Highlights

  • Third quarter 2026 consolidated net sales were $6.860 billion, and year-to-date net sales were $19.316 billion.
  • Diluted net income per share was $3.38 in the third quarter, compared with $3.35; adjusted diluted net income per share was $3.63.
  • Interest expense was $139.3 million in the quarter, and total debt outstanding was $11.795 billion at September 30, 2026.
  • Net operating cash was $2.591 billion for the nine months, and the company purchased 7.1 million shares of its common stock.

The Sherwin-Williams Company (NYSE: SHW) shares were trading at USD 326.20 on October 27, 2026, down 2.67%, with a relative volume at time of 2.45. The paint and coatings maker completed its Suvinil acquisition in October 2025, increased its quarterly dividend to $0.80 per share in February 2026, and filed its quarterly report for the period ended September 30, 2026 on October 27, 2026.

Sherwin-Williams is incorporated in Ohio and lists its principal executive offices in Cleveland, Ohio. Founded in 1866, it develops, manufactures, distributes and sells paint, coatings and related products to professional, industrial, commercial and retail customers, primarily in North and South America, with operations in the Caribbean region and throughout Europe, Asia and Australia. It reports three segments, Paint Stores Group, Consumer Brands Group and Performance Coatings Group, plus an Administrative function. The company's fiscal year ends December 31.

Third Quarter Results

Consolidated net sales rose 7.9% to $6.860 billion from $6,358.2 million in the third quarter of 2025. The company attributed the increase to higher net sales in all reportable segments, including the Suvinil acquisition, and to selling price increases that affected net sales by a mid-single digit percentage. Paint Stores Group net sales were $4,015.8 million, Consumer Brands Group $937.4 million and Performance Coatings Group $1,903.3 million.

Gross profit was $3,277.2 million, or 47.8% of net sales, compared with 49.2%. The company said the lower percentage reflected mix, including dilution from Suvinil, and higher raw material and supply chain costs. Selling, general and administrative expenses were $2,069.1 million, compared with $1,952.8 million. Interest expense was $139.3 million, compared with $117.2 million, and the company attributed the increase to higher total debt and interest on real estate financing for its new global headquarters.

Income before income taxes was $1,063.5 million, compared with $1,060.5 million. Net income was $821.0 million, compared with $833.1 million, and diluted net income per share was $3.38, compared with $3.35. Adjusted diluted net income per share was $3.63, compared with $3.59. The effective tax rate was 22.8%, compared with 21.4%.

Consumer Brands Group income before income taxes was $146.2 million, compared with $157.3 million, and the company noted soft demand in North America in that segment.

Nine-Month Results and Cash Flow

For the nine months ended September 30, 2026, net sales were $19.316 billion, net income was $2,199.3 million, and diluted net income per share was $8.95, compared with $8.34. Net operating cash was $2.591 billion, compared with $2.359 billion a year earlier.

The company returned cash of $2.981 billion to shareholders through dividends and share repurchases. It paid $588.9 million in cash dividends and purchased 7.1 million shares through open market purchases. At September 30, 2026, remaining authorization allowed purchases of 22.5 million shares.

Balance Sheet and Liquidity

At September 30, 2026, cash and cash equivalents were $264.2 million, and total debt outstanding was $11.795 billion, including short-term borrowings of $2,353.6 million. Net working capital was a deficit of $2.822 billion, and the current ratio was 0.71. The company reported $2.322 billion of unused capacity under its credit facilities and said it is, and expects to remain, in compliance with all financing covenants.

Litigation and Outlook

The 10-Q describes lead pigment and lead-based paint litigation, including cases pending in Wisconsin. The company stated it has not accrued any amounts for the pending lead pigment and lead-based paint litigation, stating that it does not believe a loss is probable or that a range of potential losses cannot be estimated.

The filing does not give numerical guidance for revenue or earnings. It states that the company expects to spend less on capital expenditures in 2026 than in 2025, with core capital expenditures targeted at approximately 2% of net sales, funded primarily through operating cash. It also states that the business is seasonal and that nine-month results are not indicative of full-year results.