The Sherwin-Williams Company SHW reported first-quarter 2026 earnings of $2.15 per share, up 7.5% from the year-ago quarter figure of $2.
Barring one-time items, earnings were $2.35 per share. The bottom line beat the Zacks Consensus Estimate of $2.24, delivering a positive earnings surprise of 4.9%.
Revenues were $5.67 billion, up 6.8% year over year and ahead of the Zacks Consensus Estimate of $5.57 billion. Net income rose 6.1% to $534.7 million, representing 9.4% of net sales, as management pointed to growth initiatives and share gains despite soft demand conditions. Sherwin-Williams attributed the improvement primarily to higher sales and moderating raw material costs, partially offset by the dilutive impact of the Suvinil acquisition.
Selling, general and administrative expenses rose to $1.97 billion or 34.8% of net sales compared with 33.8% in the prior-year quarter. EBITDA climbed 8.8% to $998.2 million.
The Sherwin-Williams Company Price, Consensus and EPS Surprise
The Sherwin-Williams Company price-consensus-eps-surprise-chart | The Sherwin-Williams Company Quote
SHW’s Q1 Segmental Review
Paint Stores Group’s net sales increased 3.7% year over year to $3.05 billion. Same-store sales rose to 2.4%, and segment profit grew 3.3% to $558.8 million, with a reported segment margin of 18.3%.
Consumer Brands Group net sales jumped 19.2% to $908.3 million, driven mainly by the Suvinil acquisition, a 2.4% favorable foreign currency translation impact and higher sales in Europe, partly offset by softer DIY demand in North America. Segment profit surged 49.5% to $197.2 million, with a reported segment margin of 21.7%, while adjusted segment profit was $212.8 million and adjusted segment margin was 23.4%.
Performance Coatings Group net sales rose 6.5% to $1.71 billion, aided by a 4.1% favorable foreign currency translation impact and low-single-digit volume growth. Segment profit increased 9.3% to $232.4 million, taking the reported segment margin to 13.6%, while adjusted segment profit increased to $281.5 million and adjusted segment margin held at 16.5%.
Sherwin-Williams witnessed heightened global uncertainty and continued softness across most end markets. The growth investments and a focus on winning new accounts and expanding share of wallet supported results in the reported quarter. Targeted price increases by end market and geography, paired with cost-out actions, were employed to limit the burden of inflation on customers. These geopolitical events and potential inflation tied to raw materials, energy, logistics and packaging remain swing factors as 2026 progresses.
Sherwin-Williams Cash Returns and Balance Sheet
Sherwin-Williams generated $139.1 million in net operating cash flow in the quarter. The company returned $772.7 million to shareholders through dividends and share repurchases, including the buyback of 1.6 million shares in the reported quarter.
As of March 31, 2026, cash and cash equivalents were $216.9 million. The company reported short-term borrowings of $2.38 billion and long-term debt of $9.32 billion, while noting it had remaining authorization to repurchase 28 million shares through open market purchases.
SHW’s Outlook
For the second quarter of 2026, Sherwin-Williams expects consolidated net sales to be up a mid-single-digit percentage versus the second quarter of 2025. The company reiterated that it continues to anticipate little to no recovery in most end markets this year based on customer sentiment and the leading indicators it monitors.
For full-year 2026, Sherwin-Williams reaffirmed earnings guidance of $10.70-$11.10 per share and adjusted earnings guidance of $11.50-$11.90, while maintaining an effective tax rate expectation in the low 20% range and projecting net sales growth of a low to mid-single-digit percentage versus 2025.
SHW’s Price Performance
Shares of Sherwin-Williams have lost 3.4% in the past year compared with the industry’s 9.7% rise.
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SHW’s Zacks Rank & Key Picks
SHW currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are CF Industries Holdings, Inc. CF, Compass Minerals International, Inc. CMP and Air Products and Chemicals, Inc. APD.
CF Industries is slated to report first-quarter 2026 results on May 6. The Zacks Consensus Estimate for earnings is pegged at $2.35 per share, indicating 27.03% year-over-year growth. CF sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Compass Mineral is slated to report second-quarter fiscal 2026 results on May 6. The consensus estimate for CMP’s earnings per share is pegged at 66 cents. CMP presently carries a Zacks Rank #1.
Air Products is scheduled to report second-quarter fiscal 2026 results on April 30. The Zacks Consensus Estimate for APD’s second-quarter earnings per share is pegged at $3.05, indicating 13.38% year-over-year growth. APD carries a Zacks Rank #2 (Buy) at present.
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