Sherwin-Williams 8-K

Summary

Q3 2026 results with full-year 2026 guidance. Net sales grew across all three segments amid muted underlying demand, supported by pricing and the Suvinil acquisition, while higher raw-material and supply-chain costs and unfavorable mix pressured gross margin. Sherwin-Williams updated its full-year diluted EPS outlook and narrowed its adjusted diluted EPS range.

Key Figures

• Paint Stores Group sales rose 4.7% to $4.02B and segment profit rose 2.1% to $974M. Same-store sales increased 3.9%, vs 3.6% a year earlier; pricing gains and low-single-digit volume growth supported sales, with growth across professional customer end markets.
• Performance Coatings Group sales increased 8.8% to $1.90B and segment profit rose 6.2% to $255M, driven by pricing and low-single-digit volume growth; General Industrial, Packaging and Coil each grew by a double-digit percentage. Consumer Brands Group sales rose 21.7% to $937M, primarily on Suvinil, foreign currency and mix, while segment profit fell 7.1% to $146M as North American demand remained soft and costs increased.
• Operating cash flow was $2.59B for 9M 2026. The company returned $749M to shareholders in Q3 and $2.98B during 9M, including repurchases of 7.1M shares; 22.5M shares remained authorized for repurchase. Q3 weighted-average diluted shares were 242.8M, vs 249.0M.

Against earlier guidance (derived from earlier filings)

Growth phrases are read as percent ranges: mid-to-high single-digit 4–9%.

Guidance

FY2026 GAAP diluted EPS guidance includes $0.82 per share of Valspar acquisition-related amortization and $0.11 per share of severance and other restructuring expenses. Adjusted EPS guidance excludes those per-share amounts incurred through 9/30/2026.

Guidance changes, derived from earlier filings

Metric	Period	Earlier guidance	Guidance now	Change
Consolidated net sales	FY2026	Up mid-to-high-single-digit % Y/Y	Up mid to high-single-digit percentage Y/Y	reaffirmed
Diluted EPS, GAAP	FY2026	$10.92-$11.32	$10.92-$11.22	narrowed (lowered high end)
Adjusted diluted EPS, non-GAAP	FY2026	$11.80-$12.20	$11.85-$12.15	narrowed (raised low end, lowered high end)

Investor Takeaways

• Watch Q4 sales against the mid-single-digit growth outlook and Paint Stores Group same-store sales after Q3’s 3.9% increase; continued growth would support the company’s resilience thesis despite muted demand.
• Track FY2026 diluted and adjusted EPS against their respective ranges as raw-material and supply-chain costs and segment mix continue to weigh on margins.