Fiscal year ends DecLast earnings: Apr 28, 2026Est. next earnings: Jul 28, 2026
Latest Score
5.0/ 10
-2.0vs prior
4-Period Change
+3.0
vs Q1 '25
Challenge RatePercentage of questions scored as challenging — where the analyst pushed back, pressed for specifics, or questioned management's assumptions.
9%
All quarters
5.0out of 10Mixed
Sentiment · FY2026 Q1
Q4 '24Q1 '26
Top Analysts & Firms
Most Active Analysts
Analyst
Firm
Questions
ChallengePercentage of questions scored as challenging — where the analyst pushed back, pressed for specifics, or questioned management's assumptions.
Base6Base 6GAAP revenue YoY +6.99% → base 6. The base score is anchored to the GAAP revenue YoY band before transcript, EPS, and guidance adjustments.+Transcript-1Transcript -1GAAP revenue +6.99% includes ~5 percentage points FX tailwind and ~1 percentage points Taylor M&A. Management states organic sales up ~1%. Organic growth of ~1% maps to base 5 (0% to +2% band); GAAP maps to base 6 (3-7% band). Gap = 1 band. FX ≥3 percentage points qualifies as Tier 1 overstatement.+EPS0EPS 0GAAP EPS YoY +4.31% vs revenue YoY +6.99%, GAAP spread -2.68 percentage points (inside -5 percentage points). Operating income cross-check: operating income YoY +6.79% vs revenue YoY +6.99%, operating income spread -0.20 percentage points (inside ±5 percentage points). Both inside → EPS adjustment = 0.+Guidance0Guidance 0FY2026 outlook of ~6% EPS growth introduced in Q4 FY2025. This quarter management states full-year contributing factors are ’largely unchanged from our prior outlook.’ No raise or lower of annual guidance. Q2 quarterly guide ($2.43-$2.53) is for a different period.=Final5
How this score was built
Base6Base 6GAAP revenue YoY +6.99% → base 6. The base score is anchored to the GAAP revenue YoY band before transcript, EPS, and guidance adjustments.+Transcript-1Transcript -1GAAP revenue +6.99% includes ~5 percentage points FX tailwind and ~1 percentage points Taylor M&A. Management states organic sales up ~1%. Organic growth of ~1% maps to base 5 (0% to +2% band); GAAP maps to base 6 (3-7% band). Gap = 1 band. FX ≥3 percentage points qualifies as Tier 1 overstatement.+
Macro Signals
↓Inflation→Consumer Spending→Trade & Tariffs
Avery Dennison started FY2026 with Q1 adjusted EPS of $2.47, up 7% year-over-year, though organic sales grew only approximately 1% with the GAAP 7.0% overstated by FX and Taylor M&A. The transcript adjustment of -1 reflected the one-band gap between organic and reported growth. Materials base categories grew mid-single digits, and a $75 million Wiliot investment deepened the IL platform into condition monitoring. However, IL was down low single digits on logistics weakness and a chip transition, while customer prebuying created a $0.05 tailwind expected to reverse in Q2.
Key Themes7
positive📊 company
Strong Q1 With EPS Up 7% On Mid-Single-Digit Volume Growth
Adj EPS of $2.47, up 7% YOY. Organic sales up 1% on mid-single-digit volume/mix growth offset by deflation-related price reductions. Adj free cash flow of $104M.
Revenue GrowthMargin
positive📊 company
Materials Base Categories Grew Mid-Single Digits Offsetting HVC Softness
Materials Group organic sales up 2% with base categories up mid-single digits. High-value categories down low single digits on tough comps and auto end market softness. Label materials gained share.
EPS 0GAAP EPS YoY +4.31% vs revenue YoY +6.99%, GAAP spread -2.68 percentage points (inside -5 percentage points). Operating income cross-check: operating income YoY +6.79% vs revenue YoY +6.99%, operating income spread -0.20 percentage points (inside ±5 percentage points). Both inside → EPS adjustment = 0.
+
Guidance0Guidance 0FY2026 outlook of ~6% EPS growth introduced in Q4 FY2025. This quarter management states full-year contributing factors are ’largely unchanged from our prior outlook.’ No raise or lower of annual guidance. Q2 quarterly guide ($2.43-$2.53) is for a different period.
=
Final5
$75M Wiliot Investment Deepens IL Platform Into Condition Monitoring
Incremental $75M investment in Wiliot with dedicated joint go-to-market team. Positions AVY as preferred inlay commercial partner for Bluetooth-based condition monitoring in food, pharma, and logistics.
Innovation & R&DCapital Allocation
negative📊 company
IL Down Low Single Digits On Logistics Weakness And Chip Transition
Enterprise IL declined low single digits, below expectations. Logistics down low double digits on softer customer demand and chip transition. Apparel and general retail up low single digits despite tough pre-tariff comp.
DemandInnovation & R&D
negative🏢 sector
Solutions Base Apparel Down Mid-Single Digits On Continued Sourcing Softness
Solutions Group organic sales down 1%. Base categories declined mid-single digits on softer apparel demand lapping strong pre-tariff Q1 2025 baseline. EBITDA margin down 80bp YOY.
DemandTrade Tariffs
negative🏢 sector
Raw Material Inflation Inflecting With High-Single-Digit Sequential Rise In Q2
After low-single-digit deflation in Q1, raw materials shifted to inflation in March linked to petrochemical prices. Expecting high-single-digit sequential inflation in Q2. Implementing pricing and material reengineering.
Cost PressurePricing
mixed📊 company
Customer Prebuying Created ~$0.05 Q1 Tailwind With Q2 Destock Expected
Customer prebuying ahead of price increases, particularly in late March, estimated at ~$0.05 EPS tailwind. Expected to largely unwind in second half of Q2. Lower scale than 2021-2022 cycle.
DemandSupply Chain
Robert W. Baird
on Intelligent Labels, how did that play out relative to your initial expectations for Q1? And also, has your view on 2026 core sales for this business changed
you talked about the headwind from the logistics share gains that you had last year, but I think you mentioned that you did not really see any of that giveback in Q1
On the price/cost side, Greg, I think you talked about it being a slight negative in Q2. Is all the cost flowing through in Q2, or do you have something else to deal with in Q3