Avery Dennison Q3 2026: Revenue Tops $2.3 Billion as Destocking Eases
As seen on the 24/7 Wall St. homepage on October 29, 2026.
Customer destocking cost only about two points of organic growth, roughly half what management braced for, and that is why both lines came in above expectations. Full-year adjusted EPS guidance of $10.10 to $10.24 held, with the bulk of remaining destocking expected to clear in the fourth quarter.
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Avery Dennison posted adjusted EPS of $2.42 for the third quarter of 2026, beating expectations on demand across both business segments.
Customer destocking did far less damage than management had braced for: the drag on organic growth came in near two percentage points rather than four, letting organic sales expand 3.7% in the quarter.
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Free cash flow for the quarter reached $246 million, showing the company still converts earnings into cash while working through inventory headwinds and higher employee-related costs.
With most of the remaining destocking expected to clear in the fourth quarter, management kept full-year adjusted EPS guidance intact at $10.10 to $10.24. The hold signals confidence that the third-quarter tailwind persists. Keep an eye on the pace of Intelligent Labels commercialization with the largest U.S. grocery retailer.
Mentioned: AVY