AVY

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Avery Dennison NYSE: AVY reported third-quarter 2026 results that exceeded its expectations, supported by a slower-than-anticipated pace of customer inventory destocking in its Materials Group and operational execution across the business.

Avery Dennison Corporation (AVY) Q3 2026 Earnings Call Transcript

AVY beats Q3 earnings and sales estimates on productivity gains and pricing, while margin pressure and customer destocking shape its 2026 outlook.

The headline numbers for Avery Dennison (AVY) give insight into how the company performed in the quarter ended September 2026, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.

Avery Dennison (AVY) came out with quarterly earnings of $2.42 per share, beating the Zacks Consensus Estimate of $2.3 per share. This compares to earnings of $2.37 per share a year ago.

Avery Dennison Corporation continues to deliver solid revenue, profit, and cash flow growth, driven primarily by its Materials Group segment. Despite robust fundamentals, AVY remains at the pricier end of its peer group, justifying a continued 'hold' rating until valuation becomes more attractive. Organic growth, price hikes, and regional strength—especially in EMEA—are key drivers, while Solutions Group profits improved despite flat sales.

AVY expects y/y revenue growth in Q3 from Materials Group, but softer auto demand, inventory destocking and rising costs may weigh on earnings.

This marks the first peak week of Q3 earnings season, with 1,885 companies expected to report and overall S&P 500 EPS growth holding at a robust 29.5%. Meta's AI capex-driven selloff set a new bar for hyperscalers — investors are no longer giving tech giants a blank check for AI infrastructure spend as Microsoft, Alphabet, and Amazon report this week, with Apple following next Monday. Seven S&P 500 companies confirmed outlier earnings dates this week, with Baker Hughes, Freeport-McMoRan, Avery Dennison, and General Dynamics reporting later than their historical norm.

Avery Dennison (AVY) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.