Avery Dennison (NYSE:AVY) Issues Quarterly Earnings Results, Beats Expectations By $0.10 EPS

31 Oct 2026, 10:56 by Scott Moore · The Cerbat Gem

Avery Dennison (NYSE:AVY – Get Free Report) released its earnings results on Thursday. The industrial products company reported $2.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.32 by $0.10, FiscalAI reports. Avery Dennison had a net margin of 7.56% and a return on equity of 33.88%. The company had revenue of $2.33 billion during the quarter, compared to analyst estimates of $2.26 billion. During the same period in the prior year, the firm posted $2.37 EPS. The firm’s quarterly revenue was up 5.2% compared to the same quarter last year.

Here are the key takeaways from Avery Dennison’s conference call:

Positive Sentiment: Avery Dennison reported solid third-quarter execution, with organic sales up 4%, adjusted EPS of $2.42 (up 2%), and $246 million of adjusted free cash flow. Excluding an estimated destocking impact, management characterized underlying organic sales growth at approximately 6% and EPS growth at approximately 8%.
Positive Sentiment: The company slightly raised the midpoint of its full-year adjusted EPS outlook to $10.10–$10.24, representing roughly 7% year-over-year growth, and now expects more than 100% free-cash-flow conversion. Restructuring savings are expected to exceed $65 million, while the company continues returning capital through dividends and share repurchases.
Negative Sentiment: Customer inventory destocking remains a headwind, particularly in European materials markets, and management expects most remaining pre-buy inventory to unwind by the end of the fourth quarter. Materials Group margins declined roughly one point year over year as price pass-through, wage inflation, and incentive compensation costs outweighed productivity gains.
Neutral Sentiment: Intelligent Labels growth was mixed: apparel and general retail rose about 10% and food adoption continued to build, but logistics sales fell by double digits due to share normalization and softer demand. The rollout of a major retailer’s fresh-food RFID program has shifted into 2027, although management remains confident in double-digit longer-term Intelligent Labels growth.
Positive Sentiment: Solutions Group profitability improved meaningfully, with adjusted EBITDA margins expanding 80 basis points to 17.8%, supported by strong productivity and restructuring efforts. Management also cited continued share gains in Materials and secular demand tied to sustainability regulations and higher-value filmic products.

Avery Dennison Price Performance

Shares of AVY stock traded up $0.13 during trading hours on Friday, hitting $182.19. The stock had a trading volume of 931,840 shares, compared to its average volume of 639,606. Avery Dennison has a one year low of $152.42 and a one year high of $199.54. The company has a debt-to-equity ratio of 1.33, a current ratio of 1.16 and a quick ratio of 0.79. The stock’s 50-day moving average price is $174.24 and its two-hundred day moving average price is $172.28. The stock has a market capitalization of $13.81 billion, a price-to-earnings ratio of 19.72, a PEG ratio of 2.19 and a beta of 0.79.

Avery Dennison Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, December 16th. Stockholders of record on Wednesday, December 2nd will be issued a $1.00 dividend. This represents a $4.00 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend is Wednesday, December 2nd. Avery Dennison’s payout ratio is 43.81%.

Trending Headlines about Avery Dennison

Here are the key news stories impacting Avery Dennison this week:

Positive Sentiment: Q3 earnings and revenue beat estimates. Avery Dennison reported earnings of $2.42 per share versus the $2.32 consensus estimate, while revenue rose 5.2% year over year to $2.33 billion, ahead of the roughly $2.26 billion forecast. Productivity improvements and pricing supported the result. Avery Dennison Q3 Earnings and Revenues Beat Estimates
Positive Sentiment: Materials demand remained strong. Materials Group sales increased 8.5% to $1.64 billion, helping offset a 1.8% decline in Solutions Group sales. Management also indicated that customer destocking is easing, which could improve demand visibility. Avery Dennison Posts Third-Quarter Sales and EPS
Positive Sentiment: Analyst price target increased. Raymond James raised its target for AVY to $198 from $192, signaling continued confidence in the company’s earnings resilience and operating improvements. Raymond James Raises Avery Dennison Price Target
Neutral Sentiment: Full-year guidance was maintained. Avery Dennison reaffirmed reported 2026 EPS guidance of $9.45 to $9.59 rather than issuing an upside revision. The stable outlook provides support, but may limit additional upside from the earnings announcement. Avery Dennison Provides 2026 Earnings Guidance
Negative Sentiment: Profitability and demand risks remain. Management continues to face margin pressure and uneven customer demand, particularly in Solutions, while ongoing destocking could weigh on near-term volumes. Recent insider selling may also modestly temper sentiment, although it is not necessarily tied to operating performance. Avery Dennison Earnings Beat Estimates on Productivity

Insider Buying and Selling

In other Avery Dennison news, SVP Ignacio J. Walker sold 1,742 shares of Avery Dennison stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $171.61, for a total value of $298,944.62. Following the sale, the senior vice president owned 7,585 shares of the company’s stock, valued at $1,301,661.85. The trade was a 18.68% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, SVP Nicholas Colisto sold 3,886 shares of Avery Dennison stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $170.68, for a total value of $663,262.48. Following the completion of the sale, the senior vice president directly owned 7,126 shares in the company, valued at approximately $1,216,265.68. The trade was a 35.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.81% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

Several analysts have recently commented on AVY shares. UBS Group raised their price objective on shares of Avery Dennison from $218.00 to $225.00 and gave the company a “buy” rating in a research report on Friday, July 31st. Wall Street Zen lowered Avery Dennison from a “buy” rating to a “hold” rating in a research note on Saturday. Bank of America reissued a “buy” rating on shares of Avery Dennison in a report on Friday, August 14th. JPMorgan Chase & Co. upped their price objective on Avery Dennison from $190.00 to $200.00 and gave the stock an “overweight” rating in a research note on Friday. Finally, Citigroup lifted their target price on Avery Dennison from $184.00 to $186.00 and gave the company a “neutral” rating in a research note on Friday, July 31st. Six research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $200.10.

Get Our Latest Research Report on AVY

About Avery Dennison

(Get Free Report)

Avery Dennison Corporation (NYSE: AVY) is a global materials science and manufacturing company that develops and produces labeling, packaging, graphic, and functional materials. Its products are used by businesses across industries including consumer goods, retail, logistics, apparel, automotive, healthcare, and industrial manufacturing.

The company’s offerings include pressure-sensitive labels and label materials, adhesives, industrial and specialty tapes, graphic films, and packaging materials.