Acuity shares tumbled 13% on Thursday following the release of second-quarter results that met analyst consensus but fell short of heightened market expectations. While net sales rose 20% year-over-year and adjusted earnings per share increased 18%, the stock had already climbed 30% between April 2024 and January 2025. With investors pricing in continued upside, management’s decision to maintain existing full-year guidance triggered a sharp sell-off as the company failed to deliver an upward revision.

In the quarter ended November 30, 2025, Acuity generated net sales of $1.10 billion, a 20.2% increase compared with the prior year period, and delivered adjusted diluted EPS of $4.69, up 18.1%. Sales in the Acuity Intelligent Spaces segment surged 250.2% to $257.4 million, reflecting three months of contribution from the QSC acquisition, while the Lighting segment posted a 1% increase to $895.1 million. Adjusted operating profit grew 23.7% to $196.3 million, driving a 50-basis-point expansion in margin to 17.2%. The company generated $140.8 million in operating cash flow, repurchased approximately 77,000 shares for $28 million and reduced term-loan borrowings by $100 million.