Washington, DC-based Xylem Inc. (XYL) designs, manufactures, and services engineered products and solutions worldwide. With a market cap of $31.4 billion, Xylem operates through the Water Infrastructure, Applied Water, Measurement & Control Solutions, and Integrated Solutions and Services segments.
While the industrial giant has notably lagged behind the broader market over the past year, it has significantly outperformed in 2025. XYL stock gained 4.2% over the past 52 weeks and soared 11.5% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 22.3% surge over the past year and 4% gains in 2025.
Zooming in further, while XYL underperformed the Industrial Select Sector SPDR Fund’s (XLI) 16.7% gains over the past year, it has significantly outpaced XLI’s 4.4% returns in 2025.
Xylem’s stock prices soared 5.2% after the release of its impressive Q4 results on Feb. 4. The company reported a 6.5% year-over-year growth in revenues to $2.3 billion, which exceeded the Street’s expectations by a notable margin. Meanwhile, the company observed a robust improvement in profitability, with its net income growing 20.1% year-over-year to $287 million and its adjusted EPS of $1.18 surpassed the consensus estimates by 5.4%. Furthermore, the company reported a 7% growth in orders to $2.2 billion and gave a solid full-year adjusted EPS guidance range of $4.50 to $4.70, boosting investor confidence.
For the current fiscal 2025, ending in December, analysts expect XYL to report 8.9% year-over-year growth in adjusted EPS to $4.65. Moreover, the company has a promising earnings surprise history. It has surpassed or matched the Street’s bottom-line estimates in each of the past four quarters.
Among the 17 analysts covering the XYL stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy,” one “Moderate Buy,” and seven “Hold” ratings.
This configuration is slightly less bullish than a month ago when 10 analysts gave “Strong Buy” recommendations.
On Feb. 5, Baird analyst Michael Halloran reiterated an “Outperform” rating on XYL, while raising the price target to $148.
XYL’s mean price target of $148.50 represents a 14.8% premium to current price levels, while its street-high target of $164 suggests a 26.8% upside potential.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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