Abstract

Avery Dennison will report quarterly results on April 28, 2026 Pre-Market; this preview highlights consensus projections for revenue, margin trajectory, net profit trends, and adjusted EPS alongside the latest institutional views.

Market Forecast

Consensus for the current quarter indicates revenue of 2.26 billion US dollars, with estimated year-over-year growth of 5.27%, EBIT of 288.40 million US dollars with 4.59% growth, and EPS of 2.43 with 4.64% growth; management’s margin focus suggests monitoring gross margin and net profit margin progression, though external consensus points to continued improvement and stable EPS leverage. The company’s main businesses remain Label and Graphic Materials and Retail Branding and Information Solutions, with the former a core revenue driver and the latter an important growth contributor; among these, Retail Branding and Information Solutions is flagged as the most promising for medium-term growth, supported by digital ID and RFID adoption.

Last Quarter Review

In the previous quarter, Avery Dennison delivered revenue of 2.27 billion US dollars (up 3.91% year over year), a gross profit margin of 28.65%, GAAP net profit attributable to shareholders of 166.00 million US dollars and a net profit margin of 7.33%, while adjusted EPS was 2.45 (up 2.94% year over year). Operating discipline and favorable mix supported margins with sequential profit improvement versus the prior period. Main business performance showed Label and Graphic Materials at 6.09 billion US dollars and Retail Branding and Information Solutions at 2.76 billion US dollars on a trailing basis, with Retail Branding and Information Solutions positioned for faster growth due to ongoing RFID and digital solutions penetration.

Current Quarter Outlook

Label and Graphic Materials

The label and materials franchise remains the primary revenue engine this quarter, benefiting from stabilizing volumes in consumer packaged goods and incremental price-cost normalization. With consensus revenue for the company rising 5.27% year over year, the segment is likely to reflect steady demand across pressure-sensitive labels and specialty materials as inventory levels normalize at converters and brand owners. A gradual improvement in mix and manufacturing productivity should help maintain gross margin resilience within the consolidated profile. Key watch items include substrate cost volatility and pass-through dynamics, which can affect near-term price realization and segment profitability.

Retail Branding and Information Solutions

Retail Branding and Information Solutions stands out as a growth vector as retailers progress RFID rollouts from apparel into general merchandise, accelerating item-level visibility initiatives. The forecast trajectory for companywide EBIT and EPS growth implies operating leverage from this business as higher-value software and solutions scale within customer programs. Adoption of digital ID platforms, linked analytics, and omnichannel inventory control is expected to support mid-single-digit top-line growth this quarter with potential upside if enterprise deployments broaden. Areas to monitor include the pace of large account wins, timing of project-based revenues, and currency effects on internationally sourced programs.

Key Stock Price Drivers This Quarter

The first driver is margin carry-through versus last quarter’s 28.65% gross margin and 7.33% net margin, as investors gauge the sustainability of cost discipline alongside mix improvements; delivering toward the 2.43 EPS estimate with 4.64% year-over-year growth would reinforce the earnings trajectory. The second driver is visibility into demand momentum across retail and CPG end markets—any signs of acceleration in RFID programs or label volumes could translate into upside to the 2.26 billion US dollars revenue consensus. The third driver is capital allocation clarity, including organic investment behind digital solutions and potential share repurchases, which can influence per-share earnings and valuation. Any material shifts in raw material inputs or logistics costs would be an incremental swing factor for margins.

Analyst Opinions

Most recent institutional commentary skews bullish, with positive views citing durable mid-single-digit revenue growth, expanding solutions mix, and improving margin structure. A prominent bank reiterated a Buy rating and targeted further upside, highlighting execution in materials and accelerating adoption of RFID-enabled solutions in retail. The constructive stance emphasizes the company’s ability to convert demand stabilization into earnings growth, aligning with the 5.27% revenue and 4.64% EPS year-over-year growth forecasts for the quarter. Overall, the prevailing institutional opinion expects Avery Dennison to deliver in-line to slightly better results, with attention on Retail Branding and Information Solutions as a potential outperformer within the portfolio.