Avery Dennison commentary cites destocking as drag on Q3 2026 adjusted EPS growth
AVY•Avery Dennison said customer destocking reduced third-quarter 2026 organic sales growth by about 2 percentage points, roughly half the anticipated impact. Adjusted earnings rose 2% to $2.42 per share despite an estimated 6% impact from destocking.
1. Sales and earnings
Avery Dennison attributed third-quarter 2026 organic sales growth of 3.7% to underlying growth partly offset by customer destocking. Destocking reduced organic sales growth by approximately 2 percentage points, roughly half the anticipated impact. Adjusted earnings rose 2% to $2.42 per share despite an estimated 6% impact from destocking.
2. Segment margins
Materials Group’s adjusted operating margin fell 110 basis points to 14.1% as unfavorable volume and mix and higher employee-related costs outweighed productivity gains. Solutions Group’s adjusted operating margin rose 80 basis points to 10.8%, with productivity gains partly offset by higher employee-related costs.
