Brady Corp - Class A

Brady Corporation kicked off fiscal 2026 on a strong note, posting first-quarter adjusted diluted EPS of $1.21 against a consensus estimate of $1.19, a 1.68% beat, while revenue of $405.29 million topped the $395.01 million estimate by 2.60% and rose 7.5% year over year. The most material driver behind the outperformance was the absence of acquisition-related purchase accounting charges tied to the Gravotech deal that had weighed on the year-ago quarter, helping gross margin expand to 51.5% from 50.3% and contributing to a 42.8% surge in Europe & Australia segment profit. The Americas & Asia segment delivered 4.7% organic sales growth, with Asia alone posting 11.9% organic gains. Operating cash flow climbed 42.5% to $33.36 million, and the company closed the Mecco laser marking acquisition while maintaining a net cash position of $66.80 million. Encouraged by the momentum, management raised the low end of full-year adjusted EPS guidance to a range of $4.90 to $5.15, with both segments expected to grow segment profit; notably, post-earnings insider share sales by senior executives attracted market attention but did little to dim the broader bullish tone.