The Sherwin-Williams Company (SHW) Q1 2026 earnings summary

Executive summary

• Consolidated sales rose 6.8% year-over-year to $5.67 billion, with all segments exceeding guidance and a 2.4% increase in same-store sales in the Paint Stores Group.

• Adjusted EPS increased 4.4% to $2.35, while diluted net income per share rose 7.5% to $2.15.

• EBITDA increased 8.8% to $998.2 million, or 17.6% of net sales.

• Net operating cash improved by $200 million, with $773 million returned to shareholders via buybacks and dividends.

• Growth was achieved despite global uncertainty and demand softness in most end markets.

Financial highlights

• Gross margin expanded by 90 bps to 49.1%, with gross profit up 8.7% to $2.78 billion year-over-year.

• SG&A expenses rose 9.8% to $1.97 billion, reflecting investments in growth and the Suvinil acquisition.

• Capital expenditures were $138.3 million, down 26.9% from the prior year.

• Net operating cash flow was $139.1 million, up from negative $61.1 million last year.

• Cash and cash equivalents stood at $216.9 million at quarter-end.

Outlook and guidance

• Q2 2026 sales expected to rise mid-single digits, with CBG up mid-teens and PSG/PCG up low-single digits.

• Full-year 2026 sales projected to grow low to mid-single digits, with adjusted EPS guidance of $11.50–$11.90.

• Full-year diluted net income per share guidance reaffirmed at $10.70–$11.10, including $0.80 per share of Valspar-related amortization.

• Raw material costs expected up low to mid-single digits; capital expenditures forecast at $550 million.

• Management expects little to no recovery in most end markets in 2026, with continued pricing actions and cost reductions to offset inflation and volatility.