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Xylem Inc. (XYL), valued at $31.9 billion in market cap, is a global water technology company headquartered in Washington. It provides innovative solutions for water and wastewater management, including smart meters, pumps, and analytics systems. Operating in over 150 countries, Xylem serves utility, industrial, and residential sectors.
XYL is scheduled to announce its fiscal Q2 earnings before the market opens on Tuesday, Jul. 31. Ahead of this event, analysts project the water and wastewater treatment company to report a profit of $1.14 per share, up 4.6% from $1.09 per share in the year-ago quarter. The company holds a solid track record of consistently surpassing or meeting Wall Street's bottom-line estimates in the last four quarterly reports.
For fiscal 2025, analysts forecast XYL to report EPS of $4.64 per share, up 8.7% from $4.27 per share in fiscal 2024. Its EPS is expected to grow 10.3% year-over-year to $5.12 in fiscal 2026.
Over the past 52 weeks, Xylem has plunged 2%, underperforming the broader S&P 500 Index's ($SPX) 11.7% gain and the Industrial Select Sector SPDR Fund's (XLI) 22.7% return over the same time frame.
On Apr. 29, XYL shares climbed 2.3% after the release of its Q1 2025 earnings. Xylem delivered a strong Q1 with revenue and adjusted earnings of $2.1 billion and $1.03 per share, both comfortably ahead of expectations, powered by operational gains and robust demand. The company achieved margin expansion, driven by effective pricing and operational efficiencies, with an EBITDA margin of 20.4%.
Despite foreign exchange headwinds and slightly lower operating cash flow, Xylem reaffirmed its full-year guidance, including EPS of $4.50 to $4.70 and revenue of $8.7 to $8.8 billion, signaling continued confidence in its growth trajectory.
Analysts' consensus view on Xylem stock is cautiously optimistic, with an overall "Moderate Buy" rating. Among 19 analysts covering the stock, 11 suggest a "Strong Buy," one gives a "Moderate Buy," and seven recommend a "Hold."
Its mean price target of $142 represents a premium of 8.1% from the prevailing market prices,
