Xylem Inc. delivered a powerful third-quarter 2025 earnings report that substantially exceeded market projections, propelling its stock upward. The water technology specialist demonstrated robust growth across key financial metrics while simultaneously raising its full-year outlook, signaling strong operational momentum.
Financial Performance Exceeds Projections
The company’s quarterly results revealed impressive financial health, with revenue climbing 8% to reach $2.3 billion. This figure comfortably surpassed the $2.22 billion that market analysts had anticipated. Even more striking was the performance in profitability—adjusted earnings per share jumped 23% to $1.37, significantly outpacing the expected $1.23 per share.
Key quarterly highlights include:
* Revenue: $2.3 billion (8% increase)
* Adjusted EPS: $1.37 (23% gain)
* 2025 revenue forecast: Approximately $9.0 billion
* 2025 EPS outlook: $5.03-$5.08
Upward Revision in Annual Guidance
Bolstered by these stronger-than-expected quarterly figures, Xylem’s management significantly upgraded its full-year 2025 guidance. The firm now anticipates revenue approaching $9.0 billion, representing growth of 5-6%. More notably, the company raised its adjusted earnings per share forecast to a range of $5.03-$5.08, up substantially from previous expectations of $4.70-$4.85.
Should investors sell immediately? Or is it worth buying Xylem?
The projected EBITDA margin of 22.0-22.3% would represent meaningful expansion compared to the prior year, underscoring management’s confidence in sustained demand and operational efficiency.
Market Response and Analyst Reactions
The positive earnings announcement triggered immediate responses from financial institutions. Multiple analyst firms raised their price targets for Xylem shares in late October 2025:
- Citigroup increased its target from $173 to $182
- Barclays lifted its projection from $165 to $172
- Baird raised its target from $171 to $178
All three firms maintained their positive ratings on the stock.
Despite a minor pullback to $150.85 on Friday, Xylem shares have advanced 3.39% over the past two weeks. Technical indicators suggest a modest upward trend remains intact, supported by buy signals from key moving averages.
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