Xylem is a global water technology company that designs and manufactures solutions for water and wastewater applications. The company helps customers transport, treat, and test water. With a market capitalization of around $29.70 billion, it is a major player in the water infrastructure industry, providing essential services and equipment worldwide.
Reflecting confidence in the company's direction, analyst firm Barclays raises its price target for Xylem to $159.00 from $154.00. Barclays also maintains its Overweight rating on the stock. This rating suggests the analyst expects the stock to outperform the average return of other stocks in its sector over the next year.
This optimism is supported by strong second-quarter 2026 results. As highlighted by Zacks Investment Research, Xylem reported adjusted earnings per share of $1.46, beating estimates of $1.34. Revenues also exceeded expectations, coming in at $2.34 billion against a forecast of $2.33 billion, a 1.5% increase from the prior year.
A key driver of this performance is a significant 42% year-over-year surge in orders, which reached $3.09 billion. As noted by Reuters, this growth is partly due to strengthening demand for water-treatment equipment. This equipment is needed for the expansion of AI infrastructure, which requires extensive cooling systems.
Following these results, Xylem increases its 2026 adjusted earnings per share (EPS) guidance to a range of $5.55 to $5.70. The company also projects full-year revenues of approximately $9.20 billion. This updated forecast signals management's strong belief in continued business momentum for the remainder of the year.
