Sherwin-Williams Q3 sales beat estimates on higher pricing

Overview

• U.S. paint and coatings maker's Q3 sales rose 7.9%, beating analyst expectations

• Adjusted EPS for Q3 rose 1.1% but missed analyst expectations

• Company margin pressured by higher raw material and supply chain costs

Outlook

• Company expects Q4 net sales to rise mid-single digit % vs prior year

• Sherwin-Williams sees 2026 full-year net sales up mid to high-single digit %

• Company narrows 2026 adjusted diluted EPS guidance to $11.85-$12.15

Result Drivers

• SELLING PRICE INCREASES - Co said higher selling prices contributed to sales growth across all segments

• SUVINIL ACQUISITION - Acquisition of Suvinil drove sales growth in Consumer Brands Group

• HIGHER COSTS - Gross margin was pressured by increased raw material and supply chain costs, and mix effects including Suvinil acquisition

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 13 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the commodity chemicals peer group is "buy"

• Wall Street's median 12-month price target for Sherwin-Williams Co is $396.00, about 18.2% above its October 26 closing price of $335.16

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 28 three months ago

Reuters Recommended Reads

• Oct 26 - Simpson Manufacturing Q3 sales beat estimates, aided by pricing actions

• Oct 26 - Nucor beats Q3 sales estimates on steel mills unit growth

• Oct 26 - Steelmaker Gerdau's profit rises 40% in Q3 on strong North America operations

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)