Sherwin-Williams Company (NYSE:SHW) shares are trading higher on Tuesday after the company reported second-quarter results that topped Wall Street expectations and raised FY26 guidance.
The paint and coatings maker reported adjusted EPS of $3.70, beating the consensus estimate of $3.52. Revenue stood at $6.789 billion, ahead of the consensus of $6.602 billion.
Earnings Snapshot
Net sales rose 7.5% year over year (Y/Y), driven by a 4.2% Y/Y increase in same-store sales at its Paint Stores Group.
Adjusted EBITDA grew 10.5% Y/Y to $1.46 billion, with an adjusted EBITDA margin expansion of 60bps Y/Y to 21.5% in the quarter.
Operating cash flow rose 21% Y/Y to $1.35 billion, and free cash flow conversion reached 86%.
CEO Heidi Petz added that sales exceeded guidance across all three business segments, supported by growth initiatives, new customer wins, and a larger share of existing customer spending despite uncertainty and “no meaningful improvement in demand.”
During the quarter, Sherwin-Williams returned $1.46 billion to shareholders through dividends and share repurchases. As of June 30, 2026, Sherwin-Williams had authorization remaining to repurchase up to 24.0 million shares of its common stock.
On July 22, the Board of Directors disclosed a quarterly dividend of 80 cents per share, payable on Sept. 11, 2026, to shareholders of record on Aug. 21, 2026.
Segment Performance Shows Broad Growth
Paint Stores Group (PSG) sales grew 5.1% Y/Y to $3.89 billion, driven by mid-single-digit pricing increases and low-single-digit volume growth. Revenue improved across all professional customer segments, led by a double-digit increase in protective and marine coatings, high-single-digit growth in commercial markets, and mid-single-digit growth in residential repaint.
Performance Coatings Group (PCG) sales increased 6.3% Y/Y to $1.91 billion on pricing gains, volume growth, and a 2.0% positive impact from foreign currency translation. Growth was broad-based, with General Industrial and Automotive Refinish each rising high-single digits, while Packaging, Industrial Wood, and Coil businesses grew mid-single digits.
Consumer Brands Group (CBG) revenue surged 21.5% Y/Y to $983.5 million, benefiting from the Suvinil acquisition, stronger North American sales, and a 1.6% benefit from favorable foreign currency translation.
Management Commentary & Outlook Boost
Petz noted that while demand indicators suggest continued softness in the second half, the company remains focused on improving productivity, controlling costs, and strengthening customer relationships.
The company implemented restructuring actions expected to deliver approximately $17 million in annual savings and continues to address inflationary pressures across raw materials, energy, logistics, and packaging through pricing actions. Sherwin-Williams announced an 8% price increase in its Paint Stores Group effective Sept. 1.
The company also raised its full-year 2026 adjusted EPS guidance to $11.80-$12.20 from its prior outlook of $11.50-$11.90, above the consensus estimate of $11.76.
Also, the company increased GAAP EPS guidance to $10.92-$11.32 from its previous range of $10.70-$11.10. The updated outlook is above the consensus analyst estimate of $11.06 per share. The GAAP outlook includes $0.81 per share of Valspar acquisition-related amortization and $0.07 per share in severance and restructuring costs.
SHW Stock Price Activity: Sherwin-Williams shares were up 8.34% at $354.55 on Tuesday, according to Benzinga Pro data.
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