In the first quarter of 2026, the financial report of paint manufacturer Sherwin-Williams (SHW) attracted attention.
Although net profit increased in the first quarter, the home decoration paint company faced the problem of continued weak demand from individual home improvement DIY customers, as well as the impact of inflation caused by geopolitical turmoil and soaring energy prices.
The company’s first-quarter net profit reached US$534.7 million, equivalent to US$2.15 per share, while net profit in the same period last year was US$503.9 million, or US$2.00 per share.
Excluding one-time items, Sherwin-Williams’ adjusted earnings per share reached $2.35, higher than the average analyst estimate of $2.27 according to FactSet.
Total quarterly revenue rose 6.8% year-over-year to $5.67 billion, exceeding Wall Street’s average forecast of $5.56 billion.
From the perspective of business segment data, the revenue of self-operated brand stores was US$3.05 billion, a year-on-year increase of 3.7%; the consumer brand segment revenue was US$908.3 million, a surge of 19%. The increase brought by the acquisition of the Suvinil brand offset the weakness of the North American DIY market; the revenue of functional coatings was US$1.71 billion, a year-on-year increase of 6.5%.
Heidi Petz, the company’s chairman, CEO and president, said: “In this quarter, amid heightened global uncertainty and sluggish demand in most end markets, Sherwin-Williams still achieved solid revenue growth.” However, U.S. mortgage interest rates and housing prices have remained high for a long time, and the real estate market continues to cool, which in turn drags down overall activity in the construction industry.
For the second quarter, Sherwin-Williams expects revenue growth to remain in the mid-single-digit range.
Petz pointed out: “Based on the current consumer confidence and various leading indicators, it is difficult for most end markets to recover this year, or even have limited improvement.”
Affected by the Iran conflict and energy shocks, companies predict that raw material costs will continue to rise in inflation.
To this end, Sherwin-Williams has initiated price increases for some products, and the overall price adjustment range may fall within the upper limit of the previously expected range.
The company is hedging the pressure of rising commodity prices through cost reduction across the region, but it does not rule out the possibility of further price increases in the future.
In terms of 2026 full-year performance guidance, benchmark earnings per share remains at $10.70-$11.10, lower than Wall Street’s average estimate of $11.23; adjusted earnings per share guidance is at $11.50-$11.90, basically the same as analysts’ average estimate of $11.71; the full-year revenue growth forecast remains unchanged in the low to mid-single-digit range.
In the complex market environment, Sherwin-Williams Paint has not only demonstrated certain performance growth capabilities, but also faced the dual challenges of market demand and cost pressure. Its future development trend deserves continued attention.
