Xylem Inc

Xylem's shares have fallen 7.1% since its last earnings report, underperforming the S&P 500, but the company beat second-quarter estimates and raised its full-year guidance. Adjusted earnings of $1.46 per share beat the Zacks Consensus Estimate of $1.34 by 9%, while revenues of $2.34 billion edged past expectations. Orders surged 42% year over year to $3.09 billion, and adjusted EBITDA margin expanded to 23.3% from 21.8%. For 2026, Xylem now expects adjusted earnings of $5.55 to $5.70 per share, up from its prior range of $5.35 to $5.60, and revenues of approximately $9.2 billion. The company also bought back $1.24 billion in shares during the first half of the year, up from $13 million a year earlier.

Spok Holdings has lowered the midpoint of its full-year 2026 revenue guidance while maintaining its adjusted EBITDA forecast. The company now expects total revenue between $132.5 million and $139.5 million, with wireless revenue of $67 million to $70 million and software revenue of $65.5 million to $69.5 million, while adjusted EBITDA remains at $28 million to $32 million. CFO and COO Michael Wallace cited longer deal cycles and a customer shift toward shorter-term contracts amid tight hospital budgets as reasons for the more cautious revenue outlook. The update came alongside second-quarter results that included a 92 percent sequential jump in software operations bookings, a record level of adjusted EBITDA, and a GAAP net income of $4.1 million, or 20 cents per diluted share. Management also highlighted the completed $8 million sale of paging spectrum licenses to Sensus USA, a Xylem subsidiary, which is expected to generate a gain with no federal tax due and boost year-end cash balances to between $26 million and $29 million.

Xylem raised its 2026 profit forecast, citing growing demand for water solutions tied to artificial-intelligence infrastructure. The water-technology company now expects adjusted earnings between $5.55 and $5.70 per share, up from its prior range of $5.35 to $5.60. The revision followed stronger-than-expected second-quarter results, with adjusted earnings of $1.46 per share beating the $1.34 analyst estimate and revenue rising 2% to $2.34 billion. Chief Executive Matthew Pine said expanding AI infrastructure is increasing demand across semiconductor manufacturing, electricity generation, and mining, while investment from utilities and industrial customers continues to strengthen. The company maintained a more conservative revenue outlook of approximately $9.2 billion, compared with its previous range of $9.2 billion to $9.3 billion, suggesting management expects pricing, savings, and business mix to drive earnings growth more than additional revenue.

The global data center water and wastewater treatment equipment market is projected to grow from $3.30 billion in 2026 to $5.90 billion by 2031, a compound annual growth rate of 12.3 percent. Growth is driven by accelerating data center construction, rising cooling-water requirements, regulatory pressure, regional water scarcity, and stronger corporate sustainability commitments. Chemical treatment and conditioning systems are expected to hold the largest equipment type share, while cooling water treatment leads among treatment stages. North America is anticipated to remain the largest regional market, supported by an advanced data center ecosystem and continued construction by major cloud service providers. Leading companies include Veolia, Ecolab, Xylem, Solenis, and Saltworks Technologies.

StockStory identifies Xylem as an S&P 500 stock worth attention while questioning Mondelez and United Airlines. Xylem, a water-sector company with a market cap of $29.78 billion, posted annual revenue growth of 12.7% over five years and earnings per share growth of 16.7% annually, with free cash flow margin expanding by 5.5 percentage points. Mondelez, the $78.84 billion snacks maker, faces falling unit sales, estimated sales growth of just 2.4%, and a 2% annual decline in earnings per share over three years. United Airlines, valued at $38.56 billion, has seen disappointing revenue passenger miles, a subpar operating margin of 8.2%, and an expected persistence of its free cash flow margin constraints.

Jefferies upgraded Xylem to Buy from Hold and raised its price target to $140 from $130, citing the stock's underperformance relative to the broader industrial sector despite stable demand and improving margins. The firm noted that Xylem has yet to fully reflect improving cyclical conditions, unlike industrial peers with direct data center exposure that have seen significant valuation expansion. Jefferies also highlighted Xylem's broad exposure across the entire water value chain and its recurring revenue base supported by long-term utility spending. Separately, Xylem announced a landmark agreement with Dow to design, build, and operate advanced water systems at Dow's large-scale industrial complex in Fort Saskatchewan, Alberta, supporting the Path2Zero project, with the system expected to be operational by August 2028.

Xylem and Gross-Wen Technologies have entered into a commercial partnership to advance industrial wastewater treatment solutions. The agreement combines Xylem's anaerobic treatment platform with GWT's patented Revolving Algal Biofilm nutrient removal technology, targeting facilities with anaerobic digestion processes. The collaboration builds on a successful deployment in Pasco, Washington, where both systems were independently selected and demonstrated complementary performance in meeting stringent nutrient discharge requirements. The partnership is expected to accelerate GWT's expansion into the industrial wastewater market while providing integrated compliance solutions for industrial operators.

Xylem expanded its long-term partnership with Dow to design, build, and operate advanced water systems at Dow's large-scale industrial complex in Fort Saskatchewan, Alberta. The project, announced on June 8, 2026, will support Dow's Path2Zero operations and is expected to be operational by August 2028. Xylem will deliver engineering, system design, and long-term operation for a full water-cycle system that treats raw water, converts cooling and industrial process water into high-quality reusable supply, and optimizes system performance over time. The agreement highlights the growing importance of integrated water management as industrial and digital infrastructure strain local water supplies, aligning with the broader AI infrastructure theme where water reuse and real-time management help avoid competition between industrial growth and community needs.

Moleaer and Xylem have announced a collaboration to bring chemical-free nanobubble water treatment technology to communities battling algal blooms and other water quality issues. The partnership pairs Moleaer's nanobubble systems, which have been deployed in over 650 surface water installations across more than 55 countries, with Xylem's water quality monitoring expertise through its YSI brand. The technology produces bubbles 2,500 times smaller than a grain of salt that remain suspended in the water column, delivering oxygen to lake bottoms to break down organic muck and suppress harmful algal blooms. The collaboration targets municipalities, watershed districts, and lake management professionals responsible for restoring impaired lakes, reservoirs, and other surface waters, with nearly half of U.S. lakes affected by excess nutrient pollution according to the EPA.