July 28 (Reuters) - Xylem on Tuesday raised its 2026 profit forecast after its second-quarter results beat Wall Street estimates, as cost savings and price increases boosted profitability amid strengthening AI infrastructure demand.
Shares of the company rose more than 2% in premarket trading.
• The water-management company now expects 2026 adjusted earnings of $5.55 to $5.70 per share, compared with its previous forecast of $5.35 to $5.60 per share.
• CEO Matthew Pine said the expansion of AI infrastructure
has increased demand for water solutions across semiconductor manufacturing, power generation, mining and other industries.
• "The demand drivers behind our business continue to strengthen," Pine said, citing growing investment by utilities and industrial customers.
• Xylem now expects annual revenue of about $9.2 billion compared to its prior range of $9.2 billion to $9.3 billion.
• Analysts on average expect 2026 adjusted profit of $5.54 per share and revenue of $9.25 billion, according to data compiled by LSEG.
• On an adjusted basis, quarterly profit stood at $1.46 per share, above analysts' estimate of $1.34 per share.
• Xylem's quarterly revenue rose 2% to $2.34 billion, in line with analysts' estimates.
• Revenue in Xylem's water infrastructure business rose 5% to $683 million.
• Its water solutions and services segment recorded a 3% increase in revenue to $644 million.
(Reporting by Kunal Das in Bengaluru; Editing by Pooja Desai)
