Xylem (XYL) Q2 FY2026 earnings: revenue $2.3 billion, up 1.5% on the year

Xylem Inc. (XYL) reported revenue of $2.3 billion for Q2 FY2026, the quarter ended 30 June 2026, up 1.5% on the same quarter a year earlier. Net income was $263 million, up 16.4% on the year, and diluted earnings per share $1.11. The figures are the company's own, from the 10-Q it filed with the SEC on 28 July 2026.

Revenue

$2.3 billion

+1.5% on the year · +9.9% on the quarter

Q3 FY2024Q2 FY2026

Operating margin

16.7%

13.3% a year earlier

Q3 FY2024Q2 FY2026

Net income

$263 million

+16.4% on the year · +36.3% on the quarter

Q3 FY2024Q2 FY2026

Diluted EPS

$1.11

+19.4% on the year · +40.5% on the quarter

Q3 FY2024Q2 FY2026

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 2 raised, 1 lowered, 1 narrowed, 1 kept.

Orders rose sharply in the quarter: Orders were $3.1 billion, up 42% reported and 41% organically; the company reported $3,086 million against $2,174 million a year earlier.
Revenue grew 2% reported: Revenue was $2.3 billion, up 2% reported and 1% organically, or $2,336 million against $2,301 million a year earlier.
Diluted and adjusted EPS rose: Diluted EPS was $1.11, up 19% from $0.93; adjusted EPS was $1.46, up 16% from $1.26.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q2 FY2026	Q1 FY2026	Q2 FY2025	On the quarter	On the year
Revenue	2,336	2,125	2,301	+9.9%	+1.5%
Cost of revenue	1,373	1,322	1,409	+3.9%	-2.6%
Gross profit	963	803	892	+19.9%	+8.0%
Gross margin	41.2%	37.8%	38.8%
Research and development	59.0	56.0	58.0	+5.4%	+1.7%
Selling, general and administrative	503	472	503	+6.6%	0.0%
Operating income	390	244	305	+59.8%	+27.9%
Operating margin	16.7%	11.5%	13.3%
Interest expense	7.0	4.0	9.0	+75.0%	-22.2%
Pre-tax income	364	244	299	+49.2%	+21.7%
Income tax	103	55.0	75.0	+87.3%	+37.3%
Effective tax rate	28.3%	22.5%	25.1%
Net income	263	193	226	+36.3%	+16.4%
Net margin	11.3%	9.1%	9.8%
Diluted EPS	$1.11	$0.79	$0.93	+40.5%	+19.4%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	Q2 FY2026	Q1 FY2026	Q2 FY2025	On the quarter	On the year
Operating cash flow	290	108	305	+168.5%	-4.9%
Capital expenditure	89.0	90.0	98.0	-1.1%	-9.2%
Free cash flow	201	18.0	207	+1,016.7%	-2.9%
Free cash flow margin	8.6%	0.8%	9.0%
Cash from investing	-22.0	-76.0	-125
Cash from financing	199	-683	-128
Depreciation and amortisation	140	140	145	0.0%	-3.4%
Share-based compensation	12.0	13.0	13.0	-7.7%	-7.7%
Buybacks	680	563	0.0	+20.8%
Dividends paid	101	106	98.0	-4.7%	+3.1%
Dividend per share	$0.43	$0.43	$0.40	0.0%	+7.5%
Diluted shares, weighted	237m	243m	244m	-2.8%	-3.0%
Shares outstanding at period end	233m	238m	243m	-1.8%	-4.1%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q2 FY2026	Q1 FY2026	Q2 FY2025	On the quarter	On the year
Shareholders' equity	10,421	10,972	11,074	-5.0%	-5.9%
Non-controlling interest	3.0	8.0	7.0	-62.5%	-57.1%
Redeemable equity	242	249	228	-2.8%	+6.1%
Debt	2,926	1,938	1,996	+51.0%	+46.6%
Other liabilities	3,750	3,787	3,886	-1.0%	-3.5%
Total liabilities and equity	17,342	16,954	17,191	+2.3%	+0.9%
Fixed assets	1,167	1,151	1,189	+1.4%	-1.9%
Goodwill	8,256	8,292	8,237	-0.4%	+0.2%
Intangible assets	2,150	2,213	2,354	-2.8%	-8.7%
Cash and equivalents	1,276	808	1,170	+57.9%	+9.1%
Receivables	1,875	1,796	1,837	+4.4%	+2.1%
Inventory	1,016	991	1,071	+2.5%	-5.1%
Other assets	1,602	1,703	1,333	-5.9%	+20.2%
Total assets	17,342	16,954	17,191	+2.3%	+0.9%

Questions

What was Xylem's revenue in Q2 FY2026?

Xylem (XYL) reported revenue of $2.3 billion for Q2 FY2026, the quarter ended 30 June 2026, up 1.5% on the same quarter a year earlier.

How much did Xylem earn in Q2 FY2026?

Net income for Q2 FY2026 was $263 million, up 16.4% on the year, and diluted earnings per share $1.11.

When did Xylem report Q2 FY2026 results?

Xylem filed its 10-Q for the quarter ended 30 June 2026 with the SEC on 28 July 2026.

Quarterly results, the last 20 quarters

	Q4 FY2021 *	Q1 FY2022	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023 †	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	1,323	1,272	1,364	1,380	1,506	1,448	1,722	2,076	2,118	2,033	2,169	2,104	2,256	2,069	2,301	2,268	2,397	2,125	2,336	2,201
Cost of revenue	830	805	844	856	933	902	1,071	1,312	1,362	1,281	1,350	1,320	1,399	1,301	1,409	1,385	1,465	1,322	1,373	1,294
Gross profit	493	467	520	524	573	546	651	764	756	752	819	784	857	768	892	883	932	803	963	907
Gross margin	37%	37%	38%	38%	38%	38%	38%	37%	36%	37%	38%	37%	38%	37%	39%	39%	39%	38%	41%	41%
R&D	52.0	52.0	53.0	47.0	54.0	53.0	58.0	61.0	60.0	59.0	58.0	55.0	58.0	56.0	58.0	52.0	60.0	56.0	59.0	56.0
SG&A	301	304	314	294	315	354	446	491	466	474	485	445	507	460	503	474	486	472	503	458
Operating income	140	111	146	168	197	131	119	191	211	209	253	280	267	231	305	334	353	244	390	385
Operating margin	11%	9%	11%	12%	13%	9%	7%	9%	10%	10%	12%	13%	12%	11%	13%	15%	15%	11%	17%	17%
Interest expense	13.0	13.0	12.0	12.0	13.0	9.0	12.0	14.0	14.0	14.0	11.0	10.0	9.0	8.0	9.0	6.0	6.0	4.0	7.0	21.0
Pre-tax income	126	98.0	136	17.0	189	126	114	185	210	196	247	269	375	217	299	297	368	244	364	365
Tax rate	10%	16%	18%	29%	21%	21%	19%	18%	-27%	22%	21%	19%	13%	23%	25%	24%	10%	23%	28%	21%
Net income	113	82.0	112	12.0	149	99.0	92.0	152	266	153	194	217	326	169	226	227	335	193	263	291
Net margin	9%	6%	8%	1%	10%	7%	5%	7%	13%	8%	9%	10%	14%	8%	10%	10%	14%	9%	11%	13%
Diluted EPS	$0.62	$0.45	$0.62	$0.07	$0.82	$0.54	$0.45	$0.63	$1.10	$0.63	$0.80	$0.89	$1.34	$0.69	$0.93	$0.93	$1.37	$0.79	$1.11	$1.25
Operating cash flow	220	-81.0	113	202	362	-19.0	28.0	373	455	89.0	288	311	575	33.0	305	360	543	108	290	331
Capital expenditure	81.0	49.0	46.0	53.0	60.0	49.0	53.0	74.0	94.0	74.0	73.0	74.0	100	71.0	98.0	79.0	83.0	90.0	89.0	89.0
Free cash flow	139	-130	67.0	149	302	-68.0	-25.0	299	361	15.0	215	237	475	-38.0	207	281	460	18.0	201	242
Buybacks	0.0	51.0	1.0	0.0	0.0	8.0	1.0	1.0	15.0	15.0	3.0	1.0	1.0	13.0	0.0	1.0	1.0	563	680	337
Dividends paid	51.0	55.0	55.0	53.0	54.0	60.0	79.0	80.0	80.0	88.0	87.0	88.0	87.0	98.0	98.0	97.0	98.0	106	101	100
Shares outstanding	180m	180m	180m	180m	180m	181m	241m	241m	242m	242m	243m	243m	243m	243m	243m	243m	244m	238m	233m	229m
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 30 June 2026, filed 28 July 2026: the filing.