Revenue growth has normalized to 2.7% as of 2026Q1, while gross margins remain resilient within a tight 37.0% to 38.9% range despite inflationary pressures.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 |
|---|
| Sales/Revenue | 9.09B | 9.04B | 8.56B | 7.36B | 5.52B | 5.2B | 4.88B | 5.25B | 5.21B | 4.71B | 3.77B | 3.65B | 3.92B | 3.84B | 3.79B | 3.8B | 3.2B | 2.85B |
| Revenue Growth % | 5.75% | 5.52% | 16.27% | 33.36% | 6.29% | 6.54% | -7.11% | 0.81% | 10.62% | 24.82% | 3.23% | -6.72% | 2.06% | 1.21% | -0.32% | 18.77% | 12.39% | - |
| Cost of Goods Sold | 5.58B | 5.56B | 5.35B | 4.65B | 3.44B | 3.22B | 3.05B | 3.2B | 3.18B | 2.86B | 2.31B | 2.25B | 2.4B | 2.34B | 2.29B | 2.34B | 1.99B | 1.81B |
| COGS % of Revenue | - | 61.54% | 62.49% | 63.1% | 62.26% | 61.98% | 62.47% | 61.02% | 61.09% | 60.68% | 61.26% | 61.57% | 61.36% | 60.93% | 60.38% | 61.58% | 62.09% | 63.6% |
| Gross Profit | 3.51B | 3.48B | 3.21B | 2.72B | 2.08B | 1.98B | 1.83B | 2.05B | 2.03B | 1.85B | 1.46B | 1.4B | 1.51B | 1.5B | 1.5B | 1.46B | 1.21B | 1.04B |
| Gross Margin % | 38.61% | 38.46% | 37.51% | 36.9% | 37.74% | 38.02% | 37.53% | 38.98% | 38.91% | 39.32% | 38.74% | 38.43% | 38.64% | 39.07% | 39.62% | 38.42% | 37.91% | 36.4% |
| Gross Profit Growth % | - | 8.19% | 18.22% | 30.37% | 5.52% | 7.92% | -10.56% | 0.99% | 9.45% | 26.69% | 4.06% | -7.2% | 0.93% | -0.2% | 2.81% | 20.35% | 17.07% | - |
| Operating Expenses | 2.27B | 2.25B | 2.2B | 2.06B | 1.46B | 1.39B | 1.46B | 1.56B | 1.37B | 1.29B | 1.05B | 955M | 1.05B | 1.14B | 1.06B | 1.07B | 826M | 761M |
| OpEx % of Revenue | - | 24.93% | 25.73% | 28.04% | 26.48% | 26.76% | 30% | 29.72% | 26.35% | 27.51% | 27.95% | 26.14% | 26.81% | 29.61% | 27.93% | 28.03% | 25.8% | 26.71% |
| Selling, General & Admin | 1.94B | 1.92B | 1.91B | 1.76B | 1.37B | 1.18B | 1.14B | 1.16B | 1.16B | 1.09B | 914M | 854M | 920M | 990M | 914M | 877M | 737M | 667M |
| SG&A % of Revenue | - | 21.28% | 22.32% | 23.86% | 24.76% | 22.69% | 23.44% | 22.06% | 22.3% | 23.14% | 24.24% | 23.38% | 23.49% | 25.8% | 24.11% | 23.06% | 23.02% | 23.41% |
| Research & Development | 226M | 226M | 230M | 232M | 206M | 204M | 187M | 191M | 189M | 180M | 110M | 95M | 104M | 104M | 106M | 100M | 74M | 63M |
| R&D % of Revenue | - | 2.5% | 2.69% | 3.15% | 3.73% | 3.93% | 3.84% | 3.64% | 3.63% | 3.82% | 2.92% | 2.6% | 2.66% | 2.71% | 2.8% | 2.63% | 2.31% | 2.21% |
| Other Operating Expenses | 4M | 103M | 62M | 76M | -111M | 7M | 133M | 211M | 22M | 25M | 30M | 6M | 26M | 42M | 39M | 89M | 15M | 31M |
| Operating Income | 1.24B | 1.22B | 1.01B | 652M | 622M | 585M | 367M | 486M | 654M | 552M | 406M | 449M | 463M | 363M | 486M | 395M | 403M | 276M |
| Operating Margin % | 13.6% | 13.54% | 11.78% | 8.85% | 11.26% | 11.26% | 7.53% | 9.26% | 12.56% | 11.73% | 10.77% | 12.29% | 11.82% | 9.46% | 12.82% | 10.39% | 12.59% | 9.69% |
| Operating Income Growth % | - | 21.21% | 54.75% | 4.82% | 6.32% | 59.4% | -24.49% | -25.69% | 18.48% | 35.96% | -9.58% | -3.02% | 27.55% | -25.31% | 23.04% | -1.99% | 46.01% | - |
| EBITDA | 1.8B | 1.8B | 1.57B | 1.09B | 858M | 830M | 618M | 743M | 915M | 786M | 557M | 582M | 605M | 513M | 628M | 532M | 495M | 346M |
| EBITDA Margin % | 19.85% | 19.9% | 18.35% | 14.77% | 15.54% | 15.98% | 12.67% | 14.16% | 17.57% | 16.7% | 14.77% | 15.93% | 15.45% | 13.37% | 16.57% | 13.99% | 15.46% | 12.14% |
| EBITDA Growth % | 12.53% | 14.45% | 44.39% | 26.81% | 3.37% | 34.3% | -16.82% | -18.8% | 16.41% | 41.11% | -4.3% | -3.8% | 17.93% | -18.31% | 18.05% | 7.47% | 43.06% | - |
| D&A (Non-Cash Add-back) | 569M | 575M | 562M | 436M | 236M | 245M | 251M | 257M | 261M | 234M | 151M | 133M | 142M | 150M | 142M | 137M | 92M | 70M |
| EBIT | 1.23B | 1.21B | 1.13B | 684M | 490M | 587M | 362M | 483M | 687M | 580M | 486M | 455M | 489M | 453M | 443M | 400M | 388M | 307M |
| Net Interest Income | -25M | -29M | -16M | -21M | -34M | -69M | -70M | -62M | -78M | -79M | -68M | -53M | -52M | -53M | -51M | -14M | 0 | 0 |
| Interest Income | 0 | 0 | 28M | 28M | 16M | 7M | 7M | 5M | 4M | 3M | 2M | 2M | 2M | 2M | 4M | 3M | 0 | 0 |
| Interest Expense | 25M | 29M | 44M | 49M | 50M | 76M | 77M | 67M | 82M | 82M | 70M | 55M | 54M | 55M | 55M | 17M | 0 | 0 |
| Other Income/Expense | -28M | -42M | 78M | -17M | -182M | -74M | -82M | -70M | -69M | -86M | -68M | -46M | -42M | -65M | -94M | -12M | -15M | 1M |
| Pretax Income | 1.21B | 1.18B | 1.09B | 635M | 440M | 511M | 285M | 416M | 585M | 466M | 340M | 403M | 421M | 298M | 388M | 383M | 388M | 277M |
| Pretax Margin % | 13.29% | 13.07% | 12.7% | 8.62% | 7.97% | 9.84% | 5.85% | 7.93% | 11.23% | 9.9% | 9.02% | 11.03% | 10.75% | 7.77% | 10.23% | 10.07% | 12.12% | 9.72% |
| Income Tax | 236M | 231M | 197M | 26M | 85M | 84M | 31M | 15M | 36M | 136M | 80M | 63M | 84M | 70M | 91M | 104M | 59M | 14M |
| Effective Tax Rate % | 19.54% | 19.56% | 18.12% | 4.09% | 19.32% | 16.44% | 10.88% | 3.61% | 6.15% | 29.18% | 23.53% | 15.63% | 19.95% | 23.49% | 23.45% | 27.15% | 15.21% | 5.05% |
| Net Income | 973M | 957M | 890M | 609M | 355M | 427M | 254M | 401M | 549M | 331M | 260M | 340M | 337M | 228M | 297M | 279M | 329M | 263M |
| Net Margin % | 10.7% | 10.59% | 10.39% | 8.27% | 6.43% | 8.22% | 5.21% | 7.64% | 10.54% | 7.03% | 6.89% | 9.31% | 8.61% | 5.94% | 7.83% | 7.34% | 10.27% | 9.23% |
| Net Income Growth % | 7.4% | 7.53% | 46.14% | 71.55% | -16.86% | 68.11% | -36.66% | -26.96% | 65.86% | 27.31% | -23.53% | 0.89% | 47.81% | -23.23% | 6.45% | -15.2% | 25.1% | - |
| Net Income (Continuing) | 972M | 950M | 890M | 609M | 355M | 427M | 254M | 401M | 549M | 330M | 260M | 340M | 337M | 228M | 297M | 279M | 329M | 263M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 257M | 269M | 240M | 10M | 9M | 8M | 8M | 10M | 14M | 16M | 17M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 4.00 | 3.92 | 3.65 | 2.79 | 1.96 | 2.35 | 1.40 | 2.21 | 3.03 | 1.83 | 1.45 | 1.87 | 1.83 | 1.22 | 1.59 | 1.50 | 1.78 | 1.42 |
| EPS Growth % | 8.06% | 7.4% | 30.82% | 42.35% | -16.6% | 67.86% | -36.65% | -27.06% | 65.57% | 26.21% | -22.46% | 2.19% | 50% | -23.27% | 6% | -15.73% | 25.35% | - |
| EPS (Basic) | - | 3.93 | 3.67 | 2.81 | 1.97 | 2.37 | 1.41 | 2.23 | 3.05 | 1.84 | 1.45 | 1.88 | 1.84 | 1.23 | 1.60 | 1.51 | 1.78 | 1.42 |
| Diluted Shares Outstanding | 243.36M | 244M | 243.5M | 218.18M | 180.98M | 181.53M | 181.1M | 181.2M | 181.1M | 180.9M | 180M | 181.7M | 184.2M | 186M | 186.2M | 185.3M | 184.6M | 184.6M |
| Basic Shares Outstanding | 242.76M | 243.4M | 242.6M | 216.98M | 180.22M | 180.25M | 180.12M | 179.99M | 179.8M | 179.6M | 179.1M | 180.9M | 183.1M | 185.2M | 185.8M | 185.1M | 184.6M | 184.6M |
| Dividend Payout Ratio | - | 40.86% | 39.33% | 49.1% | 61.13% | 47.54% | 74.02% | 43.39% | 27.69% | 39.27% | 43.08% | 30% | 27.89% | 38.16% | 25.25% | 6.81% | - | - |
Municipal budget cycle sensitivity
According to the provided quarterly income statements, Xylem's revenue growth has decelerated from a peak of 40.4% in 2024Q1 to 2.7% by 2026Q1, reflecting a transition from inorganic expansion toward a more moderate, organic growth profile as the company integrates its recent large-scale acquisitions.
The sharp decline in year-over-year growth rates suggests that the initial tailwinds from the Evoqua integration are fading, leaving the company to rely on core municipal demand. Investors should monitor whether the current low-single-digit growth represents a sustainable baseline or a cyclical lull driven by the multi-year nature of infrastructure project funding.
As reported in financial statements, Xylem has maintained gross margins within a tight 37.0% to 38.9% range over the last ten quarters, indicating that the company possesses sufficient pricing power to offset inflationary pressures on raw materials like copper and steel within its engineered solutions.
This consistency suggests that the company's shift toward higher-margin digital and service-based offerings is effectively balancing the lower-margin hardware components in the Applied Water segment. However, the lack of significant margin expansion warrants further investigation into whether the company can successfully leverage its proprietary digital ecosystem to drive premium pricing.
Based on Xylem's reported figures, operating margins have fluctuated between 10.0% and 14.7% over the past ten quarters, suggesting that the company has yet to achieve the significant operating leverage typically expected from a business scaling its high-margin software and recurring service revenue streams.
The persistent level of SG&A expenses relative to gross profit implies that integration costs and ongoing R&D investments are currently absorbing potential gains from operational efficiencies. This trend suggests that management's goal of transforming into a technology-led platform is still in a capital-intensive phase that limits immediate bottom-line scalability.
Data from the income statement shows that net income has experienced significant quarterly swings, such as the jump to $335 million in 2025Q4, which appears largely disconnected from the more stable revenue trends and suggests the influence of non-operating items or tax-related adjustments.
The variance in net margins, which ranged from 7.5% to 14.5% over the observed period, indicates that GAAP earnings may not be the most reliable indicator of core operational health. Analysts should focus on adjusted metrics to strip away the noise created by acquisition-related amortization and the lumpy nature of large-scale municipal project recognition.
Quick answers to the most common questions about buying XYL stock.
For fiscal year 2025, Xylem Inc. (XYL) reported total revenue of $9.04B. This represents a 217.1% increase compared to $2.85B in 2009.
Xylem Inc. (XYL) is profitable, generating $957.0M in net income for the fiscal year ending 2025 with a net profit margin of 10.6%.
Xylem Inc. (XYL) reported an operating income of $1.22B, resulting in an operating profit margin of 13.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Xylem Inc. (XYL) generated $3.48B in gross profit for the year, representing a gross profit margin of 38.5%. This demonstrates the company's core pricing power and production efficiency.