Xylem lowered its annual financial forecast on October 27 and announced plans to divest Applied Water International and Specialty Flow Control.
The water-technology company reported third-quarter revenue of approximately $2.2 billion, down 3% from a year earlier and unchanged on an organic basis. Orders increased 7% to $2.3 billion.
Net income attributable to Xylem totaled $291 million, or $1.25 per share. Adjusted earnings were $1.44 per share, excluding specified acquisition-accounting expenses, restructuring costs and other items.
Management now expects annual revenue of approximately $8.95 billion, down 1%, compared with its previous forecast for 2% growth. It cut its adjusted earnings range to $5.40–$5.45 per share from $5.55–$5.70.
The company also plans to reorganize from four operating segments to three beginning January 1, 2027: Treatment and Services, Flow Solutions, and Measurement and Analytics.
The divestitures are stated intentions, rather than completed sales. Future revenue, earnings and organizational plans remain subject to execution and market conditions.
Sources: Xylem October 27 company release, distributed by Business Wire: https://www.stocktitan.net/news/XYL/xylem-reports-third-quarter-2026-results-and-announces-strategic-l0uglc7wo5lp.html