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Xylem Inc. (XYL), headquartered in Washington, District of Columbia, designs, manufactures, and services engineered products and solutions. With a market cap of $34.5 billion, the company's products include water and wastewater pumps, treatment and testing equipment, industrial pumps, valves, heat exchangers, and dispensing equipment.
Shares of this leading global water technology company have underperformed the broader market over the past year. XYL has gained 5.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 14.3%. However, in 2025, XYL stock is up 22.3%, surpassing the SPX’s 9% rise on a YTD basis.
Narrowing the focus, XYL’s underperformance is also apparent compared to the Global X Clean Water ETF (AQWA). The exchange-traded fund has gained about 10.6% over the past year. However, XYL’s returns on a YTD basis outshine the ETF’s 17.2% gains over the same time frame.
On Jul. 31, XYL shares closed up by 10.7% after reporting its Q2 results. Its adjusted EPS of $1.26 exceeded Wall Street expectations of $1.14. The company’s revenue was $2.3 billion, beating Wall Street forecasts of $2.2 billion. Xylem expects full-year adjusted EPS in the range of $4.70 to $4.85, and expects revenue in the range of $8.9 billion to $9 billion.
For the current fiscal year, ending in December, analysts expect XYL’s EPS to grow 12.7% to $4.81 on a diluted basis. The company’s earnings surprise history is impressive. It beat or matched the consensus estimate in each of the last four quarters.
Among the 20 analysts covering XYL stock, the consensus is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, one “Moderate Buy,” and eight “Holds.”
This configuration is more bullish than three months ago, with 10 analysts suggesting a “Strong Buy.”
On Aug. 5, UBS kept a “Buy” rating on XYL and raised the price target to $168, implying a potential upside of 18.5% from current levels.
The mean price target of $160.07 represents a 12.9% premium to XYL’s current price levels. The Street-high price target of $175 suggests an upside potential of 23.4%.
