Royal Bank Of Canada Lowers Xylem (NYSE:XYL) Price Target to $162.00

Xylem (NYSE:XYL) had its price target reduced by equities researchers at Royal Bank Of Canada from $176.00 to $162.00 in a report released on Wednesday,Benzinga reports. The brokerage presently has an “outperform” rating on the industrial products company’s stock. Royal Bank Of Canada’s price target points to a potential upside of 28.38% from the company’s previous close.

A number of other brokerages also recently issued reports on XYL. UBS Group lifted their price target on shares of Xylem from $168.00 to $175.00 and gave the stock a “buy” rating in a research note on Thursday, November 6th. Wall Street Zen cut shares of Xylem from a “buy” rating to a “hold” rating in a research report on Saturday, December 27th. Weiss Ratings reissued a “buy (b-)” rating on shares of Xylem in a report on Monday, December 29th. Robert W. Baird set a $161.00 price target on Xylem in a research note on Wednesday. Finally, Mizuho set a $138.00 price objective on Xylem in a research report on Wednesday. Nine investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $159.75.

Xylem Trading Down 0.5%

XYL opened at $126.19 on Wednesday. The business has a fifty day moving average price of $138.70 and a 200 day moving average price of $142.00. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.62 and a quick ratio of 1.50. Xylem has a 12 month low of $100.47 and a 12 month high of $154.27. The stock has a market capitalization of $30.72 billion, a price-to-earnings ratio of 32.19, a PEG ratio of 1.81 and a beta of 1.17.

Xylem (NYSE:XYL) last announced its quarterly earnings data on Tuesday, February 10th. The industrial products company reported $1.42 earnings per share (EPS) for the quarter, meeting the consensus estimate of $1.42. Xylem had a return on equity of 11.11% and a net margin of 10.59%.The business had revenue of $2.40 billion during the quarter, compared to analysts’ expectations of $2.37 billion. During the same quarter last year, the business posted $1.18 EPS. The business’s quarterly revenue was up 6.3% compared to the same quarter last year. Xylem has set its FY 2026 guidance at 5.350-5.560 EPS. Sell-side analysts expect that Xylem will post 4.65 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in XYL. Advisors Asset Management Inc. acquired a new position in Xylem during the fourth quarter worth approximately $337,000. Federation des caisses Desjardins du Quebec grew its position in shares of Xylem by 116.6% during the fourth quarter. Federation des caisses Desjardins du Quebec now owns 67,418 shares of the industrial products company’s stock worth $9,181,000 after acquiring an additional 36,286 shares during the last quarter. Brooklyn Investment Group increased its holdings in shares of Xylem by 45.0% in the 4th quarter. Brooklyn Investment Group now owns 2,007 shares of the industrial products company’s stock valued at $278,000 after acquiring an additional 623 shares during the period. Orion Porfolio Solutions LLC raised its position in Xylem by 7.0% in the 4th quarter. Orion Porfolio Solutions LLC now owns 8,350 shares of the industrial products company’s stock valued at $1,137,000 after purchasing an additional 548 shares during the last quarter. Finally, Cibc World Markets Corp acquired a new stake in Xylem during the 4th quarter worth $4,612,000. Hedge funds and other institutional investors own 87.96% of the company’s stock.

Key Xylem News

Here are the key news stories impacting Xylem this week:

• Positive Sentiment: William Blair maintained a Buy rating, highlighting strong momentum in the measurement & control businesses and calling the 2026 outlook conservative — a vote of confidence that could support the stock over the medium term. Xylem: Strong Measurement & Control Momentum and Conservative 2026 Outlook Underpin Buy Rating
• Positive Sentiment: Xylem reported record 2025 results, raised its dividend, and showed revenue strength in Q4 — fundamentals that support long-term growth thesis in water infrastructure. Xylem (XYL) Is Down 9.3% After Cautious 2026 Guidance Despite Record 2025 Results And Dividend Hike
• Neutral Sentiment: Q4 metrics were mixed: revenue beat and topline strength were reported, but there was variability in EPS and margin dynamics across segments, leaving room for interpretation. Xylem: Strong Quarter, But Weak Guidance
• Negative Sentiment: The company issued cautious 2026 guidance (revenue roughly $9.1B–$9.2B and conservative margin outlook tied to portfolio simplification), which underwhelmed investors and is the primary driver of the sell-off. Xylem outlines 2026 revenue guidance of $9.1B–$9.2B with margin expansion driven by portfolio simplification
• Negative Sentiment: Market reaction: headlines report a sharp intraday decline after the cautious guidance, reflecting investor disappointment that strong 2025 results and a dividend raise did not translate into a more aggressive 2026 outlook. Xylem (XYL) Is Down 9.3% After Cautious 2026 Guidance Despite Record 2025 Results And Dividend Hike
• Negative Sentiment: Analysts trimmed estimates and lowered price targets after the print — some firms kept bullish ratings but pulled targets lower, increasing short-term selling pressure and raising uncertainty on near-term earnings. Xylem Analysts Lower Their Forecasts After Q4 Results
• Negative Sentiment: Earnings call/transcript showed mixed execution on EPS vs. some expectations, adding to investor concern around margin cadence and near-term cadence. Xylem Inc. (NYSE:XYL) Q4 2025 Earnings Call Transcript

About Xylem

Xylem Inc (NYSE: XYL) is a global water technology company that designs, manufactures and services engineered systems and equipment for the transport, treatment, testing and efficient use of water. Its product portfolio spans pumps and pumping systems, valves, filtration and disinfection equipment, sensors and analytical instruments, and digital solutions for monitoring and control of water infrastructure. Xylem serves the full water cycle with offerings for water and wastewater utilities, industrial customers, commercial and residential buildings, and agricultural applications.

The company was established as an independent publicly traded company in 2011 following a corporate spin-off from ITT Corporation and is headquartered in Rye Brook, New York.