AI-extracted from the 10-Q filed 2026-07-28 — Q2 2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Q2 revenue $2,336M (+1.5% YoY) with operating margin expanding 340 bps to 16.7%, driven by productivity gains and price realization offsetting inflation headwinds.
Biggest Revenue Drivers
Water Infrastructure$683M+5.1% YoY
Organic growth of $17M from increased U.S. sales volume in transport, offset by $11M decline in treatment.
Water Solutions and Services$644M+2.5% YoY
Organic growth of $7M primarily from increased capital project revenue in North America and dewatering sales.
Biggest Revenue Drivers
Total revenue: $2,336M+1.5% YoY
Water Infrastructure$683M+5.1% YoY
Organic growth of $17M from increased U.S. sales volume in transport, offset by $11M decline in treatment.
Water Solutions and Services$644M+2.5% YoY
Organic growth of $7M primarily from increased capital project revenue in North America and dewatering sales.
Applied Water$501M+3.7% YoY
Organic growth of $13M driven by backlog execution and price in U.S., commercial market growth offset by residential declines.
Measurement and Control Solutions$508M-5.9% YoY
Divestiture loss of $29M and organic decline of $7M from lower water backlog in North America offset by energy sales.
Largest Expense Items
Cost of revenue$1,373M-2.5% YoY
Productivity savings of 230 bps and price realization of 180 bps offset by inflation of 240 bps.
Selling, general and administrative expenses$503M0% YoY
Productivity savings and lower special charges offset by inflation, FX impacts, and strategic investments.
Restructuring and asset impairment charges$11M-57.7% YoY
Lower restructuring charges as 2025-2026 actions progress.
Margins: Gross margin expanded 240 bps to 41.2%, driven by 550 bps of operational gains (productivity, price, mix) partially offset by 380 bps of inflation and volume headwinds. Operating margin improved 340 bps to 16.7% with favorable adjustments from restructuring/intangible amortization contributing 180 bps.
Watch Items from the Filing
Measurement and Control Solutions declined 5.9% YoY, with $29M revenue loss from divestitures and organic declines in smart metering from lower North American water backlog.
Inflation headwinds totaling 240 bps of gross margin pressure; company aggressively pursuing price realization to offset, capturing 180 bps benefit YTD.
Orders up 42% YoY ($3,086M vs $2,174M) with strong 147.3% organic growth in Water Solutions & Services segment driven by significant contract wins.
Backlog increased $700M (15.2%) to $5,315M as of June 30, 2026 vs December 31, 2025; company expects ~40% recognition as 2026 revenue.
Tariff refunds: Company recognized $4M Q2 refunds and $12M receivable for IEEPA tariffs with additional recoveries expected as uncertainties resolve.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
About Xylem Inc. (XYL): stock profile, AI score and financials
Xylem Inc. (XYL) stock profile, AI quality score, and SEC EDGAR financial data, a Industrials sector company. 13F Pro's AI-powered ranking engine scores XYL at 63.0/100 on a composite quality score built from its SEC filings, placing it at rank #648 of 2,925 stocks — the top 25% of the AI-ranked universe. XYL scores in the top quartile across institutional flow (96.8), revenue scale (85.2). Based on the latest XBRL financial filings (Q2 2026), Xylem Inc. reports quarterly revenue of $2.3B, net income of $263.0M, an operating margin of 16.7%. Top institutional holders of XYL by reported 13-F value include BlackRock, VANGUARD CAPITAL MANAGEMENT, VANGUARD PORTFOLIO MANAGEMENT, based on the most recent SEC filings. XYL trades on the NYSE exchange and files with the SEC under CIK 1524472. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate XYL daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Xylem Inc. directly from SEC EDGAR.