Xylem Inc (XYL)
NYSE:XYL
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Xylem
(NYSE:XYL)
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Rating:65Neutral
Price Target:
$133.00
â–²(9.82% Upside)
Action:ReiteratedDate:04/28/26
The score is driven primarily by solid financial quality (improved margins, strong balance sheet, and strong free cash flow) and supportive earnings-call guidance/backlog. Offsetting this are a weak longer-term technical trend, a premium valuation (high P/E with modest yield), and the near-term growth risk signaled by the sharp TTM revenue decline and China/MCS headwinds.
Positive Factors
Improved profitability
Gross margins (~38%) and operating profitability have materially improved versus prior years, supporting sustainable cash earnings. Structural margin gains reflect pricing, mix, and cost discipline, underpinning durable EBITDA expansion targeted in management's medium‑term guidance.
Negative Factors
Revenue volatility/TTM decline
A steep TTM revenue drop signals meaningful demand or timing disruption that can compress growth prospects and make earnings less predictable. Persistent revenue volatility hampers planning, reduces operating leverage upside, and raises execution risk for margin targets.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved profitability
Gross margins (~38%) and operating profitability have materially improved versus prior years, supporting sustainable cash earnings. Structural margin gains reflect pricing, mix, and cost discipline, underpinning durable EBITDA expansion targeted in management's medium‑term guidance.
Read all positive factors
Xylem (XYL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.30B
Dividend Yield1.15%
Average Volume (3M)2.08M
Price to Earnings (P/E)39.2
Beta (1Y)0.97
Revenue Growth5.64%
EPS Growth8.05%
CountryUS
Employees23,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)4.02
Shares Outstanding237,693,500
10 Day Avg. Volume2,508,020
30 Day Avg. Volume2,079,049
Financial Highlights & Ratios
PEG Ratio4.89
Price to Book (P/B)2.89
Price to Sales (P/S)3.67
P/FCF Ratio36.42
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue3.22
Enterprise Value/Gross Profit8.35
Enterprise Value/Ebitda16.27
Forecast
1Y Price Target
$147.83Price Target Upside22.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)5.53
Revenue Forecast (FY)$9.25B
Xylem Business Overview & Revenue Model
Company Description
Xylem Inc., together with its subsidiaries, engages in the design, manufacture, and servicing of engineered products and solutions for the water and wastewater applications in the United States, Europe, the Asia Pacific, and internationally. It op...
How the Company Makes Money
Xylem makes money primarily by selling water-related equipment, systems, and associated services to utilities, industries, and other customers across the water cycle. Its core revenue streams include: (1) Product and system sales: revenue from eng...
Xylem Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down income from various business segments, revealing which parts of the company are driving growth and where there may be challenges.
Breaks down income from various business segments, revealing which parts of the company are driving growth and where there may be challenges.
Data provided by:
The Fly
The FlyXylem Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The earnings call conveyed a cautiously optimistic tone: the company delivered stable top-line results and improved profitability in Q1, reported notable commercial achievements (strong backlog, book-to-bill >1, a record $850M WSS contract), executed meaningful shareholder returns (>$580M buybacks, dividend increase), and advanced strategic M&A to enhance analytics capabilities. Offsetting these positives were material near-term headwinds: flat revenue and orders overall, a sharp ~30% decline in China (a concentrated near-term drag), MCS timing and margin pressure, and impacts from 80/20 simplification actions. Management maintained full-year organic growth guidance (2%–4%) and raised reported revenue guidance modestly while projecting margin expansion, signaling confidence in a stronger back half. Given the weight of the operational and financial positives, balanced against distinct near-term regional and timing challenges, the call leans positive.Positive Updates
Solid Q1 Profitability and EPS Growth
Q1 adjusted EBITDA margin of 20.6%, up 20 basis points year-over-year; GAAP/adjusted EPS of $1.12, a 9% increase versus prior year.
Negative Updates
Revenue and Orders Largely Flat
Company-wide revenue and orders were flat year-over-year in Q1, reflecting near-term pacing and project timing rather than growth acceleration.
Read all updates
Q1-2026 Updates
Positive
Negative
Solid Q1 Profitability and EPS Growth
Q1 adjusted EBITDA margin of 20.6%, up 20 basis points year-over-year; GAAP/adjusted EPS of $1.12, a 9% increase versus prior year.
Read all positive updates
Company Guidance
Xylem reaffirmed a constructive 2026 outlook, guiding full‑year reported revenue of $9.2–$9.3 billion (up from $9.1–$9.2B) implying 2–3% reported growth and unchanged organic growth of 2–4%, with adjusted EBITDA margin of 22.9–23.3% (70–110 bps expansion vs. prior year) and EPS unchanged at $5.35–$5.60. For Q2 management expects reported revenue growth of 2–3% (roughly 1% organic), EBITDA margin of ~22–22.5% (up 20–70 bps) and EPS of $1.31–$1.36; they noted MCS EBITDA will be down year‑over‑year in Q2 but improve sequentially and return to margin expansion in H2 (exiting the year post‑divestiture well in excess of 25% EBITDA). Quarterly and balance‑sheet context: Q1 revenue was flat, Q1 EBITDA margin was 20.6% and Q1 EPS was $1.12 (+9%), backlog ended at $4.7 billion with book‑to‑bill >1, net debt/adjusted EBITDA was 0.6x after $581M of buybacks under a $1.5B repurchase authorization, free cash flow was positive with a long‑term target of low‑double‑digit FCF margin, and the metering divestiture is now expected to close at the end of Q2.Xylem Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.09B | 9.04B | 8.56B | 7.36B | 5.52B | 5.20B |
| Gross Profit | 3.51B | 3.48B | 3.21B | 2.72B | 2.08B | 1.98B |
| EBITDA | 1.80B | 1.78B | 1.69B | 1.12B | 726.00M | 832.00M |
| Net Income | 973.00M | 957.00M | 890.00M | 609.00M | 355.00M | 427.00M |
Balance Sheet | ||||||
| Total Assets | 16.95B | 17.63B | 16.49B | 16.11B | 7.95B | 8.28B |
| Cash, Cash Equivalents and Short-Term Investments | 808.00M | 1.48B | 1.12B | 1.02B | 944.00M | 1.35B |
| Total Debt | 1.94B | 1.94B | 2.13B | 2.39B | 1.95B | 2.51B |
| Total Liabilities | 5.72B | 5.88B | 5.62B | 5.94B | 4.45B | 5.05B |
| Stockholders Equity | 10.97B | 11.48B | 10.64B | 10.17B | 3.49B | 3.22B |
Cash Flow | ||||||
| Free Cash Flow | 966.00M | 910.00M | 942.00M | 566.00M | 388.00M | 330.00M |
| Operating Cash Flow | 1.32B | 1.24B | 1.26B | 837.00M | 596.00M | 538.00M |
| Investing Cash Flow | -532.00M | -471.00M | -482.00M | -628.00M | -191.00M | -183.00M |
| Financing Cash Flow | -1.07B | -501.00M | -615.00M | -157.00M | -790.00M | -855.00M |
Xylem Technical Analysis
Negative
121.11
Price Trends
125.52
Negative
132.28
Negative
136.62
Negative
Market Momentum
0.30
Negative
42.26
Neutral
36.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XYL, the sentiment is Negative. The current price of 121.11 is below the 20-day moving average (MA) of 123.16, below the 50-day MA of 125.52, and below the 200-day MA of 136.62, indicating a bearish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 42.26 is Neutral, neither overbought nor oversold. The STOCH value of 36.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XYL.
Xylem Risk Analysis
Xylem disclosed 24 risk factors in its most recent earnings report. Xylem reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Xylem Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $9.68B | 27.54 | 17.82% | 0.70% | 8.27% | 16.95% | |
76 Outperform | $18.69B | 26.28 | 16.15% | 0.79% | 8.48% | -3.07% | |
74 Outperform | $15.64B | 28.71 | 17.30% | 1.64% | 6.50% | 17.62% | |
66 Neutral | $12.46B | 20.53 | 17.74% | 0.96% | 3.10% | 4.96% | |
65 Neutral | $27.30B | 39.20 | 8.70% | 1.15% | 5.64% | 8.05% | |
65 Neutral | $9.00B | 28.68 | 15.93% | 1.17% | 0.83% | 26.77% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
XYL
Xylem
114.84
-4.78
-4.00%
FLS
Flowserve
70.41
24.37
52.92%
ITT
ITT
209.04
68.78
49.04%
NDSN
Nordson
280.42
93.74
50.21%
PNR
Pentair
77.08
-13.77
-15.16%
WTS
Watts Water Technologies
289.93
79.92
38.06%
Xylem Corporate Events
Business Operations and StrategyStock Buyback
Xylem Authorizes New $1.5 Billion Share Repurchase Program
Positive
Feb 25, 2026
On February 25, 2026, Xylem Inc.’s Board of Directors approved a new share repurchase program authorizing the company to buy back up to $1.5 billion of its common stock with a par value of $0.01. The authorization has no expiration date and ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.