Sherwin‑Williams posts Q3 revenue beat, EPS miss and narrows FY26 guidance
Sherwin‑Williams reported third‑quarter 2026 net sales of $6.86 billion, up 7.9% year‑over‑year, while diluted EPS fell to $3.38 and adjusted EPS to $3.63, missing consensus estimates. The company cited higher raw‑material costs and the recent Suvinil acquisition as margin pressures. It narrowed its full‑year 2026 diluted EPS outlook to $10.92‑$11.22 and adjusted EPS outlook to $11.85‑$12.15.
Why it matters
The lower EPS guidance reduces the earnings target that investors had priced in, potentially pressuring the share price (the stock fell about 6% pre‑market). The revenue beat shows demand resilience, but margin compression signals cost‑headwinds that could affect future profitability.
Key facts
- 1Consolidated net sales increased 7.9% to $6.86 billion in Q3 2026. sec.gov
- 2Diluted EPS rose 0.9% to $3.38 per share, while adjusted EPS rose 1.1% to $3.63 per share. sec.gov
- 3Net income fell 1.5% to $821.0 million, or 12.0% of net sales. sec.gov
- 4EBITDA increased 3.4% to $1.39 billion (20.3% of net sales) and adjusted EBITDA rose 3.3% to $1.40 billion (20.5% of net sales). sec.gov
- 5Full‑year 2026 diluted EPS guidance revised to $10.92‑$11.22 per share; adjusted EPS guidance narrowed to $11.85‑$12.15 per share. sec.gov
- 6Shares fell about 5.9% in pre‑market trading after the earnings release. investing.com
Summary written by AlphAI AI Desk from 20 of 20 sources. Not investment advice. Figures are as stated by the linked sources.