Xylem Inc. (XYL) Earnings Call Transcripts

Xylem Inc.'s Latest Earnings Call - Q2 FY2026

In the second quarter of fiscal year 2026, Xylem Inc. reported revenue of approximately $2.3 billion, reflecting a 1% increase year-over-year, which was in line with expectations. Earnings per share (EPS) reached a record $1.46, a 16% increase compared to the previous year. Management narrowed its full-year revenue guidance to approximately $9.2 billion, indicating a growth rate of about 2%, while raising EPS guidance to a range of $5.55 to $5.70, signaling confidence in operational momentum despite challenges in certain segments, particularly in China and electric metering.

Reported metrics

Guidance from management

Management expects third quarter revenue growth to be flat on a reported basis and up roughly 3% organically, with an EBITDA margin of approximately 23.5% to 24%. They raised EPS guidance to a range of $5.55 to $5.70 for the full year.

What management said

I think positive overall. I mean, even with the 80/20 actions and some of the projects where we've increased price, we've had a very strong win rate. So I think the treatment market here in the U.S. has been really positive for that business. And I think we expect that to continue in the second half. A lot of the challenges there, again, relative to China. Different decisions we've made on our bidding strategy around...

I mean it's something we review really monthly in our leadership meeting. I don't think there's anything pressing right now that we already haven't taken action on. Obviously, we look at rare earth, and we've got most of our businesses about a year of supply we pulled in from a safety stock perspective. Obviously, we've made some investments, and I might have highlighted this on a prior call on chips. -- wafers looki...

What analysts pressed on

Analysts expressed concerns regarding the significant decline in revenue from China and the impact of electric metering project delays on overall performance. There were questions about the sustainability of growth in the Applied Water segment and how the company plans to navigate the challenges in the electric metering market.

Main topics on the call

• Revenue Performance — Xylem's revenue increased by 1% year-over-year, aligning with expectations. CEO Matthew Pine noted, "Demand remains healthy with our ending backlog at $5.3 billion and our book-to-bill for the quarter well above 1."
• Strong EPS Growth — The company achieved record quarterly EPS of $1.46, up 16% year-over-year. CFO Bill Grogan stated, "Our team stayed disciplined despite market volatility and delivered solid results that give us a strong base to build on...
• Guidance Adjustments — Management narrowed its full-year revenue guidance to approximately $9.2 billion, with organic growth expected between 2% to 3%. EPS guidance was raised to $5.55 to $5.70, reflecting confidence in operational performance...
• Challenges in China and Electric Metering — Xylem faced a 27% decline in revenue from China, attributed to economic headwinds and strategic decisions. Matthew Pine mentioned, "We’ve seen politicians take a hard stand on electricity rate increases and utilities hav...

Read the full Xylem Inc. transcript (Q2 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 48 Xylem Inc. earnings call transcripts on record, spanning February 6, 2020 to July 28, 2026. Based on this history, Xylem Inc. reports quarterly. The most recent call on file is dated July 28, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

XYL

Exchange

NYSE

Country

US

Sector

Industrials

Industry

Machinery

Calls on record

48

First call

February 6, 2020

Most recent

July 28, 2026

Reporting cadence

quarterly