Xylem to Restructure into Three Segments; Q3 EPS Up 34 Percent
Pump manufacturer and water technology company Xylem posted $2.201 billion in revenue in the third quarter of 2026, compared to $2.268 billion in the third quarter of 2025, a 3-percent decline. Revenue from services, which includes rental, was $394 million, compared to $401 million a year ago, a 1.7-percent drop. Revenue from products was $1.807 billion compared to $1.867 billion in Q325, a 3.2-percent dip.
However, in the first nine months of the year, revenue rose from $6.638 billion in the first nine months of 2025, to $6.662 billion, a slight increase.
Orders were $2.3 billion, 7-percent up on a reported basis, and 10-percent organically. Third quarter results reflected a mixed operating environment, Xylem said. The company delivered total revenue of $2.2 billion against a dynamic backdrop. Third quarter earnings per share were up 34 percent on a reported basis and 5 percent on an adjusted basis.
Xylem now forecasts full-year 2026 revenue of about $8.95 billion, down 1 percent year over year on a reported basis, versus prior guidance of up 2 percent, and flat on an organic basis, compared to previous guidance of up 2 to 3 percent.
Xylem's planned divestiture of Applied Water International and Specialty Flow Control and its move to a three-segment structure are designed to create a more focused company aligned around customer needs and long-term growth priorities.
The planned divestitures further sharpen Xylem’s focus, enabling the company to direct capital toward the technologies, capabilities and markets that align most closely with its long-term strategy. Xylem is already seeing momentum in high-growth industry verticals, including data centers and microelectronics, reinforcing the opportunity to increase investment and exposure in these markets.
Beginning January 1, 2027, Xylem will align its business into three segments: Treatment and Services, Flow Solutions, and Measurement and Analytics. The new structure brings together complementary technologies and capabilities around the core activities of moving water, treating water, and measuring and optimizing water systems. By bringing together businesses with shared customers, technologies and growth opportunities, Xylem expects to unlock greater value across the portfolio and operate with greater simplicity, speed and accountability.
Treatment and Services will be led by Rodney Aulick; Flow Solutions will be led by Joe Johnston; and Measurement and Analytics will be led by Meredith Emmerich.
“We’re moving with urgency to shape Xylem around the markets where our capabilities can deliver the greatest customer value and strongest long-term growth," said Matthew Pine, president and CEO of Xylem. "The resilience we’ve built, evident this quarter, allows us to make those choices deliberately and from a position of strength.”
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.
