Sherwin-Williams beat first-quarter earnings and revenue expectations on Tuesday, sending the stock up roughly 3% in premarket trading.
The Sherwin-Williams Company, SHW
Adjusted earnings came in at $2.35 per share, ahead of the $2.27 analysts had penciled in. Net sales rose 6.8% to $5.67 billion, clearing Wall Street’s estimate of $5.56 billion.
Despite the beat, management struck a cautious tone. CEO Heidi Petz said the company expects “little to no recovery in most end markets this year,” pointing to weak customer sentiment and the data the company tracks as leading indicators.
High mortgage rates and a sluggish housing market continue to weigh on DIY demand. Homeowners are spending less on renovation projects, and that trend doesn’t appear to be turning around anytime soon.
$SHW Double Beat for the Paint Man
Adj EPS: $2.35 vs $2.26 est
REV: $5.670B vs $5.560B estFY2026 EPS Guidance Affirmed
$11.50-$11.90 vs $11.74 est
+3.09% pic.twitter.com/ueqMCON1RT
— TrendSpider (@TrendSpider) April 28, 2026
The paint stores segment posted a 3.7% sales increase, driven in part by higher prices. The consumer brands unit was the standout, with quarterly sales jumping 19.2% year-over-year — the highest percentage gain across all divisions.
That consumer brands surge was largely credited to the Suvinil acquisition and strength in European markets, rather than organic demand improvement.
Supply chain disruptions tied to the Middle East conflict have pushed up costs for raw materials, energy, and logistics. Sherwin-Williams is responding by implementing targeted price increases across its business units, broken down by end market and geography.
Petz framed it directly: “We are continuing to implement targeted price increases by end market and geography across all of our businesses.”
The company is targeting mid-single-digit sales growth for Q2. Analysts currently have Q2 net sales pegged at $6.58 billion.
The do-it-yourself segment remains the soft spot. A combination of elevated mortgage rates and a slow housing market has kept construction activity and home renovation spending in check.
Sherwin-Williams flagged that inflation and rising energy costs could push prices higher still. The company is leaning on pricing power and recent acquisitions to offset the demand weakness.
SHW was named a Barron’s stock pick in June 2024. Since that recommendation, the stock has fallen more than 4%, trailing the broader market.
S&P 500 futures were down 0.7% at the time of the premarket move, making SHW’s 3% rise a relative standout on the day.
The company posted adjusted profit of $2.35 per share for the three months ended March 31, compared with the consensus estimate of $2.26 per share.
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