Avery Dennison (NYSE:AVY) Issues Quarterly Earnings Results

Avery Dennison (NYSE:AVY) announced its quarterly earnings results on Wednesday. The industrial products company reported $2.45 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.40 by $0.05, FiscalAI reports. The company had revenue of $2.27 billion for the quarter, compared to the consensus estimate of $2.29 billion. Avery Dennison had a return on equity of 33.84% and a net margin of 7.77%.Avery Dennison’s revenue was up 3.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.38 EPS. Avery Dennison updated its Q1 2026 guidance to 2.400-2.46 EPS.

Here are the key takeaways from Avery Dennison’s conference call:

• Solid full‑year 2025 results with adjusted EPS $9.53, $707M adjusted free cash flow and resilient margins (Q4 adjusted EPS $2.45, adjusted EBITDA ~16.2%), showing strong cash generation and margin defense.
• Organic revenue growth remained weak as tariff uncertainty and softer consumer demand weighed on volumes; management is “not satisfied” and is guiding Q1 2026 organic sales of 0%–2% with quarterly guidance continuing for now.
• The company is shifting toward high‑value categories (≈45% of sales in 2025) — Intelligent Labels, food and logistics drove strong Q4 growth and the Walmart fresh grocery rollout is expected to ramp in the back half of 2026.
• Management is leaning on productivity and disciplined capital allocation — targeting about $50M of restructuring savings, continued productivity actions, ~100% free cash flow conversion target, and returned ~$860M to shareholders in 2025.

Avery Dennison Trading Up 0.0%

Shares of NYSE AVY opened at $193.16 on Friday. The stock has a market capitalization of $14.93 billion, a P/E ratio of 22.00, a PEG ratio of 3.25 and a beta of 1.00. The company has a debt-to-equity ratio of 1.43, a current ratio of 1.13 and a quick ratio of 0.89. The business’s 50 day moving average is $183.03 and its two-hundred day moving average is $174.37. Avery Dennison has a 1-year low of $156.23 and a 1-year high of $196.00.

Avery Dennison Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, March 18th. Investors of record on Wednesday, March 4th will be given a $0.94 dividend. The ex-dividend date is Wednesday, March 4th. This represents a $3.76 annualized dividend and a yield of 1.9%. Avery Dennison’s dividend payout ratio (DPR) is currently 42.78%.

Analysts Set New Price Targets

Several research firms have weighed in on AVY. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Avery Dennison in a research report on Monday, December 29th. Citigroup reissued a “neutral” rating on shares of Avery Dennison in a report on Friday. Truist Financial boosted their price objective on shares of Avery Dennison from $213.00 to $234.00 and gave the company a “buy” rating in a report on Tuesday, January 6th. BMO Capital Markets restated an “outperform” rating and set a $210.00 price target on shares of Avery Dennison in a research note on Thursday, October 23rd. Finally, UBS Group lifted their target price on Avery Dennison from $218.00 to $226.00 and gave the company a “buy” rating in a research report on Thursday. Nine investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $205.09.

Hedge Funds Weigh In On Avery Dennison

Several hedge funds have recently added to or reduced their stakes in the company. Danske Bank A S purchased a new stake in Avery Dennison in the third quarter worth $4,019,000. Advisory Services Network LLC increased its holdings in Avery Dennison by 20.4% during the third quarter. Advisory Services Network LLC now owns 2,167 shares of the industrial products company’s stock valued at $351,000 after buying an additional 367 shares during the period. Morningstar Investment Management LLC raised its stake in Avery Dennison by 96.0% in the third quarter. Morningstar Investment Management LLC now owns 2,821 shares of the industrial products company’s stock worth $457,000 after buying an additional 1,382 shares in the last quarter. PharVision Advisers LLC purchased a new stake in Avery Dennison during the third quarter worth $250,000. Finally, United Capital Financial Advisors LLC boosted its position in Avery Dennison by 8.1% during the 3rd quarter. United Capital Financial Advisors LLC now owns 2,420 shares of the industrial products company’s stock valued at $392,000 after acquiring an additional 182 shares in the last quarter. 94.17% of the stock is currently owned by institutional investors.

Avery Dennison Company Profile

Avery Dennison (NYSE:AVY) is a global materials science and manufacturing company specializing in labeling and packaging solutions. The company develops pressure-sensitive materials, tags and labels, and adhesive technologies that help brands and businesses enhance product identification, branding and supply-chain performance. Avery Dennison’s offerings range from industrial and retail labeling to high-performance tapes, films and graphics materials used across multiple end markets.

The company operates through several key segments, including Label and Graphic Materials, which supplies pressure-sensitive materials for consumer goods; Retail Branding and Information Solutions, offering apparel tags, RFID inlays and digital product identification; Pressure-Sensitive Materials, providing specialty tapes and adhesives; and RF Technologies, focused on advanced RFID and IoT labeling solutions.