Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Avery Dennison delivered solid Q1 2026 results with revenue up 7.0% YoY to $2.30B and EPS of $2.18, while operating cash flow surged dramatically to $136.5M from -$16.3M a year ago, signaling improved working capital management.
Revenue
$2.3B
+6.99% YoY
EPS (Diluted)
$2.18
+4.31% YoY
Gross Margin
28.9%
-0.0 pts YoY
Source: SEC XBRL
Avery Dennison (AVY) reported Q1 FY2026 revenue of $2.3B, up 7.0% year over year. Operating cash flow was $136.5M. AVY's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 2.89 | 2.49 | Beat +15.9% |
| Mar 2026This filing | 2.47 | 2.45 | Beat +0.8% |
| Dec 2025 | 2.45 | 2.42 | Beat +1.1% |
| Sep 2025 | 2.37 | 2.42 | Miss -2.2% |
Adjusted (non-GAAP) EPS of $2.47 versus the $2.45 analyst consensus — a +0.8% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $2.18.
Compiled by AI from this SEC filing
Total revenue grew 7.0% YoY to $2.30B in Q1 2026 (vs. $2.15B in Q1 2025), reflecting broad-based demand strength across Avery Dennison's labeling and packaging materials segments.
Source: 10-Q Income Statement, Q1 2026
Gross profit increased 7.0% YoY to $664.8M, though gross margin remained essentially flat at 28.92% (vs. 28.93% prior year), indicating that revenue gains were offset by proportionally similar cost increases.
Source: 10-Q Income Statement, Q1 2026
SG&A expenses rose 8.1% YoY to $375.1M, outpacing revenue growth of 7.0%, which likely weighed on operating income expansion and reflects ongoing investment in sales infrastructure and administrative costs.
Source: 10-Q Income Statement, Q1 2026
Operating cash flow surged to $136.5M from -$16.3M in Q1 2025, a 937.4% improvement, suggesting significantly better working capital management and cash conversion in the quarter.
Source: 10-Q Cash Flow Statement, Q1 2026
Total assets grew 7.5% YoY to $8.98B while current liabilities declined 5.2% to $2.80B, improving the current ratio to 1.15 and reflecting a healthier near-term liquidity position.
Source: 10-Q Balance Sheet, Q1 2026
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
SG&A expenses grew 8.1% YoY versus revenue growth of 7.0%, creating margin compression risk at the operating level. If this trend persists, it could erode net income growth despite top-line momentum. Net income grew only 1.1% YoY despite 7.0% revenue growth, suggesting cost pressures are already impacting profitability.
Source: 10-Q Income Statement, Q1 2026
Net margin stands at 7.3%, which is relatively modest for a specialty materials company and leaves limited cushion against cost shocks or demand slowdowns. Any meaningful increase in raw material costs or logistics expenses could quickly compress profitability. The near-flat gross margin YoY confirms limited pricing power or cost offset capability.
Source: 10-Q Income Statement & Key Ratios, Q1 2026
With total assets of $8.98B and stockholders' equity of only $2.30B, Avery Dennison carries a significant implied debt load, suggesting a debt-to-equity ratio well above 1x. This leverage amplifies sensitivity to interest rate changes and could constrain financial flexibility. ROA of only 1.87% further highlights the challenge of generating returns on a large asset base.
Source: 10-Q Balance Sheet, Q1 2026
Share repurchases declined sharply by 76.8% YoY to $60.6M from $261.6M, which may signal a more cautious capital allocation stance or reduced free cash flow availability for shareholder returns. This reduction could disappoint investors who valued the prior buyback pace as a return-of-capital signal.
Source: 10-Q Cash Flow Statement, Q1 2026
The dramatic swing in operating cash flow from -$16.3M to +$136.5M YoY, while positive, highlights the potential for significant quarter-to-quarter working capital volatility. Investors should monitor whether this improvement is structural or driven by temporary timing of receivables and payables.
Source: 10-Q Cash Flow Statement, Q1 2026
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 2.30 $B | 2.15 $B | +6.99% |
Cost of Revenue $B | 1.63 $B | 1.53 $B | +7.00% |
Gross Profit $M | 664.80 $M | 621.50 $M | +6.97% |
Net Income $M | 168.10 $M | 166.30 $M | +1.08% |
EPS (Basic) $ | 2.19 $ | 2.10 $ | +4.29% |
EPS (Diluted) $ | 2.18 $ | 2.09 $ | +4.31% |
SG&A Expense $M | 375.10 $M | 347.00 $M | +8.10% |
Answers draw on this SEC filing and the data on this page
Avery Dennison posted double-digit revenue growth in Q2 FY2026, driven by Materials Group, though restructuring costs capped net income gains.
Avery Dennison (AVY) delivered modest FY2025 revenue growth of +1.1% to $8.86B, but net income slipped -2.4% to $688M amid rising long-term debt and a significant ramp-up in share buybacks.
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