Equity Profile

SHW

The Sherwin-Williams Company

MaterialsSpecialty Chemicals$74.9B

Oct16Thu

Pre-Earnings Brief

UpcomingQ2-2026Pre-Market9:00 AM EDT

Company Snapshot

The Sherwin-Williams Company (SHW) is a leading manufacturer of paints and coatings, serving both consumer and industrial markets. With a market cap of $75 billion, the company plays a vital role in the materials sector, particularly as construction and home improvement activities fluctuate.

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of profitability, and investors will be looking for continued growth or any signs of weakness.

N/A

Revenue Growth

Revenue growth reflects the company's ability to increase sales and market share, which is crucial in the competitive specialty chemicals industry.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

SHW Q2-2026 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

75%

Avg EPS Surprise

+1.04%

Avg Stock Reaction

+1.35%

Last Quarter Recap

In Q1-2026, Sherwin-Williams reported an EPS of $2.35, exceeding expectations by nearly 5%. However, the stock fell by 3.52% the following day, indicating some investor caution despite the positive earnings surprise.

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall expectations for Sherwin-Williams are mixed, with some investors hopeful for continued earnings growth while others are wary of potential economic headwinds.

Bull Case

The optimistic view hinges on strong demand in the construction and renovation sectors, which could drive higher sales and improved margins.

Bear Case

Conversely, a slowdown in housing starts or increased competition could negatively impact revenue and profitability, leading to disappointing results.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the EPS figure for Q2-2026, and how does it compare to previous quarters?

This will provide insight into the company's profitability trends and whether they can maintain or improve their earnings amidst market conditions.

What are the revenue figures for the quarter, and how do they reflect on market demand?

Understanding revenue performance will indicate the company's ability to capture market share and respond to economic conditions.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating the potential for Sherwin-Williams to capitalize on a rebound in the housing market, which could drive stronger-than-expected revenue growth.

Supporting Evidence

The company's recent EPS surprises indicate a trend of outperforming expectations.

Options pricing suggests a lower volatility expectation than historical averages, indicating potential for a larger move.

The construction sector has shown signs of recovery, which could benefit Sherwin-Williams significantly.

Key Risk

If housing market indicators show unexpected strength, it could lead to a significant upward revision in revenue expectations.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core thesis revolves around Sherwin-Williams' ability to sustain earnings growth in a potentially challenging economic environment.

Bull Confirmed If

An EPS of $2.50 or higher would confirm strong demand and effective cost management.

Bear Confirmed If

An EPS below $2.20 would raise concerns about declining demand and profitability.

Pre-Earnings Positioning

Options Market

Implied Move

±1.16%

Historical Avg

±3.6%

Pricing cheap

The options market is pricing a relatively modest move for Sherwin-Williams, suggesting that traders are uncertain about significant volatility following the earnings report.

Options are pricing ±1.2% while SHW has averaged ±3.6% over the last 8 prints — setup is pricing cheap.

Detail

ATM IV

0.3%

30d HV

27.6%

Calls (21K)P/C Ratio: 0.16Puts (27K)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options pricing cheap in Materials

n=30

Fade rate: 13 of 30 (43%)

This setup has occurred 30 times across Materials in the last 2 years. 13 of 30 faded and 17 held — no strong directional bias after the initial reaction. The average absolute 1-day move is 4.7%, with a raw directional average of +0.6% (modestly positive historical bias).

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Sherwin-Williams beats expectations, history suggests the stock could rise by about 2.74%, confirming a positive outlook for the company.

In-Line / Cautious

If results are in line with expectations, the stock may experience a muted reaction as investors await further guidance.

Miss

A miss could lead to a decline of around 2.85%, indicating investor disappointment and potential concerns about future performance.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on market demand in the construction sector.
2Insights into cost management strategies and their impact on margins.
3Comments on competitive pressures and pricing strategies.
4Updates on any new product launches or innovations.
5Management's outlook for the remainder of the fiscal year.

See the full picture

AI-powered briefs, options data, and 20 quarters of history — everything you need before earnings.

No charge today · Auto-bills $8/mo after 7 days · Cancel anytime

More Earnings This Week

5 Reports

LG Display Co., Ltd.

Company Snapshot

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of profitability, and investors will be looking for continued growth or any signs of weakness.

N/A

Revenue Growth

Revenue growth reflects the company's ability to increase sales and market share, which is crucial in the competitive specialty chemicals industry.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

SHW Q2-2026 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

75%

Avg EPS Surprise

+1.04%

Avg Stock Reaction

+1.35%

Last Quarter Recap

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall expectations for Sherwin-Williams are mixed, with some investors hopeful for continued earnings growth while others are wary of potential economic headwinds.

Bull Case

The optimistic view hinges on strong demand in the construction and renovation sectors, which could drive higher sales and improved margins.

Bear Case

Conversely, a slowdown in housing starts or increased competition could negatively impact revenue and profitability, leading to disappointing results.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the EPS figure for Q2-2026, and how does it compare to previous quarters?

This will provide insight into the company's profitability trends and whether they can maintain or improve their earnings amidst market conditions.

What are the revenue figures for the quarter, and how do they reflect on market demand?

Understanding revenue performance will indicate the company's ability to capture market share and respond to economic conditions.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating the potential for Sherwin-Williams to capitalize on a rebound in the housing market, which could drive stronger-than-expected revenue growth.

Supporting Evidence

The company's recent EPS surprises indicate a trend of outperforming expectations.

Options pricing suggests a lower volatility expectation than historical averages, indicating potential for a larger move.

The construction sector has shown signs of recovery, which could benefit Sherwin-Williams significantly.

Key Risk

If housing market indicators show unexpected strength, it could lead to a significant upward revision in revenue expectations.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core thesis revolves around Sherwin-Williams' ability to sustain earnings growth in a potentially challenging economic environment.

Bull Confirmed If

An EPS of $2.50 or higher would confirm strong demand and effective cost management.

Bear Confirmed If

An EPS below $2.20 would raise concerns about declining demand and profitability.

Pre-Earnings Positioning

Options Market

Implied Move

±1.16%

Historical Avg

±3.6%

Pricing cheap

The options market is pricing a relatively modest move for Sherwin-Williams, suggesting that traders are uncertain about significant volatility following the earnings report.

Options are pricing ±1.2% while SHW has averaged ±3.6% over the last 8 prints — setup is pricing cheap.

Detail

ATM IV

0.3%

30d HV

27.6%

Calls (21K)P/C Ratio: 0.16Puts (27K)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options pricing cheap in Materials

n=30

Fade rate: 13 of 30 (43%)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Sherwin-Williams beats expectations, history suggests the stock could rise by about 2.74%, confirming a positive outlook for the company.

In-Line / Cautious

If results are in line with expectations, the stock may experience a muted reaction as investors await further guidance.

Miss

A miss could lead to a decline of around 2.85%, indicating investor disappointment and potential concerns about future performance.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on market demand in the construction sector.
2Insights into cost management strategies and their impact on margins.
3Comments on competitive pressures and pricing strategies.
4Updates on any new product launches or innovations.
5Management's outlook for the remainder of the fiscal year.