Xylem Inc. filed its 10-Q with the SEC, and its figures are now in our data. Growth continues, but it is losing pace. Revenue over the twelve months to Q3 2026 was $9.1 billion, which rose 1.9% on the year before, though that growth rate was down 2.7 percentage points on the rate a quarter earlier.
Source: SEC EDGAR XBRL company facts. Latest period shown: FY26 Q3.
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| Period | Revenue growth, TTM YoY | Operating margin (TTM) | FCF margin (TTM) |
|---|---|---|---|
| FY24 Q4 | 16.3% | 11.8% | 11.0% |
| FY25 Q1 | 8.2% | 12.0% | 10.3% |
| FY25 Q2 | 4.0% | 12.4% | 10.1% |
| FY25 Q3 | 5.6% | 12.8% | 10.4% |
| FY25 Q4 | 5.5% | 13.5% | 10.1% |
| FY26 Q1 | 5.7% | 13.6% | 10.6% |
| FY26 Q2 | 4.5% | 14.5% | 10.5% |
| FY26 Q3 | 1.9% | 15.1% | 10.2% |
What the company earns
The trailing gross margin was 39.8%. The trailing operating margin was 15.1%, up 2.4 percentage points from a year earlier. At the same time, the trailing net margin was 11.9%. Net income over the twelve months was $1.1 billion, which rose 14.1% on the year before.
Where the cash went
The cash flow statement shows a decline. Operating cash flow over the twelve months was $1.3 billion, down 0.1% on the year before. Capital spending was $351.0 million, or 3.9% of revenue. Free cash flow, operating cash flow less capital spending, was $921.0 million, down 0.4% on the year before. The free-cash-flow margin was 10.2% of revenue, down 0.2 percentage points from a year earlier.
The share base
The average diluted share count fell 1.9% over the year.
In context
Measured against its own history: today’s free-cash-flow margin of 10.2% is higher than 73% of the company’s own past quarterly readings, which have ranged from 2.7% to 13.4%. Today’s operating margin of 15.1% is above every past reading (6.5% to 14.5%). Today’s twelve-month revenue growth rate of 1.9% is higher than 35% of past readings (−7.4% to 39.5%).
Guidance
The company lowered its full-year 2026 guidance for full-year 2026 revenue to $9.2 billion. The company gave its full-year 2026 guidance for full-year 2026 adjusted EBITDA margin of 23.1% to 23.5%. The company raised its full-year 2026 guidance for full-year adjusted earnings per share to a range of $5.55 to $5.70. The company kept its full-year 2026 guidance for full-year free cash flow margin (adjusted) at 10.2% to 11%.
What it means for value
For valuation, the figures matter through our model. In our model, growth 5 percentage points lower would lower the value by 31.7%, and 5 percentage points higher would raise it by 41.7%. A free-cash-flow margin 1 percentage point lower would lower it by 12.0%.
What comes next
The next filing will show whether the trends above continue, slow or reverse.
