PomegraSherwin-Williams Stock Falls 3% After Q3 Earnings Miss
Why did Sherwin-Williams stock fall 3%?
Sherwin-Williams (SHW) stock fell about 3% from a $335.16 close on Tuesday after the paint maker missed profit estimates as higher raw material and supply chain costs squeezed margins.
Key numbers
| Net sales (Q3) | $6.86B+7.9% YoY |
|---|---|
| Adjusted EPS (Q3) | $3.63vs $3.69 expected |
| Gross margin | 47.8%-1.4 pts YoY |
| Net income (Q3) | $821.0M-1.5% YoY |
| 2026 adjusted EPS outlook | $11.85–$12.15midpoint $12.00 |
| Share price (Tuesday intraday, per [3]) | $323.30-3.4% vs $335.16 close |
What happened
Sherwin-Williams (SHW) stock fell about 3% from a $335.16 close on Tuesday after the paint maker missed profit estimates as higher raw material and supply chain costs squeezed margins. Sales rose 7.9% from a year ago to $6.86 billion and beat forecasts, but adjusted profit of $3.63 per share missed the $3.69 expected. Profit margins shrank because ingredients, shipping and supply chain costs rose, and a September price increase counted for only one month. The company also narrowed its 2026 profit forecast (guidance), with the midpoint just below analyst estimates.
Why it matters
Sherwin-Williams showed that selling more paint does not guarantee higher profit when ingredients and shipping cost more. The company's chief executive said customer demand looks muted through the rest of 2026 and into 2027. Recent price increases may rebuild margins in coming quarters, but management says costs have so far moved faster than prices.
Who this affects
- MarketbearishLow impact
- Housing-linked investors see softer demand and cost pressure.
- CompanybearishMedium impact
- Shareholders lost about 3% as profit margins shrank.
- CompetitorsmixedLow impact
- PPG rose after hours on a stronger report, a relative win.
- IndustrybearishLow impact
- Paint makers face costlier ingredients and muted demand.
Sherwin-Williams vs PPG Industries
How we got here
Paint Stores price increase takes effect; only one month counted in Q3
Sherwin-Williams reports Q3, misses profit estimate; stock opens at $315.64 versus $335.16 prior close
PPG reports a Q3 beat and rises about 7.6% after hours
What to watch
- Whether the September price increase lifts gross margin back above 47.8% in Q4Q4 2026
- Full-year adjusted profit landing inside the $11.85–$12.15 per share rangeQ4 2026
- Housing and DIY demand, which management expects to stay muted into 20272027
Educational content only. Not investment advice.
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