PomegraXylem Stock Falls 14% After Earnings Miss, Guidance Cut
Why did Xylem stock fall 14%?
Xylem (XYL) stock fell about 14% to $92.86 on Tuesday after the water-technology company missed third-quarter sales estimates and cut its 2026 profit forecast, with two business units to be sold.
Key numbers
| Share price (close) | $92.86-14.2% on the day |
|---|---|
| Q3 revenue | $2.201B-3% YoY; est. $2.28B (per [3]) |
| Q3 adjusted EPS | $1.44+5% YoY; est. $1.45 (per [3]) |
| 2026 adjusted EPS outlook | $5.40–$5.45from $5.55–$5.70 |
| 2026 revenue outlook | ~$8.95B-1% YoY, from +2% |
| Organic orders | $2.3B+10% YoY |
What happened
Xylem (XYL) stock fell about 14% to $92.86 on Tuesday after the water-technology company missed third-quarter sales estimates and cut its 2026 profit forecast, with two business units to be sold. Sales for the quarter were $2.2 billion, down 3% from a year ago and below the $2.28 billion analysts expected. Utility customers, such as city water systems, are holding back spending and delaying big meter upgrades. Xylem now expects 2026 profit of $5.40–$5.45 per share, down from $5.55–$5.70, and plans to sell Applied Water International and Specialty Flow Control.
Why it matters
Xylem makes pumps, meters and treatment equipment that cities and industries use to move and clean water, so its results hint at how much utilities are spending. Orders rose 10% after adjusting for deals and currency, which suggests some demand is being postponed rather than lost. The two units for sale are about 9% of sales but under 5% of operating profit (EBITDA), so Xylem is narrowing toward higher-margin work.
Who this affects
- MarketmixedMedium impact
- Water-equipment investors face doubts over utility spending; Pentair rose.
- CompanybearishHigh impact
- Xylem shareholders lost about $15 per share in one day.
- CompetitorsmixedLow impact
- Pentair rose after beating estimates, a split result for rivals.
- IndustrybearishMedium impact
- Big utility meter upgrades slip to 2027–2028, delaying supplier sales.
Xylem vs Pentair, Veralto, Badger Meter
How we got here
Xylem reports Q3 results, cuts 2026 outlook and announces two planned divestitures.
Shares close at $92.86, down 14.2%, a new 52-week low.
Xylem moves from four reporting segments to three.
What to watch
- Buyers, prices and timing for Applied Water International and Specialty Flow Control2027
- Whether large utility meter awards turn into sales, with deployment slated for late 2027–20282027
- First results under the new three-segment structure2027-01-01
Educational content only. Not investment advice.
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