Paint and coating manufacturer Sherwin-Williams (NYSE: SHW) reported Q1 CY2026 results beating Wall Street’s revenue expectations, with sales up 6.8% year on year to $5.67 billion. Its non-GAAP profit of $2.35 per share was 3.6% above analysts’ consensus estimates.

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"Sherwin-Williams delivered strong sales in a quarter characterized by heightened global uncertainty and continued demand softness in most end markets," said Chair, President and Chief Executive Officer, Heidi G. Petz.

Company Overview

Widely known for its success in the paint industry, Sherwin-Williams (NYSE: SHW) is a manufacturer of paints, coatings, and related products.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, Sherwin-Williams grew its sales at a tepid 4.9% compounded annual growth rate. This fell short of our benchmark for the industrials sector and is a tough starting point for our analysis.

Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Sherwin-Williams’s recent performance shows its demand has slowed as its annualized revenue growth of 2.1% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs.

This quarter, Sherwin-Williams reported year-on-year revenue growth of 6.8%, and its $5.67 billion of revenue exceeded Wall Street’s estimates by 2.1%.

Looking ahead, sell-side analysts expect revenue to grow 4% over the next 12 months. Although this projection indicates its newer products and services will spur better top-line performance, it is still below the sector average.

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Operating Margin

Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.

Sherwin-Williams has been an efficient company over the last five years. It was one of the more profitable businesses in the industrials sector, boasting an average operating margin of 14.9%. This result isn’t surprising as its high gross margin gives it a favorable starting point.

Looking at the trend in its profitability, Sherwin-Williams’s operating margin rose by 4 percentage points over the last five years, as its sales growth gave it operating leverage.

This quarter, Sherwin-Williams generated an operating margin profit margin of 14.3%, in line with the same quarter last year. This indicates the company’s cost structure has recently been stable.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Sherwin-Williams’s unimpressive 5.4% annual EPS growth over the last five years aligns with its revenue performance. On the bright side, this tells us its incremental sales were profitable.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

Although it wasn’t great, Sherwin-Williams’s two-year annual EPS growth of 5% topped its 2.1% two-year revenue growth.

Diving into the nuances of Sherwin-Williams’s earnings can give us a better understanding of its performance. A two-year view shows that Sherwin-Williams has repurchased its stock, shrinking its share count by 3%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings.

In Q1, Sherwin-Williams reported adjusted EPS of $2.35, up from $2.25 in the same quarter last year. This print beat analysts’ estimates by 3.6%. Over the next 12 months, Wall Street expects Sherwin-Williams’s full-year EPS of $11.55 to stay about the same.

Key Takeaways from Sherwin-Williams’s Q1 Results

We enjoyed seeing Sherwin-Williams beat analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. That the company reiterated full-year EPS guidance means the business is on track. Overall, this quarter was solid. The stock traded up 2% to $342.91 immediately after reporting.

Is Sherwin-Williams an attractive investment opportunity at the current price? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).