Economic Indicators - Nonfarm payrolls are expected to increase by +68,000 in January, with the unemployment rate remaining unchanged at 4.4% [1] - Average hourly earnings are projected to rise by +0.3% month-over-month and +3.7% year-over-year in January [1] - Initial weekly unemployment claims are anticipated to decrease by -7,000 to 224,000 [1] - Existing home sales in January are expected to decline by -4.3% month-over-month to 4.16 million [1] - January CPI is expected to rise by +2.5% year-over-year, with core CPI also expected to increase by +2.5% year-over-year [1] Retail Sales and Employment Costs - US December retail sales were unchanged month-over-month, falling short of expectations of +0.4% [2] - The employment cost index for Q4 rose by +0.7% quarter-over-quarter, which is the smallest increase in 4.5 years and below the expected +0.8% [2] Stock Market Performance - Stock indexes experienced mixed trading, with the Dow Jones reaching a new all-time high while the S&P 500 closed down -0.33% and the Nasdaq down -0.56% [6][5] - The broader market initially found support from weaker-than-expected retail sales and employment cost index reports, which lowered bond yields [5] Earnings Season Insights - Over half of the S&P 500 companies have reported earnings, with 78% beating expectations [7] - S&P earnings growth is expected to rise by +8.4% in Q4, marking the tenth consecutive quarter of year-over-year growth [7] - Excluding the Magnificent Seven tech stocks, Q4 earnings are projected to increase by +4.6% [7] Interest Rates and Bond Market - The markets are pricing in a 23% chance of a -25 basis point rate cut at the next Federal Reserve meeting [8] - The 10-year T-note yield fell to a 3.5-week low of 4.13%, supported by weaker-than-expected economic reports [9] Sector Performance - AI-infrastructure stocks faced pressure, with Western Digital down more than -7% and other tech stocks also declining [12] - Wealth-management stocks dropped significantly, with Raymond James Financial down more than -8% due to concerns over AI disruption [13] - Homebuilding stocks rose after the drop in mortgage rates, with Toll Brothers up more than +6% [14] Company-Specific Developments - Goodyear Tire & Rubber Co reported Q4 adjusted EPS of 39 cents, below the consensus of 49 cents, leading to a decline of more than -14% [15] - Incyte forecasted dull-year total net product revenue of $4.77 billion to $4.94 billion, causing a drop of more than -8% [16] - Spotify reported a record 38 million monthly active users in Q4, leading to a rise of more than +17% [17]

Shares of Xylem Inc. (XYL) plunged as much as 10% Tuesday before trimming losses after the water infrastructure company issued full-year 2026 guidance that fell short of Wall Street expectations. Xylem (XYL) forecast 2026 revenue of about $9.1 billion to $9.2 ...

Xylem (NYSE:XYL) Q4 2025 Earnings call February 10, 2026 09:00 AM ET Company ParticipantsAndy Kaplowitz - Managing DirectorBill Grogan - CFODeane Dray - Managing DirectorKeith Buettner - VP of Investor Relations and FP&AMatthew Pine - CEONathan Jones - Managing DirectorScott Davis - Founding Partner of Multi-Industry ResearchConference Call ParticipantsMike Halloran - Senior Research AnalystWilliam Griffin - Director and Senior AnalystNone - AnalystOperatorGood day, everyone, and welcome to Xylem's fourth q ...

Financial Data and Key Metrics Changes - The company reported record revenue, EBITDA, and earnings per share for both Q4 and the full year 2025, with revenue growth of 4% in Q4 and 5% for the full year [8][9] - Full-year EBITDA margin expanded by 160 basis points to 22.2%, with quarterly EBITDA margin at 23.2%, up 220 basis points year-over-year [9] - The company achieved a record quarterly EPS of $1.42, representing a 20% increase over the prior year [9] Business Line Data and Key Metrics Changes - Measurement and Control Solutions (MCS) saw orders up 22% in Q4, driven by smart metering demand, with revenue up 10% [10] - Water Infrastructure orders were down 1% in Q4, with revenue flat due to strong U.S. demand offset by a nearly 30% decline in China [10] - Applied Water orders increased by 5%, with revenues up 3%, primarily driven by strength in U.S. commercial buildings [11] - Water Solutions and Services (WSS) experienced a 7% increase in orders and 4% revenue growth, supported by strength in capital and services [11] Market Data and Key Metrics Changes - The backlog finished at $4.6 billion, with a book-to-bill ratio near 1 for both the quarter and the full year [8] - The company noted resilient demand in its largest end markets, with strong backlog conversion expected [7] Company Strategy and Development Direction - The company is in phase two of its transformation, focusing on strengthening its growth engine through sales force effectiveness, product management, and innovation [6] - The strategy includes purposeful walkaways from lower-quality revenue to drive higher-quality earnings, which may create short-term top-line headwinds [7] - The company aims to build on its core franchises and expand breakthrough innovation while deepening exposure to attractive future water markets [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in resilient demand and strong commercial positioning despite broader market conditions and volatility [17] - The company anticipates a challenging first quarter in 2026, with expectations for sequential revenue improvement throughout the year [12][13] - Management highlighted the importance of water as a foundational element for economic growth and the need for innovative solutions in the water sector [18][19] Other Important Information - The company is committed to a long-term financial framework with a low double-digit free cash flow margin [16] - The divestiture of the international metering business is expected to close at the end of Q1 2026, with a small EPS impact of $0.02-$0.03 [72] Q&A Session Summary Question: Can you provide a two-year progress report on margin improvement and portfolio optimization? - Management highlighted significant progress in operational model transformation and employee engagement, with a focus on leveraging simplicity for growth [26][30] Question: Why is the 80/20 walk-away revenue accelerating into the second year? - Management explained that the 80/20 approach is becoming integral to operations, focusing on resource allocation and optimizing overhead to support long-term growth [32][33] Question: When will the 80/20 strategy shift from a headwind to a tailwind? - Management indicated that 2026 is seen as an inflection point, with efforts to improve sales force effectiveness and customer engagement [38] Question: What are the plans for share buybacks versus M&A? - Management stated that priorities include investing in core business and M&A, with share buybacks being opportunistic [40][41] Question: What is the status of the backlog and project timing? - Management noted that project timing has been variable, impacting backlog and revenue guidance for 2026, but expressed confidence in the commercial funnel [48][49] Question: What steps are being taken regarding the softness in the China market? - Management acknowledged challenges in China, focusing on higher-quality opportunities and restructuring operations to align with market conditions [50][51] Question: Can you elaborate on the smart meters market and project delays? - Management remains confident in MCS's long-term growth, attributing near-term challenges to project timing and backlog normalization [56][58]

Xylem (NYSE:XYL) Q4 2025 Earnings call February 10, 2026 09:00 AM ET Speaker8Good day, everyone, and welcome to Xylem's fourth quarter 2025 results conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then 1 on your telephone keypads. To withdraw your questions, you may press ...

分组1 - Xylem reported quarterly earnings of $1.42 per share, matching the Zacks Consensus Estimate, and showing an increase from $1.18 per share a year ago, resulting in an earnings surprise of +0.35% [1] - The company achieved revenues of $2.4 billion for the quarter ended December 2025, exceeding the Zacks Consensus Estimate by 0.86%, and up from $2.26 billion year-over-year [2] - Xylem has surpassed consensus EPS estimates in all four of the last quarters, indicating consistent performance [2] 分组2 - The stock has gained approximately 2.9% since the beginning of the year, outperforming the S&P 500's gain of 1.7% [3] - The current consensus EPS estimate for the upcoming quarter is $1.15 on revenues of $2.15 billion, and for the current fiscal year, it is $5.52 on revenues of $9.33 billion [7] - The Waste Removal Services industry, to which Xylem belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, which may impact stock performance [8]

2025 Fourth Quarter Results and Earnings February 10, 2026 Forward-looking and other statements in this presentation regarding our environmental and other sustainability efforts, plans and goals are not an indication that these statements are necessarily material to investors, to our business, operating results, financial condition, outlook, or strategy, to our impacts on sustainability matters or other parties, or are required to be disclosed in our filings with the SEC or other regulatory authorities, and ...

Exhibit 99.1 Xylem Inc. 301 Water Street SE, Suite 200 Washington, DC 20003 Tel +1.202.869.9150 Contacts: Media Investors Houston Spencer +1 (914) 240-3046 Keith Buettner +1 (724) 772-1531 houston.spencer@xylem.com keith.buettner@xylem.com Xylem Reports Fourth Quarter and Full Year 2025 Results Fourth-Quarter Highlights Full-Year Highlights Washington, D.C., February 10, 2026 -- Xylem Inc. (NYSE: XYL), a leading global water solutions company dedicated to solving the world's most challenging water issues, t ...

Group 1 - Xylem Inc (NYSE:XYL) is recognized as one of the top 15 Industrial Machinery and Supplies stocks favored by hedge funds [1] - Brian Drab from William Blair initiated coverage of Xylem Inc with an Outperform rating, highlighting the company's extensive offerings in the water and wastewater cycle, which are deemed mission critical for utility and industrial customers [1] - Xylem Inc is described as the world's largest pure-play water company, providing a comprehensive suite of products and solutions for water treatment and efficient usage [4] Group 2 - Brett Linzey from Mizuho Securities reaffirmed a Hold rating on Xylem Inc, lowering the price target from $160 to $150 due to broader adjustments in the electrical equipment and multi-industry group [3] - The downward revision in price target reflects Mizuho's 2026 outlook, indicating expectations of uneven terrain ahead for the segment, although uncertainties related to tariffs are diminishing [3]

Core Insights - Xylem (XYL) is positioned well to continue its trend of beating earnings estimates in the upcoming quarterly report [1] Earnings Performance - Xylem has a strong history of surpassing earnings estimates, averaging a 10.51% beat over the last two quarters [2] - In the last reported quarter, Xylem achieved earnings of $1.37 per share, exceeding the Zacks Consensus Estimate of $1.24 per share by 10.48% [3] - For the previous quarter, the company reported earnings of $1.26 per share against an expected $1.14 per share, resulting in a surprise of 10.53% [3] Earnings Estimates and Predictions - Estimates for Xylem have been trending higher, supported by its history of earnings surprises [6] - The stock has a positive Zacks Earnings ESP of +0.88%, indicating bullish sentiment among analysts regarding its earnings prospects [9] - The combination of a positive Earnings ESP and a Zacks Rank 3 (Hold) suggests a high likelihood of another earnings beat [9] Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [7] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [8]