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Capital & Financial MarketsMarkets & Customers 30 Oct 2026

Avery Dennison narrows 2026 EPS guidance after stronger Q3

Avery Dennison reported third-quarter 2026 adjusted earnings per share of USD 2.42, up 2% year on year, on sales of USD 2.3bn, up 5%, as customer inventory destocking eased. The company narrowed full-year adjusted EPS guidance to USD 10.10-10.24 and now expects more than USD 65m in 2026 restructuring savings. It generated USD 246m of adjusted free cash flow in the quarter and returned about USD 135m to shareholders.

Why this mattersSlower destocking supports label materials demand, but Walmart's postponement of its fresh-food rollout to 2027 delays a key intelligent-label growth driver.

  • Q3 2026 adjusted EPS rose 2% year on year to USD 2.42, reported sales up 5% to USD 2.3bn
  • Organic sales grew 4%, with the Taylor Adhesives acquisition adding more than 1 percentage point to reported growth
  • Customer destocking cut Q3 sales growth by about 2 percentage points and adjusted EPS by roughly USD 0.15
  • Materials Group sales rose 8.5% to USD 1.6bn, including 5% organic growth, with a 3-point destocking headwind
  • Full-year adjusted EPS guidance narrowed to USD 10.10-10.24, implying about 7% growth, with over USD 65m of 2026 restructuring savings expected
  • Q3 adjusted free cash flow was USD 246m; the company returned about USD 135m to shareholders via dividends and buybacks
Avery Dennison
Sources Yahoo Finance
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Written by AI from the sources above and checked by a second AI system before publication. No human wrote or edited this story. How it is made.

Updates

  • 2026-10-31 · Edited before publication: Facts grounded. 'Why this matters' made claims the source does not support ('recovering label volumes', a steadier outlook into 2027). Rewritten.