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Sherwin-Williams reported third-quarter 2026 net sales of $6.86 billion, up 7.9% from a year earlier, while net income fell 1.5% to $821 million. The company raised its full-year diluted earnings-per-share guidance but kept its sales outlook unchanged, citing muted demand ahead.
Sherwin-Williams reported third-quarter 2026 net sales of $6.86 billion, up 7.9% from the year-earlier quarter, and raised its full-year diluted earnings-per-share outlook while keeping its sales forecast unchanged. The paint and coatings company said sales growth reflected higher sales across all three reportable segments, contributions from its Suvinil acquisition and selling-price increases; quarterly net income fell 1.5% to $821 million.
The company’s third-quarter net income was $821 million, equal to 12.0% of net sales. Adjusted EBITDA rose 3.3% to $1.40 billion, or 20.5% of sales, according to the results reported by Hardware Retailing. Sherwin-Williams attributed the sales increase primarily to higher net sales in all three reportable segments. Its October 2025 acquisition of Brazilian paint maker Suvinil and price increases also contributed; the company said pricing affected sales by a mid-single-digit percentage.
Chief executive Heidi G. Petz said underlying market volumes remained muted, even as the company reported sales growth across its segments. She cited higher raw-material and supply-chain costs, along with product and segment mix, as factors weighing on gross margin. The Suvinil acquisition and faster growth in lower-margin segments also diluted the margin, she said. The company reported that SG&A expenses as a percentage of sales declined in the quarter, reflecting efficiency efforts.
Sherwin-Williams raised its 2026 diluted net income per share guidance to $11.85-$12.15, from a previous range of $10.92-$11.22. It maintained its full-year sales outlook, expecting consolidated net sales to increase by a mid- to high-single-digit percentage compared with 2025. Petz also said the company returned $749 million to shareholders during the quarter through dividends and share repurchases.
Higher Sales, Lower Net Income
The results show sales growth alongside pressure on profitability: net sales rose 7.9%, but net income declined 1.5%. That distinction matters to investors and customers watching whether higher prices, acquired revenue and operating efficiencies can offset rising input costs and changes in the mix of products and markets sold.
The increased earnings guidance signals that management now expects higher full-year diluted earnings per share than it forecast previously, while leaving its sales-growth expectation intact. The outlook is not a promise of stronger demand: Petz said customer sentiment and leading indicators point to muted demand through the rest of 2026 and into 2027. The company’s ability to manage costs and sustain growth in that setting will shape whether the revised earnings range is met.
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Acquisition and Pricing Lift Sales
Sherwin-Williams operates through three reportable segments, and the company said sales increased in each during the quarter. The reported growth also includes the contribution from Suvinil, acquired in October 2025, meaning the comparison reflects both business performance and a change in the company’s portfolio. The source report does not provide segment-by-segment sales figures or quantify the acquisition’s contribution to the 7.9% increase.
The company also attributed part of the sales increase to price rises, which it said affected net sales by a mid-single-digit percentage. Sales growth therefore does not, by itself, establish that the volume of paint and coatings sold increased. Petz described market volumes as muted and said higher raw-material and supply-chain costs affected gross margin. She added that year-to-date gross margin, excluding Suvinil’s dilutive impact, was flat against the prior year.
““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
Demand and Segment Detail
The source report does not specify how much of the 7.9% sales increase came from pricing, Suvinil or changes in sales volume, nor does it give the individual results for each reportable segment. The company’s description of muted market volumes is management’s assessment; the supplied figures do not quantify market demand or provide a breakdown of unit sales.
It is also not clear from the report what assumptions underpin the higher earnings-per-share guidance, or how costs and demand may change in the final quarter. Sherwin-Williams maintained its annual sales range, but the results supplied here do not include a detailed forecast for the fourth quarter.
Tracking the Revised 2026 Outlook
The next key test is whether Sherwin-Williams can deliver within its revised $11.85-$12.15 diluted EPS range and its existing forecast for mid- to high-single-digit annual sales growth. Investors will look for the company’s next results and guidance for details on segment performance, pricing, volumes, raw-material and supply-chain costs, and the contribution from Suvinil.
Management says it plans to focus on customer service, pricing, cost reductions and profitable growth while demand remains muted. The company has not provided further milestones or a specific date for its next results in the supplied report.
Key Questions
How much did Sherwin-Williams’ sales increase in Q3 2026?
Consolidated net sales rose 7.9% to $6.86 billion compared with the third quarter of 2025.
Did net income also increase?
No. Sherwin-Williams reported net income of $821 million, down 1.5% from the year-earlier quarter. Adjusted EBITDA increased 3.3% to $1.40 billion.
Why did sales rise?
The company cited higher net sales in all three reportable segments, the October 2025 Suvinil acquisition and selling-price increases. It said pricing affected sales by a mid-single-digit percentage but did not quantify each factor’s contribution.
What changed in the company’s 2026 forecast?
Sherwin-Williams raised its diluted net income per share guidance to $11.85-$12.15 from $10.92-$11.22. It kept its sales forecast unchanged, expecting sales to rise by a mid- to high-single-digit percentage compared with 2025.
What does Sherwin-Williams expect for demand?
CEO Heidi G. Petz said customer sentiment and the company’s leading indicators point to muted demand for the rest of 2026 and into 2027. The supplied report does not quantify expected market volumes.
Source: rss
