Sherwin-Williams Company (SHW) Q3 2026 Earnings Report

The call was broadly constructive, with strong sales growth, market share gains, solid Performance Coatings momentum, shareholder returns, planned cost savings, and maintained full-year EPS guidance. However, the company is operating amid persistent end-market softness, raw material and supply chain inflation, lower sales-to-earnings conversion, Consumer Brands volume and margin pressure, and uncertainty around demand recovery. Highlights significantly outweighed the challenges, although management's outlook remained cautious.

Sherwin Williams expects full year reported SG&A to increase by a mid single digit percentage, including a low single digit contribution from Suvenil, and adjusted diluted net income per share of $11.85 to $12.15 per share, with the prior midpoint of $12 remaining unchanged; the 8% price increase is expected to ramp up to the historical realization range in the first half of next year, net new stores are expected to return to the typical range of 80 to 100 starting in 2027, and 2027 cost savings are expected to be approximately $75 million, inclusive of $25 million related to restructuring actions taken in this year's second and third quarters and cost actions currently under review in the fourth quarter. For 2027, the company expects softer for longer with continued choppiness across most end markets, raw material inflation in the low to mid single digit range with the largest year over year impact in the first half of the year before moderating in the second half, and other cost inflation including energy, fuel, health care, wages, and technology and software licensing; its midterm targets remain mid to high single digits for Stores, mid single digit inclusive of acquisitions for industrial, and low single digits for Consumer Brands Group.