Xylem Inc. (NYSE: XYL) reported financial results for the quarter ended September 30, 2026, and announced a strategic restructuring plan to streamline its operations. The company reported revenue of $2.2 billion for the third quarter, a decrease of 3% on a reported basis compared to the same period in 2025. Net income attributable to Xylem was $291 million, or $1.25 per share, which represents a 34% increase from the prior year.
On a non-GAAP basis, adjusted earnings per share were $1.44, up 5% year-over-year. The company noted that adjusted EBITDA margin for the quarter was 23.9%, an increase of 70 basis points. The company also reported orders of $2.3 billion, which increased 7% on a reported basis and 10% organically.
In a separate announcement, Xylem revealed plans to reorganize its business structure. Effective January 1, 2027, the company will transition from four segments to three: Treatment and Services, Flow Solutions, and Measurement and Analytics. Concurrently, Xylem announced its intent to divest its Applied Water International and Specialty Flow Control businesses.
As part of the restructuring, Executive Vice President and President of Water Infrastructure, Hayati Yarkadas, will cease to serve as an executive officer on January 1, 2027. Mr. Yarkadas will remain employed through March 31, 2028, or until the closing of the last divestiture, to facilitate the transition of his responsibilities and lead the divestiture process. He will receive a special cash Success Incentive of $1.2 million upon the closing of the final divestiture.
Xylem also updated its full-year 2026 guidance. The company now forecasts revenue of approximately $8.95 billion, a decrease of 1% year-over-year, and adjusted earnings per share between $5.40 and $5.45, down from the previous range of $5.55 to $5.70.
