Xylem beats Q3 expectations, raises full-year guidance

Published 28/10/2025, 12:02
 Xylem beats Q3 expectations, raises full-year guidance

WASHINGTON - Xylem Inc. (NYSE:XYL) reported third-quarter 2025 results that exceeded analyst expectations on Tuesday, with revenue growing 8% to $2.3 billion compared to the consensus estimate of $2.22 billion. The water solutions company delivered adjusted earnings per share of $1.37, beating analyst expectations of $1.23 by 14 cents.’

Xylem’s shares edged up 0.26% in pre-market trading following the announcement.

Revenue grew across all segments, with Measurement and Control Solutions and Water Solutions and Services delivering double-digit gains of 14% and 10% respectively. Organic revenue growth was 7% YoY. The company’s adjusted EBITDA margin expanded 200 basis points to 23.2%, driven by productivity savings, strong price realization, and volume growth.

"The team delivered another strong quarter, exceeding expectations with disciplined execution on continuing commercial momentum," said Matthew Pine, Xylem’s president and CEO. "Revenue grew across all segments, with double-digit gains in Measurement and Control Solutions and Water Solutions and Services."

Based on the strong performance, Xylem raised its full-year 2025 guidance. The company now forecasts revenue of approximately $9.0 billion, up from its previous guidance of 4-5% growth to 5-6% growth on a reported basis. This exceeds the analyst consensus of $8.95 billion. Adjusted earnings per share guidance was also increased to $5.03-$5.08, up from the previous range of $4.70-$4.85.

The company’s third-quarter net income was $227 million, or $0.93 per share on a reported basis, up 4% from the same period last year. Xylem maintained its free cash flow margin guidance at approximately 9-10% for the full year.

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