Xylem: Mixed 2Q Results; Electric Meter Delays Offset by Data Center and Chemical Wins

研报英文原文证据摘录

Xylem: Mixed 2Q Results; Electric Meter Delays Offset by Data Center and Chemical Wins

J P M O R G A N North America Equity Research

28 July 2026

Xylem Neutral

XYL, XYL US

Mixed 2Q Results; Electric Meter Delays Offset by Data Price (27 Jul 26):$120.16

Center and Chemical Wins ▲Price Target (Dec-27):$137.00 Prior (Dec-26):$130.00

XYL delivered a mixed 2Q print, with revenue modestly ahead and EPS roughly

in line. FY26 EPS guidance was raised on slightly lower revenue guidance owing Clean Energy, Power Infrastructure,

and Sustainable Investingto Electric metering delays in MCS. Water Infrastructure was the clear standout on

margins, posting expansion well ahead of expectations, while MCS and WSS both Michael G Fairbanks AC

missed on margins. Orders were a bright spot, as expected, with book-to-bill of (1-212) 622-4908

michael.fairbanks@jpmchase.com

~1.3x and backlog building to a record level. Management's tone shifted notably

constructive on the data center and AI ecosystem opportunity compared to prior Mark Strouse, CFA

(1-212) 622-8244

calls, with water framed as an increasingly strategic input across semiconductors, mark.w.strouse@jpmorgan.com

power, and mining. Electric metering delays should continue to be a watch point

Anna Zhu

into 2027, as the business will likely continue to have tough y/y comps, in our (1-212) 622-0012

view. We are updating our model to reflect the results, introducing FY28 estimates, anna.zhu@jpmorgan.com

and establishing a YE27 price target of $137 (vs. a prior YE26 price target of $130). J.P. Morgan Securities LLC

Maintain Neutral.

Quarterly Forecasts (FYE Dec)

• Mixed print; EPS guidance raised. Revenue came in modestly ahead of the Adj. EPS ($)

Street across most segments, with Applied Water the largest upside surprise 2025A 2026E 2027E