We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SHW Q1 Earnings Top Estimates, Sales Rise Y/Y on Suvinil Buyout
Read MoreHide Full Article
Key Takeaways
SHW posted Q1 adjusted EPS of $2.35, beating the consensus estimate of $2.24.
Sherwin-Williams revenue rose 6.8% to $5.67B, helped by the Suvinil acquisition.
SHW returned $772.7M via dividends and buybacks and reaffirmed 2026 EPS guidance of $10.70-$11.10.
The Sherwin-Williams Company (SHW - Free Report) reported first-quarter 2026 earnings of $2.15 per share, up 7.5% from the year-ago quarter figure of $2.
Barring one-time items, earnings were $2.35 per share. The bottom line beat the Zacks Consensus Estimate of $2.24, delivering a positive earnings surprise of 4.9%.
Revenues were $5.67 billion, up 6.8% year over year and ahead of the Zacks Consensus Estimate of $5.57 billion. Net income rose 6.1% to $534.7 million, representing 9.4% of net sales, as management pointed to growth initiatives and share gains despite soft demand conditions. Sherwin-Williams attributed the improvement primarily to higher sales and moderating raw material costs, partially offset by the dilutive impact of the Suvinil acquisition.
Selling, general and administrative expenses rose to $1.97 billion or 34.8% of net sales compared with 33.8% in the prior-year quarter. EBITDA climbed 8.8% to $998.2 million.
The Sherwin-Williams Company Price, Consensus and EPS Surprise
Paint Stores Group’s net sales increased 3.7% year over year to $3.05 billion. Same-store sales rose to 2.4%, and segment profit grew 3.3% to $558.8 million, with a reported segment margin of 18.3%.
Consumer Brands Group net sales jumped 19.2% to $908.3 million, driven mainly by the Suvinil acquisition, a 2.4% favorable foreign currency translation impact and higher sales in Europe, partly offset by softer DIY demand in North America. Segment profit surged 49.5% to $197.2 million, with a reported segment margin of 21.7%, while adjusted segment profit was $212.8 million and adjusted segment margin was 23.4%.
Performance Coatings Group net sales rose 6.5% to $1.71 billion, aided by a 4.1% favorable foreign currency translation impact and low-single-digit volume growth. Segment profit increased 9.3% to $232.4 million, taking the reported segment margin to 13.6%, while adjusted segment profit increased to $281.5 million and adjusted segment margin held at 16.5%.
Sherwin-Williams witnessed heightened global uncertainty and continued softness across most end markets. The growth investments and a focus on winning new accounts and expanding share of wallet supported results in the reported quarter. Targeted price increases by end market and geography, paired with cost-out actions, were employed to limit the burden of inflation on customers. These geopolitical events and potential inflation tied to raw materials, energy, logistics and packaging remain swing factors as 2026 progresses.
Sherwin-Williams Cash Returns and Balance Sheet
Sherwin-Williams generated $139.1 million in net operating cash flow in the quarter. The company returned $772.7 million to shareholders through dividends and share repurchases, including the buyback of 1.6 million shares in the reported quarter.
As of March 31, 2026, cash and cash equivalents were $216.9 million. The company reported short-term borrowings of $2.38 billion and long-term debt of $9.32 billion, while noting it had remaining authorization to repurchase 28 million shares through open market purchases.
SHW’s Outlook
For the second quarter of 2026, Sherwin-Williams expects consolidated net sales to be up a mid-single-digit percentage versus the second quarter of 2025. The company reiterated that it continues to anticipate little to no recovery in most end markets this year based on customer sentiment and the leading indicators it monitors.
For full-year 2026, Sherwin-Williams reaffirmed earnings guidance of $10.70-$11.10 per share and adjusted earnings guidance of $11.50-$11.90, while maintaining an effective tax rate expectation in the low 20% range and projecting net sales growth of a low to mid-single-digit percentage versus 2025.
SHW’s Price Performance
Shares of Sherwin-Williams have lost 3.4% in the past year compared with the industry’s 9.7% rise.
Image Source: Zacks Investment Research
SHW’s Zacks Rank & Key Picks
SHW currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are CF Industries Holdings, Inc. (CF - Free Report) , Compass Minerals International, Inc. (CMP - Free Report) and Air Products and Chemicals, Inc. (APD - Free Report) .
CF Industries is slated to report first-quarter 2026 results on May 6. The Zacks Consensus Estimate for earnings is pegged at $2.35 per share, indicating 27.03% year-over-year growth. CF sports a Zacks Rank #1 (Strong Buy) at present. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Compass Mineral is slated to report second-quarter fiscal 2026 results on May 6. The consensus estimate for CMP’s earnings per share is pegged at 66 cents. CMP presently carries a Zacks Rank #1.
Air Products is scheduled to report second-quarter fiscal 2026 results on April 30. The Zacks Consensus Estimate for APD’s second-quarter earnings per share is pegged at $3.05, indicating 13.38% year-over-year growth. APD carries a Zacks Rank #2 (Buy) at present.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
SHW Q1 Earnings Top Estimates, Sales Rise Y/Y on Suvinil Buyout
Key Takeaways
The Sherwin-Williams Company (SHW - Free Report) reported first-quarter 2026 earnings of $2.15 per share, up 7.5% from the year-ago quarter figure of $2.
Barring one-time items, earnings were $2.35 per share. The bottom line beat the Zacks Consensus Estimate of $2.24, delivering a positive earnings surprise of 4.9%.
Revenues were $5.67 billion, up 6.8% year over year and ahead of the Zacks Consensus Estimate of $5.57 billion. Net income rose 6.1% to $534.7 million, representing 9.4% of net sales, as management pointed to growth initiatives and share gains despite soft demand conditions. Sherwin-Williams attributed the improvement primarily to higher sales and moderating raw material costs, partially offset by the dilutive impact of the Suvinil acquisition.
Selling, general and administrative expenses rose to $1.97 billion or 34.8% of net sales compared with 33.8% in the prior-year quarter. EBITDA climbed 8.8% to $998.2 million.
The Sherwin-Williams Company Price, Consensus and EPS Surprise
The Sherwin-Williams Company price-consensus-eps-surprise-chart | The Sherwin-Williams Company Quote
SHW’s Q1 Segmental Review
Paint Stores Group’s net sales increased 3.7% year over year to $3.05 billion. Same-store sales rose to 2.4%, and segment profit grew 3.3% to $558.8 million, with a reported segment margin of 18.3%.
Consumer Brands Group net sales jumped 19.2% to $908.3 million, driven mainly by the Suvinil acquisition, a 2.4% favorable foreign currency translation impact and higher sales in Europe, partly offset by softer DIY demand in North America. Segment profit surged 49.5% to $197.2 million, with a reported segment margin of 21.7%, while adjusted segment profit was $212.8 million and adjusted segment margin was 23.4%.
Performance Coatings Group net sales rose 6.5% to $1.71 billion, aided by a 4.1% favorable foreign currency translation impact and low-single-digit volume growth. Segment profit increased 9.3% to $232.4 million, taking the reported segment margin to 13.6%, while adjusted segment profit increased to $281.5 million and adjusted segment margin held at 16.5%.
Sherwin-Williams witnessed heightened global uncertainty and continued softness across most end markets. The growth investments and a focus on winning new accounts and expanding share of wallet supported results in the reported quarter. Targeted price increases by end market and geography, paired with cost-out actions, were employed to limit the burden of inflation on customers. These geopolitical events and potential inflation tied to raw materials, energy, logistics and packaging remain swing factors as 2026 progresses.
Sherwin-Williams Cash Returns and Balance Sheet
Sherwin-Williams generated $139.1 million in net operating cash flow in the quarter. The company returned $772.7 million to shareholders through dividends and share repurchases, including the buyback of 1.6 million shares in the reported quarter.
As of March 31, 2026, cash and cash equivalents were $216.9 million. The company reported short-term borrowings of $2.38 billion and long-term debt of $9.32 billion, while noting it had remaining authorization to repurchase 28 million shares through open market purchases.
SHW’s Outlook
For the second quarter of 2026, Sherwin-Williams expects consolidated net sales to be up a mid-single-digit percentage versus the second quarter of 2025. The company reiterated that it continues to anticipate little to no recovery in most end markets this year based on customer sentiment and the leading indicators it monitors.
For full-year 2026, Sherwin-Williams reaffirmed earnings guidance of $10.70-$11.10 per share and adjusted earnings guidance of $11.50-$11.90, while maintaining an effective tax rate expectation in the low 20% range and projecting net sales growth of a low to mid-single-digit percentage versus 2025.
SHW’s Price Performance
Shares of Sherwin-Williams have lost 3.4% in the past year compared with the industry’s 9.7% rise.
Image Source: Zacks Investment Research
SHW’s Zacks Rank & Key Picks
SHW currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are CF Industries Holdings, Inc. (CF - Free Report) , Compass Minerals International, Inc. (CMP - Free Report) and Air Products and Chemicals, Inc. (APD - Free Report) .
CF Industries is slated to report first-quarter 2026 results on May 6. The Zacks Consensus Estimate for earnings is pegged at $2.35 per share, indicating 27.03% year-over-year growth. CF sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Compass Mineral is slated to report second-quarter fiscal 2026 results on May 6. The consensus estimate for CMP’s earnings per share is pegged at 66 cents. CMP presently carries a Zacks Rank #1.
Air Products is scheduled to report second-quarter fiscal 2026 results on April 30. The Zacks Consensus Estimate for APD’s second-quarter earnings per share is pegged at $3.05, indicating 13.38% year-over-year growth. APD carries a Zacks Rank #2 (Buy) at present.