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Sherwin-Williams reported third-quarter 2026 net sales of $6.86 billion, up 7.9%, while net income fell 1.5% to $821 million. The company raised its full-year diluted EPS guidance but kept its sales outlook unchanged, citing muted demand ahead.
Sherwin-Williams reported third-quarter 2026 net sales of $6.86 billion, a 7.9% increase from the same quarter a year earlier, and raised its full-year diluted earnings-per-share guidance. The paint and coatings maker said higher sales across its reportable segments, the Suvinil acquisition and selling-price increases contributed to growth, even as net income declined 1.5% to $821 million.
The company said sales growth was driven primarily by higher net sales in all three reportable segments. Results also included the impact of its October 2025 acquisition of Suvinil and selling-price increases, which the company said affected net sales by a mid-single-digit percentage. The report did not give a standalone sales contribution for either factor.
Adjusted EBITDA rose 3.3% to $1.40 billion, equal to 20.5% of net sales. Net income was $821 million, or 12.0% of sales. The company’s chief executive, Heidi G. Petz, said adjusted EBITDA and adjusted diluted earnings per share both increased from the year-earlier quarter. The supplied results do not provide the adjusted diluted EPS figure.
Sherwin-Williams revised its 2026 diluted net income per share outlook to $11.85 to $12.15, from its prior range of $10.92 to $11.22. It maintained its full-year sales forecast, expecting consolidated net sales to rise by a mid- to high-single-digit percentage compared with 2025. The company did not provide a revised sales range in the report.
Higher Sales, Lower Quarterly Income
The results show that revenue growth did not translate into higher reported net income for the quarter: sales rose 7.9%, while net income slipped 1.5%. That divergence matters to investors and customers tracking whether price increases and acquired sales are offsetting costs without weakening profitability. Sherwin-Williams attributed pressure on gross margin to higher raw-material and supply-chain costs, as well as sales mix.
The increased EPS outlook signals that the company now expects stronger full-year diluted earnings per share than it forecast previously. However, it kept its sales outlook intact and described demand as muted. The revised earnings range and unchanged sales forecast therefore convey different parts of the outlook: higher expected earnings per share alongside continued caution about market demand.
Sherwin-Williams also said it returned $749 million to shareholders during the quarter through dividends and share repurchases. That figure gives a measure of the company’s capital returns in the period, but the source does not break down the amount between the two methods.
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Acquisition and Pricing Shape Growth
The third-quarter figures include Suvinil, which Sherwin-Williams acquired in October 2025. Because the acquisition occurred after the comparable 2025 quarter, its contribution forms part of the year-over-year sales comparison. The company also said selling-price increases contributed a mid-single-digit percentage impact to sales; it did not provide a more exact figure in the supplied report.
Petz said underlying market volumes remained muted and described the operating environment as challenging. She said the company continued to win new customers and increase its share of spending with existing customers, while taking pricing and cost actions in response to inflation. Those are company-reported assessments; the available material does not include segment-level volume figures or independent market data to quantify them.
The company said Suvinil and mix affected gross margin. It also reported that, excluding the acquisition’s dilutive impact, year-to-date gross margin was flat compared with the prior year. This is a year-to-date comparison, not a statement that third-quarter gross margin was flat.
““Despite muted underlying market volumes, we continued to win new customers, increase share-of-wallet and deliver sales growth across all three reportable segments.””
— Heidi G. Petz, Sherwin-Williams chair, president and chief executive officer
Demand and Margin Pressures Ahead
The company’s report points to muted demand through the rest of 2026 and into 2027, but it does not quantify expected market volumes or specify how demand may vary by segment or region. Its full-year sales forecast remains expressed as a mid- to high-single-digit increase, without a precise percentage or detailed assumptions in the supplied material.
The report also does not give a breakdown of how much the Suvinil acquisition, pricing, customer gains or other factors contributed to the 7.9% sales increase. Although Sherwin-Williams cited raw-material and supply-chain costs and sales mix as gross-margin pressures, the supplied account does not state the quarter’s gross-margin percentage or quantify each pressure’s effect.
The updated EPS range is company guidance, not a confirmed full-year result. The available material does not explain how much of the revision reflects operating performance, cost actions, share repurchases or other factors.
Company Focuses on Full-Year Outlook
Sherwin-Williams’ next test is whether it can meet its revised 2026 diluted EPS guidance of $11.85 to $12.15 while delivering the sales growth range it left unchanged. The company said it plans to focus on customer service, pricing, cost control and productivity as it responds to inflation and subdued demand.
Investors and other readers will be able to compare subsequent results with the company’s forecast and monitor whether sales growth continues across all three reportable segments. The company’s warning that demand may remain muted into 2027 also makes its future commentary on volumes, margins and the effects of Suvinil relevant. The supplied report does not state a date for the next results announcement.
Key Questions
How much did Sherwin-Williams’ net sales increase in Q3 2026?
Net sales increased 7.9% to $6.86 billion, according to the company’s third-quarter results.
Did net income also increase?
No. Net income fell 1.5% to $821 million, or 12.0% of net sales. Adjusted EBITDA increased 3.3% to $1.40 billion.
What drove the sales increase?
Sherwin-Williams said sales rose across all three reportable segments. It also cited the Suvinil acquisition and selling-price increases, which it said affected sales by a mid-single-digit percentage. The report does not quantify each factor’s separate contribution.
What changed in the company’s 2026 outlook?
The company raised its full-year diluted net income per share guidance to $11.85 to $12.15, from $10.92 to $11.22. It maintained its forecast for consolidated net sales to increase by a mid- to high-single-digit percentage compared with 2025.
What did Sherwin-Williams say about future demand?
CEO Heidi G. Petz said customer sentiment and the company’s leading indicators pointed to muted demand for the remainder of 2026 and into 2027. The report did not give a numerical demand forecast.
Source: rss
