# Xylem Inc. (XYL)

> Source: Nexqual · https://nexqual.com/XYL · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Xylem Inc. (XYL), nexqual.com/XYL" · informational, not investment advice.

**Price:** USD 109.26 (+2.74% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 106.35 · day 103.45–109.51 · 52w 98.58–154.27 · market cap $25.5B · NYQ

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $9.13B, net income $1.02B (11.2% margin), free cash flow $960M (SEC filings).
- Valuation: P/E 25.1x (avg 35.8x at the last 3 fiscal year-ends), EV/EBITDA 14.4x, net debt $1.67B.
- 1 of 80 tracked superinvestors hold XYL (13F, Q2 2026): 0 new, 1 added, 0 reduced, 0 unchanged.
- Insider open-market sales, last ~7 months: 1 Form 4 filings, $501K; 1 not under a Rule 10b5-1 plan ($501K); 0 by opportunistic insiders, 0 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Insider open-market purchases, last ~7 months: 1 Form 4 filing, $141K; 0 by opportunistic insiders, 0 by routine insiders.
- Analysts: Buy (mean 2.14 on a 1–5 scale) (21 analysts), mean target USD 142.63 (range 110–180).
- Total return with dividends: 1Y -25.0% vs S&P 500 +14.9%; 5Y -9.7% vs S&P 500 +80.3%.
- Next earnings: 2026-10-27, EPS estimate USD 1.45, revenue estimate $2.28B.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $5.20B | $5.52B | $7.36B | $8.56B | $9.04B | $9.13B |
| Gross profit | $1.98B | $2.08B | $2.72B | $3.21B | $3.48B | — |
| Operating income | $585M | $622M | $652M | $1.01B | $1.22B | $1.32B |
| Net income | $427M | $355M | $609M | $890M | $957M | $1.02B |
| EPS (diluted) | $2.35 | $1.96 | $2.79 | $3.65 | $3.92 | — |
| Free cash flow | $330M | $388M | $566M | $942M | $910M | $960M |
| Gross margin | 38.0% | 37.7% | 36.9% | 37.5% | 38.5% | — |
| Operating margin | 11.3% | 11.3% | 8.9% | 11.8% | 13.5% | 14.5% |
| Net margin | 8.2% | 6.4% | 8.3% | 10.4% | 10.6% | 11.2% |
| Revenue growth | +6.5% | +6.3% | +33.4% | +16.3% | +5.5% | — |
| Cash + short-term investments | — | $944M | $1.02B | $1.12B | $1.48B | — |
| Total debt | $2.44B | $1.88B | $2.28B | $2.03B | $1.95B | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 25.1x · P/S 2.8x · EV/EBITDA 14.4x · EV/Sales 3.0x · P/FCF 26.6x · P/B 2.5x · FCF yield 3.76% · Earnings yield 3.99% · Dividend yield (paid, TTM) 1.58% · Buyback yield (TTM) 4.88% · Net debt $1.67B · EV $27.2B
P/E at fiscal year-ends: Dec 2025 34.7x, Dec 2024 31.7x, Dec 2023 41.0x.

## Superinvestors (SEC 13F-HR, Q2 2026)
1 of 80 tracked investors hold XYL. Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change |
|---|---|---|---|---|
| Mairs & Power | Mairs & Power Funds | 0.02% | $1.8M | Added +9.7% |

## Insider sales (SEC Form 4, open-market, last ~7 months)
0 of 1 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-05-07 | McShane Geri-Michelle | SVP, CAO | 4,269 | $501K | 54.2% | No | Too little history (no open-market trades in 2023) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Insider purchases (SEC Form 4, open-market, last ~7 months)
1 purchase, $141K. Private placements, offerings, dividend reinvestment and employee stock purchase plan buys are excluded.
| Trade date | Insider | Role | Shares | Value | Avg price | Insider type |
|---|---|---|---|---|---|---|
| 2026-05-04 | Peribere Jerome A | Director | 1,210 | $141K | 116.61 | Too little history (no open-market trades in 2023–2025) |

## Analysts
Consensus Buy (mean 2.14 on a 1–5 scale), 21 analysts; mean target USD 142.63 (low 110, high 180).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-19 | JP Morgan | Target lowered | Neutral | $137 → $118 |
| 2026-10-15 | Mizuho | Target lowered | Neutral | $130 → $110 |
| 2026-10-14 | Oppenheimer | Target lowered | Outperform | $158 → $150 |
| 2026-10-14 | RBC Capital | Target lowered | Outperform | $164 → $135 |
| 2026-10-13 | Barclays | Target lowered | Overweight | $159 → $139 |
| 2026-10-12 | Citigroup | Target lowered | Buy | $172 → $148 |
| 2026-10-05 | UBS | Target lowered | Neutral | $138 → $112 |
| 2026-08-24 | Jefferies | Target raised | Buy | $145 → $150 |
| 2026-08-13 | UBS | Target raised | Neutral | $135 → $138 |
| 2026-07-30 | UBS | Target raised | Neutral | $129 → $135 |
| 2026-07-29 | Stifel | Target raised | Buy | $157 → $160 |
| 2026-07-29 | Mizuho | Target raised | Neutral | $124 → $130 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | -25.0% | -9.7% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | -25.1% | -2.0% |
| Volatility (annualized) | 25.7% | 26.8% |
| Max drawdown | -33.1% (Oct 2025→Oct 2026) | -43.8% (Nov 2021→Jun 2022) |

## Peers (Specialty Industrial Machinery)
DOV (Dover Corporation) USD 195.49 -2.18% · OTIS (Otis Worldwide Corporation) USD 75.6 +4.49% · IR (Ingersoll Rand Inc.) USD 74.11 -6.26% · NDSN (Nordson Corporation) USD 318.71 -3.87% · IEX (IDEX Corporation) USD 226.88 -3.63% · GGG (Graco Inc.) USD 69.28 -15.32%

## More
Full page: https://nexqual.com/XYL · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Revenue by business segment (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY | Operating income | Op. margin |
|---|---|---|---|---|---|
| Water Infrastructure | $683.0M | 30.2% | +5.1% | $157.0M | 23.0% |
| Water Solutions Services | $644.0M | 28.5% | +2.5% | $91.0M | 14.1% |
| Measurement & Control Solutions | $508.0M | 22.5% | -5.9% | $63.0M | 12.4% |
| Applied Water | $501.0M | 22.1% | +3.7% | $101.0M | 20.2% |
| Total revenue | $2.26B | 100% | — | $412.0M | 18.2% |
The lines above cover 103.3% of total revenue.

## Revenue by product line (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Product | $1.95B | 86.3% | +2.2% |
| — Transport (part of Product) | $421.0M | 18.6% | +9.4% |
| — Smart Metering & Other (part of Product) | $415.0M | 18.3% | -7.6% |
| — Service (part of Product) | $383.0M | 16.9% | -1.8% |
| — Treatment (part of Product) | $262.0M | 11.6% | -1.1% |
| — Services (part of Product) | $256.0M | 11.3% | +0.4% |
| — Industrial Water (part of Product) | $215.0M | 9.5% | +0.9% |
| Capital & Other | $314.0M | 13.9% | +5.0% |
| Commercial Building Services | $286.0M | 12.6% | +5.9% |
| Analytics | $93.0M | 4.1% | +2.2% |
| Total revenue | $2.26B | 100% | — |
The lines above cover 117% of total revenue.

## Revenue by region (fiscal year ended 2025-12-31)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| United States | $5.21B | 59.7% | +7.1% |
| Europe | $1.84B | 21.1% | +5.4% |
| Asia Pacific | $1.22B | 14.0% | -4.2% |
| Other Countries | $766.0M | 8.8% | +12.5% |
| Total revenue | $8.72B | 100% | — |
The lines above cover 103.6% of total revenue.

## Company outlook (8-K filed 2026-07-28)

- "Xylem now forecasts full-year 2026 revenue of approximately $9.2 billion, up approximately 2 percent on a reported basis, versus 2 to 3 percent previously guided, and up approximately 2 to 3 percent on an organic basis, versus 2 to 4 percent previously guided."
- "Full-year 2026 adjusted EBITDA margin is expected to be approximately 23.1 to 23.5 percent, an increase of 90 to 130 basis points from Xylem's 2025 adjusted results."
- "This results in full-year adjusted earnings per share of $5.55 to $5.70, up from the previous guidance range of $5.35 to $5.60."
- "Full-year free cash flow margin is still expected to be approximately 10.2 to 11.0 percent."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $1.45 | $1.46 | -0.7% | $2.28B | 18 |
| Next quarter (ends 2026-12-31) | $1.64 | $1.63 | +0.5% | $2.45B | 17 |
| Current fiscal year (ends 2026-12-31) | $5.65 | $5.54 | +2.0% | $9.19B | 20 |
| Next fiscal year (ends 2027-12-31) | $6.22 | $6.10 | +1.8% | $9.61B | 20 |