Sherwin-Williams Reports Strong Q2 2026 Results: Raises Full-Year Outlook

Key Financial Highlights

• Q2 2026 Net Sales: Net sales increased by 7.5% year-over-year, demonstrating robust topline growth across all business segments.
• EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew 13.8% to \$1.43 billion, representing 21.1% of net sales.
• Net Income: Reported net income for the quarter was \$843.6 million, up from \$503.9 million in Q2 2025.
• Diluted EPS: Diluted net income per share rose to \$3.43 from \$3.00, a 14.3% increase.
• Adjusted Diluted EPS: Adjusted diluted net income per share was \$3.70, compared to \$3.38 in the prior year.
• Free Cash Flow Conversion: Free cash flow conversion in the quarter was an impressive 86%.
• Shareholder Returns: The company returned \$1.46 billion to shareholders through dividends and share repurchases in the quarter.

Upgraded Guidance for Full Year 2026

• Net Sales Growth: Sherwin-Williams now expects net sales to grow by a “mid to high-single digit percentage” for the full year, reflecting strong momentum and confidence in continued demand.
• Diluted Net Income per Share: Upgraded guidance to a range of \$10.92 to \$11.32 per share, including Valspar acquisition-related amortization expense (\$0.81 per share) and restructuring charges (\$0.07 per share). This is up from \$10.26 in 2025.
• Adjusted Diluted Net Income per Share: Expected to be in the range of \$11.80 to \$12.20 versus \$11.43 in 2025.
• Effective Tax Rate: Guidance for a “low twenty percent” effective tax rate for the year.

Operational and Strategic Highlights

• Segment Performance: All three reportable segments exceeded guidance, driven by continued growth investments, new account wins, and increased share of wallet.
• Pricing Actions: The company implemented pricing increases to offset raw material inflation, protecting gross margins.
• Cash Generation: Sherwin-Williams generated \$1.49 billion in net operating cash in the first half of 2026.
• Share Repurchase: The company repurchased 5.6 million shares in the first half and has authorization to repurchase an additional 24 million shares.

Management Commentary

“We are pleased with our first-half performance and the momentum we are carrying into the second half of the year. Our updated outlook remains appropriately disciplined given the uncertain environment, but our confidence is grounded in the strength of our team, our customer relationships, our differentiated model and our proven ability to deliver,” said Heidi G. Petz, Chair, President, and CEO.

Conference Call Details

Sherwin-Williams will host a conference call at 10:00 a.m. EDT on July 28, 2026, to discuss financial results and the outlook for the remainder of the year. The webcast will be available in listen-only mode on the company’s website.

Price-Sensitive and Shareholder-Relevant Information

• Raised Guidance: The outlook upgrades for both GAAP and adjusted EPS are positive and may be seen as a potential share price catalyst.
• Cash Returns to Shareholders: The substantial dividend and buyback activity demonstrates ongoing commitment to shareholder value.
• Robust Operating Performance: Above-guidance results across all segments and strong cash generation may positively impact investor sentiment.
• Restructuring and Amortization Expenses: These are called out separately, suggesting that underlying operational performance is even stronger than the headline figures, after adjustments.
• Macro-Economic Risks: Management notes a challenging macro environment, but confidence in execution remains high.

Cautionary Note on Forward-Looking Statements

This article contains forward-looking statements based on current management expectations. Actual results may differ due to risks and uncertainties, including economic conditions, inflation, interest rates, labor costs, and other factors as disclosed in the company’s SEC filings.

Investor Relations Contacts

• Jim Jaye, Senior Vice President, Investor Relations & Corporate Communications, Direct: 216.515.8682, [email protected]
• Eric Swanson