Economy & Fed
Sherwin-Williams sees no near-term lift in do-it-yourself paint demand
Sherwin-Williams shares traded lower after the paint maker missed third-quarter profit estimates, narrowed its full-year outlook and said it sees no near-term spark for do-it-yourself paint demand.
Quick Read
- Sherwin-Williams missed third-quarter profit estimates even though sales beat forecasts.
- Higher raw material and supply chain costs, plus dilution from the Suvinil deal, squeezed margins, according to CEO Heidi G. Petz.
- The company narrowed its 2026 earnings guidance, with the midpoint below analyst expectations.
- The company said it sees no near-term catalyst for do-it-yourself paint demand, but professional markets kept growing.
What did Sherwin-Williams report?
Sherwin-Williams (NYSE: SHW) shares traded lower on Tuesday after the paint maker posted mixed third-quarter results, with sales beating forecasts but profit falling short.
Why it matters: Adjusted earnings per share, or profit for each share, came in below the consensus, the average analyst forecast. Sales grew from a year earlier and topped forecasts.
The company also narrowed its 2026 adjusted earnings guidance, its own profit forecast for the year. The midpoint of that range sits below what analysts expected.
The stock lagged a rising market. The S&P 500 rose 0.6%, and the materials sector fund gained 0.8%.
Why did profit fall short?
CEO Heidi G. Petz pointed to higher raw material and supply chain costs on the earnings call. A less favorable mix of products also weighed on gross margin, the share of sales left after production costs.
The company said its Suvinil acquisition diluted margins. Faster growth in lower-margin businesses had the same effect. Excluding Suvinil, the company said gross margin was flat so far this year.
In the Consumer Brands Group, sales grew with help from Suvinil. Adjusted profit in that unit still fell because material, supply chain and Suvinil-related costs rose.
Where is demand still growing?
Petz said sales rose in every reportable segment despite soft market demand. She credited customer wins, a bigger share of customers' spending and productivity gains.
Paint Stores Group sales grew on higher prices and modest volume gains. Every professional customer market grew, led by protective and marine coatings. Residential repaint also grew.
Performance Coatings Group sales rose as well, helped by both price increases and higher volumes, according to the company.
The weak spot is the do-it-yourself buyer. The company said it sees no near-term catalyst, meaning nothing on the horizon likely to lift that demand. Its outlook offers no sign of when that might change.
What comes next?
What’s next: Broader signals on housing and household spending arrive soon. The Fed announces its interest-rate decision on Wednesday, Oct. 28, at 2 p.m. ET.
A September report on household income and spending follows on Oct. 29 at 8:30 a.m. ET. Either release could shape views on home-improvement budgets, though neither speaks to Sherwin-Williams directly.
For readers
What it could mean for you: People who own Sherwin-Williams shares directly feel the full effect of this report. The guidance midpoint sits below analyst expectations, and do-it-yourself demand looks weak. Both could shape how the stock trades in the months ahead, especially if raw material and supply chain costs stay high. Gains with professional painters may help offset weak retail demand, but that balance could shift. Owners of a broad index fund feel the company only in proportion to its size in the fund.
Questions and answers
Why did Sherwin-Williams stock fall after earnings?
The shares traded lower after adjusted earnings per share missed analyst estimates. The company also narrowed its 2026 profit guidance, and the midpoint landed below what analysts expected.
Did Sherwin-Williams sales beat expectations?
Yes. Sales grew from a year earlier and came in above forecasts, with growth in every reportable segment, according to CEO Heidi G. Petz.
What did Sherwin-Williams say about do-it-yourself paint demand?
The company said it sees no near-term catalyst for do-it-yourself paint demand. That may mean homeowners are not yet spending more on their own paint projects.
What hurt Sherwin-Williams profit margins?
Petz cited higher raw material and supply chain costs and a less favorable product mix. Dilution from the Suvinil acquisition and faster growth in lower-margin businesses also weighed on margins.
The numbers
| S&P 500 change | +0.60% |
|---|---|
| 10-year Treasury yield | 4.99% |
Tuesday’s close
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