Sherwin-Williams Q3 Sales Up 7.9% to $6.86B; Narrows FY Adjusted EPS to $11.85-$12.15
SHW is trading near its 52-week low of $289.86 (12% above the low).
Summary
Q3 sales grew 7.9% to $6.86 billion and adjusted EPS rose 1.1% to $3.63, but net income fell 1.5% on higher raw material and mix costs. Full-year adjusted EPS guidance was narrowed to $11.85-$12.15, with demand expected to stay muted into 2027.
Key Events · Earnings and Guidance · SHW
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Q3 Sales Rise 7.9% to $6.86B
Consolidated net sales increased 7.9% to $6.86 billion, with all three segments growing; Paint Stores same-store sales rose 3.9%.
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Margins Squeezed, Net Income Down 1.5%
Gross margin fell to 47.8% from 49.2% on higher raw material and supply chain costs and Suvinil mix dilution; net income was $821.0 million, or 12.0% of net sales, while adjusted EBITDA rose 3.3% to $1.40 billion.
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FY Adjusted EPS Guidance Narrowed
Full-year 2026 adjusted diluted EPS guidance narrowed to $11.85-$12.15 (from $10.92-$11.22 previously published); GAAP diluted EPS $10.92-$11.22 includes $0.82 Valspar amortization and $0.11 restructuring.
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Muted Demand Expected Into 2027
Management expects Q4 net sales up mid-single digit percent and full-year sales up mid to high-single digit, but cited muted customer demand over the remainder of the year and into 2027.
Analysis · SHW · Trade & Services
Top-line growth of 7.9% to $6.86 billion and adjusted diluted EPS of $3.63, up 1.1%, masked a 1.5% decline in net income to $821.0 million, as raw material, supply chain and mix costs — including Suvinil dilution — compressed gross margin to 47.8% from 49.2%. Management narrowed full-year adjusted EPS guidance to $11.85-$12.15 and kept sales guidance at up mid to high-single digit, while flagging muted demand through the rest of 2026 and into 2027. The cash engine remains intact: $2.59 billion of operating cash flow year-to-date funded $2.98 billion of dividends and buybacks, with 22.5 million shares still authorized for repurchase.
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At the time of this filing, SHW was trading at $324.00 on NYSE in the Trade & Services sector, with a market capitalization of approximately $81.4B. 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.