# Xylem Q3 2026 Earnings Report Highlights

> Xylem reports $2.2 billion revenue with 10% organic growth in orders despite slower project conversions.
- Title: Xylem Q3 2026 Earnings Report Highlights · The Motley Fool
- Summary: Xylem reports $2.2 billion revenue with 10% organic growth in orders despite slower project conversions. Xylem's Q3 2026 earnings show $2.2 billion revenue…
- Keywords: xylem, q3 2026, earnings call, revenue, orders, segment restructuring, data centers, water infrastructure, finance, money, 2026, Earnings
- Source: The Motley Fool — https://fool.com/earnings/call-transcripts/2026/10/27/xylem-xyl-q3-2026-earnings-call-transcript
- Author: Motley Fool Transcribing
- Published: 2026-10-27T17:54:32+00:00
- Read time: 2 min
- Topics: xylem, q3 2026, earnings call, revenue, orders, segment restructuring, data centers, water infrastructure, finance, money
## Q3 Revenue Results
Xylem reported $2.2 billion revenue, flat organically due to project timing and cautious utility spending.
## Orders Growth
Orders increased $2.3 billion, growing 10% organically behind water and gas metering strength and data center wins.
## Adjusted EPS
Adjusted EPS rose to $1.44, increasing 5% compared to the prior year.
## Backlog Expansion
Backlog grew to $5.5 billion, increasing 13% versus the prior year reflecting healthy underlying demand.
## MCS Orders
MCS orders grew 30% in the quarter behind large water and gas metering awards scheduled for late 2027.
## Applied Water Orders
Applied Water orders increased 15% due to strength in data center wins and U.S. commercial building business.
## Data Center Orders
Data center orders increased over 200% in the quarter within the Applied Water segment.
## WSS Orders
WSS orders grew 6% led by strength in capital project demand.
## Planned Divestitures
Planned divestitures include Applied Water International and Specialty Flow Control, representing 9% of revenue but less than 5% of EBITDA.
## Full-Year Revenue Guidance
Full-year revenue guidance is approximately $8.95 billion, trending flat on an organic basis due to slower-than-expected project conversion.
## Full-Year EPS Guidance
Full-year adjusted EPS guidance is $5.40 to $5.45, decreasing from previous guidance because of lower sales volumes.
## Q4 Organic Revenue Guidance
Q4 organic revenue guidance declines 1% to 2% as more backlog is scheduled to ship in later periods.
## Q4 Adjusted EPS Guidance
Q4 adjusted EPS guidance is $1.39 to $1.44 while maintaining EBITDA margins of approximately 24.5%.
## Year-to-Date Free Cash Flow
Year-to-date free cash flow is $444 million, slightly lower than the prior year due to working capital and investments in outsourced water contracts.
## Net Debt to EBITDA
Net debt to adjusted EBITDA is 1.1x following opportunistic share repurchases during the quarter.
## China Revenue Exposure
China revenue exposure is expected to decline from 2% to 1% of total revenue following planned divestitures.
## Key takeaway

Xylem's Q3 2026 earnings show $2.2 billion revenue, 10% organic order growth, and plans to restructure into three segments by 2027.