Xylem Inc.

The filings present a financially stronger company than in 2022, though several items need a closer read. The Beneish M-Score is -2.495, which is below -1.78 and therefore not in the elevated manipulation-risk zone; this is a screening tool, not a conclusion about the accounting. The Altman Z″-Score is 3.86, in the safe zone, which on this model suggests low near-term distress risk for a non-financial industrial company. The Piotroski F-Score is 8 of 9 computable signals, meaning eight of the nine checks passed. The operating cash flow to net income ratio of 1.30 means 2025 operating cash flow was about 30% above net income, a strong cash conversion figure, though operating cash flow itself declined slightly from 2024. Long-term debt fell to $1.41 billion at the end of 2025 from $1.98 billion a year earlier, and equity reached $11.48 billion against liabilities of $5.88 billion. Total assets rose from $7.95 billion in 2022 to $16.11 billion in 2023, and equity rose from $3.49 billion to $10.17 billion over the same span; the excerpt does not explain that change, so readers may want to review the 2023 filings for the cause. Item 1 of the 10-Q points to Note 18, Commitments and Contingencies, for legal and regulatory matters, and the excerpt does not name any specific proceeding. Management reported effective disclosure controls and no changes in internal control over financial reporting in the quarter.

Catalyst.Management's outlook centers on continued growth. Reported 2025 revenue was $9.04 billion, up 5.5% from $8.56 billion in 2024, and operating income rose to $1.22 billion from $1.01 billion, about 21% higher. Net income reached $957 million in 2025, up from $890 million. The 10-Q raises the total revenue growth outlook for 2026 to 2% to 3% and keeps the organic revenue growth outlook at 2% to 4%. The filing ties that outlook to geopolitical, trade, macroeconomic and regulatory uncertainty. The 10-K business description emphasizes water utilities, treatment, and services as the core of the business.

Hidden risk.The forward figures do not fully line up. The total revenue growth outlook of 2% to 3% sits below the 2% to 4% organic range, and the excerpt does not explain the difference, so readers may want to check the full outlook discussion. Cash flow also trailed profit growth: operating cash flow was $1.24 billion in 2025, slightly below $1.26 billion in 2024, even as net income rose. In the first quarter of 2026, the company repurchased about 4.8 million shares, and its board authorized a new $1.5 billion repurchase program on February 25, 2026. The 10-K risk-factor excerpt provided is mostly forward-looking-statement language, so the specific risks are not visible in this data.