XYL

GFL Environmental Inc. (GFL) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 28. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of +17.7%. Revenues are expected to be $1.49 billion, up 20.9% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 13.62% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For GFL Environmental, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +5.00%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that GFL Environmental will most likely beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that GFL Environmental would post earnings of $0.17 per share when it actually produced earnings of $0.14, delivering a surprise of -17.65%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. GFL Environmental appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Waste Removal Services industry, Xylem (XYL), is soon expected to post earnings of $1.47 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +7.3%. This quarter's revenue is expected to be $2.28 billion, up 0.5% from the year-ago quarter. The consensus EPS estimate for Xylem has been revised 0.3% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -1.27%. When combined with a Zacks Rank of #4 (Sell), this Earnings ESP makes it difficult to conclusively predict that Xylem will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GFL Environmental Inc. (GFL) : Free Stock Analysis Report Xylem Inc. (XYL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Xylem (XYL) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 27. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This water and wastewater treatment company is expected to post quarterly earnings of $1.47 per share in its upcoming report, which represents a year-over-year change of +7.3%. Revenues are expected to be $2.28 billion, up 0.5% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.26% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Xylem, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.27%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Xylem will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Xylem would post earnings of $1.34 per share when it actually produced earnings of $1.46, delivering a surprise of +8.96%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Xylem doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Xylem Inc. (XYL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Washington, District of Columbia-based Xylem Inc. (XYL) engages in the design, manufacture, and servicing of engineered products and solutions for utility, industrial, residential, and commercial building services settings worldwide. The company has a market cap of $23.8 billion and operates through the Water Infrastructure; Applied Water; Measurement and Control Solutions; and Water Solutions and Services segments. XYL is expected to release its Q3 2026 earnings on Tuesday, October 27, before the market opens. Ahead of this event, analysts anticipate the company will generate earnings of $1.47 per share, representing a rise of 7.3% from $1.37 per share reported in the same quarter last year. The company has met or surpassed the Street's bottom-line estimates in each of the past four quarters. - A $40 Billion Reason Why SPCX Stock Is Down Today - Why This Wall Street Analyst Just Issued a Bold Prediction for Nebius Stock - Why Investors Are Celebrating Qualcomm Striking a Licensing Deal with Huawei — Which Is Still on the Entity List - Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! For fiscal 2026, analysts expect the company to report an EPS of $5.66, indicating a 11.4% rise from $5.08 reported in fiscal 2025. Moreover, its EPS is expected to rise nearly 9.5% year over year (YoY) to $6.20 in fiscal 2027. XYL stock has declined 31.3% over the past 52 weeks, underperforming the S&P 500 Index's ($SPX) 16.2% rise and the State Street Industrial Select Sector SPDR ETF's (XLI) 8.8% rise during the same time frame. On July 28, XYL stock rose 4% following the release of its Q2 2026 earnings. The company's revenue for the quarter amounted to $2.3 billion and surpassed the Street's estimates. Moreover, its adjusted EPS for the period also came in at $1.46, topping the consensus estimates. The company expects its full-year EPS to be in the range of $5.55 to $5.70. Despite an upbeat earnings beat in the quarter, the company's revenue guidance for the whole year came in at $9.2 billion, below what analysts expected. Analysts' consensus opinion on the stock is moderately bullish, with a "Moderate Buy" rating overall. Of the 20 analysts covering the stock, 11 recommend a "Strong Buy," one suggests a "Moderate Buy," and eight rate it a "Hold." XYL's average analyst price target is $147.50, indicating an upside of 44.9% from the current levels. On the date of publication, Aritra Gangopadhyay did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let's have a look at Xylem (NYSE:XYL) and its peers. Trends towards conservation and reducing groundwater depletion are putting water infrastructure and treatment products front and center. Companies that can innovate and create solutions–especially automated or connected solutions–to address these thematic trends will create incremental demand and speed up replacement cycles. On the other hand, water infrastructure and treatment companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies' offerings. The 5 water infrastructure stocks we track reported a satisfactory Q2. As a group, revenues missed analysts' consensus estimates by 6.4%. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 16.5% since the latest earnings results. Formed through a spinoff, Xylem (NYSE:XYL) manufactures and services engineered products across a wide variety of applications primarily in the water sector. Xylem reported revenues of $2.34 billion, up 1.5% year on year. This print was in line with analysts' expectations, and overall, it was a strong quarter for the company with an impressive beat of analysts' EBITDA estimates and full-year EPS guidance slightly topping analysts' expectations. Investor expectations, however, were likely higher than Wall Street's published projections, leaving some wishing for even better results (analysts' consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 15.2% since reporting and currently trades at $101.87. We think Xylem is a good business, but is it a buy today? Read our full report here, it's free. Founded in 1874, Watts Water (NYSE:WTS) specializes in manufacturing water products and systems for residential, commercial, and industrial applications globally. Watts Water Technologies reported revenues of $763.2 million, up 18.6% year on year, outperforming analysts' expectations by 4.9%. The business had a stunning quarter with an impressive beat of analysts' organic revenue estimates and a beat of analysts' EPS estimates. Watts Water Technologies pulled off the biggest analyst estimate beat and fastest revenue growth of the whole group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 1.1% since reporting. It currently trades at $359.88. Is now the time to buy Watts Water Technologies? Access our full analysis of the earnings results here, it's free. As the world's largest manufacturer of autonomous mobile robots, Tennant (NYSE:TNC) designs, manufactures, and sells cleaning products to various sectors. Tennant reported revenues of $324 million, up 1.7% year on year, falling short of analysts' expectations by 1.7%. It was a softer quarter as it posted full-year EBITDA guidance missing analysts' expectations significantly and a significant miss of analysts' EBITDA estimates. As expected, the stock is down 23.5% since the results and currently trades at $66.77. Read our full analysis of Tennant's results here. As one of the oldest companies in the water infrastructure industry, Mueller (NYSE:MWA) is a provider of water infrastructure products and flow control systems for various sectors. Mueller Water Products reported revenues of $395.9 million, up 4.1% year on year. This result surpassed analysts' expectations by 1.2%. Overall, it was a very strong quarter as it also produced a beat of analysts' EPS estimates and a solid beat of analysts' EBITDA estimates. Mueller Water Products had the weakest full-year guidance update in the group. The stock is down 18.6% since reporting and currently trades at $21.51. Read our full, actionable report on Mueller Water Products here, it's free. Having saved far more than a trillion gallons of water, Energy Recovery (NASDAQ:ERII) provides energy recovery devices to the water treatment, oil and gas, and chemical processing sectors. Energy Recovery reported revenues of $12 million, down 57.2% year on year. This number came in 36.3% below analysts' expectations. It was a softer quarter as it also produced a significant miss of analysts' EBITDA estimates. Energy Recovery had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is down 24.3% since reporting and currently trades at $6.71. Read our full, actionable report on Energy Recovery here, it's free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market's biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market's primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market's dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

It has been about a month since the last earnings report for Xylem (XYL). Shares have lost about 7.1% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Xylem due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts. Xylem’s second-quarter 2026 adjusted earnings of $1.46 per share beat the Zacks Consensus Estimate of $1.34 by 9%. The bottom line increased 15.9% year over year. Its revenues of $2.34 billion beat the consensus estimate of $2.33 billion by 0.4%. The top line increased 1.5% year over year, driven by strength in Transport, Energy Metering, Building Solutions and capital projects in heavy industries. Organic revenues increased 1% in the quarter.Orders of $3.09 billion increased 42% year over year on a reported basis and 41% on an organic basis. Revenues in the Water Infrastructure segment totaled $683 million, up 5% year over year. Organic sales increased 3%, driven by strength in Transport, which more than offset weakness in Treatment and China. The Zacks Consensus Estimate was pegged at $664 million.The Applied Water segment generated revenues of $501 million, up 4% year over year. Organic sales increased 3% in the quarter, driven by strength in the commercial end market. The Zacks Consensus Estimate was pegged at $492 million.Quarterly revenues of the Measurement & Control Solutions segment totaled $508 million, down 6% year over year. Organic sales declined 1%, as strength in Energy Metering and VUE demand partly offset lower revenues. The Zacks Consensus Estimate was pegged at $538 million.Quarterly revenues at the Water Solutions and Services segment totaled $644 million, up 3% year over year. Organic sales increased 1%, driven by strength in capital projects and Dewatering. The Zacks Consensus Estimate was pegged at $636 million. Xylem’s adjusted EBITDA was $544 million, up 8.4% from the year-ago quarter’s level. The margin improved to 23.3% from 21.8% in the prior-year quarter.Adjusted operating income was $447 million, up 11.2% year over year. Adjusted operating margin increased to 19.1% from 17.5% in the year-earlier quarter. Exiting the second quarter, Xylem had cash and cash equivalents of $1.28 billion compared with $1.48 billion at the end of December 2025. Long-term debt was $2.40 billion at the end of the quarter compared with $1.41 billion at the end of December 2025.In the first six months of 2026, Xylem generated net cash of $398 million from operating activities compared with $338 million in the year-ago period. Capital expenditure was $179 million, up 5.9% from the year-earlier period. In the first six months of 2026, Xylem paid dividends of $207 million, up 5.6% year over year. The company also bought back shares worth $1.24 billion in the same period compared with $13 million in the year-ago period. Xylem has updated its 2026 outlook. The company now expects revenues of approximately $9.2 billion compared with the previous projection of $9.2-$9.3 billion. This indicates growth of approximately 2% from the prior-year level on a reported basis and 2-3% on an organic basis.Adjusted EBITDA margin is estimated to be approximately 23.1-23.5%, indicating an expansion of 90-130 basis points from the year-earlier actual.Xylem forecasts adjusted earnings in the range of $5.55-$5.70 per share, up from the previous guidance of $5.35-$5.60. It turns out, estimates review have trended downward during the past month. Currently, Xylem has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy. 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. Estimates have been trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Xylem has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Xylem Inc. (XYL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Badger Meter, Inc. BMI has a cleaner entry point after a 33.5% decline over the past year, but the second-quarter beat does not settle the investment debate. The company still has durable water-sector demand, improving sequential sales and a flexible balance sheet. The offset is lower year-over-year revenues, weaker margins, acquisition costs and a valuation that requires steady execution. Badger Meter reported second-quarter 2026 earnings of $1.02 per share, topping the Zacks Consensus Estimate of $1.01 by 1.0%. Revenues of $222.32 million beat the consensus mark of $221.06 million by 0.6%. The beat is less convincing than the headline. Earnings fell 12.8% from the prior year, while revenues declined 6.6%, making the durability of the recovery more important than modest upside versus expectations. Badger Meter, Inc. price-eps-surprise | Badger Meter, Inc. Quote Utility water sales fell 8%, or 9% excluding two months of UDlive, as advanced metering infrastructure deployments remained uneven. Flow instrumentation sales rose 6% on water-related demand. Xylem Inc. XYL gives investors broader water technology exposure across water and wastewater applications. Itron, Inc. ITRI is relevant because it serves utilities with metering, communications and infrastructure solutions. The strongest near-term positive was the 10% sequential increase in sales. Awarded utility projects began initial deployments, including PRASA and several others, while order rates improved from the first quarter. Management expects base quarterly revenues to improve sequentially through the rest of 2026. Third-quarter sales are expected to rise from the second quarter, but year-over-year growth is expected to be heavily weighted toward the fourth quarter. That timing matters. Full-year revenues excluding UDlive are still expected to be roughly flattish with 2025, and some awarded projects may not reach full run rates by year-end. A larger project cohort provides more coverage, but customer schedules, installation timing and short-cycle municipal orders can still shift quarterly performance. Image Source: Zacks Investment Research Badger Meter generated free cash flow of $21.9 million in the quarter, down from $40.6 million a year earlier. Cash from operations was $26.71 million, while capital expenditures totaled $4.84 million. The company ended June 2026 with $95.73 million in cash and an undrawn $150 million credit facility. This supports research, acquisitions, dividends and repurchases.Liquidity is not the same as accelerating cash generation. Primary working capital rose to 22.9% of sales from 20.0% at the end of the first quarter, reflecting project timing. BMI spent $94.38 million on acquisitions, $25.25 million on share repurchases and $11.59 million on dividends during the quarter. Management still targets full-year free cash flow conversion above 100% of net income. BMI trades at 28.48 times forward 12-month earnings and 19.02 times trailing 12-month enterprise value to EBITDA. Both are below the company’s five-year medians of 44.85 and 29.02, respectively. That discount to history does not make the stock inexpensive. The enterprise value to EBITDA multiple remains above the Zacks sub-industry at 9.23 times and the S&P 500 at 18.24 times. The $141 price target is based on 28.1 times forward 12-month earnings. That embeds confidence in project execution, margin discipline and profitable acquisition integration. The margin setup leaves limited room for another setback. Gross margin slipped 30 basis points to 40.8%, while operating margin fell 110 basis points to 17.7%. Electronic component costs remain pressure points. The bottom line is that Badger Meter’s pullback alone is not enough to make the stock a buy. Sequential sales improvement, early project deployments and a flexible balance sheet support the stock, but weaker year-over-year results and margin pressure keep the risk-reward balanced. A stronger case would require more consistent project shipments, margin stabilization and clearer evidence that UDlive and other acquired assets can become profitable contributors. Currently, Badger Meter has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Badger Meter, Inc. (BMI) : Free Stock Analysis Report Itron, Inc. (ITRI) : Free Stock Analysis Report Xylem Inc. (XYL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Xylem (XYL) reported $2.34 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 1.5%. EPS of $1.46 for the same period compares to $1.26 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $2.33 billion, representing a surprise of +0.36%. The company delivered an EPS surprise of +8.96%, with the consensus EPS estimate being $1.34. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Xylem performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenue- Measurement & Control Solutions: $508 million versus $538.45 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -5.9% change. Revenue- Applied Water: $501 million versus the four-analyst average estimate of $492.07 million. The reported number represents a year-over-year change of +3.7%. Revenue- Water Infrastructure: $683 million compared to the $663.5 million average estimate based on four analysts. The reported number represents a change of +5.1% year over year. Revenue- Water Solutions and Services: $644 million versus $636.06 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +2.6% change. Adjusted Operating Income- Water Infrastructure: $168 million versus the two-analyst average estimate of $132.06 million. Adjusted Operating Income- Applied Water: $98 million compared to the $95.17 million average estimate based on two analysts. Adjusted Operating Income- Water Solutions and Services: $120 million versus $112.28 million estimated by two analysts on average. Adjusted Operating Income- Corporate and other: $-22 million versus $-21.2 million estimated by two analysts on average. Adjusted Operating Income- Measurement & Control Solutions: $83 million compared to the $98.59 million average estimate based on two analysts. View all Key Company Metrics for Xylem here>>> Shares of Xylem have returned +2.9% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Xylem Inc. (XYL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is intentionally shifting Xylem's exposure toward high-growth industrial verticals where water is becoming a strategic input for operational performance and reliability. The AI ecosystem is a primary growth catalyst, with demand expanding from data centers and semiconductors into power generation and mining infrastructure. The Evoqua acquisition has significantly expanded capabilities in treatment, reuse, and services, allowing Xylem to secure large-scale, long-term integrated contracts. Portfolio sharpening through over $400 million in divestitures and strategic acquisitions like TriOS and WaterFleet is aligning the company with observed market demand patterns. Municipal markets remain a resilient foundation, supported by steady infrastructure spending and a robust $5.3 billion total backlog. Operational discipline and 80/20 simplification efforts drove a 150 basis point EBITDA margin expansion despite volume headwinds and regional volatility. Performance in China declined 27% as the company selectively walks away from lower-quality business while facing broader economic headwinds in the region. Full-year organic revenue growth guidance was narrowed to 2% to 3% due to near-term electric metering project delays in the MCS segment. Data center revenue is projected to increase by approximately 200% in 2026, exiting the year at roughly 2% of total company revenue. Management expects a strong exit to the year with mid-single-digit organic growth in Q4, building momentum for fiscal year 2027. The 80/20 simplification strategy is expected to reach its peak 'walkaway revenue' impact of nearly 2% this year before shifting to a growth-enabling phase in 2027. Guidance assumes continued strength in water infrastructure and transport, offsetting cautious capital spending by electric utilities ahead of upcoming elections. The Dow contract expansion and a new 20-year chemical company agreement represent a shift toward large-scale, services-led 'build-own-operate' models. Electric metering delays are attributed to utility affordability concerns and political pressure regarding electricity rate increases. The WaterFleet acquisition strengthens the services-led recurring revenue base and expands mobile water treatment capabilities for AI infrastructure. Management noted no material impact from recently announced tariff changes or refunds on the projected results. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Growth was primarily driven by data center orders, which surged over 300% in the quarter, alongside strength in U.S. commercial building services. Management expects data center exposure to continue increasing as water becomes critical for cooling and infrastructure quantity needs. The 480 basis point margin expansion was driven by 80/20 simplification, optimized overhead, and a selective bidding strategy for high-value projects. While some mix benefits from transport will normalize, management sees ongoing productivity levers and a shift from margin-focused 'walkaway' actions to growth-focused resource allocation. Delays are tied to a cautious capital environment and rate-increase scrutiny; however, the water metering side remains strong with double-digit order growth. Management expressed confidence in a Q4 step-up based on a 30% increase in the water funnel and the ongoing AMI 2.0 refresh cycle. Xylem remains on track to deploy approximately $1 billion toward M&A this year, focusing on accretive assets that fill technology gaps. Management noted that while some private market valuations are slow to adjust to public market softening, their acquisition funnel remains very active.

This article first appeared on GuruFocus. Revenue: Up 1% in the quarter versus prior year. EBITDA Margin: 23.3%, up 150 basis points versus the prior year. EPS: Record quarterly EPS of $1.46, a 16% increase over the prior year. Net Debt to Adjusted EBITDA: Increased to 0.8 times. Free Cash Flow: Strong in the quarter, driven by higher net income. Water Infrastructure Revenue: Up 3%, driven by transport offsetting softness in treatment. Water Infrastructure EBITDA Margin: Expanded by 480 basis points. Applied Water Orders: Up 9%, with data center orders up over 300%. Water Solutions and Services Revenue: Increased 1% year over year. Water Solutions and Services EBITDA Margin: 25.3%, up 90 basis points versus the prior year. Full-Year Revenue Guidance: Expected to be roughly $9.2 billion, with growth of approximately 2%. Full-Year EPS Guidance: Raised to $5.55 to $5.70. Third-Quarter Revenue Growth: Expected to be flat on a reported basis and up roughly 3% organically. Third-Quarter EPS Guidance: $1.42 to $1.47. Warning! GuruFocus has detected 2 Warning Sign with XYL. Is XYL fairly valued? Test your thesis with our free DCF calculator. Release Date: July 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Xylem Inc (NYSE:XYL) reported a strong quarterly EBITDA margin of 23.3%, up 150 basis points from the previous year, driven by productivity, price, and mix. The company achieved record quarterly EPS of $1.46, a 16% increase over the prior year. Xylem Inc (NYSE:XYL) has a strong backlog of $5.3 billion, with a book-to-bill ratio well above one, indicating healthy demand. The Applied Water segment saw significant growth, with data center orders up over 300% and revenue expected to increase by approximately 200% this year. The acquisition of WaterFleet and TriOS strengthens Xylem Inc (NYSE:XYL)'s capabilities in mobile water treatment and advanced sensing, aligning with high-growth markets. Revenue in the Measurement and Control Solutions segment was down 1%, driven by a slowdown in electric meter deployments due to affordability concerns and cautious capital spending. Xylem Inc (NYSE:XYL) experienced a 27% decline in revenue from China, impacting overall growth. The company's Water Infrastructure segment faced challenges with a 40% decline in China and softness in treatment due to strategic walkaway actions. The EBITDA margin for the Measurement and Control Solutions segment decreased by 200 basis points due to unfavorable mix, inflation, and volume. The company lowered its full-year revenue growth outlook for the Measurement and Control Solutions segment to low-single-digit growth due to project delays in electric metering. Q: Can you elaborate on the 9% organic revenue growth in Applied Water and the key industrial drivers? A: The growth was primarily driven by data centers, with significant contributions from North America's commercial building services across multiple verticals. Data centers are a major growth area, with revenue expected to increase by 200% this year. Additionally, the acquisition of WaterFleet will further enhance our capabilities in this sector. Q: Could you discuss the opportunities in outsourced contracts, particularly following the Evoqua acquisition? A: Outsourced contracts, including build-on-operate models, are a significant focus. The Evoqua acquisition has expanded our capabilities, especially in high-growth verticals like high-tech power and life sciences. Recent wins include a project with the world's largest lithium battery cell manufacturer and a data center in Pennsylvania, highlighting our comprehensive water treatment solutions. Q: What are the current challenges and outlook for the Measurement and Control Solutions (MCS) segment? A: The MCS segment faces challenges due to delays in electric meter deployments, driven by affordability concerns and cautious capital spending. However, we continue to gain market share and expect long-term growth driven by the AMI 2.0 refresh cycle. On the water side, order activity remains strong, with a 30% increase in the funnel compared to last year. Q: How is the 80/20 strategy evolving, and what impact does it have on growth and margins? A: The 80/20 strategy has been a significant lever for margin improvement, with this year seeing the peak of walkaway revenue at close to 2%. Moving forward, the focus will shift to leveraging the strategy for growth, particularly in underrepresented areas like US transport and data centers, enabling incremental growth as we approach 2027. Q: Are there any supply chain concerns, particularly regarding electronic components? A: We regularly review supply chain conditions and have taken proactive measures, such as maintaining a years supply of rare earth materials and six months of chips and wafers. Currently, there are no pressing supply chain issues, and we continue to monitor the situation closely. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Xylem (XYL) came out with quarterly earnings of $1.46 per share, beating the Zacks Consensus Estimate of $1.34 per share. This compares to earnings of $1.26 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +8.96%. A quarter ago, it was expected that this water and wastewater treatment company would post earnings of $1.09 per share when it actually produced earnings of $1.12, delivering a surprise of +2.75%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Xylem, which belongs to the Zacks Waste Removal Services industry, posted revenues of $2.34 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.36%. This compares to year-ago revenues of $2.3 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Xylem shares have lost about 11.8% since the beginning of the year versus the S&P 500's gain of 8.3%. While Xylem has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Xylem was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.47 on $2.32 billion in revenues for the coming quarter and $5.52 on $9.24 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Waste Removal Services is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Select Water Solutions, Inc. (WTTR), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This company is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of +10%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Select Water Solutions, Inc.'s revenues are expected to be $365.9 million, up 0.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Xylem Inc. (XYL) : Free Stock Analysis Report Select Water Solutions, Inc. (WTTR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research