AYI NYSE Russell 1000 Earnings call
Acuity Brands (AYI) · Q2 2026 results and valuation
Share price: $333.75 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q3 2026 · published 25 Jun 2026 and 2 Apr 2026
Net income up 45.7% on the previous quarter. Management sounded very upbeat, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+45.7%
Net income vs Q1 2026
Net income 141.0M vs 96.8M
Revenue +13.5%
Against the same quarter last year (Q2 2025) it is +43.3%, so it is not just seasonal.
2 · How management spoke
Very upbeat
More upbeat than 93% of company calls
Answers to analysts: very upbeat, in line with the script.
Last call it was different: the answers were less upbeat than the script.
3 · What stood out
Figure
Adjusted gross profit margin improved to 50.1%, an increase of 10 basis points over the prior year, due primarily to a higher gross profit.
Valuation
Is Acuity Brands undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-08-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 2.7% growth a year (3-year revenue growth), the model's fair value is $234.89 a share — the stock trades 42% above it. Today's price assumes 7.3% growth a year.
Current price
$333.75
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.
+7.3% for 10 yrs
Fair value / share
$234.89
Buy below
$176.16
Price vs fair value
Overvalued 42%
Price vs buy-below price
Overvalued 89%
Read between the lines
-
Figure
Acuity generated net sales of $1.2 billion, which was $19 million or 2% above the prior year.
Source quote
“For total Acuity, we generated net sales of $1.2 billion, which was $19 million, or 2% above the prior year.”
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: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Taken together, we've taken the growth rate of the industry and expanded dramatically beyond that through share gain, innovation, and adjacent market opportunities.”
“Our investments in product innovation combined with AI-enabled programming tools, workflow automation, and the expansion of Distech Academy are making our partners more efficient and driving growth across the platform.”
“We grew net sales, we expanded our adjusted operating profit, and we increased our adjusted diluted earnings per share.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-05-31)
| Metric | Q2 2026period end 2026-05-31 | Q1 2026period end 2026-02-28 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.20B | 1.06B | +13.5% | 1.18B | +1.6% |
| Gross profit | 606.4M | 520.4M | +16.5% | 570.2M | +6.3% |
| Operating income | 193.3M | 133.0M | +45.3% | 139.8M | +38.3% |
| Net income | 141.0M | 96.8M | +45.7% | 98.4M | +43.3% |
| EPS | 4.56 | 3.09 | +47.6% | 3.12 | +46.2% |
| P/E today 20.2 | 20.3 | 22.1 | −1.8 | 20.5 | −0.2 |
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Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Results of operations · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K