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XYL

Xylem Inc.

NYSEIndustrialsSpecialty Industrial MachinerySnapshot 2026-05-08

$113.73-1.65%
Close 2026-05-08 · 1-day change
The bottom line

As of May 8, 2026, XYL has a composite score of 16.5 and a signal label of "mild favorable." This score is influenced by a medium confidence level of 75.3 and a moderate risk label. Key drivers include macroeconomic factors such as growth, labor, rates, and inflation. The valuation score is 70.7, indicating it is considered inexpensive. The analysis is provisional.

Composite +17as of 2026-05-08

Price

Daily closes from AlphaVantage. Earnings/event dots are placed inline.

Close 2026-05-08
Daily closes. Scroll over the chart to zoom; click a range to reset.
EarningsMaterial event

Factor signals

Read top-to-bottom: thesis (is this a strong company over a 1–3 year hold), watch flags (has something changed worth re-reading), and position context (how violent might the path be). Each pill is a parallel diagnostic — never aggregated into a single score.

L1

Thesis

is this a strong company over a 1–3 year hold?
F1 · Recent financial performance
neutral
Mid-cohort
Why this rank
  • Direction share
    1.00
  • Slope (norm)
    -0.05
  • Bonus
    0.00
Operating income, last 4 quarters ($M)
209305334161
F2 · Value
neutral
Mid-cohort by earnings yield
Why this rank
Price
$113.73
TTM EPS
$3.38
Earnings yield
3.0%
P/E (TTM)
33.6

Trailing four: 2024-Q3, 2025-Q1, 2025-Q2, 2025-Q3

F3 · Earnings quality
neutral
Mid-cohort cash conversion
Why this rank
TTM NI ($M)
890
TTM CFO ($M)
1,263
CFO/NI
1.42
L2

Watch

has something changed worth re-reading?
F4 · Management stability
stable
Top 20% activity in industrials cohort· see deep-dive ↓
capital friendlyTop 20% capital-friendly in industrials cohort
Earnings setup · pre-print positioning
forward-looking
bearish7 PT revisions / 30d, avg 24.1% above currentfor period ending 2026-06-30
Why this setup
Consensus revisions

EPS estimate $1.36 → $1.34 (-1.6% / 30d). 2 raised, 12 cut, 19 covering analysts.

Rating actions

0 upgrades, 1 downgrade / 30d, 8 maintained. 61% of analysts rate Buy.

Price target activity

7 PT revisions / 30d. Avg target 24.1% above current price.

Material events

0 positive, 0 negative / 30d.

F4 · Management deep-dive — recent events, stated priorities, guidance track record
2

Stated priorities

3 priorityies extracted from earnings transcripts (as of 2026-05-08).

  1. 1.Increase revenue growthgrowthbehind0% progress
    4/28: Xylem now forecasts full-year 2026 revenue of approximately $9.2 to $9.3 billion, up approximately 2 to 3 percent.
    Why this status

    Stated in 3 of last 3 quarters. Revenue guidance increased from $9.0 billion in 2025-Q3 to $9.2-$9.3 billion in 2026-Q1, indicating a focus on growth. However, actual revenue in 2025-Q4 was $1.96 billion, showing limited progress towards the annual target.

  2. 2.Maintain adjusted EBITDA margincostbehind0% progress
    4/28: Full-year 2026 adjusted EBITDA margin is expected to be approximately 22.9 to 23.3 percent.
    Why this status

    Stated in 3 of last 3 quarters. EBITDA margin guidance increased from 21.3-21.8% in 2025-Q3 to 22.9-23.3% in 2026-Q1. Despite this, gross profit in 2025-Q4 was $685 million, indicating limited progress in achieving higher margins.

  3. 3.Sustain free cash flow margincapital allocationmixed35% progress
    4/28: Full-year free cash flow margin is still expected to be approximately 10.2 to 11.0 percent.
    Why this status

    Stated in 3 of last 3 quarters. Free cash flow margin guidance increased from 9-10% in 2025-Q3 to 10.2-11.0% in 2026-Q1. However, cash from operations in 2025-Q4 was $138 million, suggesting limited progress in achieving the higher margin.

3

Guidance track record

Insufficient guidance history for this ticker.

L3

Position context

how violent might the path be while I hold it?
Risk profile · realized
backward-looking
moderateworst 12m loss −25%, typical day ±1.1%
Why this risk level

Recent vol — 30d annualized 32%; 252d 24%.

Drawdown — Max 1y −25%. Bad day move −2%.

Beta to sector ETF (XLI) 0.88 over 1y.

Liquidity — score 100/100.

Sub-scores — vol 60/100, drawdown 50/100, beta 88/100, earnings vol .

Sector regime
headwind-7.8%sector vs S&P 500, 60d

via XLI

Tailwind = sector leading the S&P 500; headwind = trailing. Both can be constructive — historically, headwind regimes have averaged stronger forward returns than tailwind.

AI cycle regime · market-wide
2-axis classifier
HeatingManiaSquallCrisisEarnings →Mood ↑
HeatingE +0.13 · M +0.71
Single-axisCHASEz +2.97+1.285d

Context label only — describes the market state (e.g. real bear vs narrative panic, healthy uptrend vs late-stage froth). It is not a per-ticker buy/sell signal and does not predict factor performance.

Not investment advice. As of 2026-05-08.

3

What changed

The most important moves since the prior daily snapshot.

  1. No material changes since the prior snapshot.

No material changes since the prior snapshot.

as of 2026-05-08

4

Management scorecard

How management runs the business — capital, margins, balance sheet, and how reliably they guide and deliver.

Composite40.1 / 100
Capital allocation11
Earnings discipline85
Margin discipline38
Balance sheet44
Guidance credibility
Post-call reaction48
as of 2026-05-08
4

What management is focused on

Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.

  • #1

    Increase revenue growth

    GrowthNew since 2026-05-04

    Focus on achieving higher revenue growth through strategic initiatives.

    Behind

    Stated in 3 of last 3 quarters. Revenue guidance increased from $9.0 billion in 2025-Q3 to $9.2-$9.3 billion in 2026-Q1, indicating a focus on growth. However, actual revenue in 2025-Q4 was $1.96 billion, showing limited progress towards the annual target.

    0%
    CEO/CFO:Xylem now forecasts full-year 2026 revenue of approximately $9.2 to $9.3 billion, up approximately 2 to 3 percent.
    Multiple sourcesSource dated 2026-04-28Stated 3 of last 8 quartersFirst seen 2026-05-04
    Show history (3)
    • 2026-Q1Multiple sources

      Xylem now forecasts full-year 2026 revenue of approximately $9.2 to $9.3 billion.

    • 2025-Q4Multiple sources

      Initiating 2026 full-year revenue guidance of $9.1 to $9.2 billion.

    • 2025-Q3Multiple sources

      Xylem now forecasts full-year 2025 revenue of approximately $9.0 billion.

  • #2

    Maintain adjusted EBITDA margin

    CostNew since 2026-05-04

    Aim to sustain adjusted EBITDA margin within the guided range.

    Behind

    Stated in 3 of last 3 quarters. EBITDA margin guidance increased from 21.3-21.8% in 2025-Q3 to 22.9-23.3% in 2026-Q1. Despite this, gross profit in 2025-Q4 was $685 million, indicating limited progress in achieving higher margins.

    0%
    CEO/CFO:Full-year 2026 adjusted EBITDA margin is expected to be approximately 22.9 to 23.3 percent.
    Multiple sourcesSource dated 2026-04-28Stated 3 of last 8 quartersFirst seen 2026-05-04
    Show history (3)
    • 2026-Q1Multiple sources

      Full-year 2026 adjusted EBITDA margin is expected to be approximately 22.9 to 23.3 percent.

    • 2025-Q4Multiple sources

      Full-year 2025 adjusted EBITDA margin is expected to be approximately 22.0 to 22.3 percent.

    • 2025-Q3Multiple sources

      Full-year 2025 adjusted EBITDA margin is expected to be approximately 21.3 to 21.8 percent.

  • #3

    Sustain free cash flow margin

    Capital allocationNew since 2026-05-04

    Continue to maintain a stable free cash flow margin as guided.

    BehindMixed

    Stated in 3 of last 3 quarters. Free cash flow margin guidance increased from 9-10% in 2025-Q3 to 10.2-11.0% in 2026-Q1. However, cash from operations in 2025-Q4 was $138 million, suggesting limited progress in achieving the higher margin.

    35%
    CEO/CFO:Full-year free cash flow margin is still expected to be approximately 10.2 to 11.0 percent.
    Multiple sourcesSource dated 2026-04-28Stated 3 of last 8 quartersFirst seen 2026-05-04
    Show history (3)
    • 2026-Q1Multiple sources

      Full-year free cash flow margin is still expected to be approximately 10.2 to 11.0 percent.

    • 2025-Q4Multiple sources

      Full-year free cash flow margin is still expected to be approximately 9 to 10 percent.

    • 2025-Q3Multiple sources

      Full-year free cash flow margin is still expected to be approximately 9 to 10 percent.

as of 2026-05-08
5

How this stock is priced

Two ways to read price: against peers in the same business, and against the company's own history.

Compared to peers
61higher = cheaper

Roughly priced in line with peers.

Compared to its own history
97higher = cheaper

Cheaper than its own typical valuation.

P/E
22.9x
EV/EBITDA
FCF yield
3.3%

P/E over the last 5 years

71 monthly points
inexpensiveas of 2026-05-08
7

How this compares

A side-by-side read on composite, valuation, and risk versus peers.

StockCompositeValuationRisk
XYL
Xylem Inc.
+17inexpensivemoderate
CAT
Caterpillar Inc.
+13expensivemoderate
GE
GE Aerospace
+11expensivemoderate
GEV
GE Vernova
+10fullmoderate
RTX
RTX Corporation
+20fairmoderate
8

Risk — how this stock moves

What a normal day looks like, what a bad day looks like, and the worst the last year has thrown at it.

A typical day
How much price usually moves either way.
1.1%
A bad day (95th %ile)
A rough but not unusual down day.
-2.1%
Worst 12-month loss
Deepest peak-to-trough drop in the last year.
-25.2%
Earnings-day move
How much price usually moves on earnings day.
moderateas of 2026-05-08
9

What could change this view

Conditional scenarios — if X happens, the score would shift by about Y points. These are not predictions.

Upside triggers
  • If industrials sector trend rises from +0.05 into 'improving' (>= +0.20)+5.0 pts
  • If next-quarter guidance is raised (currently NEW as of 2026-04-28)+4.0 pts
Downside triggers
  • If next-quarter guidance is cut (currently NEW as of 2026-04-28)-8.0 pts
  • If industrials sector trend falls from +0.05 into 'weakening' (<= -0.20)-5.0 pts
  • If growth state reverses from +0.25 (positive) to -0.25 (negative)-4.0 pts
10

Material updates

Recent SEC 8-K filings ranked by likely impact, confidence, and recency.

  1. 2026-04-2810d agoItem 2.02

    Results of Operations and Financial Condition On April 28, 2026, Xylem Inc. issued a press release announcing its financial results for the quarter ended March 31, 2026. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated by reference herein. This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference into any filing under the Securities Act…

    earnings preannouncementneutralscore 52
  2. 2026-02-252mo agoItem 8.01

    Other Events On February 25, 2026, the Board of Directors of Xylem Inc. (the “Company”) approved the adoption of a new share repurchase program. Under the new program, which has no expiration date, the Company is authorized to purchase up to $1.5 billion in shares of the common stock, $0.01 par value, of the Company (“Common Stock”). Repurchases under the new program may be made through open market purchases or otherwise (in compliance with all applicable laws and regulations in effect from t…

    capital allocationpositivescore 10
  3. 2026-02-102mo agoItem 2.02

    Results of Operations and Financial Condition On February 10, 2026, Xylem Inc. issued a press release announcing its financial results for the quarter and fiscal year ended December 31, 2025. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated by reference herein. This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference into any filing un…

    earnings preannouncementneutralscore 9
11

Score history

The composite score, snapshot by snapshot. The dotted line at zero separates leaning-positive from leaning-negative.

60 snapshots
Data freshness · As of 2026-05-08 · Macro 2026-05-08 · Sector 2026-05-07 · Fundamentals 2026-02-25 · Price 2026-05-07 · Generated 2026-05-08 · Spec 2.3

Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.