EarningsQ2 2026 Earnings Report
MX:XYL Q2 2026 EPS Results
Actual EPS$26.39
Consensus EPS$24.42
Beat/MissBeat by +$1.97
One Year Ago EPS$22.77
MX:XYL Q2 2026 Revenue Results
Actual Revenue$42.24B
Expected Revenue$42.32B
Beat/MissMissed by -$81.58M
YoY Revenue Growth+1.48%
Earnings Announcement Details
QuarterQ2 2026
Date07/28/2026
TimeBefore Open
Conference CallTuesday, July 28, 2026
MX:XYL Upcoming Earnings
Xylem's next earnings date is estimated for October 27, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:XYL Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a largely constructive operational and financial story: solid backlog and orders, record EPS, meaningful margin expansion, large strategic contract wins, and targeted M&A/portfolio actions. However, near-term headwinds — notably significant China weakness, MCS electric meter delays, and a ~2% walkaway revenue impact from 80/20 actions — are tempering top-line momentum and required a narrower revenue outlook for the year. On balance, the strength in margins, cash generation, high-impact wins (Dow and outsourced water), and accelerating exposure to high-growth markets like data centers and industrial verticals outweigh the near-term challenges.Company Guidance
Record EPS and Margin Expansion
Reported record GAAP EPS of $1.46 in Q2, up 16% year-over-year. Quarterly adjusted EBITDA margin of 23.3%, an improvement of 150 basis points versus prior year; full-year EBITDA margin guidance raised to 23.1%–23.5% (90–130 bps expansion YoY).
Strong Backlog and Orders Momentum
Ending backlog of $5.3 billion with book-to-bill for the quarter well above 1. Overall orders were up 41% versus prior year with growth in 3 of 4 segments, supporting near- and long-term revenue visibility.
Major Contract Wins and Outsourced Water Momentum
Won the largest contract in company history (Dow order) and a roughly $850 million, 23-year outsourced water project in April. Water Solutions & Services saw significant orders growth and segment EBITDA margin expanded to 25.3% (up 90 bps YoY).
Applied Water & Data Center Acceleration
Applied Water orders up 9% with book-to-bill well above 1. Data center orders in Q2 rose over 300%; company expects data-center-related revenue to increase ~200% this year and to account for roughly 2% of revenue by year-end.
Water Infrastructure Margin Outperformance
Water Infrastructure revenue up 3% and delivered exceptional EBITDA margin expansion of ~480 basis points, driven by productivity, mix, price and transport growth in North America.
Disciplined Capital Allocation and Balance Sheet
Net debt to adjusted EBITDA of 0.8x after opportunistic share repurchases; management reiterated target of a low-double-digit free cash flow margin for the year and noted strong first-half cash flow generation.
Strategic M&A and Portfolio Actions
Completed TriOS acquisition (enhancing sensing/water quality intelligence), signed agreement to acquire WaterFleet (mobile water treatment / recurring services), and highlighted Evoqua acquisition benefits; management targeting ~$1 billion of M&A capacity and has completed >$400 million of divestitures to sharpen focus.
Raised EPS Guidance and Narrowed Revenue Range
Raised full-year EPS range to $5.55–$5.70 (from $5.35–$5.60) and narrowed organic revenue outlook to 2%–3% (from 2%–4%); full-year reported revenue expected roughly $9.2 billion (~2% growth).
MX:XYL Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed