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Acuity Brands to Post Q1 Earnings: Here's What You Must Know
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Key Takeaways
AYI is expected to post Q1 FY26 EPS of $4.45, up 12.1% YoY, with revenues projected to rise 19.2%.
Acuity Brands' outlook reflects strong AIS growth, lighting innovation and pricing actions.
AYI faces tariff-related margin pressure, while cost controls and productivity gains support profitability.
Acuity Brands, Inc. (AYI - Free Report) is scheduled to announce first-quarter fiscal 2026 results on Jan. 8, before the opening bell.
In the last reported quarter, the company’s adjusted earnings topped the Zacks Consensus Estimate by 10.6% and increased 20.9% year over year. Meanwhile, the top line missed the consensus mark by 0.3% but increased 17.2% from the prior year.
Acuity Brands beat earnings estimates in the trailing 21 quarters.
How Are Estimates Placed for AYI Stock?
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share (EPS) has remained unchanged at $4.45 in the past 30 days. The estimated figure indicates an increase of 12.1% from $3.97 per share reported in the year-ago quarter.
The consensus mark for revenues is pegged at $1.13 billion, indicating a 19.2% increase from the year-ago reported figure.
Factors to Shape AYI’s Q1 Results
Acuity Brands is expected to report year-over-year growth in both earnings and revenues for the first quarter of fiscal 2026, supported by solid contributions from both the Acuity Intelligent Spaces (AIS) and Acuity Brands Lighting (ABL) segments, driven by continued product innovation and effective strategic execution. The company has benefited from a dynamic and resilient supply chain, enabling it to adapt quickly and mitigate the impact of higher tariff costs through targeted pricing actions.
Acuity Brands’ strategic emphasis on developing market-leading solutions and expanding its healthcare portfolio — through new product launches such as the Care Collection and the Nightingale range — has likely supported performance in the to-be-reported quarter. The Nightingale portfolio has already received industry recognition, reinforcing the company’s competitive positioning and growth momentum.
Segment-wise, for the to-be-reported quarter, our model predicts total ABL segment (contributed 83.1% to fiscal 2025 net sales) revenues to increase 2.6% year over year to $909.3 million. In the ABL segment, management has made clear that demand conditions remain tepid, with no meaningful improvement assumed in its near-term outlook. The company does not expect a recovery in commercial construction or retrofit demand, implying that the fiscal first-quarter’s growth will rely primarily on internal execution rather than macro tailwinds. Pricing actions taken over recent quarters were designed to offset tariff costs on a dollar basis, though management acknowledged a modest percentage margin headwind tied to this mix. As a result, margins in the fiscal first quarter may face some pressure sequentially, even as dollar profitability remains supported by cost actions and productivity gains.
A key focus for the quarter will be the sustainability of recent cost reductions at Acuity Brands Lighting. Management emphasized that restructuring and operating expense actions implemented in the back half of fiscal 2025 were permanent in nature rather than temporary measures. This suggests that the fiscal first-quarter results should continue to reflect a leaner cost base, helping offset softer volumes and normal seasonal effects.
Within the ABL segment, we expect Independent Sales Network and Direct Sales Network to increase 4.7% and 1.9%, while Corporate Account, Retail and Other revenues are anticipated to decrease 20.2%, 4.1% and 0.9%, respectively, year over year.
Our model predicts the AIS segment’s (contributed 17.6% to fiscal 2025 net sales) revenues in the fiscal first quarter to surge 219.8% year over year to $235.1 million. Organic growth is expected to be supported by Atrius, Distech and QSC. The quarter will provide an early read on how well this growth profile is holding, particularly as management prioritizes expansion over near-term margin maximization. While margins in Intelligent Spaces have improved meaningfully since the QSC acquisition, leadership reiterated a willingness to reinvest to sustain growth, which could limit incremental margin expansion in the near term.
The bottom line is likely to have been supported by cost-control actions, organizational and operating expense optimization and productivity gains, which helped offset the dilutive impact of higher tariff costs and related pricing actions. The company also emphasized its ability to adapt quickly through a dynamic and resilient supply chain, reinforcing profitability despite a challenging macro and pricing environment.
However, AYI’s earnings may face several headwinds. Management cited higher tariff costs as a key challenge, noting that while pricing actions largely offset the dollar impact, tariffs continued to weigh on margin percentages. End-market conditions remained soft, with overall lighting demand described as flat to down, reflecting broader macroeconomic uncertainty and delayed customer capital spending.
We expect the company’s adjusted EBITDA margin to increase to 18.1% in the fiscal first quarter from 18% a year ago.
What Our Model Indicates for AYI Stock
Our proven model does not conclusively predict an earnings beat for Acuity Brands this time around. The company does not have the right combination of the two key ingredients, a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), to increase the odds of an earnings beat.
AYI’s Earnings ESP: The company has an earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
AYI’s Zacks Rank: Acuity Brands currently has a Zacks Rank #2.
Stocks With the Favorable Combination
Here are some companies in the Zacks Business Services sector that, according to our model, have the right combination of elements to post earnings beats in the quarter to be reported.
The company’s earnings beat estimates in two of the trailing four quarters and missed on two occasions, with an average negative surprise being 6.1%. AppLovin’s earnings for the fourth quarter of 2025 are expected to increase 67.1%.
APi Group Corporation (APG - Free Report) currently has an Earnings ESP of +2.50% and a Zacks Rank of 2.
The company’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 5.6%. APi Group’s earnings for the fourth quarter of 2025 are expected to increase 17.7%.
Omnicom Group Inc. (OMC - Free Report) presently has an Earnings ESP of +2.83% and a Zacks Rank of 3.
The company’s earnings beat estimates in each of the trailing four quarters, with an average surprise being 3.5%. Omnicom’s earnings for the fourth quarter of 2025 are expected to increase 7.5%.
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Acuity Brands to Post Q1 Earnings: Here's What You Must Know
Key Takeaways
Acuity Brands, Inc. (AYI - Free Report) is scheduled to announce first-quarter fiscal 2026 results on Jan. 8, before the opening bell.
In the last reported quarter, the company’s adjusted earnings topped the Zacks Consensus Estimate by 10.6% and increased 20.9% year over year. Meanwhile, the top line missed the consensus mark by 0.3% but increased 17.2% from the prior year.
Acuity Brands beat earnings estimates in the trailing 21 quarters.
How Are Estimates Placed for AYI Stock?
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share (EPS) has remained unchanged at $4.45 in the past 30 days. The estimated figure indicates an increase of 12.1% from $3.97 per share reported in the year-ago quarter.
Acuity, Inc. Price and EPS Surprise
Acuity, Inc. price-eps-surprise | Acuity, Inc. Quote
The consensus mark for revenues is pegged at $1.13 billion, indicating a 19.2% increase from the year-ago reported figure.
Factors to Shape AYI’s Q1 Results
Acuity Brands is expected to report year-over-year growth in both earnings and revenues for the first quarter of fiscal 2026, supported by solid contributions from both the Acuity Intelligent Spaces (AIS) and Acuity Brands Lighting (ABL) segments, driven by continued product innovation and effective strategic execution. The company has benefited from a dynamic and resilient supply chain, enabling it to adapt quickly and mitigate the impact of higher tariff costs through targeted pricing actions.
Acuity Brands’ strategic emphasis on developing market-leading solutions and expanding its healthcare portfolio — through new product launches such as the Care Collection and the Nightingale range — has likely supported performance in the to-be-reported quarter. The Nightingale portfolio has already received industry recognition, reinforcing the company’s competitive positioning and growth momentum.
Segment-wise, for the to-be-reported quarter, our model predicts total ABL segment (contributed 83.1% to fiscal 2025 net sales) revenues to increase 2.6% year over year to $909.3 million. In the ABL segment, management has made clear that demand conditions remain tepid, with no meaningful improvement assumed in its near-term outlook. The company does not expect a recovery in commercial construction or retrofit demand, implying that the fiscal first-quarter’s growth will rely primarily on internal execution rather than macro tailwinds. Pricing actions taken over recent quarters were designed to offset tariff costs on a dollar basis, though management acknowledged a modest percentage margin headwind tied to this mix. As a result, margins in the fiscal first quarter may face some pressure sequentially, even as dollar profitability remains supported by cost actions and productivity gains.
A key focus for the quarter will be the sustainability of recent cost reductions at Acuity Brands Lighting. Management emphasized that restructuring and operating expense actions implemented in the back half of fiscal 2025 were permanent in nature rather than temporary measures. This suggests that the fiscal first-quarter results should continue to reflect a leaner cost base, helping offset softer volumes and normal seasonal effects.
Within the ABL segment, we expect Independent Sales Network and Direct Sales Network to increase 4.7% and 1.9%, while Corporate Account, Retail and Other revenues are anticipated to decrease 20.2%, 4.1% and 0.9%, respectively, year over year.
Our model predicts the AIS segment’s (contributed 17.6% to fiscal 2025 net sales) revenues in the fiscal first quarter to surge 219.8% year over year to $235.1 million. Organic growth is expected to be supported by Atrius, Distech and QSC. The quarter will provide an early read on how well this growth profile is holding, particularly as management prioritizes expansion over near-term margin maximization. While margins in Intelligent Spaces have improved meaningfully since the QSC acquisition, leadership reiterated a willingness to reinvest to sustain growth, which could limit incremental margin expansion in the near term.
The bottom line is likely to have been supported by cost-control actions, organizational and operating expense optimization and productivity gains, which helped offset the dilutive impact of higher tariff costs and related pricing actions. The company also emphasized its ability to adapt quickly through a dynamic and resilient supply chain, reinforcing profitability despite a challenging macro and pricing environment.
However, AYI’s earnings may face several headwinds. Management cited higher tariff costs as a key challenge, noting that while pricing actions largely offset the dollar impact, tariffs continued to weigh on margin percentages. End-market conditions remained soft, with overall lighting demand described as flat to down, reflecting broader macroeconomic uncertainty and delayed customer capital spending.
We expect the company’s adjusted EBITDA margin to increase to 18.1% in the fiscal first quarter from 18% a year ago.
What Our Model Indicates for AYI Stock
Our proven model does not conclusively predict an earnings beat for Acuity Brands this time around. The company does not have the right combination of the two key ingredients, a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), to increase the odds of an earnings beat.
AYI’s Earnings ESP: The company has an earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
AYI’s Zacks Rank: Acuity Brands currently has a Zacks Rank #2.
Stocks With the Favorable Combination
Here are some companies in the Zacks Business Services sector that, according to our model, have the right combination of elements to post earnings beats in the quarter to be reported.
AppLovin Corporation (APP - Free Report) has an Earnings ESP of +3.12% and currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks Rank #1 stocks here.
The company’s earnings beat estimates in two of the trailing four quarters and missed on two occasions, with an average negative surprise being 6.1%. AppLovin’s earnings for the fourth quarter of 2025 are expected to increase 67.1%.
APi Group Corporation (APG - Free Report) currently has an Earnings ESP of +2.50% and a Zacks Rank of 2.
The company’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 5.6%. APi Group’s earnings for the fourth quarter of 2025 are expected to increase 17.7%.
Omnicom Group Inc. (OMC - Free Report) presently has an Earnings ESP of +2.83% and a Zacks Rank of 3.
The company’s earnings beat estimates in each of the trailing four quarters, with an average surprise being 3.5%. Omnicom’s earnings for the fourth quarter of 2025 are expected to increase 7.5%.