Xylem

Xylem makes pumps, treatment equipment, meters, sensors and software for water and wastewater, and it provides water services. It has four segments: Water Infrastructure, Applied Water, Measurement and Control Solutions, and Water Solutions and Services. Its customers are utilities, industrial companies and commercial buildings.

Revenue was $9 billion in 2025, and it has about 22,000 employees. Its headquarters are in Washington, D.C. Matthew Pine is CEO.

The market prices Xylem for slow revenue growth. Revenue rose only 1% organically in Q2 2026, and Xylem lowered its 2026 organic revenue growth outlook to about 2% to 3% from 2% to 4%. The company is also changing its portfolio: it sold its international metering business in May 2026, bought TriOS in July 2026 and agreed to buy WaterFleet. It bought back $1.24 billion of shares in the first half of 2026 and issued $2.5 billion of new notes in May and September 2026.

For the gap to close, three things must be true. Orders, which rose 42% in Q2 2026, must turn into revenue growth in 2027. Adjusted EBITDA margin must reach 23.1% to 23.5% in 2026 and keep rising. Adjusted EPS must reach the raised 2026 guidance of $5.55 to $5.70.

The Q3 2026 report on October 27, 2026 gives the first test. The 2027 guidance in early 2027 shows whether growth speeds up. If these checks pass, the gap can close over the next four to six quarters. The main reason it may not close is weak demand from utilities or industrial customers, which would keep growth low.

1. Oct 27, 2026Pending

   Q3 2026 earnings: orders and marginsOrganic revenue growth in line with the 2% to 3% outlook, adjusted EPS guidance kept or raised and orders above revenue pass; a lower outlook or weak orders fail.
2. Feb 2027 · est.Pending

   2027 guidance2027 guidance for faster organic revenue growth than in 2026 and higher margins passes; flat growth guidance fails.

Every passed and failed checkpoint across all picks

Xylem funds its business with senior notes and a revolving credit facility. At June 30, 2026, total debt was $2.93 billion, including $531 million due within 12 months, and cash was $1.28 billion. Read more

• Revenue growth is slow: organic growth was 1% in Q2 2026, and the 2026 outlook is about 2% to 3%. Utility budgets and industrial spending can delay projects.
• Xylem bought back $1.24 billion of shares in the first half of 2026 and issued $2.5 billion of notes in 2026. More debt increases interest costs and reduces the room for acquisitions.
• Tariffs, inflation and supply problems can increase costs. If price increases do not cover them, margins fall.
• Xylem changed its CFO in September 2026 and is buying and selling businesses. Integration problems can reduce the expected benefits.

• September 29, 2026Xylem completed the sale of $500 million of 5.250% senior notes due 2029, $500 million of 5.450% senior notes due 2032 and $500 million of 5.850% senior notes due 2037.
• September 8, 2026Xylem entered into a new five-year senior unsecured revolving credit facility of up to $1.5 billion.
• August 13, 2026CFO William Grogan said he will resign on August 31, 2026. The board appointed Andrea van der Berg, Senior Vice President, Finance of the Water Infrastructure segment, as CFO from September 1, 2026.