Sherwin-Williams Company
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +4.08%.
Did SHW Beat Earnings? Q2 2026 Results
Sherwin-Williams delivered a strong second quarter, beating Wall Street expectations on both the top and bottom lines as broad-based growth across all three segments validated the company's pricing strategy amid a cautious demand backdrop. Adjusted diluted EPS came in at $3.70, clearing the $3.52 consensus estimate by 5.13%, while revenue rose 7.5% year over year to $6.79 billion, ahead of the $6.60 billion analysts had projected. The single most meaningful driver of the outperformance was the Consumer Brands Group, which posted 21.5% net sales growth to $983.50 million, lifted by the October 2025 acquisition of Suvinil and supply chain efficiencies that pushed adjusted segment margin to 24.5% from 22.4%. Paint Stores Group, the company's largest segment, contributed steady momentum with same-store sales up 4.2%. Despite flagging that leading indicators point to continued demand softness in the second half, management raised its full-year adjusted EPS guidance to a range of $11.80 to $12.20, compared to $11.43 in 2025, and announced an 8% price increase effective September 1 to offset persistent cost inflation across raw materials, energy, and logistics.
- Selling price increases across segments offset raw material inflation
- Low-single digit sales volume growth in PSG and PCG
- New account wins and increased share of wallet
- Suvinil acquisition contributed to Consumer Brands Group growth
- Favorable foreign currency translation of 1.6% in CBG and 2.0% in PCG
- Supply chain efficiencies in Consumer Brands Group
- Double-digit growth in protective and marine end market within PSG
- High-single digit growth in commercial end market within PSG
- General Industrial and Automotive Refinish led PCG growth at high-single digit rates
“Sherwin-Williams delivered strong second quarter results and continued to outperform the market despite ongoing global uncertainty and no meaningful improvement in demand. Sales improvement was driven by continued growth investments, new account wins and increased share of wallet, and exceeded guidance on a consolidated basis and across all three reportable segments. We also implemented pricing actions to offset raw material inflation that pressured our gross margin in the quarter. Adjusted EBITDA and diluted earnings per share rose approximately 10% year over year, and adjusted EBITDA margin grew 60 basis points to 21.5%. Net operating cash improved by 21% in the quarter, and free cash flow conversion in the quarter was 86%. We returned $1.46 billion to shareholders through dividends and share repurchases. Our team remains focused on executing our customer-centered strategy while controlling what we can control amidst a challenging macro-economic backdrop.”
Sherwin Williams CEO, on the earnings call
Forward Guidance & Outlook
Sherwin-Williams raised its full year 2026 guidance. Consolidated net sales are expected to increase by a mid to high-single digit percentage for both Q3 2026 and full year 2026 compared to prior year periods. Full year 2026 diluted net income per share guidance was raised to $10.92–$11.32 (including $0.81/share of Valspar acquisition-related amortization and $0.07/share of severance and restructuring expenses), compared to $10.26 in 2025. Full year 2026 adjusted diluted net income per share guidance was raised to $11.80–$12.20, compared to $11.43 in 2025. The effective tax rate is expected to be in the low twenty percent range. The company noted customer sentiment and leading indicators point to continued demand softness in the second half. An 8% price increase in Paint Stores Group is effective September 1 to offset broad-based cost inflation.
SHW YoY Financials
SHW Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.