Sherwin Williams (SHW.N): Share Gains and Self-Help in a Still-Challenging Market Backdrop

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Sherwin Williams (SHW.N): Share Gains and Self-Help in a Still-Challenging Market Backdrop

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28 Jul 2026 18:24:50 ET │ 14 pages

Sherwin Williams (SHW.N)

Share Gains and Self-Help in a Still-Challenging Market Backdrop

CITI'S TAKE

Buy Our takeaways from the call: (1) Management explicitly noted that its

outlook does not assume a broad-based demand recovery. Despite this Price (28 Jul 26 16:00) US$354.27

backdrop, SHW raised FY sales and EPS guidance, reflecting continued Target price US$415.00↑

share gains, new account wins, price/cost execution, and productivity from US$380.00

actions. (2) Given the resurgence in oil-related cost pressures, SHW raised Expected share price return 17.1%

its raw material inflation outlook to HSD in 2H, resulting in a FY raw Expected dividend yield 0.9%

material headwind of MSD, versus prior LSD/MSD guidance. Management

Expected total return 18.1% reiterated its commitment to staying ahead of inflation through pricing

Market Cap US$87,376M actions. (3) SHW announced an 8% price increase in PSG effective

September 1. Realization is expected to follow a typical glide path, with

only a portion of the benefit reflected in 4Q26 and additional carryover

into 2027. (4) Despite challenging +HSD/DD comps, P&M continues its Patrick CunninghamAC

momentum as SHW continues to serve as a comprehensive one-shop +1-212-816-6684

solution supporting data centers, semi fabs, and manufacturing patrick.cunningham@citi.com

onshoring.

Rachel Lee

+1-212-816-4559

Stock Action — Our FY26 EBITDA increases by~2% on the strong 2Q operating rachel.lee@citi.com

performance as well as upward adjustments on PSG and CBG top-line assumptions,

particularly on volumes. We also increase our 4Q PSG pricing estimate to Alexander Yi