XYL
Xylem Inc.

Xylem Inc.XYL

Industrials · Specialty Industrial Machinery
97.83USD
-2.22%
Nov 09, 2026
XYL overview ready
Global water infrastructure pumps and treatment systems supplier
Xylem is a global water-technology supplier providing pumps, treatment equipment, measurement and control systems, analytics, digital software, and field/rental services to utility, industrial, and building customers.
Primary theme is improving
Water Infrastructure is improving (+15.7pp vs SPY over 21 sessions; 8 of 9 members ahead of SPY).
Price trend is broken
Longer-term context reads damaged structure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
Fair valuation
The price broadly reflects how much growth and cash flow it delivers per turn of revenue multiple, with upside and risk reasonably balanced.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
Exposure to municipal and industrial capital spending fluctuations.
Market Nov 6Filing Sep 30Price action Nov 8Research Jul 29

Conviction Level

PriceAction3.4BusinessPerformance5.0BusinessQuality7.2Valuation5.9ThemeMomentum7.0Mixed — Revenue fell 3% year over year in the latest quarter. Diluted EPS growth has strengthened to +34% year over year ($1.25), up from +15%. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
vs SPY
+15.7pp
Theme return
+10.7%
Beating SPY
8 of 9
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads damaged structure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
EntryWeak / unconfirmed recovery

The daily chart may be improving, but the weekly fast averages have not been reclaimed — the recovery is not yet confirmed on the higher timeframe.

Key Financials

Market Cap
$22.4B
Avg Volume (60D)
3.0M
60 sessions
Revenue Growth YoY
+5.5%
FY2025 vs FY2024
Gross Margin
+39.8%
Trailing twelve months
Operating Margin
+15.1%
Trailing twelve months
Free Cash Flow Yield
+4.1%
Distance from 200DMA
-15.4%
P/E
20.7x
EV / EBITDA
12.5x
EV / Sales
2.7x
Market metrics as of Nov 6, 2026
Financial results for the period ended Sep 30, 2026
Filed balance-sheet data as of Sep 30, 2026

Business Performance

Mixed

Revenue fell 3% year over year in the latest quarter. Diluted EPS growth has strengthened to +34% year over year ($1.25), up from +15%.

Latest reported: Q3 FY2026, ended Sep 30
Revenue growthDeclining
-3.0%
$2.20B in Q3 FY2026 · YoY
YoY growth, last 4 quarters
  1. +6.2%
  2. +2.7%
  3. +1.5%
  4. -3.0%
Earnings growthAccelerating
+34%
Diluted EPS $1.25 vs $0.93 a year earlier · GAAP
Diluted EPS YoY (GAAP), last 4 quarters
  1. n/a
  2. +15%
  3. +19%
  4. +34%
Operating marginExpanding
17.5%
+2.8 pp YoY · gross margin 41.2% (+2.3 pp)
Earnings are growing without revenue growth

Business Quality

7.2 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

Both valuation perspectives agree this company is fair.
Xylem Inc. has a Fair valuation stance because the price broadly reflects how much growth and cash flow it delivers per turn of revenue multiple, with upside and risk reasonably balanced.

Company Research

Thesis
Xylem is a global water-technology supplier providing pumps, treatment equipment, measurement and control systems, analytics, digital software, and field/rental services to utility, industrial, and building customers.
Opportunity
Moderate opportunity
Utility and municipal spending to replace aging drinking-water, wastewater, and stormwater assets while upgrading treatment capability, water-quality compliance, operational resilience, and system efficiency.
Key risk
Exposure to municipal and industrial capital spending fluctuations.

Economic classification

Loading the economic classification…

Business & Markets

Industrials · Specialty Industrial Machinery
What they do

Xylem Inc. designs, manufactures, and services engineered water-related products and solutions globally, operating through segments focused on water infrastructure, applied water, measurement and control, and water solutions and services.

How it earns

Primarily transactional revenue from product sales, equipment servicing, and field/rental services.

Products & services
Water, wastewater, and storm water pumps and controls
Filtration, disinfection, and biological treatment equipment
Measurement and control systems
Digital software and analytics
Field and rental services
Customers & end markets
Utility and municipal water authorities
Industrial customers
Residential and commercial building services
Market position

Leader in global water technology solutions serving utility, industrial, and building markets.

Demand drivers
Medium cyclicality

Demand is influenced by municipal and industrial capital spending cycles and regulatory-driven infrastructure upgrades.