Water-management firm Xylem updated its 2026 financial outlook upward on Tuesday after posting second-quarter results that surpassed analyst expectations, with cost-cutting measures and pricing gains driving stronger profitability alongside growing demand from the artificial intelligence sector.
The company’s stock jumped more than 2% in premarket trading following the news.
Xylem now projects 2026 adjusted earnings in the range of $5.55 to $5.70 per share, an improvement over its earlier guidance of $5.35 to $5.60 per share.
CEO Matthew Pine pointed to the rapid buildout of AI infrastructure as a key factor pushing demand for the company’s water solutions across industries including semiconductor manufacturing, power generation, and mining.
“The demand drivers behind our business continue to strengthen,” Pine said, noting increased spending by both utility companies and industrial clients.
On the revenue side, Xylem now anticipates full-year sales of approximately $9.2 billion, narrowing from its previous range of $9.2 billion to $9.3 billion. Analysts surveyed by LSEG had forecast 2026 adjusted earnings of $5.54 per share and revenue of $9.25 billion.
For the most recent quarter, Xylem reported adjusted earnings of $1.46 per share, topping the analyst consensus estimate of $1.34 per share. Quarterly revenue climbed 2% to $2.34 billion, landing in line with what analysts had anticipated.
Within its business segments, revenue from Xylem’s water infrastructure division grew 5% to $683 million, while its water solutions and services unit posted a 3% revenue increase to $644 million.
