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Sherwin-Williams (SHW) Up 1.4% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Sherwin-Williams (SHW - Free Report) . Shares have added about 1.4% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Sherwin-Williams due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Sherwin-Williams’ Q2 Earnings Beat Estimates on Broad-Based Sales Growth
Sherwin-Williams reported second-quarter 2026 adjusted earnings of $3.70 per share, up 9.5% year over year. The figure surpassed the Zacks Consensus Estimate of $3.56 by 3.9%.
Revenues increased 7.5% year over year to $6.79 billion and beat the consensus mark of $6.62 billion by 2.6%. Growth across all three reportable segments, including contributions from the Suvinil acquisition, supported results.
Selling, general and administrative expenses increased to $2.1 billion from $2.01 billion. As a percentage of sales, SG&A expenses improved to 31% from 31.9%. Higher employee-related costs, expenses related to the Suvinil acquisition and costs associated with the company’s new headquarters and technology center affected the quarter.
Segmental Review
Paint Stores Group sales increased 5.1% year over year to $3.89 billion. The improvement reflected mid-single-digit selling price increases and low-single-digit volume growth. Paint Stores Group same-store sales rose 4.2%.Sales rose across all professional customer markets, led by double-digit growth in protective and marine, high-single-digit growth in commercial and mid-single-digit growth in residential repaint.Paint Stores Group profit rose 4.5% to $957.6 million from $916.5 million.
Consumer Brands Group sales jumped 21.5% to $983.5 million from $809.4 million. Growth was driven primarily by the Suvinil acquisition, increased sales in North America and a 1.6% favorable foreign currency translation impact. Consumer Brands Group profit climbed 29.7% to $212.9 million. The increase reflected higher sales, favorable product mix, supply-chain efficiencies and currency transaction benefits, partly offset by raw material inflation and incremental Suvinil-related SG&A costs. Reported margin improved to 21.6% from 20.3%.
Performance Coatings Group sales advanced 6.3% to $1.91 billion. Low-single-digit gains in price and volume, along with a 2% favorable currency translation impact, aided results. General Industrial and Automotive Refinish recorded high-single-digit growth, while Packaging, Industrial Wood and Coil posted mid-single-digit gains. Performance Coatings Group profit increased 11.5% to $273.3 million. Higher sales more than offset raw material and employee-related cost increases. Reported segment margin expanded to 14.3% from 13.6%.
Cash Returns & Balance Sheet
Sherwin-Williams generated $1.49 billion in net operating cash flow during the first six months of 2026. The company returned $2.23 billion to shareholders through dividends and repurchases of 5.6 million common shares.
As of June 30, 2026, cash and cash equivalents were $293.5 million. Short-term borrowings totaled $2.25 billion, while long-term debt was $8.33 billion. The company had authorization to repurchase 24 million shares remaining through open-market transactions.
Outlook
For the third quarter of 2026, Sherwin-Williams expects consolidated net sales to increase by a mid to high-single-digit percentage year over year. Management expects demand softness to continue during the second half based on customer sentiment and the leading indicators it monitors.
For full-year 2026, the company raised its net sales growth forecast in the mid- to high-single-digit range. It also increased reported earnings guidance to $10.92-$11.32 per share from $10.70-$11.10.
Adjusted earnings are projected at $11.80-$12.20 per share, up from the prior guidance of $11.50-$11.90.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
At this time, 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 trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Sherwin-Williams has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
View the Zacks #1 Rank List
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Sherwin-Williams (SHW) Up 1.4% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Sherwin-Williams (SHW - Free Report) . Shares have added about 1.4% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Sherwin-Williams due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Sherwin-Williams’ Q2 Earnings Beat Estimates on Broad-Based Sales Growth
Sherwin-Williams reported second-quarter 2026 adjusted earnings of $3.70 per share, up 9.5% year over year. The figure surpassed the Zacks Consensus Estimate of $3.56 by 3.9%.
Revenues increased 7.5% year over year to $6.79 billion and beat the consensus mark of $6.62 billion by 2.6%. Growth across all three reportable segments, including contributions from the Suvinil acquisition, supported results.
Selling, general and administrative expenses increased to $2.1 billion from $2.01 billion. As a percentage of sales, SG&A expenses improved to 31% from 31.9%. Higher employee-related costs, expenses related to the Suvinil acquisition and costs associated with the company’s new headquarters and technology center affected the quarter.
Segmental Review
Paint Stores Group sales increased 5.1% year over year to $3.89 billion. The improvement reflected mid-single-digit selling price increases and low-single-digit volume growth. Paint Stores Group same-store sales rose 4.2%.Sales rose across all professional customer markets, led by double-digit growth in protective and marine, high-single-digit growth in commercial and mid-single-digit growth in residential repaint.Paint Stores Group profit rose 4.5% to $957.6 million from $916.5 million.
Consumer Brands Group sales jumped 21.5% to $983.5 million from $809.4 million. Growth was driven primarily by the Suvinil acquisition, increased sales in North America and a 1.6% favorable foreign currency translation impact. Consumer Brands Group profit climbed 29.7% to $212.9 million. The increase reflected higher sales, favorable product mix, supply-chain efficiencies and currency transaction benefits, partly offset by raw material inflation and incremental Suvinil-related SG&A costs. Reported margin improved to 21.6% from 20.3%.
Performance Coatings Group sales advanced 6.3% to $1.91 billion. Low-single-digit gains in price and volume, along with a 2% favorable currency translation impact, aided results. General Industrial and Automotive Refinish recorded high-single-digit growth, while Packaging, Industrial Wood and Coil posted mid-single-digit gains. Performance Coatings Group profit increased 11.5% to $273.3 million. Higher sales more than offset raw material and employee-related cost increases. Reported segment margin expanded to 14.3% from 13.6%.
Cash Returns & Balance Sheet
Sherwin-Williams generated $1.49 billion in net operating cash flow during the first six months of 2026. The company returned $2.23 billion to shareholders through dividends and repurchases of 5.6 million common shares.
As of June 30, 2026, cash and cash equivalents were $293.5 million. Short-term borrowings totaled $2.25 billion, while long-term debt was $8.33 billion. The company had authorization to repurchase 24 million shares remaining through open-market transactions.
Outlook
For the third quarter of 2026, Sherwin-Williams expects consolidated net sales to increase by a mid to high-single-digit percentage year over year. Management expects demand softness to continue during the second half based on customer sentiment and the leading indicators it monitors.
For full-year 2026, the company raised its net sales growth forecast in the mid- to high-single-digit range. It also increased reported earnings guidance to $10.92-$11.32 per share from $10.70-$11.10.
Adjusted earnings are projected at $11.80-$12.20 per share, up from the prior guidance of $11.50-$11.90.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
At this time, 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 trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Sherwin-Williams has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.