth of 4.0% to 6.5% was maintained.

October organic sales are up about 10%, well above that range. Free cash flow fell to $73.4 million from $112.0 million on a working capital outflow.

Logitech: How Does a Third-Quarter Guide Reflect a Chip Supplier Outage?

Logitech reported fiscal second-quarter net sales of $1,218.8 million, up 3%, and non-GAAP EPS of $1.51 against $1.45. Non-GAAP gross margin rose to 45.2% from 43.8%.

The third-quarter guide of $1,360 million to $1,430 million is a change of minus 4% to plus 1% in US dollars and includes an estimated $70 million to $80 million hit from a semiconductor supplier incident. Management expects full production by the end of the year, and the release included no full-year outlook.

Guidance Changes Compared: How Large Were the Moves in Midpoint Terms?

Xylem's 2026 EPS midpoint fell from $5.625 to $5.425, a cut of $0.20 or about 3.6% (calculated). Armstrong's EPS midpoint moved from $8.40 to $8.35, down about 0.6%, and its EBITDA midpoint from $612.5 million to $607 million, down about 0.9% (calculated).

PPG's midpoint rose from $7.90 to $8.00, up about 1.3%, and Applied Industrial's from $11.90 to $11.95, up about 0.4% (calculated). Sherwin-Williams' midpoint stayed at $12.00 while the range tightened from $0.40 wide to $0.30 wide (calculated). Armstrong's sales midpoint rose about 0.6%, from $1,785 million to $1,795.5 million (calculated).

What to Watch Next: February Guidance, the PPG Call and Fourth-Quarter Reports

PPG holds its earnings call on Wednesday, October 28, at 8:00 a.m. ET, where index-based pricing in Industrial Coatings is the open question. Xylem is due to detail 2027 guidance in February, and Applied Industrial reports fiscal second-quarter results in January 2027. Armstrong's fourth-quarter report is expected in early 2027, Logitech's next update is its third-quarter report, where the supplier ramp decides how much of the $70 million to $80 million shortfall is recovered, and Sherwin-Williams' fourth-quarter date has not been confirmed. Investors will also track whether municipal metering spending recovers at Xylem and whether Consumer Brands margins stabilise at Sherwin-Williams.