Xylem Stock Gains On ‘Beat and Raise’ Quarter

Xylem has topped analyst estimates all three quarters in 2025. (Dreamstime)

Key Points

• Xylem reported third-quarter adjusted earnings of $1.37 a share on sales of $2.3 billion, exceeding analyst estimates.
• Third-quarter EPS and sales increased 23% and 8% year over year, respectively, with Ebitda profit margins up two percentage points to 23.2%.
• Xylem raised its full-year adjusted EPS forecast to $5.03 to $5.08, up from a previous range of $4.70 to $4.85.

The latest earnings from Xylem were as clean and consistent as fresh spring water.

Tuesday, the water-technology provider reported third-quarter adjusted earnings per share of $1.37 from sales of $2.3 billion. EPS and sales rose 23% and 8% year over year, respectively. Wall Street was looking for EPS of $1.23 from sales of $2.2 billion.

Xylem has topped analyst estimates all three quarters in 2025.

Looking ahead, Xylem expects full-year adjusted earnings per share of $5.03 to $5.08, up from a prior range of $4.70 to $4.85.

That forecast implies fourth-quarter EPS of about $1.40. Wall Street currently projects fourth-quarter earnings per share of $1.31.

All that adds up to solid results. Xylem shares rose 0.7% to $150.50, while the S&P 500 and Dow Jones Industrial Average gained 0.2% and 0.3%, respectively.

“Revenue grew across all segments,” said CEO Matthew Pine in a news release. “Resilient market demand for our solutions and our team’s accelerating performance give us the confidence to raise our full-year guidance. We are solidly on track to deliver our long-term financial framework and drive sustainable growth and value creation over the cycle.”

Sales in Xylem’s water-meter business grew 11% year over year on a comparable basis. Sales in the services business grew 10%.

Jefferies analyst Saree Boroditsky attributed the “beat and raise” to stronger sales and better margin performance. Third-quarter earnings before interest, taxes, depreciation, and amortization, or Ebitda, profit margins were 23.2%, up about two percentage points year over year.

She rates Xylem stock Hold and has a $155 price target for shares.

Coming into Tuesday trading, Xylem stock was up about 29% this year. Rising earnings estimates have helped. Wall Street expects Xylem to earn about $4.85 in 2025. At the start of the year, that estimate was closer to $4.70.

Now, estimates should be moving higher again.

Write to Al Root at allen.root@dowjones.com