Sherwin-Williams Sales Rise 7.9 Percent in Third Quarter as Earnings Miss Estimates

Sherwin-Williams reported third quarter 2026 consolidated net sales of 6.86 billion dollars, up 7.9 percent from 6.36 billion dollars a year earlier. Zacks reported that the sales figure surpassed the Zacks Consensus Estimate by 1.12 percent. Adjusted earnings were 3.63 dollars a share, missing the Zacks Consensus Estimate of 3.65 dollars a share by 0.55 percent, compared with 3.59 dollars a share a year ago.

Diluted net income per share was 3.38 dollars, up 0.9 percent from 3.35 dollars a year earlier. Net income fell 1.5 percent to 821.0 million dollars, equal to 12.0 percent of net sales. The quarter therefore paired a clear sales increase and a sales beat with an adjusted earnings result that fell just short of the consensus estimate.

Margins narrowed as sales grew

Adjusted EBITDA increased 3.3 percent to 1.40 billion dollars and represented 20.5 percent of net sales. Gross margin narrowed by 140 basis points to 47.8 percent. TradingKey reported that higher raw material and supply chain costs and a less favorable mix weighed on margins in the quarter.

That margin picture sits alongside the sales growth. Sales rose 7.9 percent, adjusted EBITDA rose 3.3 percent, and net income fell 1.5 percent, so the growth in the top line did not translate into the same rate of growth in profit for the quarter.

Paint Stores Group and segment growth

Paint Stores Group net sales from stores open more than twelve calendar months increased 3.9 percent in the quarter. TradingKey reported that sales benefited from pricing, the Suvinil acquisition completed in October 2025, and growth across all three reportable segments.

The company returned 749.0 million dollars to shareholders through dividends and share repurchases in the quarter. That return figure is reported alongside net income of 821.0 million dollars for the same three months.

Full year guidance

For the full year 2026, Sherwin-Williams set guidance for diluted net income per share at 10.92 dollars to 11.22 dollars. Adjusted diluted earnings per share guidance was narrowed to 11.85 dollars to 12.15 dollars. Kalkine reported both guidance ranges from the company release.

The narrowed adjusted range gives investors the company's updated view for the full year after a third quarter in which sales beat the consensus estimate and adjusted earnings missed it by 0.55 percent. The diluted guidance range and the adjusted guidance range were both included in the company release reported by Kalkine.

Sherwin-Williams shares fell 5 percent in premarket trading on Tuesday, according to Investopedia. The same market summary reported Whirlpool down 8 percent and Boeing down 1 percent in premarket trading in the same session. For Sherwin-Williams, the premarket move followed a report that combined 7.9 percent sales growth, a 47.8 percent gross margin, adjusted earnings of 3.63 dollars a share and the updated full year guidance ranges above.