XYL

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

Xylem Inc.’s XYL second-quarter 2026 adjusted earnings of $1.46 per share beat the Zacks Consensus Estimate of $1.34. The bottom line increased 15.9% year over year.XYL’s revenues of $2.34 billion beat the consensus estimate of $2.33 billion. 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.Also, 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 Inc. price-eps-surprise | Xylem Inc. Quote 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, XYL 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.XYL forecasts adjusted earnings in the range of $5.55-$5.70 per share, up from the previous guidance of $5.35-$5.60. The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Pentair plc PNR came out with quarterly earnings of $1.14 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $1.12 per share. This compares with earnings of $1.39 per share a year ago.PNR posted revenues of $932.6 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 7.84%. This compares with year-ago revenues of $1.12 billion. WEX Inc.’s WEX adjusted earnings (excluding $2.24 from non-recurring items) in second-quarter 2026 were $5.35 per share, which surpassed the Zacks Consensus Estimate by 5.3% and increased 35.4% year over year. Revenues were $753.5 million, topping the consensus estimate by 1.8% and rising 14.2% year over year.Comstock Inc. LODE came out with a quarterly loss of $0.13 per share compared with the Zacks Consensus Estimate of a loss of $0.12 in the second quarter of 2026. This compares with a loss of $0.27 per share a year ago.LODE posted revenues of $0.27 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 80.16%. This compares with year-ago revenues of $0.34 million. 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 Pentair plc (PNR) : Free Stock Analysis Report WEX Inc. (WEX) : Free Stock Analysis Report Comstock Inc. (LODE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Pentair plc PNR reported adjusted earnings of $1.14 per share for the second quarter of 2026, beating the Zacks Consensus Estimate of $1.12 by 1.8% and also higher than the company’s expectation for the quarter. However, earnings declined 18% from $1.39 in the year-ago quarter. Earlier this month, Pentair had stated that adjusted earnings per share (EPS) for the second quarter would be around $1.12, citing weaker-than-expected performance in its Pool business.  This was attributed to a sharper-than-anticipated inventory correction by major channel partners, along with softer end-market demand amid elevated interest rates and persistent inflation. Including one-time items, EPS was 80 cents compared with the prior-year quarter’s 90 cents. Pentair plc price-consensus-eps-surprise-chart | Pentair plc Quote Revenues fell 17% year over year to $932.6 million and missed the consensus estimate of $1.012 billion by 7.9%. The figure also came in higher than Pentair’s stated expectation of $930 million for the quarter. Core sales declined 17.3% as lower volume more than offset pricing and favorable currency movement.  The shortfall primarily reflected an approximately $170 million inventory destock in the Pool channel. Cost of goods sold decreased 19.3% year over year to $537.6 million. Gross profit declined 13.5% to $395 million. However, gross margin expanded to 42.4% from 40.7%. Selling, general and administrative expenses fell 4.2% to $204.8 million, while research and development spending decreased 5.6% to $23.7 million.  Reported operating income dropped 23.5% to $166.5 million, and return on sales contracted 150 basis points to 17.9%. On an adjusted basis, operating income declined 20% year over year to $237 million. That translated into adjusted return on sales of 25.4%, down 100 basis points from the year-ago quarter. Flow sales rose 5% year over year to $263.7 million, aided by acquisitions and currency, while core sales slipped 1%. Segment income increased 27% to $69.8 million, and return on sales expanded 470 basis points to 26.5%. Water Solutions sales declined 5% to $422 million, with core sales down 3%. Segment income advanced 17% to $126.4 million, while return on sales improved 560 basis points to 30%, supported by productivity and price exceeding inflation. Pool sales plunged 42% year over year to $246.6 million as channel partners rebalanced inventory across the product portfolio. The segment's core sales also declined 42%. Pool segment income fell 62% to $57.6 million, and return on sales dropped to 23.4% from 35.7%. Net cash provided by operating activities was $571.8 million compared with $606.6 million a year earlier. Free cash flow totaled $552.9 million compared with $595.8 million in the prior-year quarter. Pentair ended the second quarter of 2026 with $91.8 million in cash and cash equivalents and $1.61 billion of long-term debt. The company repurchased $150 million of shares during the quarter. The company has $650 million available for share repurchases under its share repurchase authorization. Pentair also announced that it has entered into an agreement to acquire Taco Group Holdings, a leader in hydronic and water-based solutions, for approximately $1.4 billion, subject to customary adjustments. The acquisition will augment Pentair’s portfolio of smart, sustainable water solutions to support increased exposure to key high-growth end markets, primarily in North America. The transaction is expected to close in the fourth quarter of 2026.  The transaction is expected to boost Pentair’s 2027 EPS by 10 to 15 cents. Pentair expects to generate approximately $30 million in run-rate cost synergies related to supply chain and operational efficiencies. For the third quarter, management expects adjusted earnings of $1.05-$1.08 per share and sales to fall 4-6%. Pentair reaffirmed the adjusted earnings guidance it had provided earlier this month, at $4.60-$4.80 per share for 2026. Full-year sales are projected to decline 4-7%, reflecting the Pool channel reset. The outlook excludes the acquisition of Taco Group Holdings. Management described the Pool weakness as a temporary channel reset rather than a change in the business's long-term opportunity. Major channel partners reduced near-term orders to rebalance inventory and improve turns ahead of the 2027 pool season. Image Source: Zacks Investment Research Pentair stock has declined 38.2% over the past year compared with the industry’s 11.1% decline. Pentair currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Pool Corp. POOL reported adjusted earnings of $5.38 per share, beating the Zacks Consensus Estimate of $5.30 per share. This marks a 4% increase from the earnings of $5.17 per share reported a year ago. Pool Corp. posted revenues of $1,823 billion for the quarter, surpassing the Zacks Consensus Estimate of $1,819 million. The revenue figure marked a 2% year-over-year increase. Xylem Inc. XYL reported adjusted EPS of $1.46, surpassing the Zacks Consensus Estimate of $1.34. The company reported earnings of $1.26 in the year-ago quarter. Xylem reported revenues of $2,336 million in the quarter, beating the Zacks Consensus Estimate of $2,328 million. Revenues were up 1.5% year over year. Clean Harbors, Inc. CLH, scheduled to release second-quarter 2026 results tomorrow, has a trailing four-quarter negative average earnings surprise of 0.02%. The Zacks Consensus Estimate for Clean Harbors’ earnings for the quarter is pegged at $2.73 per share, implying year-over-year growth of 15.7%. The consensus estimate for Clean Harbors’ top line is pegged at $1.62 billion, indicating a rise of 4.8% from the prior-year figure. Clean Harbors currently carries a Zacks Rank #2 (Buy). 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 Pentair plc (PNR) : Free Stock Analysis Report Pool Corporation (POOL) : Free Stock Analysis Report Clean Harbors, Inc. (CLH) : Free Stock Analysis Report Xylem Inc. (XYL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Xylem Inc.? Here are five stocks we like better. Strong quarterly performance: Xylem reported record adjusted EPS of $1.46, up 16% year over year, while adjusted EBITDA margin expanded 150 basis points to 23.3%. Backlog reached $5.3 billion, supported by a $850 million, 23-year outsourced-water project. Revenue outlook lowered, earnings outlook raised: The company reduced its full-year organic revenue-growth forecast to 2%–3% from 2%–4% because of delayed electric-metering deployments. However, it raised adjusted EPS guidance to $5.55–$5.70 and expects a higher full-year EBITDA margin. Data centers and industrial markets are key growth drivers: Applied Water orders tied to data centers rose more than 300% in the quarter, and Xylem expects data-center revenue to grow about 200% in 2026. The company is also expanding through acquisitions and partnerships in sensing, mobile water treatment and industrial water services. Water Infrastructure: Why This Boring Sector Could Get Exciting Xylem (NYSE:XYL) reported second-quarter results marked by stronger margins, record adjusted earnings per share and a substantial increase in backlog, while lowering its full-year organic revenue-growth outlook because of delays in electric metering projects. Chief Executive Officer Matthew Pine said utilities and industrial customers are increasingly seeking integrated water solutions that address operational resilience, regulatory requirements and efficiency. He said the company is expanding its industrial exposure while retaining municipal water infrastructure as a core part of its business. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit Forget the Chips: 4 Industrial Plays for the AI Rebound “Both utilities and industrial customers are placing greater value on comprehensive water solutions that help improve resilience, performance, and efficiency,” Pine said. Chief Financial Officer Bill Grogan said Xylem ended the quarter with a $5.3 billion backlog and a quarterly book-to-bill ratio “well above one.” Orders increased 41% year over year in the Water Solutions and Services segment, supported by the company’s largest order to date: an approximately $850 million, 23-year outsourced-water project. → This Tiny AI Supplier Could Be More Important Than the Chipmakers 3 Sustainable Stocks Benefiting From the AI Energy Surge Revenue increased 1% from the prior year, in line with company expectations, as strength in key markets offset a 27% decline in China and nearly 2% of walkaway revenue associated with its portfolio simplification efforts. Adjusted EBITDA margin rose 150 basis points year over year to 23.3%, driven by productivity, pricing and mix. Xylem reported record quarterly adjusted EPS of $1.46, up 16% from the prior year. Free cash flow was supported by higher net income, though partly offset by outsourced-water contracts, Grogan said. Net debt to adjusted EBITDA increased to 0.8 times following opportunistic share repurchases during the quarter. Measurement and Control Solutions: Orders rose 2%, with double-digit growth in water smart-metering demand offset by lower electric-metering orders. Revenue declined 1%, and EBITDA margin fell 200 basis points to 21.1% because of mix, inflation and volume. Water Infrastructure: Orders declined 4%, reflecting treatment-market softness in China and 80/20 portfolio actions, while transport demand remained strong. Revenue increased 3%, aided by double-digit U.S. municipal growth. EBITDA margin expanded 480 basis points. Applied Water: Orders rose 9% and book-to-bill was well above one, led by data-center wins. Data-center orders increased more than 300% in the quarter. Revenue increased 3%, supported by U.S. commercial buildings, while EBITDA margin declined 50 basis points. Water Solutions and Services: Revenue rose 1%, aided by capital projects, the finalized Dow contract and dewatering. EBITDA margin expanded 90 basis points to 25.3%. → 2 Stocks Built to Thrive If Inflation Refuses to Fade Xylem narrowed its full-year organic revenue-growth outlook to 2% to 3%, from a prior range of 2% to 4%. Reported revenue is now expected to total roughly $9.2 billion, representing approximately 2% growth. The change primarily reflects delays in electric-metering deployments within Measurement and Control Solutions. Pine said utilities have become more cautious about capital spending ahead of upcoming elections, as political concerns over electricity-rate increases have contributed to a near-term pullback in investment. Despite the revised outlook, management said long-term electric-metering demand remains healthy, supported by the AMI 2.0 refresh cycle. The company said it continues to gain share based on bid and win rates. Water-metering demand has remained stronger, with water orders increasing by double digits in both the first and second quarters and the customer funnel rising about 30% from the prior year. Xylem increased its full-year adjusted EPS outlook to $5.55 to $5.70, from $5.35 to $5.60 previously. The company now expects adjusted EBITDA margin of 23.1% to 23.5%, compared with its previous range of 22.9% to 23.3%. It said productivity, volume and pricing are expected to more than offset inflation and business investments. For the third quarter, Xylem expects reported revenue growth to be flat and organic growth of about 3%. The company forecast EBITDA margin of approximately 23.5% to 24% and adjusted EPS of $1.42 to $1.47. Pine said the growth of AI infrastructure is making water a more strategic input across data centers, semiconductors, power generation and mining. Xylem expects revenue tied to data centers to increase approximately 200% in 2026 and said it could exit the year with about 2% of company revenue related to data centers. Applied Water’s growth was primarily driven by data-center activity, according to Pine, although the company also cited broad strength in North American commercial building services. In Water Solutions and Services, Xylem cited opportunities in high-tech markets including defense, semiconductors, data centers and power generation, along with mining, life sciences and food and beverage. The company recently closed its acquisition of TriOS, which adds advanced sensing and water-quality capabilities. Xylem also signed an agreement to acquire WaterFleet, a mobile water-treatment services business with recurring revenue and an existing project supporting a hyperscale data-center buildout in Texas. Management also highlighted the expansion of its Dow relationship and a new 20-year commitment with one of the world’s largest chemical companies. Pine said the chemical-company engagement combines Xylem’s treatment technology, operations and maintenance services, and digital monitoring under an integrated model. Grogan said Xylem’s 80/20 simplification program is expected to produce its highest level of walkaway revenue in 2026, at close to 2%. He expects the figure to be significantly lower next year as the company completes much of its portfolio review and shifts the program’s focus toward growth opportunities. China remained a headwind during the quarter, with orders down more than 30% and sales down nearly 30%, according to Grogan. China represented about 3% of Xylem sales last year and is expected to account for about 2% this year. Management said it has right-sized operations in the market and is being more selective in pursuing business where its technology can differentiate, while noting some recent data-center wins in the country. Xylem Inc (NYSE: XYL) is a global water technology company that designs, manufactures and services engineered systems and equipment for the transport, treatment, testing and efficient use of water. Its product portfolio spans pumps and pumping systems, valves, filtration and disinfection equipment, sensors and analytical instruments, and digital solutions for monitoring and control of water infrastructure. Xylem serves the full water cycle with offerings for water and wastewater utilities, industrial customers, commercial and residential buildings, and agricultural applications. The company was established as an independent publicly traded company in 2011 following a corporate spin-off from ITT Corporation and is headquartered in Rye Brook, New York. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Xylem Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Water technology company Xylem (NYSE:XYL) will be announcing earnings results this Tuesday morning. Here’s what to look for. Xylem beat analysts’ revenue expectations last quarter, reporting revenues of $2.13 billion, up 2.7% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and full-year revenue guidance slightly topping analysts’ expectations. Is Xylem a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members. This quarter, the market is expecting Xylem’s revenue to grow 1.7% year on year, slowing from the 6.1% increase it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Xylem rarely misses Wall Street’s revenue estimates. Looking at Xylem’s peers in the industrial machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. GE Aerospace delivered year-on-year revenue growth of 24.5%, beating analysts’ expectations by 6%, and 3M reported revenues up 5.6%, topping estimates by 1.5%. GE Aerospace traded down 3.2% following the results while 3M was up 7.3%. Read our full analysis of GE Aerospace’s results here and 3M’s results here. Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the industrial machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.5% on average over the last month. Xylem is up 2.6% during the same time and is heading into earnings with an average analyst price target of $150.35 (compared to the current share price of $119.75). ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention. AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.