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Xylem Lands Its Largest-Ever Dow Contract But Is It Enough?

Xylem Inc. reported second quarter 2026 results reflecting a business positioned amid evolving market dynamics and strategic portfolio adjustments. The company’s revenue increased modestly by 1% year-over-year, with orders rising 41%, supported notably by a large contract with Dow—Xylem’s largest to date—and growth in three of its four primary segments. The water infrastructure segment experienced a revenue increase of 3%, driven primarily by U.S. municipal transport growth, though offset by a significant 40% decline in China and intentional walkaway actions in treatment. The Applied Water segment reported a 3% revenue rise with a strong 9% growth in orders, largely attributable to a 200% expected revenue increase from data center-related business, which currently represents about 2% of overall revenue. Water Solutions and Services (WSS), bolstered by the Evoqua acquisition, saw a 1% revenue increase and benefited from a record order linked to a 23-year outsourced water project.