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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 2026 diluted earnings-per-share guidance but kept its full-year sales outlook unchanged, citing muted demand expectations.
Sherwin-Williams reported third-quarter 2026 net sales of $6.86 billion, up 7.9% from the year-earlier period, and raised its full-year diluted earnings-per-share outlook. The paint and coatings company kept its 2026 sales forecast unchanged, saying demand is expected to remain muted through the rest of the year and into 2027.
The company said sales growth reflected higher net sales in all three reportable segments, the inclusion of Suvinil, acquired in October 2025, and selling-price increases. Price actions contributed a mid-single-digit percentage impact to net sales, according to the company. The report did not provide a separate dollar breakdown of the contributions from acquisition activity, pricing and underlying sales.
Net income declined 1.5% to $821 million, equal to 12.0% of net sales. Adjusted EBITDA rose 3.3% to $1.40 billion, or 20.5% of sales. Chief Executive Heidi G. Petz said adjusted EBITDA and adjusted diluted earnings per share grew from the third quarter of 2025, while higher raw-material and supply-chain costs and product mix weighed on gross margin.
Sherwin-Williams revised its full-year 2026 diluted net income per share guidance to $11.85 to $12.15, from its previous 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 also said it returned $749 million to shareholders through dividends and share repurchases during the quarter.
Higher Sales, Lower Quarterly Income
The results show a gap between sales growth and net income: revenue rose, but reported profit declined. That distinction matters for investors and customers assessing whether higher sales are translating into stronger earnings, particularly as raw-material and supply-chain costs remain a pressure and mix affects margins.
The higher earnings forecast offers a more positive view of expected full-year profitability, but the company did not lift its sales outlook. Its forecast of muted demand through the end of 2026 and into 2027 signals that the revised earnings range is being set against a cautious market outlook, rather than an expectation of a broad demand rebound.
The reported sales increase also includes the effect of Suvinil’s acquisition and pricing. Since the company did not quantify each factor’s contribution separately, the headline growth rate alone does not establish how much came from underlying volume growth. Petz described market volumes as muted while saying the company gained customers and increased sales across its segments.
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Acquisition and Pricing Lift Sales
Sherwin-Williams said the October 2025 acquisition of Suvinil contributed to the year-over-year sales comparison. It also cited selling-price increases, which it said affected net sales by a mid-single-digit percentage. These factors sit alongside higher reported sales in each of the company’s three reportable segments; the supplied results do not give a detailed segment-by-segment sales breakdown.
Petz said the company took pricing and cost actions to address inflation, and that gross margin was affected by higher raw-material and supply-chain costs and mix. She said Suvinil diluted gross margin and that growth in lower-margin reportable segments also affected the quarter. Excluding Suvinil’s dilutive effect, she said year-to-date gross margin was flat compared with the prior year.
The company’s October 27 report therefore combines a strong increase in reported sales with weaker net income and a higher full-year earnings range. Its unchanged sales forecast, paired with management’s comments about demand, provides the stated market context for the outlook.
“Despite muted underlying market volumes, we continued to win new customers, increase share-of-wallet and deliver sales growth across all three reportable segments, at or above our guidance.”
— Heidi G. Petz, Sherwin-Williams chair, president and chief executive officer
Underlying Demand and Margin Outlook
The report does not specify how much of the 7.9% sales increase came from organic volume, pricing or Suvinil, or provide detailed results for each reportable segment. Petz characterized underlying market volumes as muted, but the supplied material gives no specific volume measure or demand data by market.
It is also unclear from the report how much the identified raw-material, supply-chain and mix pressures affected gross margin in dollar or percentage-point terms. The company’s comments about demand into 2027 are management’s outlook, not a confirmed measure of future sales. No additional assumptions behind the revised earnings guidance are provided in the source material.
Investors Watch Full-Year Results
Sherwin-Williams’ next financial updates will show whether it delivers within its revised $11.85-to-$12.15 diluted EPS range and its unchanged sales-growth forecast. Readers can compare future results with the company’s stated expectations for muted demand, and watch whether pricing and cost actions offset inflationary pressures.
The company’s comments also leave key indicators to track: sales across its three reportable segments, gross-margin performance and the effects of Suvinil on reported results. The supplied report does not give a date for the next earnings release or identify a further guidance update.
Key Questions
How much did Sherwin-Williams’ net sales increase in Q3 2026?
Consolidated net sales rose 7.9% to $6.86 billion compared with the third quarter of 2025.
Did Sherwin-Williams’ net income also rise?
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 changed in the company’s 2026 outlook?
Sherwin-Williams raised its diluted net income per share guidance to $11.85 to $12.15 from $10.92 to $11.22. It kept its full-year sales forecast unchanged, expecting sales to increase by a mid- to high-single-digit percentage over 2025.
What contributed to the sales increase?
The company cited higher sales in all three reportable segments, the inclusion of Suvinil, acquired in October 2025, and selling-price increases. It said pricing had a mid-single-digit percentage impact on net sales, but did not give a separate contribution for each factor.
What demand conditions does Sherwin-Williams expect?
CEO Heidi G. Petz said customer sentiment and the company’s leading indicators point to muted demand for the rest of 2026 and into 2027. This is the company’s outlook, not a confirmed future result.
Source: rss
