The Sherwin-Williams Company Reports 2026 Third Quarter Financial Results

Sales increased across all three segments, but gross margin narrowed and net income declined 1.5% year over year.

Rhea-AI Summary

Sherwin-Williams (SHW) reported third-quarter 2026 sales of $6.86 billion, with growth across all three segments and higher diluted earnings per share. Sales rose 7.9% year over year, while diluted earnings per share increased 0.9% to $3.38. Net income fell 1.5% to $821.0 million, and gross margin declined to 47.8% from 49.2%.

Paint Stores sales rose 4.7%, including 3.9% growth at stores open more than twelve calendar months. Consumer Brands sales increased 21.7%, but segment profit fell 7.1%. Performance Coatings sales grew 8.8%, with segment profit up 6.2%. Sherwin-Williams expects full-year diluted earnings per share of $10.92–$11.22 and adjusted earnings per share of $11.85–$12.15, while maintaining its sales growth outlook of a mid to high-single digit percentage. It returned $2.98 billion through dividends and share repurchases during the first nine months.

27 points · 0 major

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0 major · 14 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter sales increased 7.9% year over year to $6.86 billion.
• Moderate pointDiluted earnings per share rose 0.9% to $3.38 from $3.35 in third-quarter 2025.
• Moderate pointThird-quarter EBITDA, earnings before interest, taxes, depreciation and amortization, increased 3.4% to $1.39 billion.
• Moderate pointPaint Stores sales increased 4.7% to $4,015.8 million; same-store sales grew 3.9% in the third quarter.
• Moderate pointPaint Stores segment profit increased 2.1% year over year to $974.3 million.
• Moderate pointConsumer Brands sales increased 21.7% year over year to $937.4 million, primarily driven by Suvinil.
• Moderate pointPerformance Coatings sales increased 8.8% year over year to $1,903.3 million.
• Moderate pointPerformance Coatings segment profit increased 6.2% year over year to $255.2 million.
• Moderate pointNet operating cash generated during the first nine months of 2026 totaled $2.59 billion.
• Moderate pointShareholder returns totaled $2.98 billion through dividends and repurchases of 7.1 million shares during nine months. 3.7% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter 2026 sales are expected to increase by a mid-single digit percentage versus fourth-quarter 2025.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 diluted earnings guidance is $10.92–$11.22 per share, compared with $10.26 in 2025.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 adjusted diluted earnings guidance narrowed to $11.85–$12.15 per share, versus $11.43 in 2025.

14 minor points

• Minor pointAdjusted diluted earnings per share increased 1.1% to $3.63 from $3.59 in third-quarter 2025.
• Minor pointAdjusted EBITDA increased 3.3% year over year to $1.40 billion in the third quarter.
• Minor pointGross profit increased to $3,277.2 million from $3,125.5 million in third-quarter 2025.
• Minor pointSelling, general and administrative expenses as a share of sales fell to 30.2% from 30.7% year over year.
• Minor pointPaint Stores sales volumes grew by a low-single digit percentage in the third quarter.
• Minor pointPaint Stores professional end markets all grew, led by a double digit percentage increase in protective and marine.
• Minor pointPerformance Coatings adjusted segment profit increased 4.7% year over year to $308.7 million.
• Minor pointPerformance Coatings sales volumes grew by a low-single digit percentage in the third quarter.
• Minor pointGeneral Industrial, Packaging and Coil sales each increased by a double digit percentage year over year.
• Minor pointRemaining share repurchase authorization covered 22.5 million shares at September 30, 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 sales guidance remains growth of a mid to high-single digit percentage versus 2025.
• Minor pointNine-month sales reached $19,316.2 million, versus $17,978.4 million in the prior-year period.
• Minor pointNine-month net income reached $2,199.3 million, versus $2,091.7 million in the prior-year period.
• Minor pointNine-month diluted earnings per share reached $8.95, versus $8.34 in the prior-year period.

Negative

• Moderate pointThird-quarter net income decreased 1.5% year over year to $821.0 million.
• Moderate pointThird-quarter gross margin declined to 47.8% from 49.2% in 2025.
• Moderate pointConsumer Brands segment profit fell 7.1% to $146.2 million; margin declined to 15.6% from 20.4%.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Demand is expected by management to remain muted through the remainder of 2026 and into 2027.
• Minor pointHigher raw material and supply chain costs weighed on profitability across all three segments.

9 minor points

• Minor pointInterest expense rose to $139.3 million from $117.2 million in third-quarter 2025, reflecting increased debt.
• Minor pointPaint Stores segment margin declined to 24.3% from 24.9% in third-quarter 2025.
• Minor pointConsumer Brands adjusted segment profit fell 4.4% to $171.4 million; adjusted margin declined to 18.3% from 23.3%.
• Minor pointSoft North American demand partially offset Consumer Brands sales growth in the third quarter.
• Minor pointSuvinil-related operating expenses and unfavorable currency transactions weighed on Consumer Brands profit.
• Minor pointPerformance Coatings segment margin declined to 13.4% from 13.7%; adjusted margin fell to 16.2% from 16.9%.
• Minor pointThird-quarter earnings charges included $0.21 per share of Valspar amortization and $0.04 of severance and restructuring.
• Minor point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 earnings guidance includes $0.82 per share of amortization and $0.11 of severance and restructuring expenses.
• Minor pointNine-month gross margin declined to 48.6% from 49.0% in the prior-year period.

News Explained

For the first nine months of 2026, Sherwin-Williams generated $2.59 billion in operating cash and returned $2.98 billion to shareholders; the return exceeded operating cash generation, and the company reports repurchasing 7.1 million shares.

Key Figures

Net sales: $6.86 billion, up 7.9% Diluted net income per share: $3.38, up 0.9% Adjusted diluted net income per share: $3.63, up 1.1% +4 more

Net sales

$6.86 billion, up 7.9%

Third quarter 2026 versus prior-year quarter

Diluted net income per share

$3.38, up 0.9%

Third quarter 2026 versus $3.35 in third quarter 2025

Adjusted diluted net income per share

$3.63, up 1.1%

Third quarter 2026 versus $3.59 in third quarter 2025

Net income

$821.0 million, down 1.5%

Third quarter 2026

Diluted net income per share guidance

$10.92–$11.22 per share

Full year 2026; includes specified acquisition-related amortization and restructuring expenses

Adjusted diluted net income per share guidance

$11.85–$12.15 per share

Full year 2026

Cash returned to shareholders

$749.0 million

Third quarter 2026, through dividends and share repurchases

Previous Earnings Reports

2 past events · Latest: Jul 28

Same Type 2 events

1. Jul 28

   Second-quarter earnings

   24h Move

   +8.3%

   Sales and diluted EPS grew, and full-year 2026 EPS guidance was raised.

2. Oct 28

   Third-quarter earnings

   24h Move

   +5.5%

   Third-quarter 2025 sales, diluted EPS, and adjusted EBITDA increased year over year.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

ebitda, sg&a, same-store sales, us gaap

4 terms

ebitda financial

"Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

sg&a financial

"incremental selling, general and administrative (SG&A) expenses"

SG&A stands for Selling, General, and Administrative expenses. It includes the costs a company spends on selling products, running the business day-to-day, and managing staff, like advertising, rent, and salaries. These expenses matter because they affect how much profit a company can make from its sales.

same-store sales financial

"Same-store sales represents Net sales from stores open more than twelve calendar months."

Same-store sales measure the revenue generated by stores that have been open for a certain period, typically a year, comparing their sales over different time frames. It helps assess whether a business is growing due to increased customer activity at existing locations rather than new stores. For investors, this figure indicates the health and performance of a company's core operations, independent of expansion efforts.

us gaap financial

"not in accordance with U.S. generally accepted accounting principles (US GAAP)"

U.S. GAAP is the set of official accounting rules and standards companies in the United States use to record and report their financial results. Like a common recipe book for financial statements, it makes company reports consistent and easier to compare, so investors can better judge profitability, risk and trends when deciding to buy, hold or sell shares.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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CLEVELAND, Oct. 27, 2026 /PRNewswire/ -- The Sherwin-Williams Company (NYSE: SHW) announced its financial results for the third quarter ended September 30, 2026. All comparisons are to the third quarter of the prior year, unless otherwise noted.

SUMMARY

• Consolidated Net sales increased 7.9% to $6.86 billion in the quarter
  • Net sales from stores in the Paint Stores Group open more than twelve calendar months increased 3.9% in the quarter
• Diluted net income per share increased 0.9% to $3.38 per share in the quarter compared to $3.35 per share in the third quarter of 2025
  • Adjusted diluted net income per share increased 1.1% to $3.63 per share in the quarter compared to $3.59 per share in the third quarter of 2025
• Net income decreased 1.5% in the quarter to $821.0 million, or 12.0% of Net sales
• Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) in the quarter increased 3.4% to $1.39 billion, or 20.3% of Net sales
  • Adjusted EBITDA in the quarter increased 3.3% to $1.40 billion, or 20.5% of Net sales
• Revising full year 2026 diluted net income per share guidance in the range of $10.92 to $11.22 per share, including Valspar acquisition-related amortization expense of $0.82 per share and severance and other restructuring expenses of $0.11 per share
  • Narrowing full year 2026 adjusted diluted net income per share guidance in the range of $11.85 to $12.15 per share

CEO REMARKS

"Sherwin-Williams third quarter performance demonstrated the resilience of our Company and the strength of our strategy in a challenging demand environment. 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, supported by the differentiated value and productivity our solutions deliver to customers. At the same time, we took disciplined pricing and cost actions to address inflationary pressures, thoughtfully timed with our customers in mind," said Chair, President and Chief Executive Officer, Heidi G. Petz. "Gross margin was primarily impacted in the quarter by higher raw material and supply chain related costs and by mix, including dilution from Suvinil and higher growth in lower margin reportable segments. Excluding the dilutive impact of the Suvinil acquisition, our year-to-date gross margin is flat compared to the prior year. SG&A as a percent of sales decreased in the quarter, as we continue to identify and implement efficiencies throughout our Company. Adjusted EBITDA and adjusted diluted earnings per share both grew over last year's third quarter levels. We returned $749.0 million to shareholders in the quarter through dividends and share repurchases. Our team remains focused on serving our customers and controlling what we can control to continue top and bottom-line growth."

THIRD QUARTER CONSOLIDATED RESULTS (in millions, except per share data)
	Three Months Ended September 30,
	2026		2025		$ Change		% Change
Net sales	$       6,860.0		$       6,358.2		$          501.8		7.9 %
Income before income taxes	$       1,063.5		$       1,060.5		$             3.0		0.3 %
Percent to Net sales	15.5 %		16.7 %
Net income per share - diluted	$           3.38		$           3.35		$            0.03		0.9 %
Adjusted net income per share - diluted	$           3.63		$           3.59		$            0.04		1.1 %

Consolidated Net sales increased primarily due to higher Net sales in all reportable segments, inclusive of the October 2025 acquisition of Suvinil, and selling price increases, which impacted Net sales by a mid-single digit percentage.

Income before income taxes increased slightly due to an increase in Net sales, partially offset by higher raw material and supply chain related costs, incremental selling, general and administrative (SG&A) expenses associated with Suvinil and higher costs in the Administrative function related to additional interest expense attributable to an increase in debt.

Diluted net income per share included a charge of $0.21 and $0.20 per share for Valspar acquisition-related amortization expense in the third quarter of 2026 and 2025, respectively. Diluted net income per share also included a charge of $0.04 per share related to severance and other restructuring expenses in both the third quarter of 2026 and 2025.

THIRD QUARTER SEGMENT RESULTS (in millions) Paint Stores Group (PSG)
	Three Months Ended September 30,
	2026		2025		$ Change		% Change
Net sales	$        4,015.8		$        3,836.8		$          179.0		4.7 %
Same-store sales (1)	3.9 %		3.6 %
Segment profit	$          974.3		$          954.3		$            20.0		2.1 %
Reported segment margin	24.3 %		24.9 %

(1)	Same-store sales represents Net sales from stores open more than twelve calendar months.

Net sales in PSG increased primarily due to selling price increases, which impacted Net sales by a mid-single digit percentage, as well as low-single digit percentage sales volume growth. Net sales increased in all professional customer end markets, led by a double digit percentage increase in protective and marine, a high-single digit percentage increase in commercial and a mid-single digit percentage increase in residential repaint. Segment profit increased primarily due to higher Net sales, partially offset by higher raw material and supply chain related costs and increased costs to support higher sales, including investments in additional sales reps and stores.

Consumer Brands Group (CBG)
	Three Months Ended September 30,
	2026		2025		$ Change		% Change
Net sales	$          937.4		$          770.1		$          167.3		21.7 %
Segment profit	$          146.2		$          157.3		$          (11.1)		(7.1) %
Reported segment margin	15.6 %		20.4 %
Adjusted segment profit (1)	$          171.4		$          179.3		$            (7.9)		(4.4) %
Adjusted segment margin	18.3 %		23.3 %

(1)

Adjusted segment profit equals Segment profit excluding the impact of Valspar acquisition-related amortization expense and severance and other restructuring expenses. In CBG, Valspar acquisition-related amortization expense was $15.5 million and $15.6 million in the third quarter of 2026 and 2025, respectively, and severance and other restructuring expenses were $9.7 million and $6.4 million in the third quarter of 2026 and 2025, respectively.

Net sales in CBG increased primarily as a result of the acquisition of Suvinil, favorable foreign currency translation and a positive shift in mix, partially offset by soft demand in North America. Segment profit decreased primarily due to higher raw material and supply chain costs, incremental SG&A expenses associated with the Suvinil acquisition and unfavorable foreign currency transaction gains and losses, partially offset by higher Net sales. Adjusted segment profit decreased for these same reasons.

Valspar acquisition-related amortization expense reduced Segment profit as a percent of Net sales by 170 and 200 basis points in the third quarter of 2026 and 2025, respectively. Severance and other restructuring expenses reduced Segment profit as a percent of Net sales by 100 and 90 basis points in the third quarter of 2026 and 2025, respectively.

Performance Coatings Group (PCG)
	Three Months Ended September 30,
	2026		2025		$ Change		% Change
Net sales	$        1,903.3		$        1,750.0		$          153.3		8.8 %
Segment profit	$          255.2		$          240.3		$            14.9		6.2 %
Reported segment margin	13.4 %		13.7 %
Adjusted segment profit (1)	$          308.7		$          294.9		$            13.8		4.7 %
Adjusted segment margin	16.2 %		16.9 %

(1)

Adjusted segment profit equals Segment profit excluding the impact of Valspar acquisition-related amortization expense and severance and other restructuring expenses. In PCG, Valspar acquisition-related amortization expense was $49.8 million and $49.5 million in the third quarter of 2026 and 2025, respectively, and severance and other restructuring expenses were $3.7 million and $5.1 million in the third quarter of 2026 and 2025, respectively.

Net sales in PCG increased primarily due to selling price increases, which impacted Net sales by a mid-single digit percentage, and low-single digit percentage sales volume growth. Net sales increased in all businesses, led by General Industrial, Packaging and Coil, which each increased by a double digit percentage, and Industrial Wood and Automotive Refinish, which each increased by a low-single digit percentage. Segment profit increased primarily due to higher Net sales, partially offset by higher raw material and supply chain related costs and an increase in employee-related costs to support higher sales. Adjusted segment profit increased for these same reasons, including a slight decrease in the expenses associated with targeted restructuring actions in the third quarter of 2026.

Valspar acquisition-related amortization expense reduced Segment profit as a percent of Net sales by 260 and 290 basis points in the third quarter of 2026 and 2025, respectively. Severance and other restructuring expenses reduced Segment profit as a percent of Net sales by 20 and 30 basis points in the third quarter of 2026 and 2025, respectively.

LIQUIDITY AND CASH FLOW

The Company generated $2.59 billion in Net operating cash and returned cash of $2.98 billion to our shareholders in the form of dividends and repurchases of 7.1 million shares of its common stock during the first nine months of 2026. At September 30, 2026, the Company had remaining authorization to purchase 22.5 million shares of its common stock through open market purchases.

2026 GUIDANCE

	Fourth Quarter		Full Year
	2026		2026
Net sales	Up mid-single digit %		Up mid to high-single digit %
Effective tax rate			Low twenty percent
Diluted net income per share			$10.92	-	$11.22
Adjusted diluted net income per share (1)			$11.85	-	$12.15

(1)	Excludes $0.82 per share of Valspar acquisition-related amortization expense and $0.11 per share of severance and other restructuring expenses incurred through September 30, 2026.

"Customer sentiment and the leading indicators we track point to muted demand over the remainder of the year and into 2027. As we navigate this environment, our focus remains clear: win in the marketplace, serve our customers, offset inflation, reduce costs and continue to deliver profitable growth and shareholder value," said Ms. Petz.

"Against this backdrop, we expect fourth quarter 2026 consolidated Net sales to increase by a mid-single digit percentage compared to the fourth quarter of 2025, resulting in us maintaining our full year 2026 sales guidance where consolidated Net sales are expected to be up a mid to high-single digit percentage compared to full year 2025. Diluted net income per share is expected to be in the range of $10.92 to $11.22 per share, including acquisition-related amortization expense of $0.82 per share and severance and other restructuring expenses of $0.11 per share, compared to $10.26 per share in 2025. Full year 2026 adjusted diluted net income per share is expected to be in the range of $11.85 to $12.15 per share compared to $11.43 per share in 2025. We remain highly confident in our ability to deliver through current conditions while building an even stronger Sherwin-Williams for the future."

CONFERENCE CALL INFORMATION

The Company will host a conference call to discuss its financial results for the third quarter, and its outlook for the fourth quarter and full year 2026, at 10:00 a.m. EDT on Tuesday, October 27, 2026. Heidi G. Petz, Sherwin-Williams' Chair, President and Chief Executive Officer, along with other senior executives, will participate on the call.

The conference call will be webcast simultaneously in listen only mode. To listen to the webcast on the Sherwin-Williams website, click on https://investors.sherwin-williams.com/financials/quarterly-results/, then click on the webcast icon following the reference to the Q3 webcast. An archived replay of the webcast will be available at https://investors.sherwin-williams.com/financials/quarterly-results/ beginning approximately two hours after the call ends.

ABOUT THE SHERWIN-WILLIAMS COMPANY

Founded in 1866, The Sherwin-Williams Company is a global leader in the manufacture, development, distribution, and sale of paint, coatings and related products to professional, industrial, commercial and retail customers. The Company manufactures products under well-known brands such as Sherwin-Williams^®, Valspar^®, HGTV HOME^® by Sherwin-Williams, Dutch Boy^®, Krylon^®, Minwax^®, Thompson's^® WaterSeal^®, Cabot^®, Suvinil^® and many more. With global headquarters in Cleveland, Ohio, Sherwin-Williams^® branded products are sold exclusively through a chain of more than 5,400 Company-operated stores and branches, while the Company's other brands are sold through leading mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers and industrial distributors. The Sherwin-Williams Performance Coatings Group supplies a broad range of highly-engineered solutions for the construction, industrial, packaging and transportation markets in more than 120 countries around the world. Sherwin-Williams shares are traded on the New York Stock Exchange (symbol: SHW). For more information, visit www.sherwin.com.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Certain statements contained in this press release constitute "forward-looking statements" within the meaning of federal securities laws. These forward-looking statements are based upon management's current expectations, predictions, estimates, assumptions and beliefs concerning future events and conditions and may relate to, among other things, anticipated future performance (including sales and earnings), expected growth, and future business plans. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as "anticipate," "aspire," "believe," "could," "estimate," "expect," "goal," "intend," "may," "plan," "potential," "project," "seek," "should," "strive," "target," "will," or "would" or the negative thereof or comparable terminology.

Readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside our control, that could cause actual results to differ materially from such statements and from our historical results, performance and experience. These risks, uncertainties and other factors include such things as: general business and economic conditions in the United States and worldwide; inflation rates, interest rates, unemployment rates, labor costs, healthcare costs, recessionary conditions, geopolitical conditions, terrorist activity, armed conflicts and wars, public health crises, pandemics, outbreaks of disease and supply chain disruptions; shifts in consumer behavior driven by economic downturns in cyclical segments of the economy; shortages and increases in the cost of raw materials and energy; catastrophic events, adverse weather conditions and natural disasters (including those that may be related to climate change); disruptions to our information technology systems, including due to digitization efforts or cybersecurity incidents; our ability to attract, retain, develop and progress a qualified global workforce; the loss of any of our largest customers; increased competition or failure to keep pace with developments in key competitive areas of our business; our ability to successfully integrate past and future acquisitions, into our existing operations; risks and uncertainties associated with our expansion into and our operations in South America, Asia, Europe and other foreign markets; policy changes affecting international trade, including import/export restrictions and tariffs; our ability to achieve our strategies or expectations relating to sustainability considerations, including as a result of evolving legal, regulatory and other standards, processes and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite suppliers, energy sources, or financing and changes in carbon markets and carbon accounting rules; damage to our business, reputation, image or brands due to negative publicity; the infringement or loss of our intellectual property rights or the theft or unauthorized use of our trade secrets or other confidential business information; a weakening of global credit markets or changes to our credit ratings; our ability to generate cash to service our indebtedness; fluctuations in foreign currency exchange rates and changing monetary policies; our ability to comply with a variety of complex U.S. and non-U.S. laws, rules and regulations; increases in tax rates, or changes in tax laws or regulations; our ability to comply with numerous, complex and increasingly stringent domestic and foreign health, safety and environmental laws, regulations and requirements; our liability related to environmental investigation and remediation activities at some of our currently- and formerly-owned sites; the nature, cost, quantity and outcome of pending and future litigation, including lead pigment and lead-based paint litigation; and the other risk factors discussed in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025 and our other reports filed with the SEC.

Readers are cautioned that it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results and that the above list should not be considered a complete list. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as otherwise required by law.

INVESTOR RELATIONS CONTACT:

Jim Jaye                                                                              

Senior Vice President, Investor Relations & Corporate Communications
Sherwin-Williams                                
Direct: 216.515.8682
investor.relations@sherwin.com

MEDIA CONTACT:

Julie Young

Vice President, Global Corporate Communications
Sherwin-Williams
Direct: 216.515.8849
corporatemedia@sherwin.com

The Sherwin-Williams Company and Subsidiaries
Statements of Consolidated Income (Unaudited)
(in millions, except per share data)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Net sales	$       6,860.0		$       6,358.2		$     19,316.2		$     17,978.4
Cost of goods sold	3,582.8		3,232.7		9,920.5		9,175.5
Gross profit	3,277.2		3,125.5		9,395.7		8,802.9
Percent to Net sales	47.8 %		49.2 %		48.6 %		49.0 %
Selling, general and administrative expenses	2,069.1		1,952.8		6,142.4		5,758.2
Percent to Net sales	30.2 %		30.7 %		31.8 %		32.0 %
Other general expense (income) - net	5.2		(4.7)		14.9		10.5
Interest expense	139.3		117.2		406.8		333.4
Interest income	(5.9)		(2.6)		(14.1)		(8.3)
Other expense (income) - net	6.0		2.3		(10.1)		9.9
Income before income taxes	1,063.5		1,060.5		2,855.8		2,699.2
Income taxes	242.5		227.4		656.5		607.5
Net income	$         821.0		$         833.1		$       2,199.3		$       2,091.7
Net income per common share:
Basic	$          3.41		$          3.38		$          9.03		$          8.43
Diluted	$          3.38		$          3.35		$          8.95		$          8.34
Weighted average shares outstanding:
Basic	240.7		246.2		243.5		248.0
Diluted	242.8		249.0		245.7		250.9

 

The Sherwin-Williams Company and Subsidiaries
Business Segments (Unaudited)
(millions of dollars)
	2026				2025
	Net		Segment		Net		Segment
	Sales		Profit (Loss)		Sales		Profit (Loss)
Three Months Ended September 30:
Paint Stores Group	$       4,015.8		$          974.3		$        3,836.8		$          954.3
Consumer Brands Group	937.4		146.2		770.1		157.3
Performance Coatings Group	1,903.3		255.2		1,750.0		240.3
Administrative	3.5		(312.2)		1.3		(291.4)
Consolidated totals	$       6,860.0		$       1,063.5		$        6,358.2		$        1,060.5
Nine Months Ended September 30:
Paint Stores Group	$      10,955.7		$       2,490.7		$      10,478.8		$        2,412.0
Consumer Brands Group	2,829.2		556.3		2,341.7		453.4
Performance Coatings Group	5,522.9		760.9		5,153.1		698.1
Administrative	8.4		(952.1)		4.8		(864.3)
Consolidated totals	$      19,316.2		$       2,855.8		$      17,978.4		$        2,699.2

 

The Sherwin-Williams Company and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(millions of dollars)
	September 30,
	2026		2025
Assets
Current assets:
Cash and cash equivalents	$          264.2		$          241.5
Accounts receivable, net	3,598.1		3,122.3
Inventories	2,547.0		2,276.3
Other current assets	618.1		506.0
Total current assets	7,027.4		6,146.1
Property, plant and equipment, net	4,225.6		3,913.2
Goodwill	7,975.5		7,794.1
Intangible assets	3,744.3		3,466.2
Operating lease right-of-use assets	2,101.5		1,989.5
Other assets	1,887.1		2,897.3
Total Assets	$      26,961.4		$      26,206.4
Liabilities and Shareholders' Equity
Current liabilities:
Short-term borrowings	$       2,353.6		$        1,846.9
Accounts payable	2,895.3		2,441.6
Compensation and taxes withheld	817.4		709.4
Accrued taxes	300.4		254.6
Current portion of long-term debt	1,498.8		350.5
Current portion of operating lease liabilities	487.6		479.8
Other accruals	1,495.8		1,390.7
Total current liabilities	9,848.9		7,473.5
Long-term debt	7,942.7		9,318.1
Postretirement benefits other than pensions	134.0		120.7
Deferred income taxes	742.4		657.2
Long-term operating lease liabilities	1,699.1		1,582.3
Other long-term liabilities	2,617.6		2,629.3
Shareholders' equity	3,976.7		4,425.3
Total Liabilities and Shareholders' Equity	$      26,961.4		$      26,206.4

Reconciliation of Non-GAAP Financial Measures

Management of the Company utilizes certain financial measures that are not in accordance with U.S. generally accepted accounting principles (US GAAP) to analyze and manage the performance of the business. Management provides non-GAAP information in reporting its financial results to give investors additional data to evaluate the Company's operations. Management does not, nor does it suggest investors should, consider such non-GAAP measures in isolation from, or in substitution for, financial information prepared in accordance with US GAAP.

Management believes that investors' understanding of the Company's operating performance is enhanced by the disclosure of diluted net income per share excluding Valspar acquisition-related amortization and certain other adjustments. Valspar acquisition-related amortization expense is excluded from diluted net income per share due to its significance as a result of the purchase price assigned to finite-lived intangible assets at the date of acquisition and the related impact on underlying business performance and trends. While these intangible assets contribute to the Company's revenue generation, the related revenue is not excluded. This adjusted diluted earnings per share measurement is not in accordance with US GAAP. It should not be considered a substitute for diluted earnings per share computed in accordance with US GAAP and may not be comparable to similarly titled measures reported by other companies. The following tables reconcile diluted net income per share computed in accordance with US GAAP to adjusted diluted net income per share.

									Year Ending
	Three Months Ended				Nine Months Ended				December 31, 2026
	September 30, 2026				September 30, 2026				(after-tax guidance)
	Pre-Tax	Tax Effect (1)	After- Tax		Pre-Tax	Tax Effect (1)	After- Tax		Low		High
Diluted net income per share			$   3.38				$   8.95		$  10.92		$  11.22
Acquisition-related amortization expense (2)	$    .27	$    .06	.21		$    .80	$    .19	.61		.82		.82
Severance and other restructuring expenses	.06	.02	.04		.15	.04	.11		.11		.11
Adjusted diluted net income per share			$   3.63				$   9.67		$  11.85		$  12.15

 

	Three Months Ended				Nine Months Ended				Year Ended
	September 30, 2025				September 30, 2025				December 31, 2025
	Pre-Tax	Tax Effect (1)	After- Tax		Pre-Tax	Tax Effect (1)	After- Tax		Pre-Tax	Tax Effect (1)	After- Tax
Diluted net income per share			$   3.35				$   8.34				$ 10.26
Acquisition-related amortization expense (2)	$    .26	$    .06	.20		$    .77	$    .18	.59		$   1.03	$    .25	.78
Severance and other restructuring expenses	.06	.02	.04		.37	.10	.27		.44	.10	.34
Trademark impairment	—	—	—		—	—	—		.07	.02	.05
Adjusted diluted net income per share			$   3.59				$   9.20				$ 11.43

(1)	The tax effect is calculated based on the statutory rate and the nature of the item, unless otherwise noted.
(2)	Acquisition-related amortization expense, which is included within Selling, general and administrative expenses, consists of the amortization of intangible assets related to the Valspar acquisition. These intangible assets are primarily customer relationships and intellectual property and are being amortized over their remaining useful lives.

Management believes that investors' understanding of the Company's operating performance is enhanced by the disclosure of EBITDA, which is a non-GAAP financial measure defined as Net income before Interest expense, Income taxes, depreciation and amortization, as well as Adjusted EBITDA, which is a non-GAAP financial measure that excludes certain adjustments that management further believes enhances investors' understanding of the Company's operating performance. The reader is cautioned that the Company's EBITDA and Adjusted EBITDA should not be compared to other entities unknowingly. Further, EBITDA and Adjusted EBITDA should not be considered alternatives to Net income as an indicator of operating performance. The following table reconciles Net income computed in accordance with US GAAP to EBITDA and Adjusted EBITDA, as applicable.

(millions of dollars)
	Three Months		Three Months		Three Months		Nine Months
	Ended		Ended		Ended		Ended
	March 31, 2026		June 30, 2026		September 30, 2026		September 30, 2026
Net income	$          534.7		$            843.6		$            821.0		$          2,199.3
Interest expense	131.6		135.9		139.3		406.8
Income taxes	145.1		268.9		242.5		656.5
Depreciation	98.3		98.5		99.2		296.0
Amortization	88.5		87.9		88.3		264.7
EBITDA	$          998.2		$          1,434.8		$          1,390.3		$          3,823.3
Severance and other restructuring expenses	—		23.8		13.1		36.9
Adjusted EBITDA	$          998.2		$          1,458.6		$          1,403.4		$          3,860.2
	Three Months		Three Months		Three Months		Nine Months
	Ended		Ended		Ended		Ended
	March 31, 2025		June 30, 2025		September 30, 2025		September 30, 2025
Net income	$          503.9		$            754.7		$            833.1		$          2,091.7
Interest expense	103.8		112.4		117.2		333.4
Income taxes	149.1		231.0		227.4		607.5
Depreciation	79.9		79.3		82.8		242.0
Amortization	81.0		83.4		84.1		248.5
EBITDA	$          917.7		$          1,260.8		$          1,344.6		$          3,523.1
Severance and other restructuring expenses	19.3		59.0		14.4		92.7
Adjusted EBITDA	$          937.0		$          1,319.8		$          1,359.0		$          3,615.8

 

The Sherwin-Williams Company and Subsidiaries
Selected Information (Unaudited)
(millions of dollars, except store count data)
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2026		2025		2026		2025
Depreciation	$        99.2		$        82.8		$      296.0		$      242.0
Capital expenditures	128.7		196.4		375.4		567.2
Cash dividends	194.3		195.7		588.9		594.0
Amortization of intangibles	88.3		84.1		264.7		248.5
Significant components of Other general expense (income) - net:
Provisions for environmental related matters - net	$        (0.1)		$        10.6		$         3.3		$        14.1
Loss (gain) on sale or disposition of assets	2.4		(23.8)		0.6		(27.2)
Other	2.9		8.5		11.0		23.6
Significant components of Other expense (income) - net:
Investment losses (gains)	$          —		$         3.9		$        (6.4)		$        (5.6)
Foreign currency transaction related losses - net	16.6		6.6		11.1		29.7
Other (1)	(10.6)		(8.2)		(14.8)		(14.2)
Store Count Data:
Paint Stores Group - net new stores	12		23		—		61
Paint Stores Group - total stores	4,853		4,834		4,853		4,834
Consumer Brands Group - net new stores	2		(8)		3		(30)
Consumer Brands Group - total stores	310		304		310		304
Performance Coatings Group - net new branches	—		—		—		—
Performance Coatings Group - total branches	317		324		317		324
(1) Consists of items of revenue, gains, expenses and losses unrelated to the primary business purpose of the Company.

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SOURCE The Sherwin-Williams Company

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Sherwin-Williams' third-quarter 2026 sales and earnings?

Sherwin-Williams reported $6.86 billion in sales and $3.38 in diluted earnings per share for the quarter ended September 30, 2026. Sales increased 7.9% and diluted earnings per share rose 0.9% year over year. Net income decreased 1.5% to $821.0 million.

What is Sherwin-Williams' full-year 2026 earnings guidance?

Sherwin-Williams expects full-year 2026 diluted earnings per share of $10.92–$11.22 and adjusted diluted earnings per share of $11.85–$12.15. The diluted range includes $0.82 per share of Valspar acquisition-related amortization expense and $0.11 per share of severance and other restructuring expenses.

Why did Sherwin-Williams' gross margin decline in third-quarter 2026?

Sherwin-Williams attributed the gross margin decline primarily to higher raw material and supply chain costs and sales mix. Mix included dilution from Suvinil and higher growth in lower-margin segments. The company said year-to-date gross margin was flat versus the prior year when excluding Suvinil's dilutive impact.