Sherwin-Williams (NYSE:SHW) Q2 Financial Performance Analysis

Sherwin-Williams reported an EPS of $3.38, missing the estimated $3.80 and marking a decrease from the previous year. The company's revenue slightly surpassed estimates at $6.31 billion, indicating a modest year-over-year growth. Despite the earnings miss, Sherwin-Williams has a P/E ratio of 32.42 and revised its full-year outlook downward due to falling DIY product sales.

Sherwin-Williams (NYSE:SHW), a prominent player in the paint and coatings industry, recently reported its second-quarter financial results for 2025. The company, known for its wide range of products catering to both professional and DIY markets, is a member of the Dow Jones Industrial Average. Despite its strong market presence, Sherwin-Williams faces competition from other industry giants like PPG Industries and AkzoNobel.

On July 22, 2025, Sherwin-Williams reported earnings per share (EPS) of $3.38, which fell short of the estimated $3.80. This represents a significant miss, as highlighted by the Zacks Consensus Estimate, which anticipated $3.76 per share. The EPS also marks a decrease from the $3.70 per share earned in the same quarter last year, reflecting a negative surprise of 10.11%.

Despite the earnings miss, Sherwin-Williams reported revenue of approximately $6.31 billion, slightly surpassing the estimated $6.30 billion. This modest increase from the $6.27 billion in revenue reported in the same period last year indicates a 0.49% beat over the Zacks Consensus Estimate. However, the company has only surpassed consensus revenue estimates once in the last four quarters.

The company's financial metrics reveal a price-to-earnings (P/E) ratio of approximately 32.42, indicating the price investors are willing to pay for each dollar of earnings. The price-to-sales ratio stands at about 3.60, reflecting the market's valuation of its revenue. Sherwin-Williams also has an enterprise value to sales ratio of roughly 4.14, suggesting how the market values the company's total worth relative to its sales.

Sherwin-Williams has revised its full-year outlook downward, indicating no anticipated improvement in demand for the remainder of the year. This downturn is largely attributed to a fall in sales of DIY products, with demand expected to continue deteriorating. The company's current ratio is approximately 0.78, suggesting its ability to cover short-term liabilities with short-term assets, while maintaining a moderate debt-to-equity ratio of about 0.50.