Sherwin-Williams sales rise 7.9% to $6.86 billion, and it revises 2026 per-share guidance

The Sherwin-Williams Company (SHW) said Tuesday that third-quarter net sales rose 7.9% to $6.86 billion from $6.36 billion a year earlier. Net income fell 1.5% to $821.0 million over the same period.

The company said in a filing that the results cover the quarter ended Sept. 30, 2026, and were released in a press release furnished with the report.

Here's how the company did:

• Diluted net income per share: $3.38 vs. $3.35 a year earlier
• Adjusted diluted net income per share: $3.63 vs. $3.59 a year earlier
• Revenue: $6.86 billion vs. $6.36 billion a year earlier
• Net income: $821.0 million vs. $833.1 million a year earlier

Adjusted diluted net income per share excludes Valspar acquisition-related amortization and severance and other restructuring expenses.

EBITDA, or earnings before interest, taxes, depreciation and amortization, rose 3.4% to $1.39 billion, or 20.3% of net sales. Adjusted EBITDA rose 3.3% to $1.40 billion, or 20.5% of net sales.

Gross profit was 47.8% of net sales, down from 49.2% a year earlier. Selling, general and administrative expenses fell to 30.2% of net sales from 30.7%.

Net sales increased primarily because of higher sales in all three reportable segments, including the October 2025 acquisition of Suvinil. Selling price increases affected net sales by a mid-single digit percentage, the company said.

Income before income taxes rose 0.3% to $1,063.5 million. Higher raw material and supply chain costs, Suvinil-related selling, general and administrative expenses and higher interest expense offset the sales gain. Interest expense was $139.3 million, up from $117.2 million.

“Sherwin-Williams third quarter performance demonstrated the resilience of our Company and the strength of our strategy in a challenging demand environment,” Chair, President and Chief Executive Officer Heidi G. Petz said. “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.”

Petz said gross margin was primarily affected by higher raw material and supply chain related costs and by mix, including dilution from Suvinil. Excluding that dilution, the company's year-to-date gross margin is flat compared with the prior year.

Segment results

Paint Stores Group net sales rose 4.7% to $4,015.8 million from $3,836.8 million. Segment profit rose 2.1% to $974.3 million, and same-store sales rose 3.9%, from 3.6% a year earlier.

The company said net sales increased in all professional customer end markets. Protective and marine rose a double digit percentage, commercial a high-single digit percentage and residential repaint a mid-single digit percentage.

Consumer Brands Group net sales rose 21.7% to $937.4 million, mainly because of the Suvinil acquisition. Segment profit fell 7.1% to $146.2 million, and the reported segment margin was 15.6%, down from 20.4%.

Performance Coatings Group net sales rose 8.8% to $1,903.3 million. Segment profit rose 6.2% to $255.2 million, with General Industrial, Packaging and Coil each posting a double digit percentage sales increase.

Valspar acquisition-related amortization was $0.21 per share in the third quarter of 2026, compared with $0.20 a year earlier. Severance and other restructuring expenses were $0.04 per share in both periods.

Guidance and cash returns

The company revised its full-year 2026 diluted net income per share guidance to $10.92 to $11.22 per share, compared with $10.26 per share in 2025. It narrowed adjusted diluted net income per share guidance to $11.85 to $12.15 per share, against $11.43 per share in 2025. The filing does not state the earlier guidance ranges.

The company maintained its full-year 2026 net sales guidance. It expects consolidated net sales to rise a mid to high-single digit percentage for the year and a mid-single digit percentage in the fourth quarter, both compared with 2025.

“Customer sentiment and the leading indicators we track point to muted demand over the remainder of the year and into 2027,” Petz said.

For the first nine months, the company generated $2.59 billion in net operating cash. It returned $2.98 billion to shareholders through dividends and repurchases of 7.1 million shares, including $749.0 million in the third quarter.

At Sept. 30, the company had remaining authorization to buy 22.5 million shares on the open market. Long-term debt was $7,942.7 million, down from $9,318.1 million a year earlier.

Nine-month net sales were $19.32 billion, up from $17.98 billion. Nine-month diluted net income per share was $8.95, up from $8.34.

The company will host a conference call at 10:00 a.m. EDT on Tuesday to discuss the results and its fourth-quarter and full-year outlook. Petz and other senior executives will take part.