The raised guidance and strong Q2 beat signal accelerating share gains and pricing power. Watch for continued raw material inflation and demand commentary on the July 28 call; the 8% PSG price hike effective Sep 1 supports margin recovery in H2.
Price Chart
Executive Summary
Sherwin-Williams reported Q2 2026 adjusted diluted EPS of $3.70, a 5.1% beat vs the $3.52 consensus, on revenue of $6.79B (7.5% YoY growth, above the $6.60B estimate). The company raised full-year 2026 adjusted EPS guidance to $11.80-$12.20 (from $11.50-$11.90) and now expects net sales up mid-to-high single digits. Strong execution across all three segments and a $1.46B return to shareholders via dividends and buybacks reinforce the bullish read-through, though management flagged ongoing demand softness and raw material inflation.
Key Financial Metrics
Key Facts
- Q2 2026 adjusted diluted EPS of $3.70 beat consensus of $3.52 by 5.1%
- Revenue of $6.79B grew 7.5% YoY, above the $6.60B consensus estimate
- Full-year 2026 adjusted EPS guidance raised to $11.80-$12.20 from $11.50-$11.90
- Full-year 2026 net sales guidance raised to up mid-to-high single digits from low-to-mid single digits
- Paint Stores Group same-store sales grew 4.2% vs 0.8% a year ago
- EBITDA rose 13.8% to $1.43B; adjusted EBITDA margin expanded 60bps to 21.5%
- Free cash flow conversion was 86% in Q2; $1.46B returned to shareholders YTD
- Restructuring actions taken in Q2 expected to generate ~$17M in annual savings
- Announced an 8% price increase in Paint Stores Group effective September 1
Financial Impact
EPS beat of $0.18 (5.1%) on $6.79B revenue; raised FY guidance midpoint by $0.30 to $12.00 adjusted EPS
Risk Factors
- Ongoing demand softness in most end markets with no meaningful recovery expected
- Broad-based cost inflation across raw materials, energy, logistics, and packaging
- Geopolitical uncertainty and potential tariff impacts on international operations
- Higher interest expense from increased short-term borrowings and long-term debt
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000089800-26-000046 |
| Document: shw-20260728.htm | 0000089800-26-000046 |
| Document: 0000089800-26-000046-index-headers.html | 0000089800-26-000046 |
| Document: 0000089800-26-000046-index.html | 0000089800-26-000046 |
| Document: 0000089800-26-000046.txt | 0000089800-26-000046 |
| 8-K Data (Synthetic) | 0000089800-26-000046 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 28, 2026 9w ago | 8-K | $354.27 $350.45 | ▼ −1.08% | ▼ −4.46% | $320.35 (−9.57%) |
Jul 22, 2026 10w ago | Press Release | $319.91 $353.59 | ▲ +10.53% | ▲ +7.63% | $320.35 (+0.14%) |
Jun 9, 2026 16w ago | 8-K | $310.55 $342.26 | ▲ +10.21% | ▲ +8.76% | $320.35 (+3.16%) |
May 6, 2026 21w ago | Court Ruling | $323.63 $300.09 | ▼ −7.27% | ▼ −10.44% | $320.35 (−1.01%) |
Mar 11, 2026 29w ago | DEFA14A | $322.55 $335.64 | ▲ +4.06% | ▲ +3.54% | $320.35 (−0.68%) |
Feb 28, 2026 30w ago | Institutional Cluster | $355.78 $315.64 | ▼ −11.28% | ▼ −3.34% | $320.35 (−9.96%) |
Jan 29, 2026 35w ago | Court Ruling | $354.58 $362.59 | ▲ +2.26% | ▲ +3.42% | $320.35 (−9.65%) |
US Market Status
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