Sherwin-Williams Sees Weak Demand and Sticky Inflation Into 2027

what happened

Sherwin-Williams expects the tough demand backdrop to continue into 2027. The paint maker sees continued unevenness across most of its end markets and inflation that will stay stubborn. CEO Heidi Petz told analysts on a call that “we expect raw material inflation to be in the low- to mid-single-digit range for 2027, with the largest year-over-year impact in the first half of the year before moderating in the second half.”

The company also expects other cost categories to rise, including energy, fuel, healthcare, wages and technology and software licensing. To offset higher expenses, Sherwin-Williams will keep cutting costs and is guiding for savings of about $75 million. Petz added that the company will take “a thoughtful approach to any potential price increases.” Shares are down 2.6%, according to Market Talk.

why it matters

For markets, there are two signals here: soft demand across construction and home-improvement end markets, and cost inflation that could squeeze margins for coatings makers. For investors in materials and consumer-linked sectors, it is a reminder that cost pressure is proving persistent. The report itself contains no share-price forecast.

market impact

Sherwin-Williams shares: weak demand outlook and rising costs weigh on the stock

• ▼Sherwin-Williams shares pressure down — weaker demand and cost outlook weighs on earnings expectations

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