The Sherwin-Williams Company

The Sherwin-Williams Company’s Q1 2026 10-Q offers a concise update, particularly in its Management’s Discussion and Analysis (MD&A), which notes no material changes to our previously disclosed risk factors during the three months ended March 31, 2026. This directs readers to the 2025 10-K for a comprehensive risk discussion. Operationally, the company reported net sales of $5,666.9 million for the quarter, an increase from $5,305.7 million in the prior year. Gross profit also improved, reaching $2,780.5 million, up from $2,559.1 million, with the gross profit percent to net sales rising to 49.1% from 48.2%.

Forensic scores present a mixed but generally stable picture. The Beneish M-Score, Beneish’s 1999 eight-ratio earnings-manipulation detector, registered -2.4974, which is below the -1.78 threshold, suggesting no elevated risk of earnings manipulation. However, Altman’s Z″ — a 1968 bankruptcy-distress index — came in at 1.25. This places the company in the “grey zone” (1.10–2.60), indicating some potential for financial distress, though not immediate bankruptcy risk. The Piotroski F-Score, a 9-point fundamental strength scan, was 5.0, neither strong (7+) nor weak (<4). The Fog Index, a readability score, was not available for this filing.

The MD&A’s explicit statement regarding no material changes to our previously disclosed risk factors is a notable feature for a quarterly report. It implies that management views the risk landscape as largely consistent with the annual filing, or at least that no new risks met the materiality threshold for disclosure in the quarter. This means a full understanding of the company’s risk profile still requires consulting the 2025 10-K. On the income statement, selling, general and administrative expenses as a percentage of net sales increased to 34.8% from 33.8%, and interest expense rose to $131.6 million from $103.8 million year-over-year.

This filing provides a quantitative snapshot of Sherwin-Williams’ financial performance and a specific statement on risk factor stability for the quarter. It offers insight into the company’s operational efficiency and its standing according to established forensic metrics. What it does not provide is a detailed explanation for the Altman Z″‘s position in the grey zone, nor does it elaborate on the specific drivers behind the shifts in SG&A or interest expense. The filing also does not offer a comprehensive update on all potential risks, deferring that to the annual report. Read the 10-Q. Decide for yourself.