Xylem Inc. (XYL)
NYSEIndustrialsIndustrial - MachinerySnapshot 2026-09-04
$105.69-2.04%
Close 2026-09-04 · 1-day change
NYSEIndustrialsIndustrial - MachinerySnapshot 2026-09-04
QuarterlyIQ Insights · XYL
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within industrials on a research-validated quality screen. As of 2026-09-04.
The screen ranks XYL against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Industrials names rated neutral grew net income 51% of the time over the next year (vs 60% for the rest of the cohort, n=9249).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Focus on growing revenue organically and on a reported basis across all segments and end markets.
Stated as a priority in 6 of last 6 quarters. Revenue grew from $2.1 billion in 2026-Q1 to $2.3 billion in 2026-Q2, with full-year 2026 revenue guidance at approximately $9.2 billion, up 2% from 2025's $9.0 billion. Management has consistently emphasized revenue growth and the trajectory is delivering.
“Revenue of $2.3 billion, up 2% on a reported basis and 1% organically”
“Revenue of $2.1 billion, up 3% on a reported basis and flat organically”
“Revenue of $2.4 billion, up 6% on a reported basis and 4% organically”
“Revenue of $2.3 billion, up 8% on a reported basis; 7% organically”
“Revenue of $2.3 billion, up 6% on a reported and organic basis”
“Revenue of $2.1 billion, up 2% on a reported and 3% on an organic basis”
Continue to improve adjusted EBITDA margin through productivity savings, price realization, and operational efficiency.
Stated as a priority in 6 of last 6 quarters. Adjusted EBITDA margin rose from 20.6% in 2026-Q1 to 23.3% in 2026-Q2, with full-year 2026 guidance at 23.1% to 23.5%, up from 22.0%-22.3% in 2025. Management's focus on margin expansion is reflected in improving margins, delivering on stated goals.
Maintain free cash flow margin in the range of approximately 10% through disciplined cash management and operational efficiency.
Sustained priority stated in 6 of last 6 quarters. Free cash flow margin guidance remains steady at approximately 10.2% to 11.0% for 2026, up slightly from 9-10% in 2025. Operating cash flow was $290 million in 2026-Q2. Management is maintaining focus on disciplined cash flow generation with a stable trajectory.
“Full-year free cash flow margin is still expected to be approximately 10.2 to 11.0 percent”
Continue to maintain and improve adjusted EBITDA margin through operational efficiency.
Continue multi-year operating transformation to improve speed, accountability, and customer responsiveness through simplification and restructuring.
Stated as a priority in 4 of last 6 quarters. Management highlights ongoing operating transformation and simplification efforts improving operational rigor and customer responsiveness. While qualitative progress is noted, no direct financial metrics quantify impact this quarter, indicating persistent focus with limited specific delivery data.
Over the trailing year it converted 0.88x of net income into operating cash flow. Historically, Industrials names rated neutral grew net income 59% of the time over the next year (vs 53% for the rest of the cohort, n=6654).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity (low R² over the window).
8 material management or governance events in the past 24 months, led by executive changes. Historically, Industrials names rated neutral grew net income 58% of the time over the next year (vs 56% for the rest of the cohort, n=3431).
Not investment advice. As of 2026-09-04.
“Second-quarter adjusted EBITDA margin was 23.3 percent, up 150 basis points”
“First-quarter adjusted EBITDA margin was 20.6 percent, up 20 basis points”
“Fourth-quarter adjusted EBITDA margin was 23.2 percent, up 220 basis points”
“Third-quarter adjusted EBITDA margin was 23.2 percent, up 200 basis points”
“Second-quarter adjusted EBITDA margin was 21.8 percent, up 100 basis points”
“First-quarter adjusted EBITDA margin was 20.4 percent, up 120 basis points”
“Full-year free cash flow margin is still expected to be approximately 10.2 to 11.0 percent”
“Full-year free cash flow margin is expected to be approximately 9 to 10 percent”
“Full-year free cash flow margin is still expected to be approximately 9 to 10 percent”
“Full-year free cash flow margin is still expected to be approximately 9 to 10 percent”
“Full-year free cash flow margin is expected to be approximately 9 to 10 percent”
“Our multi-year operating transformation is gaining traction with disciplined execution”
“Simplification initiatives contributed to record adjusted EBITDA margin”
“Simplification initiatives yielded measurable gains in speed, accountability, and customer responsiveness”
“Transformation of operating model progressing well, strengthening agility and profitability”