Xylem Inc Financials
This page shows Xylem Inc (XYL) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 17 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Scale is now lifting earnings faster than sales, while deleveraging turns more of that growth into durable cash.
From FY2023 to FY2025, revenue added$1.7B while operating income added$571M , showing profit rose much faster than sales. Because gross margin moved only from36.9% to38.5% , the earnings lift came mainly from better overhead absorption and a lighter financing load, not a wholesale change in core product economics.
In FY2025, operating cash flow of
Cash of
Financial Health Signals
Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of Xylem Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Xylem Inc has an operating margin of 13.5%, meaning the company retains $14 of operating profit per $100 of revenue. This results in a moderate score of 49/100, indicating healthy but not exceptional operating efficiency. This is up from 11.8% the prior year.
Xylem Inc's revenue grew 5.5% year-over-year to $9.0B, a solid pace of expansion. This earns a growth score of 51/100.
Xylem Inc carries a low D/E ratio of 0.12, meaning only $0.12 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 100/100, indicating a strong balance sheet with room for future borrowing.
Xylem Inc's current ratio of 1.63 is below the typical benchmark, resulting in a score of 28/100. However, the company holds substantial cash reserves (52% of current liabilities), which buffers actual liquidity risk. Large mature operators often run tight current ratios by design.
Xylem Inc has a free cash flow margin of 10.1%, earning a moderate score of 50/100. The company generates positive cash flow after capital investments, but with room for improvement.
Xylem Inc generates a 8.3% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 29/100. This is down from 8.4% the prior year.
Xylem Inc scores 3.96, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($27.5B) relative to total liabilities ($5.9B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Xylem Inc passes 6 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), 1 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Xylem Inc generates $1.30 in operating cash flow ($1.2B OCF vs $957.0M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Xylem Inc earns $42.2 in operating income for every $1 of interest expense ($1.2B vs $29.0M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Xylem Inc generated $9.0B in revenue in fiscal year 2025. This represents an increase of 5.5% from the prior year.
Xylem Inc's EBITDA was $1.8B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 14.4% from the prior year.
Xylem Inc reported $957.0M in net income in fiscal year 2025. This represents an increase of 7.5% from the prior year.
Xylem Inc earned $3.92 per diluted share (EPS) in fiscal year 2025. This represents an increase of 7.4% from the prior year.
Cash & Balance Sheet
Xylem Inc generated $910.0M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 3.4% from the prior year.
Xylem Inc held $1.5B in cash against $1.4B in long-term debt as of fiscal year 2025.
Xylem Inc paid $1.60 per share in dividends in fiscal year 2025. This represents an increase of 11.1% from the prior year.
Xylem Inc had 244M shares outstanding in fiscal year 2025. This represents an increase of 0.2% from the prior year.
Margins & Returns
Xylem Inc's gross margin was 38.5% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 1.0 percentage points from the prior year.
Xylem Inc's operating margin was 13.5% in fiscal year 2025, reflecting core business profitability. This is up 1.8 percentage points from the prior year.
Xylem Inc's net profit margin was 10.6% in fiscal year 2025, showing the share of revenue converted to profit. This is up 0.2 percentage points from the prior year.
Xylem Inc's ROE was 8.3% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 0.0 percentage points from the prior year.
Capital Allocation
Xylem Inc invested $226.0M in research and development in fiscal year 2025. This represents a decrease of 1.7% from the prior year.
Xylem Inc spent $15.0M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 25.0% from the prior year.
Xylem Inc invested $331.0M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 3.1% from the prior year.
XYL Income Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $2.1B-11.3% | $2.4B+5.7% | $2.3B-1.4% | $2.3B+11.2% | $2.1B-8.3% | $2.3B+7.2% | $2.1B-3.0% | $2.2B |
| Cost of Revenue | $1.3B-9.8% | $1.5B+5.8% | $1.4B-1.7% | $1.4B+8.3% | $1.3B-7.0% | $1.4B+6.0% | $1.3B-2.2% | $1.4B |
| Gross Profit | $803.0M-13.8% | $932.0M+5.5% | $883.0M-1.0% | $892.0M+16.1% | $768.0M-10.4% | $857.0M+9.3% | $784.0M-4.3% | $819.0M |
| R&D Expenses | $56.0M-6.7% | $60.0M+15.4% | $52.0M-10.3% | $58.0M+3.6% | $56.0M-3.4% | $58.0M+5.5% | $55.0M-5.2% | $58.0M |
| SG&A Expenses | $472.0M-2.9% | $486.0M+2.5% | $474.0M-5.8% | $503.0M+9.3% | $460.0M-9.3% | $507.0M+13.9% | $445.0M-8.2% | $485.0M |
| Operating Income | $244.0M-30.9% | $353.0M+5.7% | $334.0M+9.5% | $305.0M+32.0% | $231.0M-13.5% | $267.0M-4.6% | $280.0M+10.7% | $253.0M |
| Interest Expense | $4.0M-33.3% | $6.0M0.0% | $6.0M-33.3% | $9.0M+12.5% | $8.0M-11.1% | $9.0M-10.0% | $10.0M-9.1% | $11.0M |
| Income Tax | $55.0M+57.1% | $35.0M-50.7% | $71.0M-5.3% | $75.0M+50.0% | $50.0M+2.0% | $49.0M-5.8% | $52.0M-1.9% | $53.0M |
| Net Income | $193.0M-42.4% | $335.0M+47.6% | $227.0M+0.4% | $226.0M+33.7% | $169.0M-48.2% | $326.0M+50.2% | $217.0M+11.9% | $194.0M |
| EPS (Diluted) | $0.79 | N/A | $0.930.0% | $0.93+34.8% | $0.69 | N/A | $0.89+11.2% | $0.80 |
XYL Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $17.0B-3.9% | $17.6B+2.0% | $17.3B+0.6% | $17.2B+3.8% | $16.6B+0.4% | $16.5B+2.8% | $16.0B+1.8% | $15.8B |
| Current Assets | $4.0B-13.2% | $4.6B+4.5% | $4.4B+1.6% | $4.4B+7.0% | $4.1B-0.3% | $4.1B+2.1% | $4.0B+6.1% | $3.8B |
| Cash & Equivalents | $808.0M-45.4% | $1.5B+24.2% | $1.2B+1.8% | $1.2B+10.5% | $1.1B-5.5% | $1.1B+13.3% | $989.0M+21.3% | $815.0M |
| Inventory | $991.0M+0.8% | $983.0M-5.0% | $1.0B-3.4% | $1.1B+4.8% | $1.0B+2.6% | $996.0M-8.7% | $1.1B+3.2% | $1.1B |
| Accounts Receivable | $1.8B+2.1% | $1.8B-2.4% | $1.8B-1.9% | $1.8B+5.4% | $1.7B+4.5% | $1.7B-2.3% | $1.7B+1.9% | $1.7B |
| Goodwill | $8.3B-0.5% | $8.3B+0.6% | $8.3B+0.5% | $8.2B+2.2% | $8.1B+1.0% | $8.0B+5.1% | $7.6B+1.1% | $7.5B |
| Total Liabilities | $5.7B-2.7% | $5.9B+0.6% | $5.8B-0.5% | $5.9B+6.8% | $5.5B-1.9% | $5.6B+3.0% | $5.4B+0.5% | $5.4B |
| Current Liabilities | $2.8B-3.5% | $2.9B+25.9% | $2.3B-1.4% | $2.3B+6.2% | $2.2B-7.3% | $2.3B+13.8% | $2.1B+0.5% | $2.0B |
| Long-Term Debt | $1.4B-0.1% | $1.4B-26.4% | $1.9B-0.8% | $1.9B-2.3% | $2.0B-0.2% | $2.0B+0.1% | $2.0B-0.2% | $2.0B |
| Total Equity | $11.0B-4.4% | $11.5B+2.4% | $11.2B+1.2% | $11.1B+2.4% | $10.8B+1.6% | $10.6B+0.5% | $10.6B+2.4% | $10.3B |
| Retained Earnings | $3.8B+2.4% | $3.7B+6.8% | $3.5B+3.9% | $3.3B+4.0% | $3.2B+2.3% | $3.1B+8.2% | $2.9B+4.6% | $2.8B |
XYL Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $108.0M-80.1% | $543.0M+50.8% | $360.0M+18.0% | $305.0M+824.2% | $33.0M-94.3% | $575.0M+84.9% | $311.0M+8.0% | $288.0M |
| Capital Expenditures | $90.0M+8.4% | $83.0M+5.1% | $79.0M-19.4% | $98.0M+38.0% | $71.0M-29.0% | $100.0M+35.1% | $74.0M+1.4% | $73.0M |
| Free Cash Flow | $18.0M-96.1% | $460.0M+63.7% | $281.0M+35.7% | $207.0M+644.7% | -$38.0M-108.0% | $475.0M+100.4% | $237.0M+10.2% | $215.0M |
| Investing Cash Flow | -$76.0M+46.5% | -$142.0M+24.9% | -$189.0M-51.2% | -$125.0M-733.3% | -$15.0M+94.8% | -$289.0M-344.6% | -$65.0M+15.6% | -$77.0M |
| Financing Cash Flow | -$683.0M-473.9% | -$119.0M+13.8% | -$138.0M-7.8% | -$128.0M-10.3% | -$116.0M-22.1% | -$95.0M+5.9% | -$101.0M+70.0% | -$337.0M |
| Dividends Paid | $106.0M+8.2% | $98.0M+1.0% | $97.0M-1.0% | $98.0M0.0% | $98.0M+12.6% | $87.0M-1.1% | $88.0M+1.1% | $87.0M |
| Share Buybacks | $563.0M+56200.0% | $1.0M0.0% | $1.0M | $0-100.0% | $13.0M+1200.0% | $1.0M0.0% | $1.0M-66.7% | $3.0M |
XYL Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 37.8%-1.1pp | 38.9%-0.1pp | 38.9%+0.2pp | 38.8%+1.7pp | 37.1%-0.9pp | 38.0%+0.7pp | 37.3%-0.5pp | 37.8% |
| Operating Margin | 11.5%-3.2pp | 14.7%0.0pp | 14.7%+1.5pp | 13.3%+2.1pp | 11.2%-0.7pp | 11.8%-1.5pp | 13.3%+1.7pp | 11.7% |
| Net Margin | 9.1%-4.9pp | 14.0%+4.0pp | 10.0%+0.2pp | 9.8%+1.7pp | 8.2%-6.3pp | 14.4%+4.1pp | 10.3%+1.4pp | 8.9% |
| Return on Equity | 1.8%-1.2pp | 2.9%+0.9pp | 2.0%-0.0pp | 2.0%+0.5pp | 1.6%-1.5pp | 3.1%+1.0pp | 2.1%+0.2pp | 1.9% |
| Return on Assets | 1.1%-0.8pp | 1.9%+0.6pp | 1.3%0.0pp | 1.3%+0.3pp | 1.0%-1.0pp | 2.0%+0.6pp | 1.4%+0.1pp | 1.2% |
| Current Ratio | 1.46-0.2 | 1.63-0.3 | 1.96+0.1 | 1.90+0.0 | 1.89+0.1 | 1.75-0.2 | 1.96+0.1 | 1.85 |
| Debt-to-Equity | 0.130.0 | 0.12-0.0 | 0.170.0 | 0.170.0 | 0.180.0 | 0.190.0 | 0.190.0 | 0.19 |
| FCF Margin | 0.9%-18.3pp | 19.2%+6.8pp | 12.4%+3.4pp | 9.0%+10.8pp | -1.8%-22.9pp | 21.1%+9.8pp | 11.3%+1.4pp | 9.9% |
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Frequently Asked Questions
What is Xylem Inc's annual revenue?
Xylem Inc (XYL) reported $9.0B in total revenue for fiscal year 2025. This represents a 5.5% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Xylem Inc's revenue growing?
Xylem Inc (XYL) revenue grew by 5.5% year-over-year, from $8.6B to $9.0B in fiscal year 2025.
Is Xylem Inc profitable?
Yes, Xylem Inc (XYL) reported a net income of $957.0M in fiscal year 2025, with a net profit margin of 10.6%.
What is Xylem Inc's EBITDA?
Xylem Inc (XYL) had EBITDA of $1.8B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Xylem Inc have?
As of fiscal year 2025, Xylem Inc (XYL) had $1.5B in cash and equivalents against $1.4B in long-term debt.
What is Xylem Inc's gross margin?
Xylem Inc (XYL) had a gross margin of 38.5% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Xylem Inc's operating margin?
Xylem Inc (XYL) had an operating margin of 13.5% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Xylem Inc's net profit margin?
Xylem Inc (XYL) had a net profit margin of 10.6% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Xylem Inc pay dividends?
Yes, Xylem Inc (XYL) paid $1.60 per share in dividends during fiscal year 2025.
What is Xylem Inc's return on equity (ROE)?
Xylem Inc (XYL) has a return on equity of 8.3% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Xylem Inc's free cash flow?
Xylem Inc (XYL) generated $910.0M in free cash flow during fiscal year 2025. This represents a -3.4% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Xylem Inc's operating cash flow?
Xylem Inc (XYL) generated $1.2B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Xylem Inc's total assets?
Xylem Inc (XYL) had $17.6B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Xylem Inc's capital expenditures?
Xylem Inc (XYL) invested $331.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Xylem Inc spend on research and development?
Xylem Inc (XYL) invested $226.0M in research and development during fiscal year 2025.
What is Xylem Inc's current ratio?
Xylem Inc (XYL) had a current ratio of 1.63 as of fiscal year 2025, which is generally considered healthy.
What is Xylem Inc's debt-to-equity ratio?
Xylem Inc (XYL) had a debt-to-equity ratio of 0.12 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Xylem Inc's return on assets (ROA)?
Xylem Inc (XYL) had a return on assets of 5.4% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Xylem Inc's Altman Z-Score?
Xylem Inc (XYL) has an Altman Z-Score of 3.96, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Xylem Inc's Piotroski F-Score?
Xylem Inc (XYL) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Xylem Inc's earnings high quality?
Xylem Inc (XYL) has an earnings quality ratio of 1.30x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Xylem Inc cover its interest payments?
Xylem Inc (XYL) has an interest coverage ratio of 42.2x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Xylem Inc?
Xylem Inc (XYL) scores 51 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.