Should I Buy XYL? XYL 2026 Analysis

Should You Buy Xylem Inc (XYL) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

137.920

1 Day change

1.77%

52 Week Range

154.270

Analysis Updated At

2026/01/26

Xylem Inc. (XYL) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company demonstrates steady financial growth, favorable technical indicators, and strong analyst support, making it a solid choice for long-term investment.

Technical Analysis

The MACD is positive and contracting, indicating a bullish trend. The RSI is neutral at 49.553, and the moving averages are bullish (SMA_5 > SMA_20 > SMA_200). The stock is trading near its pivot level of 142.214, with resistance at 145.24 and support at 139.189. Overall, the technical indicators suggest a stable upward trend.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

Strong Q3 financial performance with 7.79% YoY revenue growth, 4.61% YoY net income growth, and improved gross margin.
Analysts highlight Xylem's leadership in mission-critical water solutions and its potential to benefit from water conservation trends and government regulatory programs.
Recent price target increases from multiple analysts, with targets ranging up to $
The company's acquisition of Evoqua is expected to accelerate growth.

Neutral/Negative Catalysts

Mizuho analyst expresses caution, citing 'uneven terrain ahead' for the sector.
No significant insider or hedge fund trading activity, indicating neutral sentiment from key stakeholders.

Financial Performance

In Q3 2025, Xylem reported revenue of $2.268 billion (up 7.79% YoY), net income of $227 million (up 4.61% YoY), and EPS of $0.93 (up 4.49% YoY). Gross margin improved to 38.93% (up 4.48% YoY), reflecting strong operational performance.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts are broadly positive on Xylem, with multiple Buy and Outperform ratings. Recent price targets range from $135 to $178, with a consensus view of steady growth and strong market leadership in water solutions. However, some analysts express caution about sector-specific challenges.

13 Analyst Rating

Wall Street analysts forecast XYL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for XYL is 167.5 USD with a low forecast of 135 USD and a high forecast of 182 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

11 Buy

2 Hold

0 Sell

Strong Buy

Current: 135.520

Low

135

Averages

167.5

High

182

Current: 135.520

Low

135

Averages

167.5

High

182

William Blair

Outperform

initiated

AI Analysis

2026-01-26

New

Reason

William Blair

Price Target

AI Analysis

2026-01-26

New

initiated

Outperform

Reason

William Blair initiated coverage of Xylem with an Outperform rating and no price target. The firm says Xylem is the market leader in mission-critical water solutions. Xylem is the world's largest pure-play water company, with a portfolio of products and solutions that serve nearly every part of the water and wastewater cycle, the analyst tells investors in a research note. Blair believes the company has "trusted brands across a large global installed base."

Barclays

William Grippin

Overweight

downgrade

$172 -> $166

2026-01-07

Reason

Barclays

William Grippin

Price Target

$172 -> $166

2026-01-07

downgrade

Overweight

Reason

Barclays analyst William Grippin lowered the firm's price target on Xylem to $166 from $172 and keeps an Overweight rating on the shares. The firm see scontinued steady growth in 2026 for the water technology group and prefers diversified exposures "as the sector navigates evolving funding dynamics."

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XYL Should I Buy

XYL Should I Buy

Should You Buy Xylem Inc (XYL) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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