Acuity Reports 20% Sales Growth in Q2, Stock Drops 13%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 08 2026
0mins
Source: Fool
- Earnings Meet Expectations: Acuity's Q2 sales and adjusted EPS grew by 20% and 18%, respectively, but despite meeting Wall Street expectations, the stock fell 13%, indicating market skepticism about future guidance.
- Negative Market Reaction: After a 30% stock price increase from April 2024 to early January, the lack of an upward revision in guidance disappointed investors, leading to a swift market reaction.
- Significant Acquisition Impact: The QSC business, acquired for $1.2 billion in 2024, has seen a 40% year-over-year sales increase, becoming the core of Acuity's growth strategy and demonstrating strong performance in the audio-visual solutions market.
- Attractive Valuation: With a current trading multiple of 19 times free cash flow, Acuity presents an appealing investment opportunity if its emerging intelligent spaces segment continues to thrive, potentially becoming a highlight for future investments.
Get Free Real-Time Notifications for Any Stock
Monitor tickers like AYI with instant alerts to capture every critical market movement.
Sign up for free to build your custom watchlist and receive professional-grade stock notifications.
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.
Continue Reading
Acuity (AYI) Q1 2026 Earnings Call Transcript
Continue Reading