Results reported October 1, 2026 | NYSE: AYI | Lighting and building technology
The Quick Take
Acuity beat on earnings, grew free cash flow 40%, cut debt sharply and raised its dividend 18%. Even so, the stock closed down about 3.4% at roughly $299, as modest Q4 sales growth (+3%) left investors cautious.
Results
| Metric | Q4 FY2026 | Consensus |
|---|---|---|
| Net sales | $1.2B (+3% YoY) | n/a |
| Diluted EPS (GAAP) | $5.63 (+56%) | n/a |
| Adjusted diluted EPS | $5.77 (+11%) | ~$5.56 to $5.66 |
Full year FY2026: net sales $4.6B (+7%), GAAP EPS $17.05 (+36%), adjusted EPS $19.90 (+10.5%), operating cash flow $826M, free cash flow $748M (+40%).
Segments (Full Year)
| Segment | Sales | Operating profit | Margin |
|---|---|---|---|
| Acuity Brands Lighting (ABL) | $3.6B (-1%) | $623.5M (+5.6%) | 17.4% (+100 bps) |
| Acuity Intelligent Spaces (AIS) | $1.1B (+44.8%) | $186.5M (+145%) | 23.0% adjusted (+150 bps) |
The story is mix shift: the core lighting business is flat on sales but earning better margins, while the faster-growing Intelligent Spaces unit adds high-margin, tech-driven revenue.
Balance Sheet and Capital Returns
- Cash $636M, up from $422M a year ago.
- Long-term debt cut to $497M from $897M, including a $200M term loan repayment.
- Repurchased 940K+ shares for $287M; dividend raised 18%.
- Results include $44.9M of tariff refunds and $17.8M of special charges, so the adjusted figures are the cleaner read.
Valuation
About 17.5x trailing and 14x forward earnings, near the low end of its 52-week range ($257 to $380). The average analyst target is about $385, though recent downgrades show growth worries.
Risks
- Lighting volume is flat to down and tied to commercial construction and renovation cycles.
- Tariff refunds flatter the year and are unlikely to repeat.
- Intelligent Spaces growth of 45% includes acquisitions and will be hard to sustain.
Recommendation: BUY (moderate conviction)
Rising margins, heavy cash generation, shrinking debt and a forward P/E near 14 make the risk/reward attractive after the post-earnings dip. A 12-month fair value range of $340 to $385 is reasonable if Intelligent Spaces keeps compounding. Reconsider if lighting sales turn negative or margins stall.
This is educational analysis, not personalized investment advice. Do your own research before investing.
Sources: Acuity Q4 FY2026 earnings release (GlobeNewswire, October 1, 2026); StockAnalysis.com.
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