Xylem raises 2026 outlook after Q2 beats estimates, driven by AI-related water equipment demand.

Xylem reported strong Q2 2026 results with adjusted EPS of $1.46 and revenues of $2.34 billion, both surpassing analyst estimates. The company saw a 42% year-over-year increase in orders, largely due to rising demand for water-treatment equipment used in AI infrastructure cooling. Following this performance, Xylem raised its full-year adjusted EPS guidance to $5.55-$5.70 and revenue forecast to $9.20 billion. Barclays responded by raising its price target to $159 and maintaining an Overweight rating, signaling confidence in Xylem's growth prospects.