Second Quarter Earnings Snapshot

Sherwin-Williams (SHW) just released its second quarter 2026 results, giving investors fresh detail on sales, profitability and outlook. The update also included new guidance for the third quarter and the full year.

The company reported second quarter sales of US$6,789.3 million, with net income of US$843.6 million. Basic earnings per share from continuing operations came in at US$3.46, while diluted earnings per share from continuing operations were US$3.43.

For the first half of 2026, Sherwin-Williams reported sales of US$12,456.2 million and net income of US$1,378.3 million. Basic earnings per share from continuing operations were US$5.63, and diluted earnings per share from continuing operations were US$5.58 over the six month period.

Sherwin-Williams shares closed at US$327.27, with a 1-day share price return of 3.07% and a 7-day share price return of 1.13%. The 1-year total shareholder return declined 1.74%, suggesting recent momentum has improved despite a softer picture over the past year.

If this earnings reaction has you thinking about where else the market is finding growth stories, it could be a good time to check out 18 top founder-led companies

Sherwin-Williams just delivered a solid quarter and the share price has started to react, yet the 1-year return is still slightly in the red. Is this an early entry point, or is it a moment to wait for a potentially cheaper opportunity based on valuation next?

Most Popular Narrative: 12.2% Undervalued

On the most followed narrative, Sherwin-Williams screens as undervalued, with a fair value of US$372.95 compared with the latest close at US$327.27, and that gap rests on some clear operating assumptions.

The company's sustained focus on cost control, broad and deep restructuring (doubling annual savings targets to approximately US$80 million), and disciplined SG&A management is structurally improving fixed cost leverage and expected to yield improved net margins and earnings power as sales volumes recover.

There is a full playbook behind that fair value. It reflects steady revenue gains, higher margins and a richer profit multiple. Curious which specific targets sit underneath those assumptions and how they compare with Sherwin-Williams today.

Result: Fair Value of US$372.95 (UNDERVALUED)

However, Sherwin-Williams still faces softer demand in key housing linked markets and ongoing supply chain inefficiencies, which could pressure margins and challenge those valuation assumptions.

Another View On Sherwin-Williams Valuation

The popular narrative frames Sherwin-Williams as about 12% undervalued based on earnings and growth assumptions. Yet on a simple P/E, the stock trades at 30.9x compared with a 25.1x industry average and a fair ratio of 23.1x, which points to a richer starting point. Could that higher multiple limit how much upside those fair value targets really offer?

For a closer look at how the current P/E stacks up against history, peers and the fair ratio, and what that might mean for risk if sentiment cools, you can review the detailed breakdown in See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

With Sherwin-Williams presenting both opportunities and concerns, it makes sense to look past the headline numbers and evaluate the story for yourself. If you want a clear view of the trade off between those potential rewards and the risks investors are watching, start by reviewing the 2 key rewards and 1 important warning sign.

Looking For More Investment Ideas Beyond Sherwin-Williams?

If Sherwin-Williams has sharpened your focus on quality opportunities, now is the moment to widen your watchlist and uncover fresh ideas that fit your goals.

• Target value by scanning companies that combine quality fundamentals with attractive pricing through the 51 high quality undervalued stocks
• Strengthen your income stream by reviewing companies with robust payouts using the 8 dividend fortresses
• Protect your capital by focusing on companies with resilient profiles through the 84 resilient stocks with low risk scores

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.