Avery Dennison Reports Q4 Earnings Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 04 2026
0mins
Should l Buy AVY?
Source: NASDAQ.COM
- Earnings Decline: Avery Dennison reported a net income of $166.4 million for Q4, translating to $2.15 per share, which is a decrease from $174.0 million and $2.16 per share in the same quarter last year, indicating pressure on profitability.
- Adjusted Earnings Resilience: Excluding items, the adjusted earnings stood at $189.4 million or $2.45 per share, reflecting some resilience in earnings despite the overall decline in net income.
- Revenue Growth: The company's revenue for the fourth quarter rose by 3.9% to $2.271 billion compared to $2.185 billion last year, showcasing a positive sales performance amidst challenging conditions.
- Future Guidance: The company provided EPS guidance for the next quarter in the range of $2.40 to $2.46, indicating management's confidence in a potential recovery despite the current earnings decline.
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Analyst Views on AVY
Wall Street analysts forecast AVY stock price to rise
5 Analyst Rating
4 Buy
1 Hold
0 Sell
Strong Buy
Current: 195.550
Low
201.00
Averages
218.80
High
233.00
Current: 195.550
Low
201.00
Averages
218.80
High
233.00
About AVY
Avery Dennison Corporation is a global materials science and digital identification solutions company. The Company provides a range of branding and information solutions that optimize labor and supply chain efficiency, reduce waste, advance sustainability, circularity and transparency, and connect brands and consumers. Its Materials Group segment manufactures and sells pressure-sensitive label materials, films for graphic and reflective products, performance tapes and other adhesive products for industrial, medical and other applications, as well as fastener solutions. Its Solutions Group segment designs, manufactures and sells a variety of branding and information solutions, including brand and price tickets, tags and labels (including radio-frequency identification (RFID) inlays), and related services, supplies and equipment. It serves an array of industries worldwide, including home and personal care, apparel, general retail, e-commerce, logistics, food and grocery, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Avery Dennison (AVY) Q4 2025 Earnings Transcript
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See More
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- Growth in High-Value Categories: The Materials Group saw a 5% sales increase, with high-value categories now comprising 38% of the portfolio, providing essential support to overall performance despite a slight decline in base categories due to soft customer demand, indicating successful product mix adjustments.
- Positive Future Outlook: Management guided for Q1 2026 adjusted earnings per share in the range of $2.40 to $2.46, representing approximately 6% growth year-over-year, and plans to accelerate organic growth through new customer acquisition and rapid innovation, while maintaining a cautious stance on macroeconomic conditions.
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See More
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- Sales Performance: Although quarterly sales of $2.271 billion fell short of the $2.284 billion estimate, the Materials Group saw a 5.1% increase to $1.5 billion, indicating resilience in core operations.
- Cash Flow and Shareholder Returns: The company generated over $700 million in adjusted free cash flow in 2025 and returned approximately $860 million to shareholders, showcasing its disciplined capital allocation strategy.
- Future Outlook: Avery Dennison expects Q1 GAAP earnings between $2.27 and $2.33 per share, below the $2.46 analyst estimate, reflecting a cautious stance on the macroeconomic environment.
See More
Avery Dennison (AVY) Q4 2025 Earnings Transcript
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- Live Webcast Access: Investors can access the live webcast by visiting the company's dedicated events page, ensuring transparency and enhancing engagement with stakeholders during the earnings discussion.
- Importance of Information Disclosure: This call will provide critical financial data and strategic updates, helping market participants better understand the company's operational status and future growth trajectory amidst current economic conditions.
- Market Reaction Expectations: While specific financial figures have yet to be disclosed, investor interest in the company's performance in the current economic climate is high, and the outcomes of this call are expected to have a notable impact on stock price movements.
See More
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- Earnings Beat: Avery Dennison (AVY) reported adjusted earnings of $2.45 per share for Q4, surpassing analysts' expectations of $2.38, demonstrating the company's profitability and resilience in a dynamic environment.
- Revenue Growth Lags: Although revenue increased by 4% year-over-year to $2.27 billion, it fell short of Wall Street's forecast of $2.28 billion, reflecting weak market demand and pricing pressures.
- Significant Shareholder Returns: In Q4, Avery returned $191 million to shareholders through dividends and share repurchases, with total shareholder returns for the year reaching $861 million, highlighting the company's ongoing commitment to its investors.
- Optimistic Outlook: The company forecasts Q1 2026 earnings between $2.27 and $2.33 per share, with adjusted earnings expected to be between $2.40 and $2.46, aligning with market expectations and indicating management's confidence in future performance.
See More
