Highlights

  • Third quarter 2026 revenue was $2,201 million, a decrease of 3.0% from $2,268 million in the third quarter of 2025.
  • Orders were $2,331 million in the quarter, up 6.9%, and total backlog was $5,466 million at September 30, 2026.
  • Xylem agreed on August 10, 2026 to acquire the Cornell Pump and Roper Pump businesses for approximately $1,460 million.
  • The updated 2026 outlook includes a decline in total revenue of approximately 1% and flat organic revenue.

Xylem Inc. (NYSE: XYL) shares were trading at USD 95.20 on October 27, 2026, down 12.05%, with a relative volume at time of 7.35. The water technology company agreed on August 10, 2026 to acquire Cornell Pump and Roper Pump, and its Form 10-Q for the quarter ended September 30, 2026, filed October 27, 2026, reported third quarter revenue of $2,201 million and an updated 2026 outlook.

Xylem is an Indiana corporation with principal executive offices at 301 Water Street SE in Washington, DC. It designs, manufactures and services engineered products and solutions for water use, from drinking water delivery and measurement to wastewater collection, testing and treatment. It reports four segments: Water Infrastructure, Applied Water, Measurement and Control Solutions, and Water Solutions and Services. Its fiscal year ends December 31, and the 10-Q does not give a headcount.

Third Quarter Results

Revenue for the third quarter of 2026 was $2,201 million, a decrease of 3.0% from $2,268 million a year earlier. Divestitures reduced revenue by $80 million, acquisitions added $17 million, and organic revenue declined $7 million, or 0.3%.

Net income attributable to Xylem was $291 million, or $1.25 per share, compared with $227 million, or $0.93 per share, in the prior year quarter. Adjusted earnings per share, a non-GAAP measure, was $1.44, against $1.37. Operating income was $385 million and operating margin was 17.5%, compared with 14.7%. Gross margin was 41.2%, compared with 38.9%. Adjusted EBITDA margin, a non-GAAP measure, was 23.9%.

Xylem said it received $39 million of IEEPA tariff refunds in the quarter and $43 million in the nine months, and that inflation reduced gross margin by 150 basis points.

By segment, Measurement and Control Solutions revenue was $436 million, a decrease of 16.5% that the company mainly attributed to divestitures. Applied Water revenue was $489 million, up 7.2%, with organic growth of 8.7%.

Orders, Balance Sheet and Capital

Orders of $2,331 million were up 6.9% from $2,181 million, and up 9.9% on an organic basis. Total backlog was $5,466 million at September 30, 2026, compared with $4,819 million a year earlier.

Cash generated by operating activities was $729 million for the nine months ended September 30, 2026, compared with $698 million. Capital expenditures were $268 million and free cash flow, a non-GAAP measure, was $461 million. Cash used in financing activities was $935 million, compared with $382 million, reflecting common stock repurchases offset by new senior notes. Xylem repurchased 3.2 million shares for $349 million in the third quarter and 13.7 million shares for $1,592 million in the nine months. A repurchase program authorized on February 25, 2026 allows up to $1.5 billion in shares.

The company reported available liquidity of approximately $2.2 billion, made up of $708 million of cash and $1.5 billion of available credit facilities. The September 2026 senior notes, $500 million each due 2029, 2032 and 2037, carry a special mandatory redemption if the Cornell Pump and Roper Pump acquisition is not completed on or before August 10, 2027, or a later extended date.

Acquisitions and Divestitures

The Cornell Pump and Roper Pump purchase price is approximately $1,460 million, subject to customary adjustments. The businesses would join the Water Infrastructure segment, and closing is expected in the fourth quarter of 2026, subject to regulatory approvals and other customary conditions. On September 2, 2026 Xylem acquired WaterFleet Intermediate Holdings, Inc. for $217 million,. Loss on sale of businesses was $5 million in the quarter, compared with $37 million.

2026 Outlook

Xylem said it is updating its outlook to include a decline in total revenue of approximately 1% and flat organic revenue in 2026. It described the outlook as provided amid geopolitical, trade, macroeconomic and regulatory uncertainty and said meeting its expectations is subject to a number of risks.