Xylem Inc XYL

IndustrialsMachinery, Tools, Heavy Vehicles, Trains & ShipsUnited States of America

Last close 97.26 USD on Nov 2, 2026, −27.8% year to date

Quant rating

Quant rating C Rank 337 of 486 in Industrials

Growth B 154 of 486
Valuation B 106 of 486
Quality B 180 of 486
Revisions D 395 of 486
Momentum D 414 of 486

Wall Street consensus Buy (2.14)Average target 121.10 USD +24.5%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 22.3B
Enterprise value: 24.7B
52-week range: 87.49 – 152.28
3-year range: 87.49 – 152.95
Dividend yield: 1.86%
Beta (5 years): 0.99
Shares outstanding: 229M
Next earnings: Feb 8, 2027

About the company

Xylem Inc. is a global water technology company. The Company is engaged in designing, manufacturing, and servicing engineered products and solutions ranging across a variety of critical applications in utility, industrial, residential, and commercial building services settings. The Company operates through four segments, which include Water Infrastructure, Applied Water, Measurement and Control Solutions and Water Solutions and Services. The Water Infrastructure segment focuses on the transportation and treatment of water, offering a range of products including water, wastewater and storm water pumps, controls, and systems. The Applied Water segment serves primary uses of water and focuses on the residential, commercial, and industrial markets. The Measurement and Control Solutions segment focus on developing technology solutions that enable intelligent use and conservation of critical water and energy resources as well as analytical instrumentation used in the testing of water.

Growth and profitability fiscal year ends December 31

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	9,035	8,562	7,364	5,522	5,195	–
Revenue growth	5.5%	16.3%	33.4%	6.3%	6.5%	13.1%
EPS (basic, normalized)	5.08	4.27	3.78	2.85	2.49	–
EPS growth	19.0%	13.0%	32.6%	14.5%	–	–
Gross margin	38.5%	37.5%	36.9%	37.7%	38.0%	37.7%
Net margin	10.6%	10.4%	8.3%	6.4%	8.2%	8.8%
ROE	8.7%	8.6%	8.9%	10.6%	13.8%	10.1%

Balance sheet, last quarter
Cash & short-term investments (mil)	708
Current ratio	1.39x
Long-term debt (mil)	2,365
Net debt (mil)	2,429
Total equity (mil)	10,269
Net debt / equity	0.24x
Net debt / EBITDA	1.21x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2025 actual	9,035	+5.5%	2.7x	2,009	+15.8%	12.3x	5.08	+19.0%	19.1x
2026	8,962	−0.8%	2.8x	2,051	+2.1%	12.1x	5.43	+6.8%	17.9x
2027	9,262	+3.3%	2.7x	2,191	+6.8%	11.3x	5.85	+7.8%	16.6x
2028	9,751	+5.3%	2.5x	2,367	+8.1%	10.4x	6.43	+9.9%	15.1x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	8,962	−2.7%	−2.7%	−3.1%	5.43	−4.2%	−4.1%	−1.7%
2027	9,262	−3.8%	−3.1%	−3.7%	5.85	−6.3%	−5.3%	−3.6%
2028	9,751	−3.9%	−3.3%	−3.7%	6.43	−6.4%	−5.5%	−3.9%

Earnings surprises EPS beat in 4 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	2,033	2,169	2,104	2,256	2,069	2,301	2,268	2,397	2,125	2,336
Sales mean (mil)	1,997	2,145	2,173	2,183	2,040	2,214	2,221	2,374	2,110	2,341
Surprise	+1.8%	+1.1%	−3.2%	+3.4%	+1.4%	+3.9%	+2.1%	+1.0%	+0.7%	−0.2%
EPS reported	0.90	1.09	1.11	1.18	1.03	1.26	1.37	1.42	1.12	1.46
EPS mean	0.84	1.05	1.11	1.13	0.95	1.16	1.23	1.41	1.08	1.34
Surprise	+7.2%	+3.6%	0.0%	+4.8%	+8.0%	+9.0%	+11.1%	+0.7%	+3.2%	+9.2%

Peer comparison Machinery, Tools, Heavy Vehicles, Trains & Ships

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
XYL Xylem Inc	22.3B	1.21x	10.6%	2.18x	17.9x	16.6x	12.1x	11.3x
ETN Eaton Corporation PLC	142.2B	2.91x	14.9%	7.02x	26.9x	22.7x	20.7x	17.6x
PH Parker-Hannifin Corporation	117.1B	1.43x	17.0%	7.59x	26.1x	23.5x	18.4x	16.9x
TT Trane Technologies PLC	90.5B	0.70x	13.9%	9.94x	27.1x	23.3x	19.3x	16.8x
JCI Johnson Controls International PLC	88.7B	1.83x	7.3%	6.52x	23.4x	19.7x	17.4x	15.4x
EMR Emerson Electric Co	92.6B	2.13x	12.7%	4.54x	25.3x	22.8x	18.8x	17.5x
Mean		1.70x	12.7%	6.30x	24.4x	21.4x	17.8x	15.9x
Median		1.63x	13.3%	6.77x	25.7x	22.7x	18.6x	16.8x

Technical analysis

1M−4.5%
3M−16.5%
1Y−34.6%
3Y+7.0%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, Xylem Inc, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Total revenue	9,035	8,562	7,364	5,522	5,195	4,876
Cost of revenue	5,560	5,350	4,647	3,438	3,220	3,046
Gross profit	3,475	3,212	2,717	2,084	1,975	1,830
Selling, general & administrative expenses	1,923	1,911	1,700	1,227	1,179	1,143
Research & development	226	230	232	206	204	187
Interest expense (income), operating	–	–	–	–	–	–
Unusual expense (income)	134	108	134	168	5.0	133
Other operating expenses	0	0	0	0	0	0
Operating income	1,192	963	651	483	587	367
Net interest income (expense)	−9.0	−20.0	−21.0	−50.0	−76.0	−77.0
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	−2.0	144	5.0	7.0	0	−5.0
Net income before taxes	1,181	1,087	635	440	511	285
Provision for taxes	231	197	26.0	85.0	84.0	31.0
Minority interest	7.0	–	–	–	–	–
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	957	890	609	355	427	254
Extraordinary items	–	–	–	–	–	–
Net income	957	890	609	355	427	254
EBIT, normalized	1,390	1,164	895	705	602	586
EBITDA, normalized	1,965	1,726	1,331	941	847	837
Basic EPS, normalized	5.08	4.27	3.78	2.85	2.49	–

Balance sheet in millions of USD, fiscal years

Balance sheet, Xylem Inc, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Cash & short-term investments	1,479	1,121	1,019	944	1,349	1,875
Receivables	1,759	1,668	1,617	1,096	953	923
Total inventory	983	996	1,018	799	700	558
Prepaid expenses	244	236	230	173	158	167
Other current assets	176	77.0	0	0	0	0
Total current assets	4,641	4,098	3,884	3,012	3,160	3,523
Property, plant & equipment	1,668	1,558	1,602	940	948	929
Goodwill	8,332	7,980	7,587	2,719	2,792	2,854
Intangibles	2,272	2,379	2,529	930	1,016	1,093
Long-term investments	–	–	–	–	–	–
Note receivable	–	–	–	–	–	–
Other long-term assets	721	478	510	351	360	351
Total assets	17,634	16,493	16,112	7,952	8,276	8,750
Liabilities
Accounts payable	1,013	1,006	968	723	639	569
Payable/accrued	–	–	–	–	–	–
Accrued expenses	592	659	659	471	480	498
Short-term debt	0	0	0	0	0	0
Current portion of long-term debt	568	65.0	38.0	–	0	600
Other current liabilities	683	606	540	396	272	289
Total current liabilities	2,856	2,336	2,205	1,590	1,391	1,956
Long-term debt	1,499	2,054	2,332	1,880	2,440	2,484
Minority interest	269	240	10.0	9.0	8.0	8.0
Other liabilities	1,530	1,221	1,399	979	1,219	1,334
Total liabilities	6,154	5,851	5,946	4,458	5,058	5,782
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	3.0	3.0	3.0	2.0	2.0	2.0
Additional paid-in capital	8,759	8,687	8,564	2,134	2,089	2,037
Retained earnings (accumulated deficit)	3,706	3,140	2,601	2,292	2,154	1,930
Treasury stock	−768	−753	−733	−708	−656	−588
Other equity	−220	−435	−269	−226	−371	−413
Total equity	11,480	10,642	10,166	3,494	3,218	2,968
Total liabilities & shareholders' equity	17,634	16,493	16,112	7,952	8,276	8,750

Cash flow statement in millions of USD, fiscal years

Cash flow statement, Xylem Inc, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	950	890	609	355	427	254
Depreciation, depletion & amortization	575	562	436	236	245	251
Deferred taxes	−35.0	−36.0	−79.0	−64.0	10.0	−31.0
Non-cash items	84.0	−41.0	82.0	171	−8.0	142
Changes in working capital	−334	−123	−211	−102	−136	208
Cash from operations	1,240	1,252	837	596	538	824
Investing activities
Capital expenditures	−368	−321	−271	−208	−208	−183
Other investing cash flows	−103	−161	−357	17.0	25.0	14.0
Cash from investing	−471	−482	−628	−191	−183	−169
Financing activities
Financing cash flow items	−34.0	−28.0	−13.0	−2.0	−3.0	−2.0
Cash dividends paid	−391	−350	−299	−217	−203	−188
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	−76.0	−237	155	−571	−649	663
Cash from financing	−501	−615	−157	−790	−855	473
Foreign exchange effects	90.0	−53.0	23.0	−20.0	−26.0	23.0
Net change in cash	358	102	75.0	−405	−526	1,151
Free cash flow	872	931	566	388	330	641

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 2, 2026 after market close.