Sherwin-Williams Company (The)
SHW · NYSE
Sep 2026
Next quarter
Expected to report Oct 27, 2026 — estimated from last year’s reporting date.
Consensus is $3.66 EPS for Sep 2026 across 6 estimates, ranging $3.54 to $3.76.
SHW Jun 2026
- 3.93%
- -2.93%
- $3.56
- $3.70
- —
- $6.79B
Reported results
- $6.79B
- 49.17%
- $843.60M
- $3.43
Highlights
- Adjusted EPS: Adjusted diluted EPS was $3.70, 3.9% above the $3.56 consensus estimate and up 9.5% from $3.38 a year ago; GAAP diluted EPS was $3.43 versus $3.00.
- Sales: Consolidated net sales rose 7.5% year over year to $6.79 billion, compared with $6.31 billion a year ago and $5.67 billion in the first quarter.
- Earnings growth: Net income increased 11.8% to $843.6 million, while income before taxes rose 12.9% to $1.11 billion and margin expanded to 16.4% from 15.6%.
- Demand and pricing: Paint Stores Group same-store sales increased 4.2%, supported by mid-single-digit pricing and low-single-digit volume growth, despite management seeing no meaningful improvement in underlying demand.
- Consumer Brands: Consumer Brands Group sales increased 21.5% to $983.5 million and segment profit rose 29.7% to $212.9 million, helped primarily by the Suvinil acquisition.
- Performance Coatings: Performance Coatings sales grew 6.3% to $1.91 billion and segment profit increased 11.5% to $273.3 million, with high-single-digit growth in General Industrial and Automotive Refinish.
- Cash generation: Second-quarter operating cash was $1.35 billion, free cash flow was $1.24 billion and free cash flow conversion was 86%; first-half operating cash reached $1.49 billion versus $1.05 billion last year.
- Capital returns and leverage: Sherwin-Williams returned $1.46 billion to shareholders in the quarter and $2.23 billion in the first half, including 5.6 million share repurchases; total debt was $12.07 billion at June 30.
- Guidance: The company raised 2026 adjusted EPS guidance to $11.80-$12.20 from the prior outlook, alongside full-year sales growth guidance of mid- to high-single digits and a planned 8% Paint Stores Group price increase effective September 1.
Analysis
Sherwin-Williams delivered a better-than-expected second quarter, with adjusted EPS of $3.70 versus the $3.56 consensus estimate. Sales increased 7.5% year over year to $6.79 billion, net income rose 11.8% to $843.6 million and GAAP diluted EPS advanced 14.3% to $3.43 from $3.00. The seasonal step-up from the first quarter was substantial: revenue increased from $5.67 billion to $6.79 billion, net income from $534.7 million to $843.6 million and diluted EPS from $2.15 to $3.43.
The print was defined by share gains and pricing rather than a broad demand recovery. Paint Stores same-store sales rose 4.2%, with low-single-digit volume growth and mid-single-digit pricing, while all three segments exceeded guidance. Consumer Brands was the standout, with sales up 21.5% primarily from the acquired Suvinil business; Performance Coatings also delivered 6.3% growth with improving margin. Raw-material inflation pressured gross margin to 49.2% from 49.4%, but SG&A leverage and lower restructuring charges supported a 60-basis-point increase in adjusted EBITDA margin to 21.5%. Management still expects a soft demand environment in the second half, but raised adjusted 2026 EPS guidance to $11.80-$12.20 from $11.43 in 2025.
Results and outlook
- Quarterly performance: Sales rose 7.5% to $6.79 billion, income before taxes increased 12.9% to $1.11 billion and net income climbed 11.8% to $843.6 million. The 16.4% pretax margin was 80 basis points above the prior-year quarter.
- EPS bridge: GAAP diluted EPS was $3.43, including $0.20 of Valspar amortization and $0.07 of severance and restructuring costs. Adjusted EPS was $3.70 versus $3.38 last year, as the prior-year period included $0.18 of restructuring charges.
- Raised outlook: Full-year sales are expected to increase by a mid- to high-single-digit percentage. GAAP EPS guidance is $10.92-$11.32, including $0.81 of Valspar amortization and $0.07 of restructuring costs, while adjusted EPS guidance is $11.80-$12.20.
Segment performance
- Paint Stores Group: Sales increased 5.1% to $3.89 billion and segment profit rose 4.5% to $957.6 million. Growth spanned all professional end markets, led by double-digit protective and marine growth, high-single-digit commercial growth and mid-single-digit residential repaint growth. Margin was 24.6% versus 24.8% a year ago.
- Consumer Brands Group: Sales increased 21.5% to $983.5 million, including a 16.0% contribution from acquisitions and a 1.6% favorable currency impact. Segment profit rose 29.7% to $212.9 million, while adjusted profit increased 33.1% to $241.4 million and adjusted margin expanded to 24.5% from 22.4%.
- Performance Coatings Group: Sales grew 6.3% to $1.91 billion and segment profit increased 11.5% to $273.3 million. General Industrial and Automotive Refinish each grew at a high-single-digit rate; adjusted margin improved to 17.3% from 16.8%.
Pricing and productivity
- Inflation response: Raw-material costs rose moderately and reduced consolidated gross margin to 49.2% from 49.4%, despite pricing actions. Management also cited inflation in energy, logistics and packaging.
- Operating leverage: SG&A increased 4.6% to $2.10 billion, below the rate of sales growth, reducing SG&A as a percentage of sales to 31.0% from 31.9%. Adjusted EBITDA increased roughly 10% to $1.46 billion, with adjusted margin up 60 basis points to 21.5%.
- Restructuring: Second-quarter actions are expected to generate approximately $17 million of annual savings. The company announced an 8% Paint Stores Group price increase effective September 1 to offset further cost inflation.
Cash and capital allocation
- Cash generation: First-half operating cash was $1.49 billion versus $1.05 billion in the prior-year period. Second-quarter operating cash was $1.35 billion after $108.4 million of capital expenditures, producing $1.24 billion of free cash flow.
- Shareholder returns: The company returned $1.46 billion through dividends and repurchases in the quarter, including 4.0 million shares bought for $1.26 billion. First-half repurchases totaled 5.6 million shares for $1.84 billion, and 24.0 million shares remained authorized at June 30.
- Balance sheet: Cash was $293.5 million and total debt was $12.07 billion, up from $10.69 billion a year earlier. Sherwin-Williams reported $1.97 billion of unused credit capacity and remained in compliance with its leverage covenant.
Demand and execution risks
- Soft demand backdrop: Management said customer sentiment and leading indicators point to continued demand softness in the second half, with no meaningful improvement in demand during the quarter. The company is relying on growth investments, new account wins and increased share of wallet to outperform the market.
- Acquisition integration: Suvinil, acquired in October 2025 for approximately $1.15 billion, drove much of Consumer Brands’ reported growth but also added SG&A and diluted consolidated gross margin.
- Environmental and litigation exposure: Environmental accruals totaled approximately $264.0 million at June 30, including $211.9 million in long-term liabilities and $52.4 million in current accruals. The company also disclosed ongoing lead-paint, Gibbsboro natural-resource-damages and Firetex-related litigation for which potential losses cannot currently be estimated.
