SHW US S&P 500DJIARussell 1000 Earnings call · transcribed from the recording
Sherwin-Williams (SHW) · Q3 2026 results and valuation
Share price: $355.76 · 2026-11-11
Sherwin-Williams develops, manufactures, distributes, and sells paint, coatings, and related products. The company serves professional, industrial, commercial, and retail customers in North and South America, the Caribbean, Europe, Asia, and Australia. Source: 10-K annual report (2026-02-19)
Results Q3 2026 vs Q2 2026 · previous quarter · published 27 Oct 2026 and 28 Jul 2026
Net income down 2.7% on the previous quarter. Management sounded upbeat, though noticeably less so answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−2.7%
Net income vs Q2 2026
Outlook given
Net income 821.0M vs 843.6M
Revenue +1.0%
2 · How management spoke
Upbeat
More upbeat than 84% of company calls
Answers to analysts: restrained, but clearly less so than the script.
Last call it was different: script and answers matched.
3 · What stood out
Figure
Sherwin-Williams returned $749 million to shareholders in the quarter and $3 billion year-to-date through share repurchases and dividends.
Valuation
Is Sherwin-Williams undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 2.1% growth a year (3-year revenue growth), the model's fair value is $96.62 a share — the stock trades 268% above it. Today's price assumes 16.1% growth a year.
Current price
$355.76
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+16.1% for 10 yrs
Fair value / share
$96.62
Buy below
$72.46
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Key theme
Sales increased by high single digits against a mid-single-digit comparison in an underlying market that remains soft.
Source quote
“sales increased by high single digits against a mid-single-digit comparison in an underlying market that remains soft. These results continue to illustrate the exclusive contracts and new projects we have targeted and won over the last 24 months, and we are confident meaningful additional gains are still ahead.”
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Guidance
Sherwin-Williams is pursuing additional opportunities in the fourth quarter that it expects to further strengthen its cost structure and provide incremental benefits in 2027, as it is committed to making Sherwin-Williams a faster...
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Fading
Price mix grew at the low end of mid single digits and volume increased by a low single digit percentage.
Source quote
“Price mix grew at the low end of mid single digits and volume increased by a low single digit percentage. Looking at our segment results in the second quarter, I will begin with Paint Stores Group, which grew by a mid single digit percentage. Our team delivered growth in all pro segments.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 95% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.
Sentences that drove the tone
“Total group sales expanded in all regions, including a strong double-digit increase in Asia and a high single-digit growth in North America and Latin America.”
“We do expect that to continue, and I think ultimately the barometer of strength is our successful, I would tell you, record-high new business wins that we're seeing on the...”
“As we talked about at our Investor Day last month, our strong top-line growth will be a key driver of robust earnings growth and incremental margins as the inflationary cycle...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 6.86B | 6.79B | +1.0% | 6.36B | +7.9% |
| Gross profit | 3.28B | 3.34B | −1.8% | 3.13B | +4.9% |
| Operating income | 1.06B | 1.11B | −4.4% | 1.06B | +0.3% |
| Net income | 821.0M | 843.6M | −2.7% | 833.1M | −1.5% |
| EPS | 3.38 | 3.43 | −1.5% | 3.35 | +0.9% |
| P/E today 30.0 | 31.8 | 30.8 | +1.0 | 34.1 | −2.3 |
Topics
Most discussed now
- If I start with its residential repaint segment, obviously this is an area that Sherwin-Williams continues taking market share.
- As Sherwin-Williams talked about at its Investor Day last month, its strong top-line growth will be a key driver of...
- Sherwin-Williams' above-market performance reflects continued execution of its strategy, new account and share of wallet wins, and a clear…
- Sherwin-Williams reported gross margin in the quarter was primarily impacted by higher raw material and supply chain related costs…
- Sherwin-Williams continued to generate strong new account growth, deepen relationships with existing customers, and gain meaningful share…
Faded since Q2 2026
- Fading Sherwin-Williams reported SG&A expense increased by a mid single digit percentage but decreased 90 basis points as a percent of sales.
- Dropped As a reminder, Sherwin-Williams will be hosting its financial community presentation at its new global headquarters and global technology…
- Fading It was the eighth straight quarter of at least high single digit growth in this business.
- Dropped Sherwin-Williams takes a very disciplined approach, not only to its capital allocation philosophy that remains unchanged, but as it…
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
The Sherwin-Williams Company reported consolidated net sales of $6.86 billion in the third quarter of 2026, an increase of 7.9% compared to the third quarter of 2025.
- Material agreement; Agreement terminated; New financial obligation; Other events · SEC 8-K
SW Luxembourg entered into a new EUR 100,000,000 term loan agreement with ING Bank N.V. on September 24, 2026, to refinance the existing credit agreement and for general corporate purposes.
- Results of operations · SEC 8-K
The Sherwin-Williams Company issued a press release on July 28, 2026, reporting financial results for the second quarter ended June 30, 2026.
- Material agreement; New financial obligation · SEC 8-K
The Sherwin-Williams Company entered into Amendment No. 11 to the Amended and Restated Credit Agreement dated June 9, 2026, with Goldman Sachs Bank USA and other lenders.
- Results of operations · SEC 8-K
The Sherwin-Williams Company issued a press release on April 28, 2026, regarding its financial results for the first quarter ended March 31, 2026.
- Shareholder vote results · SEC 8-K · routine
- Material agreement; New financial obligation · SEC 8-K
The Sherwin-Williams Company entered into Amendment No. 1 to the Amended and Restated Credit Agreement dated February 9, 2026.
- Results of operations · SEC 8-K
The Sherwin-Williams Company issued a press release on January 29, 2026, regarding its financial results for the fourth quarter and year ended December 31, 2025.