Xylem Raises 2025 Outlook, Shares Surge After Q2

Xylem Inc. reported strong second-quarter 2025 results, with adjusted earnings of $1.26 per share, a 16% year-over-year increase that beat analyst expectations. Quarterly revenue reached $2.30 billion, up 6% from last year and exceeding consensus estimates due to robust demand across all business segments. The company raised its full-year 2025 guidance, projecting adjusted earnings per share of $4.70 to $4.85 and revenue of $8.9 to $9 billion, both above previous forecasts. Margin expansion was driven by productivity gains and strong price realization, helping offset inflationary pressures. Xylem's stock rose 9% after the earnings release and is up 12.6% year-to-date. Management emphasized ongoing operational improvements and resilient demand as key growth drivers.