Xylem (XYL) Q2 Earnings and Revenues Beat Estimates

Core Insights - Xylem reported quarterly earnings of $1.26 per share, exceeding the Zacks Consensus Estimate of $1.14 per share, and showing an increase from $1.09 per share a year ago, resulting in an earnings surprise of +10.53% [1] - The company achieved revenues of $2.3 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.93% and up from $2.17 billion year-over-year [2] - Xylem's stock has increased by approximately 12.6% since the beginning of the year, outperforming the S&P 500's gain of 8.2% [3] Earnings Outlook - The future performance of Xylem's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is $1.17 on revenues of $2.17 billion, and for the current fiscal year, it is $4.65 on revenues of $8.76 billion [7] Industry Context - The Waste Removal Services industry, to which Xylem belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Xylem's stock may be influenced by the overall outlook for the industry, as historical data shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8] Competitor Insights - Montrose Environmental, another company in the same industry, is expected to report quarterly earnings of $0.25 per share, reflecting a year-over-year change of +25%, with revenues anticipated to be $186.61 million, up 7.7% from the previous year [9][10]