Acuity (AYI) Fiscal Q4 2026 Earnings Call: AIS Growth and FY2027 Outlook
Source Tradingkey
Key Takeaways
- Fiscal Q4 2026 net sales increased 3% year over year to $1.2 billion, driven by Acuity Intelligent Spaces (AIS), partly offset by a slight decline at Acuity Brands Lighting (ABL).
- Adjusted gross margin expanded 130 basis points to 50.2%. Adjusted operating profit rose 3% to $233 million, while adjusted diluted EPS increased 11% to $5.77.
- AIS sales grew 17% to $298 million. Its adjusted operating profit increased 36% to $74 million, and adjusted operating margin expanded 350 basis points to 24.9%.
- ABL sales declined by less than 1% to $959 million. Adjusted operating margin fell 130 basis points to 18.8%, reflecting technology investments, while adjusted gross margin remained strong at 46.2%.
- For fiscal 2027, management expects total net sales of $4.7 billion to $4.9 billion and adjusted diluted EPS of $20.50 to $22.00.
- Higher memory costs are expected to reduce AIS gross margin by approximately 200 basis points over fiscal 2027. Management expects AIS operating margin to remain roughly flat or increase slightly as sales growth provides SG&A leverage.
Key Financial Data
| Metric | Fiscal Q4 2026 | Year-over-year change | Commentary |
|---|---|---|---|
| Net sales | $1.2 billion | +3% | AIS growth partly offset lower ABL revenue |
| Adjusted gross margin | 50.2% | +130 bps | Benefited from a larger AIS revenue mix |
| Adjusted operating profit | $233 million | +3% | Increased by $8 million |
| Adjusted operating margin | 18.7% | +10 bps | Higher AIS contribution supported the result |
| Adjusted diluted EPS | $5.77 | +11% | Driven by higher profitability and fewer diluted shares |
| ABL sales | $959 million | Less than -1% | Prior-year comparison included an elevated backlog |
| ABL adjusted operating profit | $180 million | -$14 million | Technology investment weighed on operating margin |
| ABL adjusted operating margin | 18.8% | -130 bps | Adjusted gross margin was 46.2% |
| AIS sales | $298 million | +17% | Strong growth across the portfolio |
| AIS adjusted operating profit | $74 million | +36% | Increased by $19 million |
| AIS adjusted operating margin | 24.9% | +350 bps | Adjusted gross margin reached 61.2% |
| Fiscal 2026 operating cash flow | $826 million | +$225 million | Supported by operations, tariff refunds and lower tax payments |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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