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Xylem Gears Up to Report Q1 Earnings: What's in the Offing?

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Key Takeaways

  • Xylem is set to report Q1 2026 results on April 28, with revenues and EPS expected to rise modestly.
  • XYL's growth is driven by infrastructure demand, metering solutions and strong backlog execution.
  • Xylem faces margin pressure from higher raw materials, labor costs and increased investments.

Xylem Inc. (XYL - Free Report) is scheduled to release first-quarter 2026 results on April 28, before market open.

The Zacks Consensus Estimate for XYL’s first-quarter revenues is pegged at $2.11 billion, indicating growth of 1.8% from the prior-year quarter’s number. The consensus mark for earnings is pinned at $1.09 per share, which has been stable in the past 60 days. The figure indicates an increase of 5.8% from the year-ago quarter’s figure.

The company’s earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters and matched the mark in one, the average surprise being 6.1%.

Let’s see how things have shaped up for Xylem this earnings season.

Factors Likely to Have Shaped XYL’s Quarterly Performance

Strength in the transport application business, aided by increased infrastructure projects in the United States, is likely to have supported the Water Infrastructure segment’s performance. Strong momentum in the treatment applications business, supported by increasing capital projects in emerging markets, is also likely to have augmented its performance. The Zacks Consensus Estimate for the Water Infrastructure segment’s revenues is pegged at $599 million, indicating 3.1% growth from the year-ago figure.

An increase in demand for advanced metering infrastructure solutions like smart and energy metering, and strong backlog execution are likely to have augmented the performance of the Measurement & Control Solutions (M&CS) segment. The Zacks Consensus Estimate for the M&CS segment’s revenues is pinned at $493 million, reflecting an increase of 0.6% from the year-ago quarter’s figure.

Strength in XYL’s dewatering applications business across utility and power end markets is likely to have augmented the Water Solutions and Services segment’s results. The Zacks Consensus Estimate for the Water Solutions and Services segment’s revenues is pegged at $578 million, indicating 2.7% growth year over year.

The robust Applied Water segment, supported by higher demand for commercial building solutions applications, including pumps, valves and dispensing equipment, is likely to have augmented the segment’s results. The Zacks Consensus Estimate for the Applied Water segment’s revenues is pegged at $444 million, indicating 2.1% growth from the year-ago figure.

The company’s acquisition of Vacom Systems (in April 2025), a wastewater treatment company, enhanced its capabilities in providing sustainable water solutions. Also, XYL’s buyout of a majority stake in Idrica (in December 2024) boosted its growth opportunities and enabled it to penetrate new markets and deliver intelligent solutions to its customers. These buyouts are expected to bolster the company’s top-line results in the to-be-reported quarter.

However, XYL’s bottom line is likely to have reflected the impact of high raw material costs, labor, freight and overhead costs in the first quarter. Also, increased spending on strategic investments is expected to have hurt its margins.

Xylem Inc. Price and EPS Surprise

Xylem Inc. Price and EPS Surprise

Xylem Inc. price-eps-surprise | Xylem Inc. Quote

Q1 Earnings Whispers for Xylem Stock

Our proven model predicts an earnings beat for XYL this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below. 

Xylem’s Earnings ESP: XYL has an Earnings ESP of +0.86% as the Most Accurate Estimate is pegged at $1.10 per share, which is higher than the Zacks Consensus Estimate of $1.09. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Xylem’s Zacks Rank: XYL presently carries a Zacks Rank of 3.

Other Stocks With the Favorable Combination

Here are three other companies, which, according to our model, have the right combination of elements to post an earnings beat this season.

Clean Harbors, Inc. (CLH - Free Report) has an Earnings ESP of +1.09% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to release first-quarter 2026 results on May 6. Clean Harbors’ earnings surpassed the Zacks Consensus Estimate in three of the preceding four quarters, missing the mark in one, the average surprise being 0.8%.

SPX Technologies, Inc. (SPXC - Free Report) has an Earnings ESP of +2.22% and a Zacks Rank of 3 at present. The company is slated to release first-quarter results on April 30.

SPXC’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 12.2%.

Mastercard Incorporated (MA - Free Report) has an Earnings ESP of +0.40% and a Zacks Rank of 3 at present. The company is slated to release its first-quarter 2026 results on April 30.

MA delivered an average earnings surprise of 5.5% in the last four quarters, while beating estimates each time.

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