Sherwin-WilliamsSHW

The company reported second-quarter earnings of $3.70 per share, which was better than the $3.52 analysts expected. Total sales rose about 7 percent to $6.79 billion. A key part of the business, the Paint Stores Group, saw sales at stores open at least a year grow by 4 percent.

Management also raised its outlook for the rest of the year. It now expects sales to grow in the mid-to-high single digits, up from its previous forecast of low-to-mid single digits. This suggests the company is successfully selling more paint to professional contractors despite a slow market for home sales.

See the full quarter, and how our tracked metrics did

Source: 8-K filing

Key highlights

• Outlook raised for 2026: Management increased its full year profit forecast to a range of $11.80 to $12.20 per share, up from the previous outlook and better than the $11.43 earned in 2025. This signal shows confidence in the company's ability to grow earnings even as demand remains soft in the broader housing and construction markets.
• Paint stores driving growth: The Paint Stores Group saw same-store sales grow 4.2% in the quarter, which measures performance at locations open for at least a year. Higher prices for professional customers and double-digit growth in specialized coatings for ships and industrial sites helped offset a moderate rise in the cost of raw materials.
• Acquisition boosts consumer sales: Sales in the Consumer Brands Group jumped 21.5% to $983.5 million, largely driven by the October 2025 purchase of a company called Suvinil. This expansion into South America is helping the division diversify its geography, though it also brought on new administrative and employee costs that the company is working to manage.
• Pricing power protecting margins: The company achieved a gross margin of 49.2%, a slight dip from 49.4% a year ago but still above its long-term targets. Management plans to implement an 8% price increase in its paint stores starting September 1 to keep up with persistent inflation in energy, logistics, and packaging costs.
• Capital returned to shareholders: Sherwin-Williams returned $1.46 billion to investors during the quarter through a combination of dividends and the repurchase of 5.6 million shares. Aggressive share buybacks help increase the value of each remaining share for long-term owners by reducing the total number of shares in the market.

Our take: This was a strong quarter that proved the company can thrive even when the housing market is not helping it. By raising prices and winning new professional accounts, Sherwin-Williams is protecting its margins despite rising material costs. The raised full year guidance strengthens the case that this is a reliable, well-managed business.