A fixed rule set over this filing's XBRL figures and the number of high-severity risks found in it — no model judgement.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
In Q2 FY2026, Sherwin-Williams delivered 7.5% revenue growth to $6.789B and 14.3% diluted EPS growth to $3.43, supported by higher sales across all segments and the Suvinil acquisition, although raw-material inflation, higher interest costs, and weaker working-capital metrics remained notable constraints. Source: 10-Q Item 2 MD&A, pp.27-34
Revenue
$6.79B
+7.52% YoY
EPS (Diluted)
$3.43
+14.33% YoY
Gross Margin
49.2%
-0.2 pts YoY
Filed · Source: SEC EDGAR 10-Q filing
Sherwin Williams (SHW) reported Q2 FY2026 revenue of $6.79B, up 7.5% year over year. The company posted net income of $843.6M, up 11.8% from a year earlier, with diluted EPS of $3.43. Gross margin was 49.2%. SHW's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
SHW grew Q2 FY2026 revenue 7.5% to $6.789B and diluted EPS 14.3% to $3.43, while facing input-cost inflation, higher debt costs, and a 0.73 current ratio. Source: 10-Q Item 2 MD&A, pp.27-34
Last 4 quarters: 4 beats
Adjusted (non-GAAP) EPS of $3.70 versus the $3.55 analyst consensus — a +4.1% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $3.43.
Quarterly net sales increased 7.5% to $6.789B. Paint Stores Group sales rose 5.1% to $3.890B, Consumer Brands Group sales rose 21.5% to $983.5M, and Performance Coatings Group sales rose 6.3% to $1.914B. Management attributed Consumer Brands growth primarily to the October 2025 Suvinil acquisition, North American sales growth, and a 1.6% favorable foreign-currency effect.
Source: 10-Q Item 2 MD&A, p.28
Paint Stores Group sales growth reflected mid-single-digit percentage price increases and low-single-digit volume growth. Sales from stores open more than 12 calendar months increased 4.2% in the quarter, with professional end-market growth led by protective and marine, commercial, and residential repaint.
Source: 10-Q Item 2 MD&A, p.28
Gross profit increased $219.7M to $3.338B, but gross margin slipped to 49.2% from 49.4%, primarily due to Suvinil's dilutive effect and moderately higher raw-material costs. SG&A increased 4.6% to $2.104B, slower than sales growth, reducing SG&A as a percentage of sales by 90 basis points to 31.0%.
Source: 10-Q Item 2 MD&A, pp.29-30
Diluted EPS rose 14.3% to $3.43, while income before income taxes increased 12.9% to $1.113B. Interest expense increased $23.5M to $135.9M because of higher short-term borrowings, higher long-term debt, and real-estate financing related to the new global headquarters.
Source: 10-Q Item 2 MD&A, pp.29-32
Management expects a "softer-for-longer" demand environment to continue in the second half of 2026, alongside inflation in raw materials, energy, logistics, and packaging. The company said it is pursuing incremental volume, pricing, and cost-out actions; it also reported $293.5M of cash and $1.969B of unused credit-facility capacity at June 30, 2026.
Source: 10-Q Item 2 MD&A, p.27
Current assets of $6.999B were below current liabilities of $9.627B, producing a current ratio of 0.73 and a working-capital deficit of $2.628B at June 30, 2026. Current liabilities increased faster than current assets, driven in part by higher short-term borrowings and the current portion of long-term debt; this can increase reliance on operating cash flow and borrowing capacity.
Source: 10-Q Item 2 MD&A, p.32
Total debt outstanding was $12.072B at June 30, 2026, including $2.246B of short-term borrowings, compared with $10.686B a year earlier. Quarterly interest expense increased $23.5M year over year to $135.9M, reflecting higher borrowings and financing related to the new global headquarters.
Source: 10-Q Item 2 MD&A, pp.30, 34
Management expects a softer demand environment to persist through the second half of 2026 and identified inflation in raw materials, energy, logistics, and packaging. These factors could constrain volume growth or margins if pricing and cost-out actions do not offset them.
Source: 10-Q Item 2 MD&A, p.27
Consumer Brands Group quarterly sales increased 21.5%, with 16.0 percentage points attributed to acquisitions and 1.6 percentage points to favorable currency translation. Management also said Suvinil diluted consolidated gross margin, indicating that the acquired business and foreign operations may affect reported growth, mix, and profitability.
Source: 10-Q Item 2 MD&A, pp.28-30
Stockholders' equity declined to $3.855B from $4.401B a year earlier, as share repurchases and dividends exceeded the offset from earnings over that period. During the first six months of 2026, the company returned $2.232B to shareholders through dividends and share repurchases, which reduces the equity cushion while debt remains elevated.
Source: 10-Q Item 2 MD&A, pp.32, 35
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-Q itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
See the SHW earnings preview — expected date, analyst estimates and what to watch →
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $6.79B | $6.31B | +7.52% |
Cost of Revenue | $3.45B | $3.2B | +7.98% |
Gross Profit | $3.34B | $3.12B | +7.05% |
Net Income | $843.6M | $754.7M | +11.78% |
EPS (Basic) | $3.46 | $3.04 | +13.82% |
EPS (Diluted) | $3.43 | $3.00 | +14.33% |
SG&A Expense | $2.1B | $2.01B | +4.58% |
Sherwin-Williams reported Q2 FY2026 revenue of $6.789B, up 7.5% year over year. Growth came from all three reporting segments: Paint Stores rose 5.1%, Consumer Brands rose 21.5%, and Performance Coatings rose 6.3%; Consumer Brands was helped by the Suvinil acquisition. Source: 10-Q Item 2 MD&A, p.28
Diluted EPS increased 14.3% to $3.43 and net income increased 11.8% to $843.6M, outpacing the 7.5% sales increase. However, gross margin eased to 49.2% from 49.4% due to Suvinil dilution and higher raw-material costs, while interest expense rose $23.5M to $135.9M. Source: 10-Q Item 2 MD&A, pp.29-32
Adjusted (non-GAAP) EPS of $3.70 versus the $3.55 analyst consensus — a +4.1% beat for Q2 FY2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $3.43.
SHW generated $1.487B of year-to-date operating cash flow and had $1.969B of unused credit-facility capacity, but its current ratio was 0.73 and total debt was $12.072B at June 30, 2026. Its working-capital deficit was $2.628B, so liquidity depends substantially on cash generation and available borrowing capacity. Source: 10-Q Item 2 MD&A, pp.27, 32, 34-35
Management said it expects a softer-for-longer demand environment to continue in the second half of 2026. It also expects inflation in raw materials, energy, logistics, and packaging, and plans to respond through volume initiatives, pricing, and cost-out actions. Source: 10-Q Item 2 MD&A, p.27
Expected release date, analyst estimates & what to watch
Sherwin-Williams delivered solid Q1 2026 results with revenue growing 6.8% YoY to $5.67B and net income rising 6.1% to $534.7M, driven by gross margin expansion to 49.1%, though SG&A costs surged 9.8% and the current ratio remains below 1.0x.
Sherwin-Williams delivered modest revenue growth of 2.1% to $23.6B in FY2025, but net income declined 4.2% to $2.6B as higher SG&A expenses and increased debt weighed on profitability, while operating cash flow improved strongly by 9.5%.
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