Filing Flows › Xylem (XYL) › Q3 2026 › vs Q2 2026
Xylem (XYL) Q3 2026 vs Q2 2026 (quarter over quarter)
Xylem's revenue fell $135M (-6%) from $2.3B in Q2 2026 to $2.2B in Q3 2026. The biggest changes: Product −$146M (-7%); Service +$11.0M (+3%). Gross margin 41.2% against 41.2% (-0.0 pts).
Xylem, Q3 2026: revenue $2.2B (-3% year over year), operating margin 17.5%, net earnings $291M, operating cash flow $331M. The chart draws each line against Q2 2026, the increases inside each band.
Margins
| Q3 2026 | Q2 2026 | Change | |
|---|---|---|---|
| Gross margin | 41.2% | 41.2% | -0.0 pts |
| Operating margin | 17.5% | 16.7% | +0.8 pts |
| Net margin | 13.2% | 11.3% | +2.0 pts |
| Free cash flow margin | 11.0% | 8.6% | +2.4 pts |
Every line
| Line | Q3 2026 | Q2 2026 | Change | % |
|---|---|---|---|---|
| Product | $1.8B | $2.0B | −$146M | -7% |
| Service | $394M | $383M | $11.0M | +3% |
| Revenue | $2.2B | $2.3B | −$135M | -6% |
| Gross profit | $907M | $963M | −$56.0M | -6% |
| Cost of revenue | $1.3B | $1.4B | −$79.0M | -6% |
| Operating profit | $385M | $390M | −$5.0M | -1% |
| Operating expenses | $522M | $573M | −$51.0M | -9% |
| Pre-tax earnings | $365M | $364M | $1.0M | +0.3% |
| Other expense, net | $20.0M | $26.0M | −$6.0M | -23% |
| Research & development | $56.0M | $59.0M | −$3.0M | -5% |
| SG&A | $458M | $503M | −$45.0M | -9% |
| Other operating costs | $8.0M | $11.0M | −$3.0M | -27% |
| Loss borne by minority interests | $3.0M | $2.0M | $1.0M | +50% |
| Net earnings | $291M | $263M | $28.0M | +11% |
| Income tax | $77.0M | $103M | −$26.0M | -25% |
| Depreciation & amortization | $137M | $140M | −$3.0M | -2% |
| Share-based compensation | $14.0M | $12.0M | $2.0M | +17% |
| Working capital & other | $111M | $125M | −$14.0M | -11% |
| Operating cash flow | $331M | $290M | $41.0M | +14% |
| Free cash flow (OCF − capex) | $242M | $201M | $41.0M | +20% |
| Capital expenditures | $89.0M | $89.0M | $0 | 0% |
Questions
How much did Xylem's revenue grow quarter over quarter in Q3 2026?
Xylem's revenue fell $135M (-6%) from $2.3B in Q2 2026 to $2.2B in Q3 2026.
What drove Xylem's revenue change in Q3 2026?
Product −$146M (-7%); Service +$11.0M (+3%).