Xylem Inc.XYL

Xylem Inc. Revenue Disclosure

10-KFiled Feb 25, 20263 min read
Revenue
Disaggregation of Revenue
The following table illustrates the sources of revenue:
Year Ended December 31,
(in millions)202520242023
Revenue from contracts with customers$8,720 $8,273 $6,963 
Lease Revenue315 289 401 
Total$9,035 $8,562 $7,364 

The following table reflects revenue from contracts with customers by application:
Year Ended December 31,
(in millions)202520242023
Water Infrastructure
Transport$1,556 $1,496 $1,421 
Treatment1,080 1,057 795 
Applied Water
Building Solutions1,037 997 1,025 
Industrial Water812 796 828 
Measurement and Control Solutions
Smart Metering and Other1,726 1,519 1,253 
Analytics360 352 358 
Water Solutions and Services
Capital and Other
1,144 1,081 804 
Services
1,005 975 479 
Total$8,720 $8,273 $6,963 
The following table reflects revenue from contracts with customers by geographical region:
Year Ended December 31,
(in millions)202520242023
Water Infrastructure
    United States$1,005 $891 $744 
Western Europe937 914 822 
Emerging Markets (a)477 526 458 
     Other217 222 192 
Applied Water
    United States1,018 942 970 
Western Europe412 398 401 
Emerging Markets (a)286 321 342 
    Other133 132 140 
Measurement and Control Solutions
     United States1,373 1,267 1,042 
     Western Europe342 282 282 
     Emerging Markets (a)197 190 193 
     Other174 132 94 
Water Solutions and Services
United States1,597 1,570 916 
Western Europe101 101 105 
Emerging Markets (a)235 213 142 
Other216 172 120 
Total$8,720 $8,273 $6,963 

(a)Emerging Markets includes results from the following regions: Eastern Europe, the Middle East and Africa, Latin America and Asia Pacific (excluding Japan, Australia and New Zealand, which are presented in "Other")
Contract Balances
We receive payments from customers based on a billing schedule as established in our contracts. Contract assets relate to costs incurred to perform in advance of scheduled billings. Contract liabilities relate to payments received in advance of performance under the contracts. Changes in contract assets and liabilities are due to our performance under the contract.
The table below provides contract assets, contract liabilities, and significant changes in contract assets and liabilities:
(in millions)Contract Assets (a)
Contract Liabilities (b)
Balance at 1/1/2024$263 $315 
  Additions, net265 265 
  Revenue recognized from opening balance— (247)
  Billings transferred to accounts receivable (227)— 
  Foreign currency and other2 (11)
Balance at 1/1/2025$303 $322 
  Additions, net382 251 
  Revenue recognized from opening balance— (280)
Billings transferred to accounts receivable(185)— 
Foreign currency and other10 (7)
Balance at 12/31/2025$510 $286 
(a)Contract assets are included in either receivables or other non-current assets on the Consolidated Balance Sheets.
(b)Contract liabilities are included in either accrued and other current liabilities or other non-current liabilities on the Consolidated Balance Sheets.
Performance obligations
Delivery schedules vary from customer to customer based upon their requirements. Typically, large projects require longer lead production cycles and delays can occur from time to time. As of December 31, 2025, the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied for contracts with performance obligations, amount to $1,929 million. The Company elects to apply the practical expedient to exclude from this disclosure revenue related to performance obligations that are part of a contract whose original expected duration is less than one year.
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Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Mar 3, 2025
2023Feb 28, 2024
2022Feb 24, 2023
2021Feb 25, 2022
2020Feb 26, 2021
2019Feb 28, 2020
2018Feb 22, 2019

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

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