Xylem (XYL) Earnings: Q3 2026 Results

The quarter ended September 30, 2026 and Xylem published the results on October 27, 2026. Revenue and diluted EPS are shown against Q3 2025, the same quarter a year earlier, which takes seasonal swings out of the comparison. Xylem reports EPS two ways: GAAP, under the accounting rules every US filer follows, and Adjusted, which leaves out items the company considers outside its operating results. The release reconciles the two, and when they diverge, the reconciliation says why.

• Xylem sold its international metering business, part of Measurement and Control Solutions, on May 26, 2026. Divestitures took $80 million off Q3 2026 revenue, $68 million of it in that segment.
• With the Q3 2026 results Xylem announced its intent to divest Applied Water International and Specialty Flow Control, and to report three segments from January 1, 2027: Treatment and Services, Flow Solutions, and Measurement and Analytics.
• Xylem's adjusted EPS excludes a $33 million benefit from refunds of tariffs imposed under the International Emergency Economic Powers Act (IEEPA), along with intangible amortization, restructuring and realignment costs and losses on sale of businesses.

Source: Xylem Q3 2026 results, October 27, 2026. Also in the Form 10-Q for the quarter ended September 30, 2026. Figures as reported; checked against the release on November 10, 2026.

How Xylem splits revenue in its own release, under its own labels, for Q3 2026 against Q3 2025. Indented lines are parts of the line above them.

• Xylem's Water Infrastructure revenue was $645 million in Q3 2026, down 2% from $656 million in Q3 2025, 29% of total revenue.
• Xylem's Applied Water revenue was $489 million in Q3 2026, up 7% from $456 million in Q3 2025, 22% of total revenue.
• Xylem's Measurement and Control Solutions revenue was $436 million in Q3 2026, down 16% from $522 million in Q3 2025, 20% of total revenue.
• Xylem's Water Solutions and Services revenue was $631 million in Q3 2026, flat on $634 million in Q3 2025, 29% of total revenue.

Segment lines are the figures writers cite most often, because they show where the growth in a quarter came from. Companies redraw their segments from time to time and restate the prior year to match, so a year-ago figure here can differ from the one printed a year ago. When that has happened, the note above says so.

From the earnings release

In its Q3 2026 release, Xylem said:

“Xylem now forecasts full-year 2026 revenue of approximately $8.95 billion, down 1 percent year over year on a reported basis, versus prior guidance of up 2 percent, and flat on an organic basis, versus prior guidance of up 2 to 3 percent.”

“Full-year 2026 adjusted EBITDA margin is expected to be approximately 23.2 percent, an increase of 100 basis points versus Xylem's 2025 adjusted results.”

“This results in full-year adjusted earnings per share of $5.40 to $5.45, down from the previous guidance range of $5.55 to $5.70.”

“Full-year free cash flow margin is expected to be approximately 10.2 percent, versus 10.2 to 11.0 percent previously guided.”

Source: Xylem Q3 2026 release, Oct 27, 2026.

This is the company's own guidance as of Oct 27, 2026, quoted as given. Walnut does not make forecasts of its own. Analyst estimates for the coming quarters are on the XYL forecast page.

Revenue and diluted EPS for the last 5 quarters. Each date links to that quarter's release.

Revenue and GAAP diluted EPS, each as first reported in that quarter's release.

We do not hold a confirmed date for Xylem's next report. Companies post the date on their investor relations site a few weeks ahead, usually with the time of the conference call.

Each quarter keeps its own page with the figures as reported, so a link to one stays pointed at the same numbers after the next report.

• Q3 2026 (this page), reported Oct 27, 2026

Xylem reports four segments. In Q3 2026 Water Infrastructure brought in $645 million, Water Solutions and Services $631 million, Applied Water $489 million and Measurement and Control Solutions $436 million, for revenue of $2,201 million, down 3% from $2,268 million. Products were $1,807 million of the total and services $394 million. (Xylem Q3 2026 release (Form 8-K, Exhibit 99.1), Oct 27, 2026)

Xylem's organic revenue was flat (down $7 million, or 0.3%). The reported decline came from divestitures, which removed $80 million, against $17 million added by acquisitions and a $3 million favorable currency effect. Most of the divestiture effect, $68 million, was in Measurement and Control Solutions, where Xylem sold its international metering business on May 26, 2026. (Xylem Form 10-Q, Q3 2026, Oct 27, 2026)

By segment, Applied Water grew 8.7% organically, while Measurement and Control Solutions fell 5.1% organically on reduced sales volume in U.S. metering and Water Solutions and Services fell 2.4% on lower service and rental volume. Water Infrastructure was down 1.2% organically. Xylem's release said revenue was affected by project timing and more cautious spending decisions. (Xylem Form 10-Q, Q3 2026, Oct 27, 2026; Xylem Q3 2026 release (Form 8-K, Exhibit 99.1), Oct 27, 2026)

Orders grew faster than revenue. Q3 2026 orders were $2,331 million, up 7% reported and 10% organically, a book-to-bill of 106%, and Measurement and Control Solutions orders rose 30% organically. Total backlog was $5,466 million at September 30, 2026, up 13.4% from $4,819 million a year earlier, helped by a significant contract secured in Water Solutions and Services. (Xylem Q3 2026 release (Form 8-K, Exhibit 99.1), Oct 27, 2026; Xylem Form 10-Q, Q3 2026, Oct 27, 2026)

Water Solutions and Services provides on-demand water, outsourced water, recycle and reuse, specialty dewatering and emergency response services, plus equipment systems for industrial customers. On September 2, 2026 Xylem added WaterFleet, a provider of mobile water and wastewater utility services, and on August 10, 2026 it agreed to buy the Cornell Pump and Roper Pump businesses from Indicor for about $1,460 million, to be included in Water Infrastructure. (Xylem Form 10-K, 2025, Feb 25, 2026; Xylem Form 10-Q, Q3 2026, Oct 27, 2026)

Xylem's GAAP diluted EPS rose 34% to $1.25 in Q3 2026, and adjusted EPS rose 5% to $1.44 from $1.37. The $0.19 gap comes from adjustments of $43 million to operating income: $52 million of purchase accounting intangible amortization, $14 million of restructuring and realignment costs and $10 million of acquisition, divestiture and integration costs, offset by $33 million of IEEPA tariff refunds. The $5 million loss on sale of businesses is also excluded. (Xylem Q3 2026 release (Form 8-K, Exhibit 99.1), Oct 27, 2026)

GAAP EPS grew faster than adjusted EPS mainly because the loss on sale of businesses fell to $5 million from $37 million and restructuring and asset impairment charges fell to $8 million from $23 million. Interest expense rose to $21 million from $6 million. Adjusted EBITDA margin was 23.9%, up 70 basis points, as productivity savings and price realization outweighed inflation, lower volumes and mix. (Xylem Q3 2026 release (Form 8-K, Exhibit 99.1), Oct 27, 2026)

Buybacks cut the share count. Diluted shares were 233.0 million, against 244.1 million a year earlier. Under its $1.5 billion program Xylem repurchased 3.2 million shares for $349 million in the quarter and 12.2 million shares for $1,396 million in the first nine months, and long-term debt rose to $2,365 million from $1,408 million at December 31, 2025. (Xylem Form 10-Q, Q3 2026, Oct 27, 2026; Xylem Q3 2026 release (Form 8-K, Exhibit 99.1), Oct 27, 2026)

Diluted EPS divides net income by the weighted average number of shares outstanding in the quarter, plus the shares that options and other equity awards could add. Buybacks shrink that count and lift EPS for the same profit; share issuance and stock awards enlarge it.

Xylem gives a full-year outlook in its release, and lowered it with Q3 2026 results. It now forecasts 2026 revenue of about $8.95 billion, down 1% reported and flat organically, against prior guidance of up 2% reported and up 2 to 3% organically. Adjusted EPS guidance moved to $5.40 to $5.45 from $5.55 to $5.70. (Xylem Q3 2026 release (Form 8-K, Exhibit 99.1), Oct 27, 2026)

Xylem expects a 2026 adjusted EBITDA margin of about 23.2%, 100 basis points above its 2025 adjusted results, and a free cash flow margin of about 10.2%, against 10.2 to 11.0% before. Excluding revenue, Xylem guides only on a non-GAAP basis. (Xylem Q3 2026 release (Form 8-K, Exhibit 99.1), Oct 27, 2026)

A consensus figure is the average of the models published by the analysts who cover Xylem, collected by a data provider and revised up to the day of the report. A quarter that lands above it says how expectations were set as much as how the business did, and the share price on the day also reflects the guidance and the lines no consensus covers.

The consensus figures on this page are Yahoo Finance's, as pulled on the date shown. Each comes with the number of analysts behind it; the smaller that number, the more one revised estimate can move the average.

The figures below are the ones Xylem's own release and filings put weight on for Q3 2026, with the latest reported value for each.

What the quarter means for a holding is a separate question from what it reported. The case for and against owning XYL is on is XYL a buy or a sell?, what analysts expect next is on the XYL forecast, and what the company does is on the Xylem (XYL) stock page.

Every number on this page can be traced to a document Xylem published. Checking one takes a couple of minutes, and it is worth doing before you quote a figure anywhere.

• The results release is the document linked in the source line above. Companies publish it on their investor relations site at the moment results go out, and it carries the headline tables: revenue, operating income, net income and EPS for the quarter and the year-ago quarter.
• The same release is filed with the SEC as Exhibit 99.1 to a Form 8-K under Item 2.02, usually on the day of the report. The SEC copy does not change after the fact, which makes it the safer thing to link when you cite a number.
• The quarterly report (Form 10-Q) follows within a few weeks and carries the full financial statements, the segment note and management's discussion of what changed. The fourth quarter is covered by the annual report (Form 10-K) instead.
• Restated comparisons are flagged in the notes on this page. When a company redraws its segments or changes how it adjusts EPS, it restates the year-ago column, so the year-ago figure in a new release can differ from the one printed a year ago. This page always uses the comparison in the newer release, because that is the like-for-like one.

A walk-through of every line in a release, with what each one tells you, is in how to read an earnings report.