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.
Sherwin-Williams (SHW) Down 2.5% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
A month has gone by since the last earnings report for Sherwin-Williams (SHW - Free Report) . Shares have lost about 2.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Sherwin-Williams due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Sherwin-Williams' Q1 Earnings Top Estimates, Sales Rise Y/Y on Suvinil Buyout
Sherwin-Williams 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.
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.
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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, Sherwin-Williams has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Sherwin-Williams has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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
Sherwin-Williams (SHW) Down 2.5% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Sherwin-Williams (SHW - Free Report) . Shares have lost about 2.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Sherwin-Williams due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Sherwin-Williams' Q1 Earnings Top Estimates, Sales Rise Y/Y on Suvinil Buyout
Sherwin-Williams 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.
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.
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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, Sherwin-Williams has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Sherwin-Williams has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.