$AVY · Avery Dennison Corp
Avery Dennison reported Q3 2026 results with net sales of $2.332B (+5.2% YoY), GAAP EPS of $2.24, and adjusted EPS of $2.42 (+2.1% YoY). Organic sales grew 3.7%. The company issued FY2026 adjusted EPS guidance of $10.10 to $10.24, implying a Q4 adjusted EPS range of approximately $2.52 to $2.66.
- Q3 net sales of $2.332B, up 5.2% YoY; organic sales growth of 3.7%
- Adjusted EPS of $2.42, up 2.1% from $2.37 in prior-year quarter
- Materials Group adjusted operating margin contracted 110 bps to 14.1% on negative volume/mix and higher employee costs
- Solutions Group adjusted operating margin expanded 80 bps to 10.8%
- YTD adjusted free cash flow surged to $715.8M vs. $404.5M in prior-year period
Markets closed — no regular-session reaction yet; extended-hours move not captured here. AVY last traded at $180.70 on a $13.69B market cap.
Solid top-line growth and a strong free cash flow inflection (YTD $715.8M vs. $404.5M) offset by Materials Group margin compression make this a mixed but consequential print for a $13.7B materials giant.
Mixed results across segments: Materials Group showed strong top-line growth (+8.5% reported) but margin erosion, while Solutions Group delivered margin expansion on flat organic sales. The 77% YoY jump in YTD free cash flow stands out among packaging/materials peers.
Higher inflation and customer destocking impacts cited as headwinds; Materials Group margin compression driven by negative volume/mix and rising employee-related costs. Tariffs, geopolitical uncertainty, and raw material cost/availability flagged as near-term risks.