Xylem Stock: Analyst Estimates & Ratings

Headquartered in Washington, District of Columbia, Xylem Inc. (XYL) is a global water technology company that provides pumps, treatment systems, smart infrastructure, and digital solutions. With a market capitalization of $27.9 billion, the company helps utilities, industries, businesses, and communities manage water efficiently, safely, sustainably, and reliably across the water cycle.

Shares of this leading water technology company have significantly underperformed the broader market over the past year. XYL has plunged 16.6% over this period, while the broader S&P 500 Index ($SPX) has climbed nearly 20.1%. The stock has also underperformed the index in 2026, declining 13.7% year-to-date, compared with the S&P 500’s 13.1% gain over the same period.

Compared with the Invesco Water Resources ETF (PHO), XYL has also underperformed, as the ETF has declined 1.7% over the past year and gained 1.1% year-to-date.

On July 28, Xylem reported its Q2 FY2026 earnings, with shares up about 4% as investors focused on stronger profitability and a raised profit outlook despite softer revenue guidance. Revenue grew 1.5% to $2.3 billion, while orders jumped 42% to $3.1 billion. Water Solutions and Services revenue increased 2.5% year-over-year to $644 million. Moreover, adjusted diluted EPS rose 15.9% to $1.46.

While Xylem lowered its FY2026 revenue outlook to approximately $9.2 billion, it raised its adjusted EPS guidance to $5.55 to $5.70 from $5.35 to $5.60. The company also raised its adjusted EBITDA margin outlook to approximately 23.1% to 23.5%, while maintaining its free cash flow margin guidance at approximately 10.2% to 11.0%.

Analysts expect XYL’s diluted EPS to increase 11.6% year-over-year to $5.67 for the fiscal year ending in December 2026. XYL has surpassed consensus EPS estimates in each of the past four quarters, highlighting its consistent earnings performance.

Based on the 22 analysts covering XYL stock, the consensus rating is a “Moderate Buy.” The rating is based on 12 “Strong Buys,” one “Moderate Buy,” and nine “Holds.”

The configuration is more bearish than it was a month ago, when the stock had 13 “Strong Buy” ratings.

On August 13, UBS analyst Joshua Spector maintained a “Hold” rating on Xylem and kept the price target at $138.

Based on analysts’ estimates, the mean price target of $150.82 implies a 28.4% premium to XYL’s current share price, while the Street-high price target of $172 suggests a 46.4% upside.