Sherwin-Williams Reports Q3 2026 Results with Net Sales Up 7.9% and Updates Full-Year Guidance

Executive Summary

On October 27, 2026, The Sherwin-Williams Company filed a Form 8-K under Item 2.02 (Results of Operations and Financial Condition) furnishing its financial results for the third quarter ended September 30, 2026.

Third Quarter 2026 Financial Highlights

• Consolidated Net Sales: Increased 7.9% to $6.86 billion (compared to $6.36 billion in Q3 2025), driven by growth across all reportable segments, contributions from the October 2025 Suvinil acquisition, and selling price increases impacting sales by a mid-single-digit percentage.
• Operating Profitability & Margins:
  • Income Before Taxes: $1.063.5 million (+0.3% YoY; 15.5% of net sales vs. 16.7% in Q3 2025).
  • Net Income: Decreased 1.5% to $821.0 million (12.0% of net sales).
  • EBITDA: Rose 3.4% to $1.39 billion (20.3% of sales); Adjusted EBITDA rose 3.3% to $1.40 billion (20.5% of sales).
• Earnings Per Share:
  • Diluted EPS: $3.38 (+0.9% YoY from $3.35).
  • Adjusted Diluted EPS: $3.63 (+1.1% YoY from $3.59).

Segment Performance

1. Paint Stores Group (PSG):
   • Net Sales: $4.02 billion (+4.7% YoY).
   • Same-store sales: +3.9%.
   • Segment Profit: $974.3 million (+2.1% YoY; 24.3% reported margin).
2. Consumer Brands Group (CBG):
   • Net Sales: $937.4 million (+21.7% YoY), boosted by the Suvinil acquisition.
   • Segment Profit: $146.2 million (-7.1% YoY; 15.6% reported margin).
   • Adjusted Segment Profit: $171.4 million (-4.4% YoY; 18.3% adjusted margin).
3. Performance Coatings Group (PCG):
   • Net Sales: $1.90 billion (+8.8% YoY).
   • Segment Profit: $255.2 million (+6.2% YoY; 13.4% reported margin).
   • Adjusted Segment Profit: $308.7 million (+4.7% YoY; 16.2% adjusted margin).

Capital Allocation & Updated FY 2026 Guidance

• Shareholder Return: Returned $749.0 million through dividends and share repurchases during the quarter.
• Full-Year 2026 Outlook:
  • Revised GAAP diluted EPS guidance to $10.92 – $11.22 (includes $0.82/share Valspar amortization and $0.11/share restructuring charges).
  • Narrowed adjusted diluted EPS guidance to $11.85 – $12.15.