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Avery Dennison Gears Up to Report Q3 Earnings: What to Expect?

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Key Takeaways

  • Avery Dennison is expected to report Q3 revenues of $2.30B, up 4% y/y, with EPS falling 3%.
  • Materials Group revenues are projected to rise, led by productivity gains and pricing actions.
  • Solutions Group faces softer auto demand, while inventory destocking and rising costs may pressure results.

Avery Dennison Corporation (AVY - Free Report) is scheduled to report third-quarter 2026 results before the opening bell on Oct. 29, 2026.

The Zacks Consensus Estimate for AVY’s third-quarter revenues is pegged at $2.30 billion, indicating a 4% rise from the year-ago reported figure.

The consensus estimate for AVY’s earnings has moved down in the past 60 days. The consensus estimate is pegged at $2.30 per share, indicating a year-over-year dip of 3%.

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AVY’s Earnings Surprise History

Avery Dennison’s earnings beat the Zacks Consensus Estimates in the trailing four quarters, the average surprise being 5.9%.

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What the Zacks Model Unveils for Avery Dennison

Our proven model does not conclusively predict an earnings beat for AVY this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here, as you can see below.

You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Earnings ESP: Avery Dennison has an Earnings ESP of -0.53%.

Zacks Rank: AVY currently carries a Zacks Rank #3.

Factors Likely to Have Shaped AVY’s Q3 Performance

Avery Dennison’s Materials Group segment continues to gain from productivity improvement and modest volume. Our model predicts the Materials Group segment’s revenues to rise 6.2% year over year in the quarter to $1.61 billion. The upside will be driven by growth in base business and high-value categories led by specialty labels, as well as contributions from productivity initiatives and pricing actions. Our estimate for the Materials Group segment’s adjusted operating profit is pinned at $235.5 million, indicating year-over-year growth of 2.3%.

High-value categories and productivity are expected to have aided the Solutions Group segment's growth. However, the segment is facing softer auto end-market demand and customer order timing in some higher-value platforms. Our model predicts the Solutions Group segment’s revenues to be $692 million, indicating a dip of 1% from the prior-year quarter’s actual. Our estimate for the segment’s operating profit is pinned at $72 million, implying an increase of 3.3% from the year-ago quarter’s reported figure.

AVY expects much of the customer inventory stocking recorded in the first half to unwind during the second half, with most destocking anticipated in the third quarter. The company consequently expects a greater-than-historical sequential earnings decline for that period. 

Rising input costs are expected to have impacted the company’s margins. The impacts are anticipated to have been offset by AVY’s productivity improvement and cost-saving actions.

Avery Dennison Stock’s Price Performance

AVY shares have inched up 0.8% in the past year compared with the industry’s growth of 7.3%.

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Stocks That Warrant a Look

Here are some companies with the right combination of elements to post an earnings beat in their upcoming releases.  

Eaton Corporation plc (ETN - Free Report) , slated to release third-quarter 2026 results on Nov. 3, has an Earnings ESP of +0.45% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Eaton’s third-quarter 2026 earnings is pegged at $3.53 per share, suggesting a year-over-year rise of 15%. ETN has a trailing four-quarter average surprise of 1.3%.

Emerson Electric Co. (EMR - Free Report) , slated to release fourth-quarter fiscal 2026 results on Nov. 4, has an Earnings ESP of +0.40% and a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for Emerson Electric’s fourth-quarter 2026 earnings is pegged at $1.84 per share, implying a year-over-year rise of 13%. EMR has a trailing four-quarter average surprise of 1.3%.

Deere & Company (DE - Free Report) , slated to release fourth-quarter fiscal 2026 results on Nov. 25, has an Earnings ESP of +1.86% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for Deere’s fourth-quarter fiscal 2026 earnings is pegged at $4.07 per share, indicating a year-over-year rise of 3.6%. DE has a trailing four-quarter average surprise of 11.1%.

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