Xylem Q3 adj EPS $1.44 (+5%), revenue $2.2B flat organic; FY26 EPS guide cut to $5.40-$5.45; divesting AW Int'l, SFC

Xylem Inc.

• Q3 orders $2.3B, up 7% reported and 10% organically; revenue $2.2B, down 3% reported but flat organically.
• GAAP EPS $1.25 (+34%), adjusted EPS $1.44 (+5%); net income $291M at 13.2% margin (+320 bps); adjusted EBITDA margin 23.9% (+70 bps).
• FY26 guidance cut: revenue ~$8.95B (-1% reported, flat organic) vs prior up 2%; adjusted EPS $5.40-$5.45 from $5.55-$5.70; FCF margin ~10.2%.
• Plans to divest Applied Water International and Specialty Flow Control; shifting from four segments to three on Jan 1, 2027 (Treatment and Services, Flow Solutions, Measurement and Analytics).
• Water Infrastructure President Hayati Yarkadas exits as officer Jan 1, 2027; stays through divestitures at CHF 557,469 salary plus $1.2M success incentive.