Xylem lifts 2026 profit outlook as AI‑driven water demand surges

Xylem raised its 2026 adjusted earnings forecast to $5.55‑$5.70 per share and expects annual revenue of about $9.2 billion, up from its prior range of $9.2‑$9.3 billion. The company said stronger demand for water‑treatment equipment from AI‑intensive sectors such as semiconductor manufacturing, power generation and mining is driving the upgrade. CEO Matthew Pine noted that utilities and industrial customers are investing more in AI infrastructure, boosting demand for the firm’s water‑management solutions. Shares rose more than 2 % in pre‑market trading.

Analyst coverage turned more positive as the Royal Bank of Canada increased its price target for Xylem to $164 per share and reaffirmed an “outperform” rating. Other banks have adjusted targets within a similar range, and the consensus rating remains a “moderate buy” with an average price target of $153.85. The stock was trading around $122.48, reflecting a 33.9 % upside from its prior close.