Sherwin-Williams misses earnings estimates due to rising costs

Sherwin-Williams reported third-quarter 2026 financial results that missed analyst expectations for adjusted earnings per share, despite a 7.9% increase in net sales to $6.86 billion. The company's net income fell 1.5% to $821 million.

CEO Heidi Petz attributed margin pressure to higher raw material and supply-chain costs, as well as the dilutive impact of the Suvinil acquisition. While sales exceeded estimates, the gross margin declined to 47.8% from 49.2% the previous year.

In response to these challenges, the company narrowed its full-year adjusted diluted earnings forecast to a range of $11.85 to $12.15 per share. Management noted that customer sentiment and leading indicators suggest muted demand through the remainder of 2026 and into 2027.