Sherwin-Williams (NYSE:SHW) Posts Earnings Results, Misses Expectations By $0.06 EPS

Sherwin-Williams (NYSE:SHW) posted its quarterly earnings data on Tuesday. The specialty chemicals company reported $3.63 earnings per share for the quarter, missing analysts’ consensus estimates of $3.69 by ($0.06), FiscalAI reports. The firm had revenue of $6.86 billion during the quarter, compared to analysts’ expectations of $6.78 billion. During the same period last year, the firm earned $3.59 earnings per share. Sherwin-Williams’s quarterly revenue was up 7.9% on a year-over-year basis.

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

• Third-quarter sales grew at a high-single-digit rate, with volume increasing across all three segments and continued share gains despite soft end-market demand. Protective & Marine, general industrial, packaging, and coil delivered particularly strong growth.
• Sales-to-earnings conversion remained below management’s standards as raw-material, supply-chain, employee, and acquisition-related costs pressured margins. Consumer Brands Group also experienced a mid-single-digit volume decline, reflecting continued weakness in DIY demand and Suvinil dilution.
• Management narrowed its full-year adjusted EPS outlook to $11.85–$12.15 while maintaining the prior $12 midpoint. The 8% Paint Stores Group price increase is tracking as planned, but realization will build through the first half of 2027.
• Sherwin-Williams expects approximately $75 million of cost savings in 2027, including restructuring actions already taken and additional measures under review. The company also plans to continue targeted investments in stores, sales representatives, services, and new products to support further share gains.
• Management expects demand to remain “softer for longer” with choppy conditions across most end markets and raw-material inflation in the low- to mid-single-digit range in 2027. Broader inflation in energy, fuel, healthcare, wages, and technology costs may require further pricing and cost actions.

Sherwin-Williams Stock Down 2.7%

Sherwin-Williams stock opened at $326.01 on Wednesday. Sherwin-Williams has a 52 week low of $289.86 and a 52 week high of $377.77. The stock has a 50-day moving average price of $330.66 and a 200 day moving average price of $333.48.

Sherwin-Williams Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 4th. Stockholders of record on Friday, November 13th will be paid a $0.80 dividend. This represents a $3.20 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Friday, November 13th.

Analysts Set New Price Targets

SHW has been the topic of several recent analyst reports. DA Davidson set a $400.00 price objective on shares of Sherwin-Williams and gave the company a “buy” rating in a report on Monday, August 24th. The Goldman Sachs Group reiterated a “buy” rating and issued a $415.00 target price (up from $390.00) on shares of Sherwin-Williams in a research note on Friday, October 9th. Melius Research began coverage on shares of Sherwin-Williams in a research note on Tuesday, October 6th. They issued a “hold” rating and a $367.00 target price for the company. Morgan Stanley reissued an “overweight” rating and set a $395.00 target price (up from $385.00) on shares of Sherwin-Williams in a research report on Wednesday, July 29th. Finally, Citigroup cut their price target on shares of Sherwin-Williams from $415.00 to $400.00 and set a “buy” rating on the stock in a research note on Wednesday, September 30th. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and ten have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $381.17.

Insider Buying and Selling

In other Sherwin-Williams news, insider Justin T. Binns sold 13,500 shares of the firm’s stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $352.70, for a total transaction of $4,761,450.00. Following the completion of the transaction, the insider directly owned 21,937 shares of the company’s stock, valued at approximately $7,737,179.90. This trade represents a 38.10% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Karl Jorgenrud sold 7,886 shares of Sherwin-Williams stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $368.30, for a total transaction of $2,904,413.80. Following the sale, the insider owned 11,944 shares of the company’s stock, valued at approximately $4,398,975.20. The trade was a 39.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.23% of the stock is owned by corporate insiders.

Sherwin-Williams News Summary

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

• Positive Sentiment: Third-quarter revenue increased 7.9% year over year to $6.86 billion, exceeding analysts’ $6.78 billion estimate. Consolidated sales grew at a high-single-digit rate, indicating resilient demand across the business. Sherwin-Williams Q3 2026 sales rise 7.9% as profit slips
• Positive Sentiment: Management expects approximately $75 million in structural cost savings during 2027, offering a potential path to margin improvement and stronger earnings growth. Sherwin-Williams: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Evercore ISI upgraded Sherwin-Williams to Outperform, providing some support for the shares despite the earnings-related concerns. Evercore ISI Upgrades Sherwin-Williams
• Neutral Sentiment: Management forecast 2026 adjusted EPS of $11.85 to $12.15, compared with a FactSet consensus estimate of $12.09. The range keeps the consensus within the outlook but suggests limited earnings visibility.
• Negative Sentiment: Third-quarter adjusted EPS was $3.63, below the consensus estimate of $3.69, although it increased from $3.59 in the year-earlier quarter. Higher costs pressured margins and offset the revenue beat. SHW Q3 Earnings Lag Estimates on Higher Costs, Sales Beat
• Negative Sentiment: The company said consumers are not rushing to paint their homes, with no clear near-term catalyst for DIY demand. Combined with margin pressure and the profit miss, the cautious demand outlook weighed on investor sentiment. Americans Aren’t Rushing to Paint Their Homes

Sherwin-Williams Company Profile

The Sherwin-Williams Company (NYSE: SHW) develops, manufactures, distributes and sells paints, coatings and related products. Its offerings include architectural paints, industrial coatings, wood finishes, protective coatings, automotive refinishing products, floor coatings and related supplies marketed under brands such as Sherwin-Williams, Valspar, Minwax, Krylon and Dutch Boy.

Founded in 1866 and headquartered in Cleveland, Ohio, Sherwin-Williams serves professional contractors, do-it-yourself consumers, industrial manufacturers, commercial businesses and other customers.