Xylem Inc. (XYL) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Xylem Inc. Do?
Xylem Inc., together with its subsidiaries, engages in the design, manufacture, and servicing of engineered products and solutions for the water and wastewater applications in the United States, Europe, the Asia Pacific, and internationally. It operates through three segments: Water Infrastructure, Applied Water, and Measurement & Control Solutions. The Water Infrastructure segment offers various products, including water, storm water, and wastewater pumps; controls and systems; filtration, disinfection, and biological treatment equipment; and mobile dewatering equipment under the Flygt, Godwin, Wedeco, Sanitaire, Leopold, Wedeco, and Xylem Vue brand names for the transportation and treatment of water. The Applied Water segment provides pumps, valves, heat exchangers, controls, and dispensing equipment systems under the Goulds Water Technology, Bell & Gossett, A-C Fire Pump, Standard Xchange, Lowara, Jabsco, Xylem Vue and Flojet brand names for residential and commercial building services, and industrial water applications. The Measurement & Control Solutions segment provides smart meters, networked communication devices, and measurement and control technologies, as well as critical infrastructure technologies. It also offers software and services, including cloud-based analytics, remote monitoring and data management, leak detection, condition assessment, asset management, and pressure monitoring solutions, as well as testing equipment and managed services. This segment sells its products under the Pure, Sensus, Smith Blair, WTW, Xylem Vue, and YSI brand names. The company markets and sells its products through a network of direct sales force, resellers, distributors, and value-added solution providers. Xylem Inc. was formerly known as ITT WCO, Inc. and changed its name to Xylem Inc. in May 2011. The company. was incorporated in 2011 and is headquartered in Rye Brook, New York. Xylem Inc. (XYL) is classified as a large-cap stock in the Industrials sector, specifically within the Machinery industry. The company is led by CEO Patrick K. Decker and employs approximately 17,800 people, headquartered in Rye Brook, District Of Columbia. With a market capitalization of $29.5B, XYL is one of the prominent companies in the Industrials sector.
Xylem Inc. (XYL) Stock Rating — Hold (April 2026)
As of April 2026, Xylem Inc. receives a Hold rating with a composite score of 47.0/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.XYL ranks #1,532 out of 4,446 stocks in our coverage universe. Within the Industrials sector, Xylem Inc. ranks #241 of 752 stocks, placing it in the upper half of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
XYL Stock Price and 52-Week Range
Xylem Inc. (XYL) currently trades at $128.72. The stock lost $0.68 (0.5%) in the most recent trading session. The 52-week high for XYL is $154.27, which means the stock is currently trading -16.6% from its annual peak. The 52-week low is $100.47, putting the stock 28.1% above its annual trough. Recent trading volume was 1.6M shares, reflecting moderate market activity.
Is XYL Overvalued or Undervalued? — Valuation Analysis
Xylem Inc. (XYL) carries a value factor score of 56/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 35.88x, compared to the Industrials sector average of 28.33x — a premium of 27%. The price-to-book ratio stands at 2.60x, versus the sector average of 2.23x. The price-to-sales ratio is 3.42x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, XYL trades at 27.72x EV/EBITDA, versus 5.70x for the sector.
Overall, XYL's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Xylem Inc. Profitability — ROE, Margins, and Quality Score
Xylem Inc. (XYL) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 7.3%, compared to the Industrials sector average of 8.9%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 4.7% versus the sector average of 3.3%.
On a margin basis, Xylem Inc. reports gross margins of 38.0%, compared to 35.8% for the sector. The operating margin is 13.1% (sector: 6.2%). Net profit margin stands at 9.5%, versus 3.9% for the average Industrials stock. Revenue growth is running at 4.6% on a trailing basis, compared to 6.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
XYL Debt, Balance Sheet, and Financial Health
Xylem Inc. has a debt-to-equity ratio of 17.0%, compared to the Industrials sector average of 70.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.63x, suggesting adequate working capital coverage. Total debt on the balance sheet is $1.95B. Cash and equivalents stand at $1.19B.
XYL has a beta of 0.88, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for Xylem Inc. is 80/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
Xylem Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Xylem Inc. reported revenue of $8.74B and earnings per share (EPS) of $3.93. Net income for the quarter was $834M. Gross margin was 38.0%. Operating income came in at $1.15B.
In FY 2025, Xylem Inc. reported revenue of $9.04B and earnings per share (EPS) of $3.93. Net income for the quarter was $950M. Gross margin was 38.5%. Revenue grew 5.5% year-over-year compared to FY 2024. Operating income came in at $1.22B.
In Q3 2025, Xylem Inc. reported revenue of $2.27B and earnings per share (EPS) of $0.93. Net income for the quarter was $226M. Gross margin was 38.9%. Revenue grew 7.8% year-over-year compared to Q3 2024. Operating income came in at $334M.
In Q2 2025, Xylem Inc. reported revenue of $2.30B and earnings per share (EPS) of $0.93. Net income for the quarter was $224M. Gross margin was 38.8%. Revenue grew 6.1% year-over-year compared to Q2 2024. Operating income came in at $305M.
Over the past 8 quarters, Xylem Inc. has demonstrated a growth trajectory, with revenue expanding from $2.17B to $8.74B. Investors analyzing XYL stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
XYL Dividend Yield and Income Analysis
Xylem Inc. (XYL) currently pays a dividend yield of 1.1%. At this yield, a $10,000 investment in XYL stock would generate approximately $$106.00 in annual dividend income. The net margin of 9.5% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
XYL Momentum and Technical Analysis Profile
Xylem Inc. (XYL) has a momentum factor score of 38/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 32/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 29/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
XYL vs Competitors — Industrials Sector Ranking and Peer Comparison
Within the Industrials sector, Xylem Inc. (XYL) ranks #241 out of 752 stocks based on the Blank Capital composite score. This places XYL in the upper half of all Industrials stocks in our coverage universe. Key competitors and sector peers include South Bow Corp (SOBO) with a score of 56.5/100, TSAKOS ENERGY NAVIGATION LTD (TEN) with a score of 61.4/100, Great Lakes Dredge & Dock CORP (GLDD) with a score of 56.7/100, Tri Pointe Homes, Inc. (TPH) with a score of 57.3/100, and Clear Channel Outdoor Holdings, Inc. (CCO) with a score of 52.2/100.
Comparing XYL against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full XYL vs S&P 500 (SPY) comparison to assess how Xylem Inc. stacks up against the broader market across all factor dimensions.
XYL Next Earnings Date
No upcoming earnings date has been announced for Xylem Inc. (XYL) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy XYL? — Investment Thesis Summary
Xylem Inc. presents a balanced picture with arguments on both sides. Momentum is weak at 38/100, a headwind for near-term performance. Low volatility (stability score 80/100) reduces downside risk.
In summary, Xylem Inc. (XYL) earns a Hold rating with a composite score of 47.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on XYL stock.
Related Resources for XYL Investors
Explore more research and tools: XYL vs S&P 500 comparison, top Industrials stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare XYL head-to-head with peers: XYL vs SOBO, XYL vs TEN, XYL vs GLDD.