AYI

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Acuity (AYI), which belongs to the Zacks Technology Services industry, could be a great candidate to consider. This lighting maker has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 2.68%. For the most recent quarter, Acuity was expected to post earnings of $5.2 per share, but it reported $5.31 per share instead, representing a surprise of 2.12%. For the previous quarter, the consensus estimate was $4.01 per share, while it actually produced $4.14 per share, a surprise of 3.24%. For Acuity, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Acuity currently has an Earnings ESP of +4.46%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on October 1, 2026. Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric. Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Acuity, Inc. (AYI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Sprinklr (CXM) came out with quarterly earnings of $0.11 per share, beating the Zacks Consensus Estimate of $0.1 per share. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +10.00%. A quarter ago, it was expected that this customer experience software developer would post earnings of $0.1 per share when it actually produced earnings of $0.11, delivering a surprise of +10%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Sprinklr, which belongs to the Zacks Technology Services industry, posted revenues of $213.74 million for the quarter ended July 2026, missing the Zacks Consensus Estimate by 0.36%. This compares to year-ago revenues of $212.04 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Sprinklr shares have lost about 2.3% since the beginning of the year versus the S&P 500's gain of 11.5%. While Sprinklr has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Sprinklr was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.13 on $216.35 million in revenues for the coming quarter and $0.49 on $868.37 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Acuity (AYI), another stock in the same industry, has yet to report results for the quarter ended August 2026. The results are expected to be released on October 1. This lighting maker is expected to post quarterly earnings of $5.58 per share in its upcoming report, which represents a year-over-year change of +7.3%. The consensus EPS estimate for the quarter has been revised 1% lower over the last 30 days to the current level. Acuity's revenues are expected to be $1.25 billion, up 3.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sprinklr, Inc. (CXM) : Free Stock Analysis Report Acuity, Inc. (AYI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Acuity Brands trades at $360.33 and has moved in lockstep with the market. Its shares have returned 17.9% over the last six months while the S&P 500 has gained 13%. Is AYI a buy right now? Find out in our full research report, it’s free. One of the pioneers of smart lights, Acuity (NYSE:AYI) designs and manufactures light fixtures and building management systems used in various industries. Long-term growth is the most important, but within industrials, a stretched historical view may miss new industry trends or demand cycles. Acuity Brands’s annualized revenue growth of 9.8% over the last two years is above its five-year trend, suggesting its demand recently accelerated. If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills. As you can see below, Acuity Brands’s margin expanded by 8.6 percentage points over the last five years. This is encouraging, and we can see it became a less capital-intensive business because its free cash flow profitability rose more than its operating profitability. Acuity Brands’s free cash flow margin for the trailing 12 months was 13.9%. A company’s ROIC, or return on invested capital, shows how much operating profit it makes compared to the money it has raised (debt and equity). Unfortunately, Acuity Brands’s ROIC averaged 3 percentage point decreases each year over the last few years. Only time will tell if its new bets can bear fruit and potentially reverse the trend. Acuity Brands’s positive characteristics outweigh the negatives. At $360.33 per share (or 16.8× forward P/E), is now the time to initiate a position? See for yourself in our in-depth research report, it’s free. WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Acuity Inc. AYI used its third-quarter fiscal 2026 earnings call to press a forward-looking message: lighting demand is stabilizing, while Acuity Intelligent Spaces continues to supply the company’s faster-growth engine. Management emphasized execution more than headline beat metrics. That framing mattered because the quarter again showed a split business. Lighting remained pressured on sales, but AIS expanded at a double-digit rate, and management sounded increasingly confident about growth avenues in controls, OEM channels and data centers. Chairman, president and CEO Neil Ashe said Acuity Brands Lighting is seeing firmer demand after a softer stretch in the winter months, when conversion rates from quoting to releases ran longer than normal. He said activity is starting to normalize and described project flow as more typical heading into the fourth quarter. Chief financial officer Karen Holcom added that fourth-quarter sales should rise sequentially from the third quarter, though not necessarily at the same pace as the recent step-up. That outlook stopped short of a broad rebound call, but it marked a more constructive tone than earlier commentary around a tepid market. The quarter itself still reflected pressure. ABL sales fell 1.9% to $905.2 million, though adjusted operating margin remained a healthy 18.2%. Management tied the sales decline partly to a tough comparison against last year’s tariff-related order pull-forward rather than to a new deterioration in demand. If the call had a central growth theme, it was AIS. Sales in the segment climbed 14.9% to $303.5 million, with adjusted operating profit up 22.5% and adjusted operating margin reaching 25.1%, driven by Distech and QSC. Ashe spent much of his prepared remarks on Distech, arguing that Acuity’s open-architecture strategy is translating into share gains. He cited wins at universities, sports venues, enterprise campuses and data centers while also pointing to OEM manufacturers adopting the Eclipse portfolio for next-generation applications. Management also highlighted new product cadence inside AIS, including Eclipse Resilience for mission-critical cooling and a preloaded dashboard tied to occupancy and space utilization. The message was that AIS is broadening from controls into a platform story built around edge control, cloud intelligence and occupant experience. The company’s financial backdrop supported that strategy. Adjusted earnings per share increased to $5.31 from $5.12 a year earlier. The figure topped the Zacks Consensus Estimate of $5.20 by 2.1%. Net sales rose 1.6% to $1.2 billion, which modestly beat the $1.19 billion estimate by 1.1%. Acuity, Inc. price-consensus-eps-surprise-chart | Acuity, Inc. Quote Gross margin remained a notable talking point. Adjusted gross profit margin improved 10 basis points to 50.1%, helped by a richer AIS mix, even as ABL adjusted gross margin slipped 50 basis points to 46.1%. Ashe said inflation remains present across materials and SG&A, with medical costs one example, but he stressed that recent spending has been concentrated in technology and AI capabilities rather than undisciplined overhead growth. He argued that those investments are already helping gross margin and should create stronger operating leverage when volume improves. Holcom said Acuity’s capital allocation priorities have not changed: invest for growth, raise the dividend, pursue acquisitions and repurchase stock opportunistically. That framework was visible in the quarter’s actions. For the first nine months of fiscal 2026, Acuity generated $520.2 million in operating cash flow and $461.7 million in free cash flow. It also repaid $200 million of term debt year to date, repurchased about 766,000 shares for $230 million and refinanced its revolver with a new five-year $800 million unsecured facility. Ashe made clear that acquisitions remain a priority, especially in AIS. But he also underscored selectivity, pointing to QSC as the model for buying quality assets that can perform better inside Acuity’s broader platform. Analyst questions pushed management to define how durable AIS growth is and whether data centers are becoming a more material opportunity. Ashe responded by tying recent momentum to a mix of product innovation, market share gains and expansion into adjacencies such as refrigeration and OEM channels. On data centers, management sounded more explicit than in prior calls. Ashe said Distech now has both direct digital controllers and PLC controllers, which broadens its ability to serve hyperscalers, while the lighting side is also seeing rapid percentage growth off a smaller base. The answer that stood out most was management’s insistence that this push is currently organic. Ashe said the company’s entry into the data center market is being driven by internal product development, not by a need to buy its way in. The call ended with a more confident posture than the raw ABL sales number alone would imply. Management’s emphasis was on normalization in lighting, continued margin discipline and a wider runway for AIS. Ashe also pointed to internal priorities that framed Acuity’s next phase: deploying AI inside the business, accelerating product velocity, improving digital manufacturing and pursuing targeted AIS expansion. Those comments reinforced a company trying to compound operational discipline with higher-value technology exposure. AYI currently carries a Zacks Rank #3 (Hold), alongside Value and Growth Scores of B, a Momentum Score of F and a VGM Score of C. Under the Zacks framework, a Zacks Rank #1 (Strong Buy) and #2 (Buy) stocks paired with Style Scores of A or B offer the strongest near-term setup, while a Rank #3 is generally more neutral. You can see the complete list of today’s Zacks #1 Rank stocks here. That mix points to a stock with some supportive value and growth characteristics, but weaker momentum. The Zacks methodology also treats estimate revisions as the primary driver, which means the current rank can change after analysts update forecasts following the quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Acuity, Inc. (AYI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Acuity Inc. AYI has given investors a stronger operating story after its fiscal third-quarter results, but that does not automatically make the stock a clear buy.The company has earnings support, cash generation and a better business mix. The debate is whether those positives are already reflected in the share price, especially with core lighting demand still uneven. Acuity reported adjusted earnings per share of $5.31 in the fiscal third quarter, beating the Zacks Consensus Estimate of $5.20 by 2.1%. The figure also increased 3.7% from the year-ago quarter.Net sales of $1.20 billion topped the consensus mark of $1.19 billion by 1.1% and rose 1.7% year over year. Growth in Acuity Intelligent Spaces, disciplined execution and productivity actions helped support the quarter.The margin picture also gives bulls something to point to. Adjusted gross margin improved 10 basis points to 50.1%, aided mainly by a higher mix of AIS sales. Cash flow strengthens the investment case because it gives Acuity room to reinvest while still returning capital. In the first nine months of fiscal 2026, the company generated $520.2 million in net cash from operating activities, up from $398.9 million in the prior-year period.Acuity repurchased roughly 766,000 shares for $230 million, paid dividends and repaid $200 million of outstanding term-loan debt. It also increased its quarterly dividend by 18% during fiscal 2026.That capital allocation record supports flexibility. It matters even more as Acuity continues shifting toward building automation, controls and audio-visual platforms, where strategic investment remains important. Valuation keeps the buy case from looking simple. AYI trades at 18.59X forward 12-month earnings, below the Zacks sub-industry multiple of 20.96X but above the Zacks sector multiple of 17.05X.The price target of $381 reflects 19.55X forward 12-month earnings. With the stock at $362.48 as of June 26, 2026, that target suggests moderate upside rather than a deeply discounted setup. Acuity, Inc. price-eps-surprise | Acuity, Inc. Quote Johnson Controls International plc JCI is a relevant peer to watch because it is tied to building automation, controls and smart infrastructure. Honeywell International Inc. HON also provides context through its building automation and connected building solutions, which overlap with the broader demand trends supporting Acuity Intelligent Spaces. The caution starts with Acuity Brands Lighting. In the fiscal third quarter, ABL net sales declined 1.9% year over year to $905.2 million, while adjusted operating profit fell 5.3% to $164.6 million. Direct sales network revenues dropped 27.7% in the quarter, underscoring uneven demand across lighting channels. ABL remains sensitive to project timing, construction activity and broader macro uncertainty.Costs are another restraint. Tariff uncertainty, materials inflation, memory supply costs, acquisition-related expenses and higher technology spending could limit near-term margin expansion, even if the long-term strategy remains sound. The bottom line is that AYI looks more like a hold than an aggressive buy right now. The company is executing well, but the valuation and mixed segment performance leave less room for error.The stock currently carries a Zacks Rank #3 (Hold). It also has a Value Score of B, Growth Score of B, Momentum Score of F and VGM Score of B. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Value and Growth scores suggest respectable fundamental traits, while the Momentum Score of F signals weaker near-term price strength. That combination fits a watchlist hold, with a stronger buy case depending on clearer evidence that AIS growth can consistently offset lighting softness. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Acuity, Inc. (AYI) : Free Stock Analysis Report Honeywell International Inc. (HON) : Free Stock Analysis Report Johnson Controls International plc (JCI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Solid Execution Delivers Sales Growth, EPS Improvement and Strong Cash Flow Delivered Net Sales of $1.2B, an Increase of 2% Compared to the Prior Year Delivered Operating Profit of $193M, Up 38% Compared to the Prior Year; Grew Adjusted Operating Profit to $224M, Up 1% Compared to the Prior Year Delivered Diluted EPS of $4.56, Up 46% Compared to the Prior Year; Grew Adjusted Diluted EPS to $5.31, Up 4% Compared to the Prior Year ATLANTA, June 25, 2026 (GLOBE NEWSWIRE) -- Acuity Inc. (NYSE: AYI), ("Acuity"), a market-leading industrial technology company, delivered net sales of $1.2 billion in the third quarter, ended May 31, 2026, an increase of $19.4 million, or 1.6 percent, compared to the prior year. "We demonstrated solid execution in our third quarter of fiscal 2026," stated Neil Ashe, Chairman, President and Chief Executive Officer of Acuity Inc. "We grew net sales, we expanded our adjusted operating profit and we increased our adjusted diluted earnings per share. We generated strong cash flow and allocated capital effectively." During the third quarter of fiscal 2026, we received $6.4 million in tariff refunds in Acuity Brands Lighting, which are reflected as a non-GAAP adjustment in our results. Operating profit was $193.3 million in the third quarter of fiscal 2026, an increase of $53.5 million, or 38.3 percent, compared to the prior year. Operating profit as a percent of net sales was 16.1 percent in the third quarter of fiscal 2026, an increase of 420 basis points compared to the prior year. Adjusted operating profit was $223.5 million in the third quarter of fiscal 2026, an increase of $1.8 million, or 0.8 percent, compared to the prior year. Adjusted operating profit as a percent of net sales was 18.7 percent in the third quarter of fiscal 2026, a decrease of 10 basis points compared to the prior year. Diluted earnings per share was $4.56 in the third quarter of fiscal 2026, an increase of $1.44, or 46.2 percent, compared to the prior year. Adjusted diluted earnings per share was $5.31 in the third quarter of fiscal 2026, an increase of $0.19, or 3.7 percent. Segment Performance Acuity Brands Lighting ("ABL") ABL generated net sales of $905.2 million in the third quarter of fiscal 2026, a decrease of $18.0 million, or 1.9 percent, compared to the prior year. Operating profit was $160.6 million in the third quarter of fiscal 2026, an increase of $26.6 million, or 19.9 percent, compared to the prior year. Operating profit as a percent of ABL net sales was 17.7 percent in the third quarter of fiscal 2026, an increase of 320 basis points compared to the prior year. Adjusted operating profit was $164.6 million in the third quarter of fiscal 2026, a decrease of $9.3 million, or 5.3 percent, compared to the prior year. Adjusted operating profit as a percent of ABL net sales was 18.2 percent in the third quarter of fiscal 2026, a decrease of 60 basis points compared to the prior year. Acuity Intelligent Spaces ("AIS") AIS generated net sales of $303.5 million in the third quarter of fiscal 2026, an increase of $39.4 million, or 14.9 percent, compared to the prior year. Operating profit was $56.5 million in the third quarter of fiscal 2026, an increase of $29.1 million, or 106.2 percent, compared to the prior year. Operating profit as a percent of AIS net sales was 18.6 percent in the third quarter of fiscal 2026, an increase of 820 basis points compared to the prior year. Adjusted operating profit was $76.3 million in the third quarter of fiscal 2026, an increase of $14.0 million, or 22.5 percent, compared to the prior year. Adjusted operating profit as a percent of AIS net sales was 25.1 percent in the third quarter of fiscal 2026, an increase of 150 basis points compared to the prior year. Cash Flow and Capital Allocation Net cash from operating activities was $520.2 million for the first nine months of fiscal 2026. Year to date, we repurchased approximately 766,000 shares of common stock for a total of $230 million. Call Details We will host a conference call at 8:00 a.m. ET today, Thursday, June 25, 2026. Neil Ashe, Chief Executive Officer of Acuity Inc. will lead the call. The conference call and earnings release can be accessed via our Investor Relations section of our website at www.investors.acuityinc.com. A replay of the call will also be posted to the Investor Relations website within two hours of the completion of the conference call and will be available on the website for a limited time. About Acuity Acuity Inc. (NYSE: AYI) is a market-leading industrial technology company. We use technology to solve problems in spaces, light and more things to come. Through our two business segments, Acuity Brands Lighting (ABL) and Acuity Intelligent Spaces (AIS), we design, manufacture, and bring to market products and services that make a valuable difference in people’s lives. We achieve growth through the development of innovative new products and services, including lighting, lighting controls, building management solutions, and an audio, video and control platform. We focus on customer outcomes and drive growth and productivity to increase market share and deliver superior returns. We look to aggressively deploy capital to grow the business and to enter attractive new verticals. Acuity Inc. is based in Atlanta, Georgia, with operations across North America, Europe and Asia. The Company is powered by approximately 13,000 dedicated and talented associates. Visit us at www.acuityinc.com. Non-GAAP Financial Measures This news release includes the following non-generally accepted accounting principles (“GAAP”) financial measures: "adjusted gross profit", "adjusted gross profit margin", “adjusted operating profit” and “adjusted operating profit margin” for total company and by segment; for total company only we additionally include: “adjusted net income;” “adjusted diluted EPS;” “earnings before interest, taxes, depreciation and amortization (“EBITDA”);" "EBITDA margin;" “adjusted EBITDA;” and "adjusted EBITDA margin". These non-GAAP financial measures are provided to enhance the reader's overall understanding of our current financial performance and prospects for the future. Specifically, management believes that these non-GAAP measures provide useful information to investors by excluding or adjusting items for amortization of acquired intangible assets, share-based payment expense, acquired profit in inventory, acquisition-related items, and special charges. We also provide “free cash flow” (“FCF”) to enhance the reader’s understanding of our ability to generate additional cash from its business. Management typically adjusts for these items for internal reviews of performance and uses the above non-GAAP measures for baseline comparative operational analysis, decision making and other activities. Management believes these non-GAAP measures provide greater comparability and enhanced visibility into our results of operations as well as comparability with many of its peers, especially those companies focused more on technology and software. Non-GAAP financial measures included in this news release should be considered in addition to, and not as a substitute for or superior to, results prepared in accordance with GAAP. The most directly comparable GAAP measures for adjusted gross profit and adjusted gross profit margin for total company are “gross profit” and “gross profit margin,” respectively, which include the impact of acquired profit in inventory and tariff refunds. Adjusted gross profit margin is adjusted gross profit divided by net sales for total company and by segment. The most directly comparable GAAP measures for adjusted operating profit and adjusted operating profit margin for total company and by segment are “operating profit” and “operating profit margin,” respectively, which include the impact of amortization of acquired intangible assets, share-based payment expense, acquired profit in inventory, acquisition-related costs, special charges, and tariff refunds. Adjusted operating profit margin is adjusted operating profit divided by net sales for total company and by segment. The most directly comparable GAAP measures for adjusted net income and adjusted diluted EPS are “net income” and “diluted EPS,” respectively, which include the impact of amortization of acquired intangible assets, share-based payment expense, acquired profit in inventory, acquisition-related costs, special charges, and tariff refunds. Adjusted diluted EPS is adjusted net income divided by diluted weighted average shares outstanding. The most directly comparable GAAP measure for EBITDA is “net income”, which includes the impact of net interest expense, income taxes, depreciation and amortization of acquired intangible assets. EBITDA margin is EBITDA divided by net sales for total company. The most directly comparable GAAP measure for adjusted EBITDA is “net income”, which includes the impact of net interest expense, income taxes, depreciation, amortization of acquired intangible assets, share-based payment expense, acquired profit in inventory, acquisition-related items, special charges, miscellaneous (income) expense, net, and tariff refunds. Adjusted EBITDA margin is adjusted EBITDA divided by net sales for total company. A reconciliation of each measure to the most directly comparable GAAP measure is available in this news release. We define FCF as net cash provided by operating activities less purchases of property, plant and equipment. A calculation of this measure is available in this news release. Our non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures used by other companies, have limitations as an analytical tool, and should not be considered in isolation or as a substitute for GAAP financial measures. Our presentation of such measures, which may include adjustments to exclude unusual or non-recurring items, should not be construed as an inference that our future results will be unaffected by other unusual or non-recurring items. Forward-Looking Information This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements include, but are not limited to, statements that describe or relate to our plans, initiatives, projections, vision, goals, targets, commitments, expectations, objectives, prospects, strategies, or financial outlook, and the assumptions underlying or relating thereto. In some cases, we may use words such as “expect,” “believe,” “intend,” “anticipate,” “estimate,” “forecast,” “indicate,” “project,” “predict,” “plan,” “may,” “will,” “could,” “should,” “would,” “potential,” and words of similar meaning, as well as other words or expressions referencing future events, conditions, or circumstances, to identify forward-looking statements. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Act. Forward-looking statements are not guarantees of future performance. Our forward-looking statements are based on our current beliefs, expectations, and assumptions, which may not prove to be accurate, and are subject to known and unknown risks and uncertainties, assumptions, and other important factors, many of which are outside of our control and any of which could cause our actual results to differ materially from those expressed or implied by the forward-looking statements. These risks and uncertainties are discussed in our filings with the U.S. Securities and Exchange Commission, including our most recent annual report on Form 10-K (including, but not limited to, the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations"), quarterly reports on Form 10-Q, and current reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made. This press release is not comprehensive, and for that reason, should be read in conjunction with such filings. You are cautioned not to place undue reliance on any forward-looking statements. Except as required by law, we undertake no obligation to publicly update or release any revisions to these forward-looking statements to reflect any events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events, or otherwise. (1) Earnings per share is calculated using unrounded numbers. Amounts in the table may not recalculate exactly due to rounding. (1) Acquisition-related items include professional fees. (1) Acquisition-related items include professional fees. Investor Contact:Charlotte McLaughlinVice President, Investor Relations(404) [email protected] Media Contact:April ApplingSenior Vice President, Corporate Marketing and [email protected]

Acuity (AYI) reported $1.2 billion in revenue for the quarter ended May 2026, representing a year-over-year increase of 1.7%. EPS of $5.31 for the same period compares to $5.12 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $1.19 billion, representing a surprise of +1.07%. The company delivered an EPS surprise of +2.07%, with the consensus EPS estimate being $5.20. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Acuity performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Sales by Channel- Acuity Intelligent Spaces: $303.5 million versus the four-analyst average estimate of $289.17 million. The reported number represents a year-over-year change of +14.9%. Net Sales by Channel- Acuity Brands Lighting (ABL)- Total: $905.2 million compared to the $905.34 million average estimate based on four analysts. The reported number represents a change of -2% year over year. Net Sales by Channel- Eliminations: $-10.7 million compared to the $-9.33 million average estimate based on three analysts. The reported number represents a change of +23% year over year. Adjusted operating profit- Acuity Intelligent Spaces: $76.3 million compared to the $68.32 million average estimate based on three analysts. Adjusted operating profit- Acuity Brands Lighting: $164.6 million compared to the $177.01 million average estimate based on three analysts. View all Key Company Metrics for Acuity here>>> Shares of Acuity have returned +3% over the past month versus the Zacks S&P 500 composite's -1.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Acuity, Inc. (AYI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Net Sales: $1.2 billion, up 2% from the prior year. Adjusted Gross Profit Margin: 50.1%, an increase of 10 basis points from the prior year. Adjusted Operating Profit: $224 million, up 1% from last year. Adjusted Operating Profit Margin: 18.7%. Adjusted Diluted Earnings Per Share: $5.31, an increase of 4% from the prior year. ABL Sales: $905 million, a decrease of 2% from the prior year. ABL Adjusted Gross Profit Margin: 46.1%. AIS Sales: $304 million, an increase of 15% from the prior year. AIS Adjusted Gross Profit Margin: 60.3%. AIS Adjusted Operating Profit: $76 million, up 22.5% from the prior year. Cash Flow from Operations: $520 million for the first nine months of fiscal 2026, $121 million higher than the same period in fiscal 2025. Share Repurchase: Over 766,000 shares repurchased for $230 million year to date. Warning! GuruFocus has detected 5 Warning Signs with MKC. Is AYI fairly valued? Test your thesis with our free DCF calculator. Release Date: June 25, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Acuity Inc (NYSE:AYI) demonstrated solid execution in the third quarter of fiscal 2026, with growth in net sales and expanded adjusted operating profit. The company introduced new products like Beyond by Lithonia and CPX3P, enhancing their product portfolio and simplifying specification and installation for customers. Acuity Intelligent Spaces (AIS) delivered strong sales and margin performance, with significant growth in Distech and QSC. The company generated $520 million in cash flow from operations in the first nine months of fiscal 2026, enhancing financial flexibility. Acuity Inc (NYSE:AYI) continues to invest in product innovation and technology, driving productivity and growth across its platforms. Acuity Brands Lighting (ABL) experienced a 2% decline in sales compared to the prior year, reflecting challenging market conditions. Adjusted operating profit for ABL declined by $9 million, with a decrease in operating profit margin due to lower sales. The company faces inflationary pressures across materials and SD&A lines, impacting overall cost structure. There is uncertainty in the market with elongated quoting and release activity, affecting order trends. The Architectural Billings Index (ABI) remains weak, indicating potential challenges in the architectural sector. Q: Can you discuss the factors driving Acuity Intelligent Spaces (AIS) top-line growth, particularly in relation to data centers? A: Neil Ashe, CEO, explained that AIS growth is driven by innovation and share gains. The company has expanded into higher growth verticals like data centers, leveraging both digital and PLC controllers to meet hyperscaler demands. This strategy has allowed Acuity to outpace traditional competitors and enter new adjacencies, contributing to sustained growth. Q: How is Acuity approaching capital deployment, and are there specific areas of focus for acquisitions? A: Karen Holcom, CFO, stated that Acuity's capital allocation framework remains unchanged, focusing on business growth, dividends, acquisitions, and share repurchases. Neil Ashe added that the company is particularly interested in expanding AIS through strategic acquisitions, emphasizing quality over quantity to ensure long-term value creation. Q: What are the current order trends in the lighting market, and how do they compare to previous periods? A: Neil Ashe noted that order rates were softest during the winter months but have since firmed up. The company is seeing more normal project activity and conversion rates, indicating a stabilization in the market. Acuity believes it is performing better than competitors, contributing to this positive trend. Q: Can you elaborate on the potential for gross margin expansion in Acuity Brands Lighting (ABL) despite soft volumes? A: Neil Ashe confirmed that there is potential for continued gross margin expansion through product vitality, service level improvements, technology differentiation, and productivity enhancements. These factors have contributed to margin improvements even in a challenging volume environment. Q: How is Acuity leveraging its position in the data center market, and what is the growth potential? A: Neil Ashe highlighted that Acuity has responsibly entered the data center market with both control and lighting solutions. The company is using its digital and PLC controllers to meet hyperscaler needs, and this segment is expected to be a significant growth driver for AIS in the future. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Acuity (AYI) came out with quarterly earnings of $5.31 per share, beating the Zacks Consensus Estimate of $5.2 per share. This compares to earnings of $5.12 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +2.07%. A quarter ago, it was expected that this lighting maker would post earnings of $4.01 per share when it actually produced earnings of $4.14, delivering a surprise of +3.24%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Acuity, which belongs to the Zacks Technology Services industry, posted revenues of $1.2 billion for the quarter ended May 2026, surpassing the Zacks Consensus Estimate by 1.07%. This compares to year-ago revenues of $1.18 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Acuity shares have lost about 15.2% since the beginning of the year versus the S&P 500's gain of 7.5%. While Acuity has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Acuity was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $5.46 on $1.24 billion in revenues for the coming quarter and $19.40 on $4.63 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the bottom 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Fathom Holdings (FTHM), has yet to report results for the quarter ended March 2026. This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of +72.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Fathom Holdings' revenues are expected to be $93.7 million, up 0.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Acuity, Inc. (AYI) : Free Stock Analysis Report Fathom Holdings Inc. (FTHM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research