Sherwin-Williams (NYSE:SHW) Releases Quarterly Earnings Results, Beats Estimates By $0.18 EPS

Sherwin-Williams (NYSE:SHW) announced its quarterly earnings data on Tuesday. The specialty chemicals company reported $3.70 earnings per share for the quarter, beating analysts’ consensus estimates of $3.52 by $0.18, FiscalAI reports. The business had revenue of $6.79 billion during the quarter, compared to the consensus estimate of $6.60 billion. Sherwin-Williams had a net margin of 10.86% and a return on equity of 64.55%. The company’s revenue for the quarter was up 7.5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $3.38 EPS. Sherwin-Williams updated its FY 2026 guidance to 11.800-12.200 EPS.

Here are the key takeaways from Sherwin-Williams’ conference call:

• Sherwin-Williams raised its full-year outlook after strong first-half execution, now expecting consolidated sales growth in the mid- to high-single-digit range and adjusted diluted EPS of $11.80–$12.20.
• Second-quarter adjusted EPS rose approximately 10%, while adjusted EBITDA increased 10.5% to $1.5 billion and EBITDA margin expanded 60 basis points to 21.5%. Operating cash flow improved 21%, and the company returned $1.5 billion to shareholders through dividends and accelerated share repurchases.
• Growth was driven by continued share gains and new account wins despite limited market improvement. Protective & Marine delivered its eighth consecutive quarter of at least high-single-digit growth, while commercial, residential repaint, and Performance Coatings also outperformed their underlying markets.
• Consumer Brands benefited from the Suvinil acquisition and strong North American pro-paint demand, although DIY remained muted and Europe declined due to customer destocking. Suvinil integration is progressing, with management identifying additional synergies but describing its 2026 EPS benefit as immaterial.
• Raw-material inflation is expected to rise at a high-single-digit rate in the second half, prompting an 8% Paint Stores Group price increase effective September 1. Management expects pricing to offset inflation over time, but the timing of realization and higher oil-related costs are expected to pressure second-half EPS growth.

Sherwin-Williams Stock Performance

Shares of NYSE SHW opened at $342.26 on Wednesday. The company has a current ratio of 0.86, a quick ratio of 0.53 and a debt-to-equity ratio of 2.10. The stock has a 50 day simple moving average of $322.33 and a 200-day simple moving average of $332.29. The company has a market cap of $84.42 billion, a PE ratio of 33.19, a P/E/G ratio of 2.54 and a beta of 1.10. Sherwin-Williams has a 12-month low of $289.86 and a 12-month high of $379.65.

Sherwin-Williams Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 11th. Stockholders of record on Friday, August 21st will be issued a dividend of $0.80 per share. This represents a $3.20 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Friday, August 21st. Sherwin-Williams’s payout ratio is 30.71%.

Institutional Trading of Sherwin-Williams

Several hedge funds have recently added to or reduced their stakes in SHW. Kemnay Advisory Services Inc. acquired a new position in Sherwin-Williams during the 4th quarter worth $30,000. Meeder Asset Management Inc. acquired a new position in shares of Sherwin-Williams during the fourth quarter valued at $33,000. JPL Wealth Management LLC bought a new stake in shares of Sherwin-Williams during the third quarter valued at about $45,000. IFC & Insurance Marketing Inc. bought a new stake in shares of Sherwin-Williams during the fourth quarter valued at about $48,000. Finally, Triumph Capital Management acquired a new stake in Sherwin-Williams in the third quarter worth about $60,000. Institutional investors own 77.67% of the company’s stock.

Analysts Set New Price Targets

SHW has been the subject of a number of research reports. UBS Group downgraded Sherwin-Williams from a “buy” rating to a “neutral” rating and decreased their target price for the company from $385.00 to $330.00 in a research note on Tuesday, June 2nd. Zacks Research raised Sherwin-Williams from a “strong sell” rating to a “hold” rating in a report on Tuesday, March 31st. Berenberg Bank set a $380.00 price objective on Sherwin-Williams in a research report on Monday, June 8th. BMO Capital Markets upped their price objective on Sherwin-Williams from $355.00 to $400.00 and gave the stock an “outperform” rating in a research note on Monday, July 6th. Finally, Wells Fargo & Company set a $360.00 target price on Sherwin-Williams in a research report on Wednesday. Eight investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, Sherwin-Williams presently has an average rating of “Moderate Buy” and an average price target of $376.21.

Trending Headlines about Sherwin-Williams

Here are the key news stories impacting Sherwin-Williams this week:

• Positive Sentiment: Q2 results exceeded expectations. Revenue rose 7.5% year over year to $6.79 billion, above the $6.60 billion consensus estimate, while adjusted EPS was $3.70 versus expectations of $3.52. Net income increased 11.8% to $843.6 million. Sherwin-Williams second-quarter financial results
• Positive Sentiment: Management raised its 2026 forecast. Sherwin-Williams now expects adjusted EPS of $11.80-$12.20, above the roughly $11.74 analyst consensus, and projects full-year sales growth in the mid- to high-single-digit range, up from its previous low- to mid-single-digit outlook. Sherwin-Williams lifts outlook
• Positive Sentiment: Growth was broad-based. Paint Stores Group sales increased 5.1%, Performance Coatings rose 6.3%, and Consumer Brands climbed 21.5%, helped by the Suvinil acquisition. Same-store sales in the Paint Stores Group grew 4.2%. The company also cited an approximately 8% price increase as a key driver of the improved outlook. SHW Q2 deep dive
• Positive Sentiment: Shareholder returns remain supportive. Sherwin-Williams returned $2.23 billion through dividends and repurchases during the first half of 2026, reinforcing the investment case for income-focused shareholders. Sherwin-Williams dividend signals
• Negative Sentiment: Demand remains a concern. Management said there has been no meaningful improvement in demand, meaning much of the current growth is dependent on pricing, share gains and execution. Raw-material inflation also pressured gross margins and could limit further earnings upside.

About Sherwin-Williams

Sherwin-Williams (NYSE: SHW) is a global manufacturer and distributor of paints, coatings and related products. Founded in 1866 and headquartered in Cleveland, Ohio, the company supplies a broad range of coatings for residential, commercial and industrial applications. Its product offering includes architectural paints and stains, industrial and protective coatings, automotive finishes, and a variety of sundry products such as primers, sealants and specialty treatments used by professionals and consumers.

The company sells through multiple channels, including a large network of company-operated retail paint stores that serve professional contractors and do-it-yourself consumers, as well as through distributors and mass retailers.