The Sherwin-Williams Company (SHW) reported net income of $821.0 million, or $3.38 a share, for the third quarter ended September 30, 2026, a 1.5% decline from a year earlier after an 11.8% increase in the second quarter.

Consolidated net sales rose 7.9% to $6.86 billion, a modest acceleration from 7.5% growth in the second quarter. Diluted earnings growth slowed to 0.9% from 14.3% in the prior quarter; adjusted diluted earnings were $3.63 a share, up 1.1%.

Chair, President and Chief Executive Officer Heidi G. Petz said third-quarter performance showed the company’s resilience in a challenging demand environment, with sales growth across all three reportable segments at or above guidance. She said the company took disciplined pricing and cost actions to address inflationary pressures.

Gross margin compressed to 47.8% of sales from 49.2% a year earlier. The company said the quarter was primarily impacted by higher raw material and supply chain related costs and by mix, including dilution from Suvinil and higher growth in lower-margin reportable segments. Excluding the dilutive impact of the Suvinil acquisition, year-to-date gross margin was flat versus the prior year. SG&A as a percent of sales decreased to 30.2% from 30.7%.

Paint Stores Group net sales rose 4.7% to $4.02 billion on mid-single digit pricing and low-single digit volume. Same-store sales were 3.9%. Segment profit rose 2.1% to $974.3 million; reported segment margin was 24.3%. Net sales increased in all professional customer end markets, led by a double-digit percentage increase in protective and marine, a high-single digit increase in commercial and a mid-single digit increase in residential repaint.

Consumer Brands Group net sales rose 21.7% to $937.4 million, which the company attributed primarily to the October 2025 acquisition of Suvinil, favorable foreign currency translation and a positive shift in mix, partially offset by soft demand in North America. Segment profit fell 7.1% to $146.2 million; reported margin compressed to 15.6% from 20.4%. Adjusted segment profit fell 4.4% to $171.4 million. The company said profit declined on higher raw material and supply chain costs, incremental SG&A associated with Suvinil and unfavorable foreign currency transaction gains and losses, partially offset by higher net sales.

Performance Coatings Group net sales rose 8.8% to $1.90 billion on mid-single digit pricing and low-single digit volume. General Industrial, Packaging and Coil each increased by a double-digit percentage. Segment profit rose 6.2% to $255.2 million; reported margin was 13.4%. Adjusted segment profit rose 4.7% to $308.7 million.

EBITDA rose 3.4% to $1.39 billion, or 20.3% of net sales, down from 13.8% growth in the second quarter. Adjusted EBITDA rose 3.3% to $1.40 billion, or 20.5% of sales.

The company returned $749.0 million to shareholders in the quarter through dividends and share repurchases.

Full-year 2026 diluted net income per share guidance was revised to $10.92 to $11.22, including Valspar acquisition-related amortization of $0.82 a share and severance and other restructuring expenses of $0.11 a share, narrowing the high end from the second-quarter range of $10.92 to $11.32. Adjusted diluted earnings guidance narrowed to $11.85 to $12.15 from $11.80 to $12.20.

Petz said customer sentiment and leading indicators point to muted demand over the remainder of the year and into 2027. The company expects fourth-quarter 2026 consolidated net sales to increase by a mid-single digit percentage versus the fourth quarter of 2025, maintaining full-year sales guidance of up a mid to high-single digit percentage versus 2025.