Acuity Reports 20% Sales Growth in Q2 but Stock Falls 13%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 08 2026
0mins
Source: NASDAQ.COM
- Sales Growth: Acuity's Q2 sales increased by 20%, meeting market expectations and demonstrating strong performance in both lighting and intelligent spaces, although the stock fell due to unchanged guidance.
- Adjusted EPS: Adjusted earnings per share rose by 18%, reflecting improvements in cost control and operational efficiency, despite a lukewarm market reaction.
- Intelligent Spaces Business: Acuity's intelligent spaces segment saw a 40% sales increase following the acquisition of QSC, indicating significant potential in IoT applications and positioning it as a future growth driver for the company.
- Market Reaction: Despite meeting expectations, Acuity's stock dropped 13%, highlighting market concerns about future growth, particularly in light of the lack of raised guidance.
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Analyst Views on AYI
Wall Street analysts forecast AYI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AYI is 401.25 USD with a low forecast of 375.00 USD and a high forecast of 435.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
5 Buy
1 Hold
0 Sell
Strong Buy
Current: 312.160
Low
375.00
Averages
401.25
High
435.00
Current: 312.160
Low
375.00
Averages
401.25
High
435.00
About AYI
Acuity Inc., formerly Acuity Brands, Inc., is an industrial technology company. The Company uses technology to solve problems in space and light. The Company's segments include Acuity Brands Lighting (ABL) and Acuity Intelligent Spaces (AIS). The Company offers various products and services, including lighting, lighting controls, building management solutions, and an audio, video and control platform. It operates across North America, Europe and Asia.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Acuity Inc. (NYSE:AYI) Named Among 10 Most Undervalued Industrial Stocks, Price Target Cut to $410
- Analyst Rating Maintained: Morgan Stanley's Christopher Snyder cut Acuity Inc. (NYSE:AYI) price target from $425 to $410 on January 12 while maintaining a Buy rating, indicating optimism about the company's long-term prospects despite short-term challenges.
- Earnings Beat Expectations: Acuity's fiscal Q1 EPS exceeded expectations, yet the stock dropped 13% post-report due to weaker-than-expected margins in the ABL segment, reflecting market concerns about the company's future pricing power.
- Competitor Insights: Baird analyst Timothy Wojs lowered Acuity's price target from $408 to $375 on January 9 while reiterating a Buy rating, suggesting a cautious outlook based on updates to the firm's financial model following modest upside in Acuity's first-quarter results.
- Investment Appeal: Despite short-term challenges, analysts highlighted that the 13% pullback presents an attractive entry point for investors, indicating that Acuity is still viewed as a potential investment opportunity in the current market environment.
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Acuity (AYI) Q1 2026 Earnings Call Transcript
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