The company now projects annual revenue to decline by roughly 1% to $8.95 billion, a stark pivot from previous expectations of 2% growth. Organic revenue is expected to remain flat, while adjusted earnings per share were lowered to a range of $5.40 to $5.45. Third-quarter revenue fell 3% to $2.2 billion, missing the $2.28 billion forecast, while adjusted earnings of $1.44 per share narrowly failed to meet analyst expectations of $1.45.
In section Market Quotes
Xylem Shares Slide as Project Delays Force Outlook Cut
Shares of Xylem dropped 8.7% to $98.87 in premarket trading Tuesday after the water technology firm slashed its full-year revenue and earnings guidance. The downward revision follows a disappointing third quarter, where project delays and hesitant customer spending caused the company to miss key financial targets across the board.
To counter the slowdown, Xylem plans to divest its Applied Water International and Specialty Flow Control units. By 2027, the firm intends to consolidate operations into three segments, prioritizing high-growth sectors like data centers and microelectronics. Despite the revenue miss, net income for the quarter rose to $291 million from $227 million in the same period last year, and the company maintains a free cash flow margin near the lower end of its 10.2% to 11% target range.
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