Highlights

  • Third quarter 2026 revenue was $2,201 million, compared with $2,268 million, and earnings per share were $1.25, compared with $0.93.
  • Orders were $2,331 million in the third quarter, compared with $2,181 million in the prior year period.
  • Xylem agreed on August 10, 2026 to acquire the Cornell Pump and Roper Pump businesses for approximately $1,460 million.
  • The company now expects 2026 total revenue to decline approximately 1% and organic revenue to be flat.

Xylem Inc. (NYSE:XYL) shares were trading at USD 88.02 on October 28, 2026, down 5.22%, with a relative volume at time of 5.32. The water technology company acquired TriOS and WaterFleet during the third quarter, agreed to acquire the Cornell Pump and Roper Pump businesses, and filed its quarterly report for the period ended September 30, 2026 on October 27.

Xylem is incorporated in Indiana and lists its principal executive offices in Washington, DC. The company designs, manufactures and services engineered products and solutions for utility, industrial, residential and commercial building settings across the water cycle. It has four reportable segments: Water Infrastructure, Applied Water, Measurement and Control Solutions, and Water Solutions and Services. Its fiscal year ends December 31.

Third Quarter Results

Xylem reported revenue of $2,201 million for the third quarter of 2026, a decrease of 3.0% compared with $2,268 million in the third quarter of 2025. The filing attributes the change to $80 million of revenue lost from divestitures and $17 million of additional revenue from acquisitions, organic declines of $7 million, or 0.3%, and a foreign currency impact of $3 million.

Gross profit was $907 million, operating income was $385 million and net income attributable to Xylem was $291 million, or $1.25 per share. In the third quarter of 2025, net income attributable to Xylem was $227 million, or $0.93 per share. On a non-GAAP basis, adjusted earnings per share were $1.44, compared with $1.37, and adjusted EBITDA margin was 23.9%, compared with 23.2%.

Orders were $2,331 million, up 6.9% from $2,181 million, and up 9.9% on an organic basis. For the nine months ended September 30, 2026, revenue was $6,662 million and net income attributable to Xylem was $747 million, or $3.14 per share.

Acquisitions, Balance Sheet and Capital

On September 2, 2026, Xylem acquired WaterFleet Intermediate Holdings, Inc., a provider of mobile water and wastewater utility services, for $217 million in consideration paid at closing. On July 1, 2026, it acquired TriOS Mess-und Datentechnik GmbH, a provider of optical sensing and measurement systems, for a total purchase price of $219 million.

The Cornell Pump and Roper Pump acquisition is expected to close in the fourth quarter of 2026, subject to regulatory approvals and customary closing conditions. Xylem intends to finance it in part with proceeds from senior unsecured notes issued on September 29, 2026. Those notes are subject to a special mandatory redemption if the acquisition is not completed.

Cash and cash equivalents were $708 million at September 30, 2026, compared with $1,479 million at December 31, 2025. Total debt was $2,895 million, compared with $1,942 million. Net cash provided by operating activities for the nine months was $729 million, and free cash flow, a non-GAAP measure, was $461 million. Xylem reported available liquidity of approximately $2.2 billion.

The Board authorized the repurchase of up to $1.5 billion of shares on February 25, 2026. During the third quarter, Xylem purchased 3,170,346 shares at an average price of $109.95 per share, and approximately $105 million remained available under the program at September 30, 2026.

2026 Outlook

In the filing, Xylem said it is updating its outlook to include a decline in total revenue of approximately 1% and flat organic revenue in 2026. It said the outlook is provided amid geopolitical, trade, macroeconomic and regulatory uncertainty.

On the earnings call, management said it expects full-year revenue of approximately $8.95 billion and full-year adjusted earnings per share of $5.40 to $5.45, compared with the previous range of $5.55 to $5.70. For the fourth quarter, management said it expects organic revenue to decline 1% to 2% and adjusted earnings per share of $1.39 to $1.44. Management said it will provide a 2027 framework with guidance in February.