Xylem Reports Q3 2026 Results with Strong Data Center Demand Amidst Utility Spending Delays
Xylem Inc. (XYL) reported third-quarter results characterized by a divergence between strong order demand and slower revenue conversion. While orders reached $2.3 billion—a 10% organic increase driven by water/gas metering and massive growth in data center wins—revenue remained flat organically due to cautious utility spending and project timing delays. Data center orders within the Applied Water segment surged over 200% during the quarter. To optimize its portfolio, Xylem announced a strategic reorganization into three segments: Treatment and Services, Flow Solutions, and Measurement and Analytics, effective January 1, 2027. The company is also pursuing divestitures of noncore assets like Applied Water International and Specialty Flow Control. Despite the strong backlog of $5.5 billion, management lowered full-year adjusted EPS guidance to $5.40–$5.45 due to lower sales volumes.
Topics: data center demand earnings report EPS guidance order growth revenue guidance