Xylem Inc.

Worth knowing

• Shareholders being diluted. Shares outstanding up 30% from December 2022 to July 2026.

  Xylem had 30% more shares at July 2026 than at December 2022, mostly from issuing stock (for pay, acquisitions or fundraising). Each existing share now owns a smaller slice of the business.Xylem had 30% more shares at July 2026 than at December 2022, mostly from issuing stock. Each existing share now owns a smaller slice of the business.

• Stock pay outran buybacks. Stock-based pay expense $169M vs $60M spent repurchasing shares over the 3 fiscal years to 2025.

  Over three fiscal years Xylem recorded $169M of stock-based pay expense and spent $60M repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years Xylem recorded $169M of stock-based pay expense and spent $60M repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.

• Operating margin at a 6-year high. 14% in 2025, the best of the last 6 years.

  Xylem kept 14% of revenue as operating profit in 2025, its highest in the 6 years of filings we have.

• Profits growing faster than sales. Since 2022: revenue +64%, operating profit +97%.

  Since 2022, Xylem's revenue grew 64% while operating profit grew 97%: each extra dollar of sales is adding more profit.