Xylem 3Q 2026: Revenue $2.2B, Net income $291M, EPS $1.25— 10-Q Summary

What happened

Xylem reported third-quarter 2026 revenue of $2.2B, down 3% from a year earlier, while net income rose to $291M and diluted EPS increased to $1.25. Orders grew 6.9% and backlog rose 13.4% to $5.47B, but the company expects full-year revenue to decline about 1%.

Confirmed

Global impact / market context

Profit rose even as sales fell, which means pricing and productivity gains are lifting profit per sale while cost inflation and lower volumes work against it. Growing orders and backlog, meaning work already booked for future delivery, point to steadier future revenue than the current decline suggests.

Analyst inference

Investors are weighing falling reported sales against stronger profit and a rising backlog. Divestitures, which means asset sales, cut quarterly revenue by $80M, partly offset by $17M from acquisitions, so reported figures mix portfolio changes with underlying demand. Applied Water growth contrasts with weakness in Measurement and Control Solutions.

Analyst inference

What to watch

1. Full-year 2026 revenue is expected to fall about 1%, with organic revenue, which strips out currency and deal effects, expected to be flat. Confirmed
2. Watch whether orders and backlog convert into revenue, since backlog of $5.47B and order growth of 6.9% could offset the expected sales decline. Analyst inference
3. Watch pricing and productivity against inflation and mix, since these supported profit per sale even as lower volumes and divestitures reduced total revenue. Analyst inference

Evidence

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