The Sherwin-Williams Company (SHW) Q3 2026 earnings summary

Executive summary

• Q3 net sales rose 7.9% to $6.860B, with growth across all three segments from pricing, low-single-digit volume gains in PSG and PCG, and Suvinil acquisition contributions.

• Adjusted diluted EPS increased 1.1% to $3.63 and adjusted EBITDA rose 3.3% to $1,403.4M; gross margin declined 140 bps to 47.8%.

• Persistent soft demand, inflation and acquisition dilution pressured margins and sales-to-earnings conversion.

Financial highlights

• Gross profit increased 4.9% to $3.277B; net income fell 1.5% to $821.0M, while diluted EPS rose 0.9% to $3.38.

• SG&A increased 6.0% to $2.07B but declined to 30.2% of sales from 30.7%; acquisition and employee-service costs contributed to the increase.

• Adjusted EBITDA was $1,403.4M, up 3.3%, with a 20.5% margin; reported EBITDA increased 3.4% to $1,390.3M.

• Q3 net operating cash decreased 15.5% to $1.10B; capital expenditures fell 34.5% to $128.7M.

Outlook and guidance

• FY2026 adjusted EPS guidance is $11.85–$12.15, with the midpoint unchanged at $12; GAAP EPS guidance is $10.92–$11.22.

• FY2026 sales guidance remains up mid- to high-single digits; Q4 sales are expected up mid-single digits.

• Planning assumes soft demand into 2027, raw-material inflation in the low-to-mid-single digits and ~$75M of 2027 cost savings.

• The Sept. 1 PSG price increase of 8% is tracking as planned; historical realization levels are expected in H1 2027, with further pricing dependent on costs.

• FY assumptions include raw materials up mid-single digits, $550M capex, ~$550M interest expense and a low-20s tax rate.