Sherwin-Williams 10-Q: Q3 Sales Up 7.9% to $6.86B, Gross Margin Slips to 47.8%
SHW is trading near its 52-week low of $289.86 (13% above the low).
Summary
Sherwin-Williams' Q3 10-Q confirms 7.9% sales growth to $6.86 billion but a 140bp gross-margin decline to 47.8%, with nine-month buybacks of $2.357 billion funded partly by debt that now totals $11.795 billion.
Key Events · Earnings and Guidance · SHW
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Q3 Sales Grow 7.9% to $6.86B
Consolidated net sales rose to $6,860.0 million from $6,358.2 million, with all three segments higher; Paint Stores Group same-store sales increased 3.9%.
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Gross Margin Falls to 47.8%
Gross profit was $3,277.2 million, or 47.8% of sales, versus 49.2% a year earlier, driven by Suvinil mix dilution and higher raw material and supply chain costs.
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Nine-Month Buybacks Total $2.36B
The company repurchased 7.1 million shares for $2,357.1 million at an average $331.99, and had 22.5 million shares of authorization remaining at September 30, 2026.
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Debt Rises to $11.80B
Total debt outstanding was $11,795.1 million, including a new $750.0 million 364-day term loan and a new €100.0 million bi-lateral term loan; nine-month interest expense rose to $406.8 million from $333.4 million.
Analysis · SHW · Trade & Services
The headline numbers were already out this morning, but the full 10-Q shows where the money went. Gross margin fell to 47.8% from 49.2% as Suvinil dilution and raw-material inflation outran mid-single-digit price increases, and nine-month interest expense climbed to $406.8 million from $333.4 million on a larger debt load. Against that, the company still generated $2.591 billion of operating cash in nine months and spent $2.357 billion buying back 7.1 million shares at an average $331.99 — roughly the current $326 share price — while leaving 22.5 million shares authorized for future repurchase. Net leverage is the number to track: total debt of $11.795 billion against $3.823 billion of nine-month EBITDA, comfortably inside the 3.75x covenant but drifting up as buybacks and the $1.15 billion Suvinil deal are funded with borrowings.
How filings like this one have moved
In the 30 days to Oct 27, 2026, 29.9% of the 1374 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.12%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, SHW was trading at $326.31 on NYSE in the Trade & Services sector, with a market capitalization of approximately $79.2B. The 52-week trading range was $289.86 to $377.77. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.