Acuity Brands reported fiscal 2026 first‑quarter net sales of $1.14 billion, a 20.2% year‑over‑year increase that matched or slightly exceeded consensus estimates of $1.13 billion. Adjusted diluted earnings per share rose to $4.69, beating the $4.45 consensus by $0.24, or 5.4%, largely because the company’s higher‑margin Intelligent Spaces segment grew faster than its legacy lighting business and because disciplined cost management kept operating expenses in line with revenue growth.
The Intelligent Spaces segment generated $257.4 million in sales and delivered a 22.0% adjusted operating margin, up 250% year‑over‑year. This surge is driven by the integration of QSC’s audio‑video‑control portfolio and strong demand in healthcare and commercial markets. In contrast, Acuity Brands Lighting (ABL) grew only 1% in sales and maintained a lower margin, reflecting the tepid lighting market and the continued need for price‑competitive offerings.
Adjusted operating profit reached $196.3 million, a 17.2% margin that is 50 basis points higher than the prior year’s first quarter. The margin expansion reflects the mix shift toward higher‑margin Intelligent Spaces contracts and effective cost control, even as raw‑material costs and tariff pressures rose. The company’s operating leverage improved as revenue grew while fixed costs remained largely stable.
Management reaffirmed its full‑year 2026 guidance, projecting revenue of $4.7 billion to $4.9 billion and adjusted EPS of $19.00 to $20.50, unchanged from the previous guidance. The steady outlook signals confidence in the company’s strategic shift to industrial technology, while the unchanged guidance also indicates caution amid a sluggish core lighting market.
Shares fell 3–4% in pre‑market trading and 0.27% after the release, a reaction driven by the narrower EPS upside, revenue meeting rather than exceeding expectations, and the unchanged full‑year outlook. Investors also weighed the ongoing softness in the legacy lighting segment, which continues to exert pressure on overall growth.
CEO Neil Ashe described the quarter as a “strong start to fiscal 2026,” noting that ABL remains the best‑performing lighting business and that the company is increasingly viewed as an industrial technology powerhouse. CFO Karen Holcomb highlighted that QSC sales contributed significantly to the quarter’s growth and that disciplined cost management underpinned the margin expansion.
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