Sherwin-Williams (NYSE:SHW) Shares Gap Up After Strong Earnings

Shares of The Sherwin-Williams Company (NYSE:SHW) gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $327.27, but opened at $347.49. Sherwin-Williams shares last traded at $353.5630, with a volume of 577,685 shares changing hands.

The specialty chemicals company reported $3.70 EPS for the quarter, topping analysts’ consensus estimates of $3.52 by $0.18. Sherwin-Williams had a net margin of 10.86% and a return on equity of 64.55%. The company had revenue of $6.79 billion for the quarter, compared to analyst estimates of $6.60 billion. During the same quarter in the previous year, the business earned $3.38 earnings per share. Sherwin-Williams’s revenue was up 7.5% compared to the same quarter last year. Sherwin-Williams has set its FY 2026 guidance at 11.800-12.200 EPS.

Sherwin-Williams Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, September 11th. Stockholders of record on Friday, August 21st will be paid a $0.80 dividend. The ex-dividend date of this dividend is Friday, August 21st. This represents a $3.20 annualized dividend and a dividend yield of 0.9%. Sherwin-Williams’s dividend payout ratio is presently 30.71%.

Sherwin-Williams News Summary

Here are the key news stories impacting Sherwin-Williams this week:

• Positive Sentiment: Quarterly results exceeded expectations. Adjusted earnings were $3.70 per share, above the $3.52 Zacks consensus and up from $3.38 a year ago. Revenue increased 7.5% year over year to $6.79 billion, beating the $6.60 billion analyst estimate. Sherwin-Williams Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management raised its 2026 outlook. Adjusted EPS guidance is now $11.80-$12.20, above the $11.74 consensus estimate, while expected full-year sales growth increased to the mid- to high-single-digit range from the prior low- to mid-single-digit forecast. Sherwin-Williams Lifts Outlook as Profit, Sales Climb
• Positive Sentiment: Growth was broad-based. Paint Stores Group sales rose 5.1%, same-store sales increased 4.2%, Consumer Brands Group sales jumped 21.5% partly due to the Suvinil acquisition, and Performance Coatings sales grew 6.3%. The company also returned $2.23 billion to shareholders through dividends and buybacks during the first half of 2026. Sherwin-Williams Q2 Sales Rise 7.5 Percent
• Negative Sentiment: Input-cost inflation pressured gross margin. Continued raw-material cost increases could limit profit expansion and remain a key risk to the upgraded earnings outlook. Sherwin-Williams Second Quarter Financial Results

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on SHW. Berenberg Bank set a $380.00 target price on shares of Sherwin-Williams in a report on Monday, June 8th. Weiss Ratings downgraded Sherwin-Williams from a “hold (c+)” rating to a “hold (c)” rating in a research note on Friday, July 17th. Bank of America decreased their target price on Sherwin-Williams from $370.00 to $365.00 and set a “neutral” rating for the company in a research note on Tuesday, April 21st. Royal Bank Of Canada restated an “outperform” rating and issued a $405.00 price target (up from $391.00) on shares of Sherwin-Williams in a report on Wednesday, July 8th. Finally, UBS Group lowered shares of Sherwin-Williams from a “buy” rating to a “neutral” rating and dropped their price objective for the company from $385.00 to $330.00 in a report on Tuesday, June 2nd. Seven investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $373.92.

Institutional Investors Weigh In On Sherwin-Williams

Institutional investors have recently bought and sold shares of the stock. Norges Bank bought a new stake in shares of Sherwin-Williams in the 4th quarter worth $1,089,450,000. Viking Global Investors LP lifted its position in shares of Sherwin-Williams by 101.4% during the 2nd quarter. Viking Global Investors LP now owns 1,957,750 shares of the specialty chemicals company’s stock worth $672,213,000 after buying an additional 985,520 shares in the last quarter. Balyasny Asset Management L.P. boosted its stake in shares of Sherwin-Williams by 53,827.1% in the 4th quarter. Balyasny Asset Management L.P. now owns 662,225 shares of the specialty chemicals company’s stock worth $214,581,000 after buying an additional 660,997 shares during the last quarter. Vanguard Group Inc. boosted its stake in shares of Sherwin-Williams by 2.7% in the 4th quarter. Vanguard Group Inc. now owns 23,237,824 shares of the specialty chemicals company’s stock worth $7,529,752,000 after buying an additional 600,119 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in shares of Sherwin-Williams by 34.0% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,023,949 shares of the specialty chemicals company’s stock valued at $655,820,000 after acquiring an additional 513,126 shares in the last quarter. Institutional investors own 77.67% of the company’s stock.

Sherwin-Williams Trading Up 8.3%

The company has a debt-to-equity ratio of 2.10, a current ratio of 0.86 and a quick ratio of 0.53. The company has a market capitalization of $87.41 billion, a P/E ratio of 34.01, a price-to-earnings-growth ratio of 2.47 and a beta of 1.10. The firm has a fifty day moving average price of $321.21 and a 200-day moving average price of $332.13.

About Sherwin-Williams

Sherwin-Williams (NYSE: SHW) is a global manufacturer and distributor of paints, coatings and related products. Founded in 1866 and headquartered in Cleveland, Ohio, the company supplies a broad range of coatings for residential, commercial and industrial applications. Its product offering includes architectural paints and stains, industrial and protective coatings, automotive finishes, and a variety of sundry products such as primers, sealants and specialty treatments used by professionals and consumers.

The company sells through multiple channels, including a large network of company-operated retail paint stores that serve professional contractors and do-it-yourself consumers, as well as through distributors and mass retailers.