What Happened?
Shares of water technology company Xylem (NYSE: XYL) jumped 3.2% in the afternoon session after the company announced a partnership with Amazon.com Inc. to deploy smart water technology in Mexico City and Monterrey, aiming to save more than 1.3 billion liters of water annually.
The initiative will implement Xylem Vue, a software platform using data analytics to detect leaks, manage pressure in real-time, and reduce water losses. The project is expected to save approximately 800 million liters per year in Mexico City, where the municipal system currently loses up to 40% of its water through pipe leaks. In Monterrey, the collaboration will expand an existing deployment to save an additional 560 million liters annually. This partnership is part of Amazon's broader water stewardship program. Separately, Xylem also highlighted its commitment to cybersecurity, becoming the first water technology company to sign the U.S. Cybersecurity and Infrastructure Security Agency's (CISA) 'Secure by Design' pledge.
After the initial pop the shares cooled down to $141.49, up 2.7% from previous close.
Is now the time to buy Xylem? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Xylem’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was about 1 month ago when the stock gained 9.5% on the news that the company reported strong second-quarter results, beating analyst expectations and raising its full-year guidance. The water technology firm posted quarterly revenue of $2.3 billion, surpassing analyst estimates. On an adjusted basis, Xylem earned $1.26 per share, also beating Wall Street forecasts. The company noted that robust organic revenue growth across all segments drove the positive results. Following the strong performance, Xylem increased its full-year 2025 sales forecast to a range of $8.9 billion to $9.0 billion. It also lifted its adjusted earnings per share projection to between $4.70 and $4.85, signaling confidence for the remainder of the year.
Xylem is up 22% since the beginning of the year, and at $141.49 per share, it is trading close to its 52-week high of $144.62 from August 2025. Investors who bought $1,000 worth of Xylem’s shares 5 years ago would now be looking at an investment worth $1,673.
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
