AVY US S&P 500Russell 1000 Earnings call · transcribed from the recording
Avery Dennison (AVY) · Q3 2026 results and valuation
Share price: $188.18 · 2026-11-11
Results Q3 2026 vs Q2 2026 · previous quarter · published 29 Oct 2026 and 30 Jul 2026
Net income down 16.9% on the previous quarter. Management sounded very upbeat, though noticeably less so answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−16.9%
Net income vs Q2 2026
Outlook given
Net income 169.7M vs 204.1M
Revenue −5.3%
Against the same quarter last year (Q3 2025) it is +2.0%, so the move on last quarter looks seasonal or timing-related rather than a trend.
2 · How management spoke
Very upbeat
More upbeat than 95% of company calls
Answers to analysts: typical, but clearly less so than the script.
The step down under questioning is smaller than last call.
3 · What stood out
Guidance
Avery Dennison anticipates reported sales growth of approximately 5.5% for the year, including organic sales growth of approximately 3.5%…
Valuation
Is Avery Dennison undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At −0.7% growth a year (3-year revenue growth), the model's fair value is $82.69 a share — the stock trades 128% above it. Today's price assumes 9.1% growth a year.
Current price
$188.18
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+9.1% for 10 yrs
Fair value / share
$82.69
Buy below
$62.01
Price vs fair value
Overvalued 128%
Price vs buy-below price
Overvalued >200%
Management expects
Sales +3.5% · from the Q3 2026 report: “We anticipate reported sales growth of approximately 5.5% for the year, including organic sales growth of approximately 3.5%, approximately 1.5 points from…”
A guidance figure for sales, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
-
Figure
Avery Dennison reported sales rose 5% year-over-year to $2.3 billion, with organic sales growth of 4%.
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Management sounded noticeably less positive answering analysts than in its prepared script — one of the biggest drops of any company call. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.
Sentences that drove the tone
“First, investing in innovation and service-led differentiation to drive share gains and expand opportunities across base and high-value categories.”
“Her proven track record in driving growth, transformation, and customer-centric innovation across solutions and her deep operating experience fit exceptionally well with leading the solutions group moving forward.”
“From a profitability perspective, our team executed exceptionally well, delivering adjusted EBITDA growth and strong adjusted EBITDA margin expansion.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 2.33B | 2.46B | −5.3% | 2.22B | +5.2% |
| Gross profit | 654.8M | 729.4M | −10.2% | 635.0M | +3.1% |
| Operating income | 241.2M | 282.7M | −14.7% | 234.8M | +2.7% |
| Net income | 169.7M | 204.1M | −16.9% | 166.3M | +2.0% |
| EPS | 2.24 | 2.67 | −16.1% | 2.13 | +5.2% |
| P/E today 20.2 | 18.5 | 17.8 | +0.7 | 18.2 | +0.3 |
Topics
Most discussed now
- From a profitability perspective, Avery Dennison's team executed exceptionally well, delivering adjusted EBITDA growth and strong adjusted…
- New Q3 results reinforce the value of this portfolio of solutions, which are being driven by both secular demand growth and...
- New Avery Dennison is continuing to work right now very closely with the deployment team on what are the key commercialization milestone as...
- New In that regard, the stalling software, which, as if you recall, basically takes all sorts of data through a data...
- In the third quarter, Avery Dennison delivered adjusted earnings per share of $2.42, up 2% compared to prior year, coming in...
Faded since Q2 2026
- Fading If you think about Avery Dennison's business being largely consumer-staples-led in its base label business, some elements of logistics…
- Fading Clearly, technologies like IL play a very significant role in enabling that driving return on investment both from a labor...
- Fading Combining this improved organic growth with Avery Dennison's commercial and operational excellence allowed us to expand adjusted EBITDA…
- Fading Avery Dennison is executing commercial and operational agility including productivity and pricing actions to mitigate inflationary…
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Director or officer change · SEC 8-K
- Other events · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Shareholder vote results · SEC 8-K · routine
- Results of operations · SEC 8-K