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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 full-year diluted earnings-per-share guidance but kept its forecast for mid- to high-single-digit sales growth unchanged, citing muted demand ahead.
Sherwin-Williams reported third-quarter 2026 net sales of $6.86 billion, an increase of 7.9% from the year-earlier quarter, and raised its full-year diluted earnings-per-share outlook. Net income declined 1.5% to $821 million, as the paint and coatings company cited higher raw-material and supply-chain costs, product mix and a challenging demand environment.
The company said sales rose across all three reportable segments. It attributed the increase primarily to higher sales in those businesses, the impact of its October 2025 acquisition of Brazilian coatings maker Suvinil, and selling-price increases. Pricing contributed a mid-single-digit percentage to sales, according to the company. The report did not provide a separate dollar contribution for the acquisition or pricing.
Adjusted EBITDA increased 3.3% to $1.40 billion, or 20.5% of net sales. Net income was $821 million, equal to 12.0% of sales. Chief Executive Officer Heidi G. Petz said gross margin was affected by higher raw-material and supply-chain costs and by mix, including Suvinil’s dilutive impact and faster growth in lower-margin segments. She said year-to-date gross margin, excluding Suvinil’s dilution, was flat against the comparable period a year earlier.
Sherwin-Williams revised its 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 increase by a mid- to high-single-digit percentage compared with 2025. The company also said it returned $749 million to shareholders during the quarter through dividends and share repurchases.
Higher Sales, Lower Net Income
The results show that sales growth did not translate into higher reported net income in the quarter. Sales benefited from contributions across the segments, the Suvinil acquisition and pricing, while the company pointed to cost inflation and sales mix as pressures on gross margin. Adjusted EBITDA rose, but at a slower rate than net sales, and net income edged down.
The higher earnings forecast alongside an unchanged sales outlook is a key distinction for investors and customers tracking the company’s performance. Sherwin-Williams expects stronger diluted earnings per share than it had previously forecast, but it has not raised its projected rate of annual sales growth. The guidance change alone does not explain how much reflects operating performance, share repurchases or other factors; the supplied report does not provide a breakdown.
Management’s comments also indicate that demand remains a concern despite the quarter’s sales increase. Petz said customer sentiment and the company’s leading indicators point to muted demand through the rest of 2026 and into 2027. That outlook may influence expectations for sales volumes, pricing and cost management, but the company did not quantify the anticipated demand trend.
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Acquisition and Pricing Behind Growth
The quarter’s sales increase came from a combination of factors rather than a single reported driver. Sherwin-Williams said sales were higher in each reportable segment, while the October 2025 acquisition of Suvinil added to consolidated results. The company also said selling-price increases contributed a mid-single-digit percentage to net sales. The source report does not specify whether that figure refers to the year-over-year change or provide segment-level sales growth.
Gross margin is relevant to understanding why net income moved in a different direction from revenue. In Petz’s account, costs tied to raw materials and the supply chain, along with business mix, weighed on the quarter. Suvinil’s contribution to sales also diluted gross margin, she said. At the same time, the company reported that selling, general and administrative expenses as a percentage of sales decreased, which it linked to efficiency efforts.
The guidance change compares the new full-year diluted net income per share range of $11.85 to $12.15 with the prior range of $10.92 to $11.22. The company did not change its stated sales-growth range: it still expects full-year 2026 consolidated net sales to be up by a mid- to high-single-digit percentage from full-year 2025.
“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
Demand and Margin Outlook
The results and guidance do not specify how much of the sales increase came from Suvinil, pricing or underlying volume changes. Sherwin-Williams described underlying market volumes as muted, but did not provide a numerical volume measure or a segment-by-segment breakdown in the source report.
It is also unclear how the company’s raised EPS range relates to specific drivers, including cost reductions, pricing, share repurchases or changes in operating expectations. The report provides no detailed bridge between the old and new forecasts. The full-year sales outlook remains a range described as mid- to high-single-digit growth, rather than a precise percentage.
Management’s forecast of muted demand into 2027 is an outlook, not a confirmed result. The report does not identify which end markets or regions may be most affected, nor give a specific forecast for future margins or raw-material and supply-chain costs.
Company Watches Demand Through 2027
Sherwin-Williams’ next results and guidance updates will show whether sales growth continues across its segments and whether its higher EPS forecast is supported by operating results. Investors will also be able to track the effects of pricing, cost actions and the Suvinil acquisition on margins and earnings.
For now, the company says it expects full-year 2026 sales to grow by a mid- to high-single-digit percentage from 2025 and sees muted demand continuing into 2027. No further forecast detail or specific date for the next results release was included in the source report.
Key Questions
How much did Sherwin-Williams’ net sales increase in Q3 2026?
Net sales increased 7.9% to $6.86 billion compared with the year-earlier quarter, according to the company’s reported results.
Did Sherwin-Williams’ net income also rise?
No. Net income fell 1.5% to $821 million, or 12.0% of net sales. Adjusted EBITDA, a separate measure, increased 3.3% to $1.40 billion.
What changed in the company’s 2026 earnings outlook?
Sherwin-Williams raised its full-year diluted net income per share guidance to $11.85 to $12.15, from $10.92 to $11.22.
Did the company raise its full-year sales forecast?
No. It kept its forecast for consolidated net sales to rise by a mid- to high-single-digit percentage compared with full-year 2025.
What factors did the company cite for the sales increase?
The company cited higher sales in all three reportable segments, the October 2025 acquisition of Suvinil and selling-price increases. It said pricing contributed a mid-single-digit percentage to sales but did not give a separate dollar breakdown.
Source: rss
