Timing note: The event is today, Tuesday, July 28, 2026, not tomorrow. Sherwin-Williams is scheduled to release second-quarter results before the U.S. market opens and host its call at 10:00 a.m. ET. (investors.sherwin-williams.com)
Sherwin-Williams enters 2Q with a credible setup for solid reported sales growth, aided by price, foreign exchange, and the Suvinil acquisition. The more consequential question is whether management can protect full-year earnings guidance as raw-material, energy, logistics, and tariff-related pressures become more pronounced.
Management’s April outlook called for mid-single-digit 2Q sales growth and reaffirmed full-year adjusted EPS of $11.50–$11.90. The implied 2Q sales bar is roughly $6.6 billion, versus $6.31 billion in 2Q25, using the midpoint of “mid-single-digit” growth. (investors.sherwin-williams.com)
The central debate: Sherwin has been taking share and showing unusually strong execution in a weak underlying demand backdrop, but its ability to preserve margins now relies increasingly on targeted pricing, cost actions, supplier relationships, and the timing of raw-material inflation.
The critical result is not merely whether SHW delivers the guided mid-single-digit sales increase. Investors will focus on whether it reaffirms, narrows, or changes the $11.50–$11.90 adjusted-EPS range.
At 1Q, management reiterated that range despite increasing its full-year raw-material inflation outlook to low-to-mid-single digits, from low single digits previously. It indicated that the associated price/mix contribution would move to the high end of its prior low-single-digit range, supported by additional targeted pricing and cost reductions. (investors.sherwin-williams.com)
Constructive outcome: guidance is maintained, with evidence that price realization and cost reductions offset the newly higher cost basket.
Negative outcome: a maintained EPS range accompanied by more cautious commentary on 2H volumes, raw materials, or incremental pricing. A guide cut would be the clearest downside surprise.
Paint Stores Group is the largest and most important segment. In 1Q, sales rose 3.7%, same-store sales rose 2.4%, and management cited low-single-digit gains in both price/mix and volume. Strength was led by protective & marine, residential repaint, and commercial activity, while new residential construction remained weak. (investors.sherwin-williams.com)
For 2Q, investors should watch:
The 2Q25 comparison is manageable but not trivial: PSG revenue grew 2.3% and same-store sales increased 0.8%, while segment margin was 24.8%. (investors.sherwin-williams.com)
Management’s 1Q message was clear: cost pressure should build during 2Q and become more material in the second half. The company identified oil, natural gas, propylene and other petrochemical feedstocks as pressure points, especially in industrial coatings and international markets. It also noted that more than 80% of revenue is generated in North America and that much of the associated raw-material base is regionally sourced—important insulation against supply disruption, though not against inflation. (s2.q4cdn.com)
Key questions for the call:
Sherwin’s advantage is its controlled distribution, premium contractor relationships, and supplier scale. But in a weak-demand environment, price/cost recovery that is too aggressive could sacrifice the share gains supporting the top line.
Consumer Brands grew 19.2% in 1Q, driven primarily by Suvinil, favorable FX, and European growth. That result masked a low-single-digit decline in North American DIY, while adjusted segment margin improved to 23.4%, helped by global supply-chain efficiencies. (investors.sherwin-williams.com)
For 2Q, distinguish between:
A positive surprise would be stable-to-improving DIY trends plus continued low-20% adjusted segment margin. A weaker result would be a renewed North American DIY decline that overwhelms acquisition-led sales growth.
PCG delivered 6.5% sales growth in 1Q, with low-single-digit volume growth and favorable FX. Automotive refinish, packaging, general industrial, and coil were notable areas of strength. Packaging’s momentum has been supported by regulatory-driven conversions to non-BPA technologies, while automotive refinish has benefited from new-account wins and direct-install growth. (investors.sherwin-williams.com)
The offset is that PCG is more exposed to volatile industrial feedstocks and international demand conditions. Investors should focus on:
The comparison is favorable: PCG sales were roughly flat in 2Q25 and adjusted segment margin was 16.8%, depressed by costs and foreign-exchange effects. (investors.sherwin-williams.com)
| Metric | 1Q26 actual | 2Q26 management framework | 2Q25 actual |
|---|---|---|---|
| Consolidated sales growth | +6.8% | Up mid-single digits | +0.7% |
| Net sales | $5.67B | Roughly $6.6B at a 5% illustrative growth rate | $6.31B |
| Adjusted diluted EPS | $2.35 | No quarterly EPS guidance given | $3.38 |
| Full-year adjusted EPS | Guidance reaffirmed | $11.50–$11.90 | N/A |
| PSG same-store sales | +2.4% | Key operating KPI | +0.8% |
Source: company-reported 1Q26 and 2Q25 results; the 2Q26 sales figure is an illustrative midpoint calculation, not company guidance. (investors.sherwin-williams.com)
SHW’s 2Q report should be evaluated as a margin-resilience and execution test, not simply a revenue test. The company has demonstrated that it can gain share in soft end markets, particularly in repaint, protective & marine, automotive refinish, and packaging. The issue now is whether that execution can overcome a more inflationary cost environment without compromising volume or requiring a reset to 2026 earnings expectations.
The most market-relevant combination would be: positive PSG comps, continued PCG share gains, resilient CBG margins, credible pricing progress, and an intact $11.50–$11.90 adjusted-EPS guide.