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Xylem Inc. (XYL)

Industrials Out of favourS&P 500

Xylem is a global water technology company that provides equipment and services to move, treat, and test water for homes, businesses, and cities.

$106.96

Is Xylem Inc. a good stock for a UK beginner?

The honest version: There's no rating here and nothing for sale. In its favour: Essential nature of water services provides steady demand. Worth weighing: Relies heavily on government and municipal spending.

No rating · no target price · nothing for sale here
Price-16.1%
= past earnings-report date
Priced in USD. As a UK investor your £ return also moves with the pound-to-dollar exchange rate, even inside an ISA - a stronger pound can trim your £ gains and a weaker pound can add to them, whatever the share price itself does.
52-week range-6% past year
$106.96
Low $105.29High $154.27
Where today's price sits versus its past year - context, not a signal.

Is this normal for this company?

Each figure against the range this same company has produced recently. Neither end of a range is the good end.

Price to earnings
19.9now
22.831.6

Share price divided by the earnings actually reported over the four most recent quarters. The range is the same calculation at each of this company's last few results, so roughly the past year.

Net profit margin
11.3%now
9.1%14.0%

Profit as a share of sales, from the company's own quarterly statements. The range covers the 5 quarters we hold, and the figure shown is its most recent one.

How these ranges are built

Every number here is the company's own reported figure, not a comparison with other companies. The ranges come from this company's own results and its share price. Where it reports in a different currency from the one its shares trade in, the price-to-earnings range is left out rather than mixing the two.

What does Xylem Inc. do?

Xylem helps the world solve its water challenges by manufacturing pumps, valves, and digital monitoring systems that keep water flowing safely and efficiently. This hardware, plus the ongoing software services that help utility companies manage their infrastructure, is what brings in the money. Its fortunes hinge on how much they benefit from the global push to upgrade ageing water systems and improve climate resilience.

On our factor screen it looks strongest on income and quality, and weakest on momentum.

Quick checks
What's strong
What to watch
  • Momentum screens low

Does Xylem Inc. pay a dividend?

Yes - Xylem Inc. currently pays a dividend of about 1.4% a year, which is £14 a year for every £1,000 invested (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it. An ISA doesn't shelter the US tax on this one →

What do the numbers say about Xylem Inc.'s dividend?

There's no rating here, and we don't judge whether the dividend will continue - that would be advice. Here are the figures income investors usually look at, and what each one means, so you can weigh it up yourself.

Dividend yield1.4%£14 a year for every £1,000 invested. The yearly dividend as a percentage of today's price. A very high figure often means the price has fallen because the market expects a cut, so a big yield is a question to look into, not a prize.
Payout ratio40%about 40 in every 100 pounds of profit. The share of profit paid out as dividends. A lower figure leaves headroom; near or above 100% means most or all of the profit is going out as dividends.
Dividend cover2.5×Profit divided by the dividend (the payout ratio the other way up). As a rough convention many income investors like around 2× or more; below 1× means the company paid out more than it earned that year.

Figures are from the latest available data and can be distorted by one-off results. Past payments don't predict future ones, and a dividend can be cut at any time. This lays out the numbers to help you understand them - it is not a view on what will happen.

Most recent ex-dividend date: 28 May 2026. To receive a dividend you must already own the shares before the ex-dividend date; become a holder on or after it and the previous owner keeps that payment. Why the price usually falls that morning →

Does Xylem Inc. have more cash or more debt?

It holds about $1.28B in cash against about $3.06B of debt - so it has net debt of about $1.78B. Debt is not automatically a problem - it funds growth - but it has to be serviced and repaid, which matters more when profits wobble.

From the latest reported balance sheet. Cash and debt levels change, and some borrowing is normal - this is context, not a judgment.

What do Xylem Inc.'s numbers mean?

P/E
29.26
This shows how much you are paying for every pound of the company's current annual profit.
Around the middle of the 105 Industrials shares we cover
Forward P/E
19.90
This is a similar measure, but it uses analysts' expectations for next year's profits rather than what the company earned in the past.
Around the middle of the 123 Industrials shares we cover
Net margin
11.2%
This tells us that for every pound of sales, the company keeps about 11 pence as actual profit after all expenses are paid.
Around the middle of the 123 Industrials shares we cover
Dividend yield
1.4%
This is the annual cash payout to shareholders as a percentage of the current share price.
Around the middle of the 123 Industrials shares we cover

How has it performed?

Growth of £1,000, the worst fall, and year by year
If you had put $1,000 into Xylem Inc.
$839-16%

Over about 2 years to 2026-09-11. This is the share price only - reinvesting the dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.

How much has Xylem Inc. actually fallen?

−31%

Over the last 2 years of daily prices, Xylem Inc. fell as much as −31% from a high to a later low. Falls like this are normal when you own a share.

Past falls are not a forecast - it can fall further, or recover.

How has it done year by year?

2022-7%
2023+5%
2024+3%
2025+19%
2026 so far-9%

Calendar-year total return - the share price with dividends reinvested - from adjusted closing prices. The current year is only part-complete. Past returns are not a guide to the future.

A closer look at the numbers

Ownership, earnings history, where the money goes, and the outlook range
Market cap: The company's total value on the stock market - share price times the number of shares. Big = 'large-cap', small = 'small-cap'.
$28.76B
Avg volume: How many shares change hands on a typical day. Higher means it's easy to buy or exit without moving the price.
1.95M
Day range: The lowest and highest price the shares traded at during the latest day.
$106.25 – $108.92
52-week range: The lowest and highest the shares have traded over the past year - a sense of how wide the swings have been.
$105.29 – $154.27
P/E ratio: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth.
29.3
Dividend yield: The yearly dividend as a percentage of the share price - roughly the income you'd earn from dividends alone.
1.4%
Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down.
1.01

Does the share price tell you if it's cheap or expensive?

One share costs$106.96
Number of shares269 million
So the whole company is worth$28.76bn
A £5 share is not cheaper than a £500 one - it means the company cut itself into more slices. Whether the total looks high or low is what the figures below are for; we don't give a verdict.

Who owns Xylem Inc.?

Big institutions 99%

About 99% of Xylem Inc., or about 99 in every 100 shares, is held by big institutions such as pension and index funds. The rest, roughly 0%, is held by the public and smaller investors.

What this does and doesn't tell you

This is a recent snapshot of the share register, and it moves. We don't read anything into who owns what - a high institutional share is common for any large listed company and is not a signal about it.

How bumpy is it?Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down. 1.01
Calm
Wild
Roughly in step with the market

Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.

Why has it been moving?▲ +0% past week · ▼ -6% past year

Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.

How much money does Xylem Inc. make?

Revenue and profit by quarter, and how much of each sale turns into profit.

RevenueNet income
$0$599.25M$1.20B$1.80B$2.40BQ2 25Q3 25Q4 25Q1 26Q2 26
Gross margin
39.2%
Net margin
11.2%
Return on equity
9.2%

Where does each £100 of Xylem Inc.'s sales go?

Making the product or service £61Running costs, tax and interest £28Left as profit £11

A rough split of the latest full-year figures: of every £100 of sales, about £61 covers making the product or service, £28 goes on running costs, tax and interest, and about £11 is left as profit. Margins vary a lot by industry, and one-off items can distort a single year.

When does Xylem Inc. report earnings, and how did recent quarters go?

Xylem Inc. is next scheduled to report on about 2026-11-03 - dates can move, and we don't predict results; this just tells you when to look.

‘Beat’ and ‘missed’ are against what analysts expected, not whether the business is doing well.

Xylem Inc.: reported versus expected earnings per share, recent quarters
ReportedExpected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number.Actual EPSvs expected
2026-07-28$1.34$1.46Beat +9%
2026-04-28$1.08$1.12Beat +3%
2026-02-10$1.41$1.42In line
2025-10-28$1.23$1.37Beat +11%
2025-07-31$1.15$1.26Beat +10%
2025-04-29$0.95$1.03Beat +8%

Across the last 6 quarters here, Xylem Inc. came in ahead of what analysts expected 5 times. One quarter is noise, not a trend.

See who else reports over the next two weeks →

Where these figures come from

Each quarter a company reports its results against a consensus of analyst forecasts. The figures here are reported versus expected earnings per share from published results; the expectation is that analyst consensus, not our view. Report dates are estimates and can move.

What are the scenarios for Xylem Inc.?

An illustrative range for the year ahead — not a prediction or a price target.

◀ lowerhigher ▶todayBull▲ UpsideBase• In-lineBear▼ Downside
Bull
+5% to +10%Increased government spending on water infrastructure projects.
Base
-2% to +2%Steady demand for essential water maintenance services.
Bear
-5% to -10%Delays in large-scale municipal construction contracts.

What are the pros, cons and common questions?

The case each way, and the questions people ask
The bull case

Water scarcity drives massive long-term investment in treatment tech.

The bear case

Significant loss of market share to cheaper competitors.

What are the pros and cons of Xylem Inc.?

3bull points
6bear points

A balance check, not a score or verdict.

The bull case3
  • Essential nature of water services provides steady demand
  • Strong position in a critical global industry
  • Growing focus on digital and smart water solutions
The catch3
  • Relies heavily on government and municipal spending
  • Growth can be slower compared to tech or consumer sectors
  • High current valuation relative to recent earnings
Key risks3
  • Economic downturns could lead to budget cuts for infrastructure
  • Supply chain disruptions affecting manufacturing
  • Regulatory changes impacting water quality standards
What would flip the thesis

The write-up's own warning lights — if these start happening, the case above changes.

  • A sustained drop in global infrastructure investment
  • A major technological shift that makes their hardware obsolete

Common questions about Xylem Inc.

Does Xylem Inc. pay a dividend?

Yes - Xylem Inc. currently pays a dividend of about 1.4% a year. Dividends are a share of profit paid to holders; the yield moves with the price and payouts can be cut.

When does Xylem Inc. report earnings next?

Xylem Inc. is next scheduled to report results on about 2026-11-03. Report dates are estimates and can move; this is a diary note for when to look, not a forecast of the outcome.

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Confidence: medium · data: USD · flags: none · Charts by TradingView Lightweight Charts™
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Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →

This plain-English summary was auto-generated on 2026-08-02 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.

Prices as of 11 Sep 2026; other figures as of 11 Aug 2026. Prices may be delayed and numbers can go stale - always double-check before acting.