The EPS beat and maintained guidance midpoint are positive, but the sharp deceleration in organic growth from 7.6% to 3.7% and margin compression in the Materials Group signal headwinds. Watch Q4 for the magnitude of destocking reversal and whether the calendar shift headwind materializes as estimated.
Price Chart
Executive Summary
Avery Dennison reported Q3 2026 adjusted EPS of $2.42, up 2.1% YoY, on net sales of $2.33 billion (+5.2% YoY). The adjusted EPS of $2.42 beat the consensus estimate of $2.32 by 4.3%. The company narrowed its full-year 2026 adjusted EPS guidance to $10.10-$10.24 from the prior $10.00-$10.30 range, with the midpoint unchanged at $10.17. Organic sales growth of 3.7% was below the 7.6% in Q2, reflecting a ~2 point headwind from customer destocking, which management expects to largely unwind in Q4.
Key Financial Metrics
Key Facts
- Q3 2026 adjusted EPS of $2.42, up 2.1% YoY, beat consensus of $2.32 by 4.3%
- Q3 2026 net sales of $2.33 billion, up 5.2% YoY, vs consensus of $2.26 billion
- Organic sales growth of 3.7% (ex-currency and acquisitions), down from 7.6% in Q2 2026
- Full-year 2026 adjusted EPS guidance narrowed to $10.10-$10.24 from $10.00-$10.30; midpoint unchanged at $10.17
- Materials Group adjusted operating margin fell 110 bps to 14.1% due to negative volume/mix and higher employee costs
- Solutions Group adjusted operating margin improved 80 bps to 10.8% on productivity gains
- Adjusted free cash flow of $246 million in Q3, $716 million year-to-date
- Company returned $481 million to shareholders in first nine months via buybacks and dividends
- Net debt to adjusted EBITDA ratio improved to 2.2x from 2.3x at end of Q2
Financial Impact
Q3 adjusted EPS beat consensus by $0.10 (4.3%); full-year guidance midpoint unchanged at $10.17
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Materials Group | $1.6B | +8.5% |
| Solutions Group | $687.0M | -1.8% |
Risk Factors
- Customer destocking expected to continue into Q4, creating a ~2 point organic sales headwind in Q3
- Materials Group margins compressed 110 bps YoY on negative volume/mix and higher employee costs
- Q4 faces an estimated 1.5% year-over-year sales headwind from a calendar shift
- Higher inflation and geopolitical uncertainty cited as ongoing risks
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000008818-26-000162 |
| Exhibit: ex9928k10-29x26.htm | 0000008818-26-000162 |
| Document: avy-20261029.htm | 0000008818-26-000162 |
| Document: 0000008818-26-000162-index-headers.html | 0000008818-26-000162 |
| Document: 0000008818-26-000162-index.html | 0000008818-26-000162 |
| Document: 0000008818-26-000162.txt | 0000008818-26-000162 |
| 8-K Data (Synthetic) | 0000008818-26-000162 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 29, 2026 3d ago | 8-K | $182.06 | awaiting T+60 | awaiting T+60 | $182.22 (+0.09%) |
Oct 27, 2026 5d ago | SC 13G/A | $180.70 | awaiting T+60 | awaiting T+60 | $182.22 (+0.84%) |
Oct 21, 2026 11d ago | Institutional Cluster | $184.66 | awaiting T+60 | awaiting T+60 | $182.22 (−1.32%) |
Oct 13, 2026 19d ago | 8-K | $170.72 | awaiting T+60 | awaiting T+60 | $182.22 (+6.74%) |
Oct 5, 2026 27d ago | 8-K | $170.00 | awaiting T+60 | awaiting T+60 | $182.22 (+7.19%) |
Aug 19, 2026 10w ago | 8-K | $183.16 | awaiting T+60 | awaiting T+60 | $182.22 (−0.51%) |
Jul 30, 2026 13w ago | 8-K | $174.82 $181.83 | ▲ +4.01% | ▲ +1.55% | $182.22 (+4.23%) |
Jun 4, 2026 21w ago | 8-K | $153.25 $177.75 | ▲ +15.99% | ▲ +14.11% | $182.22 (+18.90%) |
Apr 28, 2026 26w ago | 8-K | $165.43 $155.20 | ▼ −6.18% | ▼ −10.17% | $182.22 (+10.15%) |
Mar 12, 2026 33w ago | DEFA14A | $171.01 $155.18 | ▼ −9.26% | ▼ −19.95% | $182.22 (+6.56%) |
US Market Status
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