GET DAILY SIGNALSSherwin-Williams (SHW) Reports +7.9% Sales Growth in Q3 2026 Amid Margin Pressure
Key Takeaways
- Sherwin-Williams reported third-quarter 2026 net sales of $6.86 billion, up 7.9% year over year and above analyst expectations of roughly $6.78 billion.
- Diluted earnings per share (EPS) came in at $3.38, up slightly from $3.35 a year earlier, while adjusted EPS of $3.63 fell short of the consensus estimate of about $3.69.
- Net income declined to $821 million from $833.1 million a year ago, reflecting higher raw material and supply chain costs.
- All three reportable segments grew: Paint Stores Group (+4.7%), Consumer Brands Group (+21.7%), and Performance Coatings Group (+8.8%).
- The company narrowed its full-year adjusted EPS guidance to a range of $11.85 to $12.15 and expects fourth-quarter net sales to rise by a mid-single-digit percentage.
- Shares declined in premarket trading following the release as investors weighed the top-line beat against margin pressure.
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Earnings Context and Why It Matters
Sherwin-Williams stands as the world's largest paint and coatings company by revenue, making its results a useful barometer for demand trends in residential, commercial, and industrial sectors. The third-quarter numbers arrive at a notable time, with the firm facing softer customer demand alongside ongoing cost pressures on raw materials and supply chains. I think the October 27 report helps clarify whether pricing discipline and cost controls can hold up against those headwinds while still supporting sales growth. With the Suvinil acquisition now influencing the Consumer Brands segment, investors are assessing how effectively the business is managing integration while safeguarding profitability through the end of fiscal 2026. To compare SHW with peers in the sector, I also checked this using Tickeron’s AI Screener.
Reported Results
For the third quarter ended September 30, 2026, Sherwin-Williams posted consolidated net sales of $6.86 billion, a 7.9% rise from $6.36 billion in the same period last year and ahead of the consensus estimate near $6.78 billion. Net income reached $821 million, or $3.38 per diluted share, versus $833.1 million, or $3.35 per share, a year earlier. On an adjusted basis, diluted EPS was $3.63, missing the roughly $3.69 that analysts had expected. Adjusted EBITDA came in around $1.40 billion, a touch below consensus estimates.
Growth appeared across all segments. Paint Stores Group sales advanced 4.7% to $4.02 billion, driven mainly by higher pricing. Consumer Brands Group sales jumped 21.7% to $937.4 million, supported by the Suvinil acquisition. Performance Coatings Group sales rose 8.8% to about $1.9 billion. Management highlighted that gross margin faced pressure from elevated raw material and supply chain costs as well as segment mix, including the dilutive effect from Suvinil.
Market Reaction and Investor Sentiment
Sherwin-Williams shares dropped about 5.7% in premarket trading on October 27, 2026, per MarketWatch data, as investors focused on the revenue beat being offset by the adjusted EPS shortfall and a modestly tighter full-year outlook. The response indicates the market is prioritizing profitability trends over top-line expansion right now. Sentiment has been cautious following management's comments that customer sentiment and leading indicators suggest muted demand through the rest of the year and into 2027. Although the firm reaffirmed its mid- to high-single-digit full-year sales growth target, the narrowed adjusted EPS guidance range points to limited near-term upside while cost challenges continue.
Forward Outlook and Key Factors to Monitor
Sherwin-Williams anticipates fourth-quarter 2026 consolidated net sales will increase by a mid-single-digit percentage versus the fourth quarter of 2025, which would keep full-year sales growth in the mid- to high-single-digit range. The company tightened its full-year 2026 diluted EPS guidance to $10.92 to $11.22 per share, including acquisition-related amortization and restructuring costs, and set adjusted diluted EPS guidance at $11.85 to $12.15 per share.
Several areas stand out for investors to follow in coming quarters. Raw material and supply chain cost trends will be key to whether gross margin can stabilize. Management indicated that, excluding Suvinil's dilutive impact, year-to-date gross margin is roughly flat compared with a year ago. The pace of integration and margin recovery in the Consumer Brands Group, where Suvinil drove strong sales but affected profitability, will also draw attention. Demand signals in residential repaint, new construction, and industrial markets will influence volume recovery, given the cautious tone on 2027. Finally, continued pricing discipline, cost-efficiency efforts, and shareholder returns via dividends and buybacks remain important. Sherwin-Williams returned about $749 million to shareholders during the quarter.
Using Tickeron’s AI Screener for Sector Insights
When analyzing results like these, I often turn to Tickeron’s AI Screener to quickly filter stocks in the specialty chemicals space and compare technical patterns, fundamentals, and performance metrics. It helps surface relevant signals without manual effort, which is useful for tracking names such as SHW alongside industry peers. The tool supports customizable scans that can highlight potential ideas based on volatility, trends, and other factors I find relevant to earnings reviews.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
SHW's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for SHW turned positive on October 08, 2026. Looking at past instances where SHW's MACD turned positive, the stock continued to rise in 30 of 50 cases over the following month. The odds of a continued upward trend are 60%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 14, 2026. You may want to consider a long position or call options on SHW as a result. In 40 of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 48%.
SHW moved above its 50-day moving average on October 20, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for SHW crossed bullishly above the 50-day moving average on October 23, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 8 of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 47%.
Following a +2.86% 3-day Advance, the price is estimated to grow further. Considering data from situations where SHW advanced for three days, in 169 of 302 cases, the price rose further within the following month. The odds of a continued upward trend are 56%.
Bearish Trend Analysis
The 10-day RSI Indicator for SHW moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 similar instances where the indicator moved out of overbought territory. In 18 of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at 50%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 50-day moving average for SHW moved below the 200-day moving average on October 22, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SHW declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 64%.
SHW broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for SHW entered a downward trend on October 07, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 18 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 35 (best 1 - 100 worst), indicating steady price growth. SHW’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 49 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 69 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SHW’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock better than average.
The Tickeron Seasonality Score of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 100 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: SHW's P/B Ratio (21.107) is slightly higher than the industry average of (2.372). P/E Ratio (30.636) is within average values for comparable stocks, (-17.554). Projected Growth (PEG Ratio) (2.143) is also within normal values, averaging (1.548). Dividend Yield (0.010) settles around the average of (0.040) among similar stocks. P/S Ratio (3.266) is also within normal values, averaging (48.960).
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a company which engages in the development, manufacture, distribution and sale of paint, coatings and related products
Industry ChemicalsSpecialty
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