XYL Xylem (XYL) Q1 FY26 earnings call
The quarter validates Xylem's reshaping thesis: a deliberately muted top line — 80/20 walk-aways and a bottoming China masking resilient U.S. utility demand — while simplification funds margin expansion and unusually aggressive capital deployment. The record WSS outsourcing win marks the strategic pivot toward long-cycle service annuities, and management framed its held guidance as macro prudence, not a weaker outlook.
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XYL operating KPIs by quarter
| KPI | Dec 2024 Q4 FY24 | Mar 2025 Q1 FY25 | Sep 2025 Q3 FY25 | Dec 2025 Q4 FY25 | This call Mar 2026 Q1 FY26 | Jun 2026 Q2 FY26 | Change vs prior quarter |
|---|---|---|---|---|---|---|---|
| Backlog | $5.1BDemand remains positive, with our ending backlog of $5.1 billion essentially flat from the prior year, driven by progress executing an MCS on their past due backlog, but offset in part by growth across the other 3 segments.Source: earnings call transcript | $5.1BDemand remained solid with our ending backlog at $5.1 billion and our book-to-bill for the quarter above 1.Source: earnings call transcript | ~$5BBacklog remains robust, closing the quarter at approximately $5 billion.Source: earnings call transcript | $4.6BDemand remains positive with our backlog finishing at $4.6 billion.Source: earnings call transcript | $4.7BDemand remains solid with our ending backlog up sequentially to $4.7 billion, and our book-to-bill for the quarter was above 1.Source: earnings call transcript | $5.3BDemand remains healthy with our ending backlog at $5.3 billion and our book-to-bill for the quarter well above 1.Source: earnings call transcript | +12.8% |
| Backlog Measurement and Control Solutions | ~$1.9BThough total MCS backlog remained at roughly $1.9 billion, in line with the prior quarter.Source: earnings call transcript | $1.8BIn Measurement & Control Solutions, we continue to convert the backlog with the total for MCS coming down slightly from the prior quarter to $1.8 billion.Source: earnings call transcript | — | ~$1.4BIn Measurement & Control Solutions, we continue to convert the backlog with MCS' backlog finishing the year at roughly $1.4 billion.Source: earnings call transcript | ~$1.4BIn Measurement & Control Solutions, book-to-bill was below 1, but backlog remained flat sequentially at roughly $1.4 billion.Source: earnings call transcript | ~$1.2BFor Measurement and Control Solutions, in the quarter, book-to-bill was below 1, but backlog remained at roughly $1.2 billion.Source: earnings call transcript | — |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.