Sherwin-Williams Is Gaining Market Share, Even as Paint Prices Climb — Update

By Connor Hart

Sherwin-Williams is winning over more customers, even as prices for paint continue to climb.

Growth came despite ongoing global uncertainty and no meaningful improvement in demand, Chief Executive Heidi Petz said Tuesday.

"Sales improvement was driven by continued growth investments, new account wins and increased share of wallet," she said. "We also implemented pricing actions to offset raw material inflation that pressured our gross margin in the quarter."

Sales rose 7.5% to $6.79 billion in the recent quarter, ahead of the $6.6 billion that analysts polled by FactSet had expected. Profit also climbed, giving the company confidence to lift its full-year outlook.

Shares jumped 8.3%, to $354.53, in recent trading. The stock is up 7.6% year-to-date.

Sherwin-Williams said its residential business continues to face significant challenges, as high mortgage rates and a sluggish housing market have slowed home-construction activity and damped demand among do-it-yourself customers.

Professional customers, on the other hand, are buying up fire-protective coatings and quick-curing flooring systems at a steady clip.

"Data centers, semiconductor infrastructure and manufacturing offshoring are among several drivers of this growth where customers continue turning to Sherwin-Williams for a suite of solutions that can be delivered quickly and consistently," Petz said.

Higher prices didn't deter sales during the latest quarter, and Sherwin-Williams is planning an 8% price increase effective Sept. 1 to offset higher raw material costs, Petz said. The company has also benefited from cost-cutting actions and is on track to remove about $17 million of annual costs from the business this year, she added.

For the year, Sherwin-Williams said it now expects sales to be up in the mid- to high-single-digit percent range, compared with a prior outlook for sales growth in the low- to mid-single-digit percent range.

The company raised its earnings outlook to between $10.92 and $11.32 a share, or between $11.80 and $12.20 a share on an adjusted basis. It had previously forecast earnings of $10.70 to $11 a share, and adjusted earnings of $11.50 to $11.90 a share. Analysts are looking for earnings of $11.14 a share, and adjusted earnings of $11.76 a share.

The higher outlooks came as Sherwin-Williams posted second-quarter net income of $843.6 million, or $3.43 a share, up from $754.7 million, or $3 a share, a year earlier. Adjusted earnings of $3.70 a share topped analyst views for $3.52 a share.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

July 28, 2026 12:11 ET (16:11 GMT)