How does Xylem (XYL) make money?

Xylem (XYL) generates revenue primarily from Water Infrastructure, which accounted for 40.6% of total revenue in TTM through Q2 2026. The company reported $9.13B in revenue and converted 11.1% of it into net profit, equivalent to roughly $1.01B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Xylem (XYL)?

Xylem (XYL) reported a gross profit margin of 39.2% in TTM through Q2 2026, equivalent to $3.58B in gross profit on $9.13B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Xylem (XYL)?

Xylem (XYL) reported an operating profit margin of 14.5% in TTM through Q2 2026, equivalent to $1.32B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Xylem (XYL)?

Xylem (XYL) reported a net profit margin of 11.1% in TTM through Q2 2026, equivalent to $1.01B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Xylem (XYL) profitable?

Yes. Xylem (XYL) reported $1.01B in net income for TTM through Q2 2026, with a net profit margin of 11.1%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Xylem (XYL) invest in research and development?

Xylem (XYL) invested $227M in research and development during TTM through Q2 2026, roughly 2.5% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does Xylem (XYL) spend on capital expenditures?

Xylem (XYL) spent $341M on capital expenditures (CapEx) during TTM through Q2 2026, roughly 3.7% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Xylem (XYL) generate?

Xylem (XYL) generated $960M in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 10.5%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Xylem (XYL)?

Xylem (XYL) had an effective tax rate of 20.7% in TTM through Q2 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Xylem (XYL)?

Xylem (XYL) reports revenue across 3 reportable product segments, led by Water Infrastructure at 40.6% of total revenue in TTM through Q2 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Xylem Makes Money: 2026 Visual Revenue Map

Xylem (XYL) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending June 30, 2026 (reported July 28, 2026).

Xylem discloses geographic revenue only in annual filings. to view the full breakdown.

Xylem (XYL) Revenue by Product Segment — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Xylem (XYL), TTM through Q2 2026.
Segment	Revenue (USD)	% of total
Water Infrastructure	$3.7B	40.6%
Measurement and Control Solutions	$2.88B	31.5%
Applied Water	$2.55B	27.9%
Total	$9.13B	100%

Water Infrastructure$3.7B
Measurement and Control Solutions$2.88B
Applied Water$2.55B
Total$9.13B

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, Xylem (XYL) reports revenue across 3 reportable product segments; the largest segment was Water Infrastructure at 40.6%, followed by Measurement and Control Solutions (31.5%) and Applied Water (27.9%).

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