Sherwin‑Williams Co. reported first‑quarter 2026 results that surpassed consensus expectations, with revenue of $5.67 billion, up 6.8% year‑over‑year, and adjusted diluted earnings per share of $2.35, a beat of $0.11 to the $2.24 consensus estimate. The company’s earnings beat was driven by a mix of higher sales across all three business segments and disciplined cost management that preserved margins in a challenging macro environment.
Revenue growth was led by the Paint Stores Group, which delivered the largest margin expansion, while the Consumer Brands Group benefited from the Suvinil acquisition, posting a 19.2% increase in sales. The Performance Coatings Group also showed strength, with notable gains in automotive refinish, general industrial, and packaging units. Together, the three segments lifted consolidated net sales to $5.67 billion, compared with $5.31 billion in Q1 2025.
Gross margin expanded to 49.1% from 48.2% in the prior year, a result of moderating raw‑material costs and a favorable product mix that offset higher SG&A expenses. The company’s pricing power allowed it to maintain a healthy margin despite softer demand in many end markets, and the cost‑control initiatives continued to support profitability.
Management reaffirmed its full‑year 2026 guidance, maintaining an adjusted diluted EPS range of $11.50 to $11.90 per share. The company also confirmed a low‑single‑digit decline in volume guidance, offset by stronger pricing, signaling confidence in its ability to navigate the current macro environment while sustaining profitability.
"Sherwin‑Williams delivered strong sales in a quarter characterized by heightened global uncertainty and continued demand softness in most end markets," said Heidi G. Petz, Chair, President and Chief Executive Officer. "Our growth investments and relentless focus on new accounts and share of wallet continued to yield results, as sales exceeded guidance on a consolidated basis and in all three reportable segments." "We continue to execute our disciplined capital allocation strategy in the quarter by returning $773 million to shareholders through share buybacks and dividends. We ended the first quarter with a strong balance sheet and a net debt to adjusted EBITDA ratio of 2.5 times," added CFO Ben Meisenzahl.
Investors responded positively to the earnings beat, margin expansion, and reaffirmed guidance, underscoring confidence in Sherwin‑Williams’ execution and resilience amid a challenging macro backdrop.
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