Sherwin-Williams grows sales 7.9% but margins feel raw material squeeze

Sherwin-Williams grew third-quarter sales 7.9% to $6.86 billion but saw earnings barely move as higher raw material costs and acquisition mix weighed on margins, and the paint maker revised its full-year GAAP outlook while narrowing its adjusted range.

Diluted EPS rose 0.9% to $3.38 and adjusted diluted EPS rose 1.1% to $3.63, according to the earnings release attached to its 8-K on Tuesday. Net income fell 1.5% to $821.0 million. Same-store sales in the Paint Stores Group rose 3.9%.

"Despite muted underlying market volumes, we continued to win new customers, increase share-of-wallet and deliver sales growth across all three reportable segments," Chair, President and CEO Heidi G. Petz said.

Margin pressure

Petz said gross margin was hit mainly by higher raw material and supply chain costs and by mix, including dilution from the Suvinil acquisition and faster growth in lower-margin segments. Excluding Suvinil, year-to-date gross margin is flat with the prior year, she said. The company took pricing and cost actions to address inflation.

Adjusted EBITDA rose 3.3% to $1.40 billion, or 20.5% of sales. Sherwin-Williams returned $749.0 million to shareholders in the quarter through dividends and share repurchases.

Outlook

The company now expects 2026 diluted EPS of $10.92 to $11.22, including Valspar acquisition-related amortization of $0.82 per share and severance and restructuring costs of $0.11 per share. It narrowed its adjusted diluted EPS outlook to $11.85 to $12.15.

By the numbers

• Q3 net sales: $6.86 billion, up 7.9%
• Paint Stores same-store sales: up 3.9%
• Adjusted EPS: $3.63 vs. $3.59
• Returned to shareholders: $749.0 million
• 2026 adjusted EPS outlook: $11.85 to $12.15

Sources

1. SHERWIN WILLIAMS CO, Form 8-K with third quarter 2026 earnings release, filed Oct. 27, 2026 (accession 0000089800-26-000054)

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