Sherwin-Williams Q3 2026: Revenue Beats but Margin Squeeze Snaps EPS Streak
As seen on the 24/7 Wall St. homepage on October 27, 2026.
Gross margin contracted to 47.8% from 49.2% a year ago, enough to miss consensus EPS and end a four-quarter run of beats even though revenue topped estimates. Raw material inflation and dilution from the Suvinil deal in Brazil did the damage, and management sees muted demand through year-end and into 2027.
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Sherwin-Williams posted revenue of $6.86 billion in Q3 2026, clearing the consensus estimate, with growth broad across the Paint Stores Group, the Consumer Brands Group on the Suvinil acquisition, and the Performance Coatings Group on rising demand for specialized industrial coatings.
The earnings picture was less clean: adjusted EPS of $3.63 came in missing the consensus estimate and ending a four-consecutive-quarter streak of EPS beats. Gross margin contracted to 47.8% from a year ago, pressured by raw material inflation and dilution from the October 2025 acquisition of Suvinil in Brazil, though CEO Heidi G. Petz noted that excluding Suvinil's dilutive impact, year-to-date gross margin was flat versus the prior year.
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Management guided full-year 2026 adjusted diluted EPS to a range of $11.85 to $12.15, up from 2025, but paired that guidance with a candid warning. Petz said customer sentiment and the leading indicators the company tracks point to muted demand through the remainder of 2026 and into 2027.
Sherwin-Williams did continue to expand its store footprint, opening a net 12 new Paint Stores Group locations in the quarter. The company also returned $2.98 billion to shareholders through dividends and share repurchases during the first nine months of 2026. Those capital returns signal confidence as demand softens.
Mentioned: SHW