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Acuity Brands Stock Is Dropping—Here's Why That Might Be Good NewsAcuity NYSE: AYI reported higher fourth-quarter sales, adjusted profit and adjusted earnings per share for fiscal 2026, as growth in its Acuity Intelligent Spaces segment offset a modest decline in its lighting business.

For the fiscal fourth quarter, total net sales rose 3% year over year to $1.2 billion. Adjusted operating profit increased 3% to $233 million, while adjusted operating margin expanded 10 basis points to 18.7%. Adjusted diluted earnings per share rose 11% to $5.77, driven primarily by higher profitability and fewer diluted shares outstanding.

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3 construction stocks you need to know about “We demonstrated solid execution in the fourth quarter of Fiscal 2026,” Chairman, President and Chief Executive Officer Neil Ashe said. He said the company increased sales, expanded adjusted operating profit and margin, generated strong cash flow and allocated capital effectively during the period.

AIS Growth Offsets Lighting Sales Decline Acuity Brands Lighting, or ABL, generated fourth-quarter sales of $959 million, down less than 1% from a year earlier. Chief Financial Officer Karen Holcom said the comparison reflected elevated backlog in the prior-year period, when customers accelerated orders ahead of price increases during the second half of fiscal 2025.

Acuity Brands stock: A good play on falling ratesOn a two-year stacked basis, ABL sales were flat, while the company’s independent sales network and direct sales network combined grew 3%. ABL recorded an adjusted gross margin of 46.2%, which Holcom said was driven largely by product and productivity improvements. However, adjusted operating profit fell $14 million to $180 million and adjusted operating margin declined 130 basis points to 18.8%, as the business invested in technology.

The segment received $32 million in tariff refunds during the quarter and recorded a $15 million special charge tied to productivity actions involving its product portfolio, supply chain and operating footprint. Both items were excluded from adjusted results.

Ashe said Acuity expects continued structural improvements at ABL, including manufacturing-network changes, facility consolidation and rationalization of smaller brands and product lines. He said the company plans to target approximately 50 to 100 basis points of adjusted operating margin expansion annually over time.

Acuity Intelligent Spaces, or AIS, posted fourth-quarter sales of $298 million, up 17% year over year, supported by growth across its building operations and experiences portfolios. Its adjusted gross margin increased 200 basis points to 61.2%, while adjusted operating profit rose 36% to $74 million. Adjusted operating margin expanded 350 basis points to 24.9%.

AIS also received $13 million in tariff refunds and recorded a $3 million special charge related to a facility impairment, with both items excluded from adjusted results.

Memory Costs Expected to Pressure AIS Margins Management said rising memory costs did not affect fourth-quarter performance but are expected to weigh on AIS margins during fiscal 2027. Holcom said the gross impact could be approximately a couple hundred basis points at the gross-margin level over the year.

The company expects the effect to begin late in the fiscal first quarter and extend into the second quarter, depending on when inventory moves through sales. Acuity said its first priority will be securing inventory for customers, followed by recovering higher costs in dollar terms and accelerating product and productivity initiatives to restore margins over time.

Ashe said AIS operating margins should be “flat to slightly” higher in fiscal 2027 despite the memory-cost pressure, as sales growth provides operating leverage. He emphasized that dollar margins are expected to increase as the segment grows.

Product Launches and Leadership Changes During the quarter, Acuity appointed Ruth Gratzke as president of ABL. Ashe said Gratzke brings experience in industrial technology across go-to-market activities, product and engineering, and operations. She joined Acuity from Siemens.

ABL also introduced and expanded several products, including a Lithonia Lighting BLT luminaire designed for data centers, Holocore Element from Luminis, and the Ridge outdoor linear floodlight range from Hydrel. The company also highlighted its nLight controls platform, SensorSwitch offerings and eldoLED’s Accella 85-watt driver, which uses eldoLED studio and NFC technology.

Within AIS, the company pointed to QSC’s Network Video Management offering, which is designed to distribute and manage low-latency video across hundreds of endpoints, as well as RoomSuite, the Collaboration Bar and the Scheduling Panel for smaller and medium-sized spaces.

Ashe said Acuity is embedding artificial intelligence in internal processes and products, citing Q-SYS Reflect and Atrius DataLab as examples of offerings designed to help customers manage and optimize spaces using data and analytics.

Cash Flow, Debt Reduction and Fiscal 2027 Outlook For fiscal 2026, Acuity generated $826 million in operating cash flow, up $225 million from fiscal 2025. The increase reflected operating performance, tariff refunds and lower tax payments, according to Holcom.

The company spent $78 million on capital expenditures, repaid $200 million in debt during fiscal 2026 and repaid an additional $200 million after year-end. Holcom said Acuity has now fully repaid the borrowings used to finance its QSC acquisition.

Acuity increased its dividend by 18% and used $287 million to repurchase more than 940,000 shares during the year. Since the beginning of the fourth quarter of fiscal 2020, the company has repurchased nearly 11 million shares at an average price of about $164 per share, representing nearly 28% of shares outstanding at that time, Holcom said.

For fiscal 2027, Acuity forecast total net sales of $4.7 billion to $4.9 billion and adjusted diluted earnings per share of $20.50 to $22. The outlook assumes flat to low-single-digit sales growth at ABL and low- to mid-teen sales growth at AIS.

Management said it expects the broader ABL market to be flat to down low single digits in fiscal 2027, with the company targeting growth through market-share gains, increased penetration in new verticals and corporate-account performance. Ashe also said Acuity continues to see data-center opportunities in both its lighting and intelligent-spaces businesses.

About Acuity (NYSE:AYI)Acuity NYSE: AYI is a technology company that provides lighting, lighting controls and building-management solutions for commercial, institutional, industrial and residential environments. Its products are designed to improve illumination, energy efficiency, automation and the overall performance of indoor and outdoor spaces.

The company offers a broad portfolio of lighting fixtures, controls, sensors and connected-building technologies. Its brands and product lines have included Lithonia Lighting, Holophane, Peerless, SensorSwitch, Distech Controls and Atrius.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Acuity (AYI - Free Report) came out with quarterly earnings of $5.77 per share, beating the Zacks Consensus Estimate of $5.53 per share. This compares to earnings of $5.2 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +4.34%. A quarter ago, it was expected that this lighting maker would post earnings of $5.2 per share when it actually produced earnings of $5.31, delivering a surprise of +2.12%.

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 $1.24 billion for the quarter ended August 2026, missing the Zacks Consensus Estimate by 0.6%. This compares to year-ago revenues of $1.21 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 14% since the beginning of the year versus the S&P 500's gain of 11.8%.

What's Next for Acuity?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 unfavorable. 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 #4 (Sell) for the stock. So, the shares are expected to underperform 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 $5.09 on $1.18 billion in revenues for the coming quarter and $21.41 on $4.86 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 27% 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.

One other stock from the same industry, Coursera (COUR - Free Report) , is yet to report results for the quarter ended September 2026.

This online learning platform is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of +90%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Coursera's revenues are expected to be $368.93 million, up 90% from the year-ago quarter.

Fiscal Q4 2026 Highlights:

Delivered Fiscal Q4 2026 Net Sales of $1.2B, Up 3% Compared to the Prior Year Delivered Fiscal Q4 2026 Diluted EPS of $5.63, Up 56% Compared to the Prior Year; Adjusted Diluted EPS of $5.77, Up 11% Compared to the Prior Year Fiscal 2026 Highlights:

Delivered Fiscal 2026 Net Sales of $4.6B, Up 7% Compared to the Prior Year Delivered Fiscal 2026 Diluted EPS of $17.05, Up 36% Compared to the Prior Year; Adjusted Diluted EPS of $19.90, Up 11% Compared to the Prior Year Generated $826M in Cash Flow from Operations in Fiscal 2026 ATLANTA, Oct. 01, 2026 (GLOBE NEWSWIRE) -- Acuity Inc. (NYSE: AYI) ("Acuity"), a market-leading industrial technology company, delivered net sales of $1.2 billion in the fourth quarter of fiscal 2026 ended August 31, 2026, an increase of $35.3 million, or 2.9 percent, compared to the prior year.

"We demonstrated solid execution in the fourth quarter of fiscal 2026. We grew sales and expanded our adjusted operating profit and adjusted operating profit margin. We increased our adjusted diluted earnings per share, generated strong cash flow and allocated capital effectively," stated Neil Ashe, Chairman, President and Chief Executive Officer of Acuity Inc. "Throughout fiscal 2026 we strengthened Acuity Brands Lighting while continuing to scale Acuity Intelligent Spaces, building the operating and financial capacity needed to compound growth and value over time."

During the fourth quarter of fiscal 2026 we received $44.9 million in tariff refunds, which are reflected as a non-GAAP adjustment in our results. We also took certain actions that resulted in $17.8 million of special charges. Of these charges $14.7 million related to initiatives in our Acuity Brands Lighting segment involving our product portfolio, supply chain, and operating footprint, while $3.1 million related to a facility impairment in our Acuity Intelligent Spaces segment.

Operating profit was $227.0 million in the fourth quarter of fiscal 2026, an increase of $46.4 million, or 25.7 percent, compared to the prior year. Operating profit as a percent of net sales was 18.2 percent in the fourth quarter of fiscal 2026, an increase of 330 basis points compared to the prior year. Adjusted operating profit was $232.9 million in the fourth quarter of fiscal 2026, an increase of $7.6 million, or 3.4 percent, compared to the prior year. Adjusted operating profit as a percent of net sales was 18.7 percent in the fourth quarter of fiscal 2026, an increase of 10 basis points compared to the prior year.

Diluted earnings per share was $5.63 in the fourth quarter of fiscal 2026, an increase of $2.02, or 56.0 percent, compared to the prior year. Adjusted diluted earnings per share was $5.77 in the fourth quarter of fiscal 2026, an increase of $0.57, or 11.0 percent, compared to the prior year.

Full-Year 2026 Summary

Net sales of $4.6 billion for the full year of fiscal 2026 increased $296.2 million, or 6.8 percent, compared to the prior year.

Operating profit was $713.7 million for the full year of fiscal 2026, an increase of $149.8 million, or 26.6 percent, compared to the prior year. Operating profit as a percent of net sales was 15.4 percent, an increase of 240 basis points compared to the prior year. Adjusted operating profit was $828.7 million for the full year of fiscal 2026, an increase of $60.1 million, or 7.8 percent, compared to the prior year. Adjusted operating profit as a percent of net sales was 17.9 percent, an increase of 20 basis points compared to the prior year.

Diluted earnings per share was $17.05 for the full year of fiscal 2026, an increase of $4.52, or 36.1 percent, compared to the prior year. Adjusted diluted earnings per share was $19.90, an increase of $1.89, or 10.5 percent, compared to the prior year.

Segment Performance

Acuity Brands Lighting ("ABL")

Fourth-Quarter Results

ABL generated net sales of $958.7 million in the fourth quarter of fiscal 2026, a decrease of $3.7 million, or 0.4 percent, compared to the prior year.

ABL operating profit was $188.8 million in the fourth quarter of fiscal 2026, an increase of $5.8 million, or 3.2 percent, compared to the prior year. ABL operating profit as a percent of ABL net sales was 19.7 percent in the fourth quarter of fiscal 2026, an increase of 70 basis points compared to the prior year. ABL adjusted operating profit was $179.8 million in the fourth quarter of fiscal 2026, a decrease of $13.8 million, or 7.1 percent, compared to the prior year. ABL adjusted operating profit as a percent of ABL net sales was 18.8 percent in the fourth quarter of fiscal 2026, a decrease of 130 basis points compared to the prior year.

Full-Year Results

ABL generated net sales of $3.6 billion for the full year of fiscal 2026, a decrease of $35.8 million, or 1.0 percent, compared to the prior year.

ABL operating profit was $623.5 million for the full year of fiscal 2026, an increase of $32.9 million, or 5.6 percent, compared to the prior year. ABL operating profit as a percent of ABL net sales was 17.4 percent for the full year of fiscal 2026, an increase of 100 basis points compared to the prior year. ABL adjusted operating profit was $646.0 million for the full year of fiscal 2026, a decrease of $16.3 million, or 2.5 percent, compared to the prior year. ABL adjusted operating profit as a percent of ABL net sales was 18.1 percent for the full year of fiscal 2026, a decrease of 20 basis points compared to the prior year.

Acuity Intelligent Spaces ("AIS")

Fourth-Quarter Results

AIS generated net sales of $297.6 million in the fourth quarter of fiscal 2026, an increase of $42.4 million, or 16.6 percent, compared to the prior year.

AIS operating profit was $64.7 million in the fourth quarter of fiscal 2026, an increase of $36.7 million, or 131.1 percent, compared to the prior year. AIS operating profit as a percent of AIS net sales was 21.7 percent in the fourth quarter of fiscal 2026, an increase of 1,070 basis points compared to the prior year. AIS adjusted operating profit was $74.1 million in the fourth quarter of fiscal 2026, an increase of $19.5 million, or 35.7 percent, compared to the prior year. AIS adjusted operating profit as a percent of AIS net sales was 24.9 percent in the fourth quarter of fiscal 2026, an increase of 350 basis points compared to the prior year.

Full-Year Results

AIS generated net sales of $1.1 billion for the full year of fiscal 2026, an increase of $342.3 million, or 44.8 percent, compared to the prior year.

AIS operating profit was $186.5 million for the full year of fiscal 2026, an increase of $110.4 million, or 145.1 percent, compared to the prior year. AIS operating profit as a percent of AIS net sales was 16.9 percent for the full year of fiscal 2026, an increase of 690 basis points compared to the prior year. AIS adjusted operating profit was $255.0 million for the full year of fiscal 2026, an increase of $90.7 million, or 55.2 percent, compared to the prior year. AIS adjusted operating profit as a percent of AIS net sales was 23.0 percent for the full year 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 $825.6 million for the full year of fiscal 2026. During the year we repaid $200 million of our term loan, we increased our dividend by 18 percent, and we repurchased over 940,000 shares of common stock for $287.2 million.

Form 10-K Filing

The independent registered public accounting firm’s audit report with respect to the Company’s fiscal year-end financial statements will not be issued until the Company files its annual report on Form 10-K, including its evaluation of the effectiveness of internal controls over financial reporting. Accordingly, the financial results reported in this earnings release are preliminary pending completion of the audit.

Today's Call Details

The Company will host a conference call at 8:00 a.m. (ET) today, Thursday, October 1, 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 for total company and by segment: "adjusted gross profit;" "adjusted gross profit margin;" "adjusted operating profit" and "adjusted operating profit margin." 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 costs, special charges, tariff refunds, pension settlement loss, and a fiscal 2025 one-time tax benefit.

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, pension settlement loss, tariff refunds and a fiscal 2025 one-time tax benefit. 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 costs, special charges, miscellaneous 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.

ACUITY INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
 August 31, 2026 2025ASSETS   Current assets:   Cash and cash equivalents$636.3 $422.5Accounts receivable, net 632.1  593.9Inventories 450.4  526.7Prepayments and other current assets 140.4  108.4Total current assets 1,859.2  1,651.5Property, plant, and equipment, net 356.8  343.2Other long-term assets 2,657.5  2,760.5Total assets$4,873.5 $4,755.2LIABILITIES AND STOCKHOLDERS’ EQUITY   Current liabilities:   Accounts payable$443.8 $454.5Current maturities of debt 200.0  —Other current liabilities 453.1  391.3Total current liabilities 1,096.9  845.8Long-term debt 497.4  896.8Other long-term liabilities 304.9  287.7Total stockholders’ equity 2,974.3  2,724.9Total liabilities and stockholders’ equity$4,873.5 $4,755.2 ACUITY INC.
CONDENSED STATEMENTS OF INCOME
(In millions, except per-share data)
 Three Months Ended August 31, Year Ended August 31,  2026 2025  2026  2025Net sales$1,244.4$1,209.1 $4,641.8 $4,345.6Cost of products sold 574.3 618.1  2,291.1  2,267.1Gross profit 670.1 591.0  2,350.7  2,078.5Selling, distribution, and administrative expenses 425.3 410.4  1,613.3  1,484.9Special charges 17.8 —  23.7  29.7Operating profit 227.0 180.6  713.7  563.9Other expense:      Interest expense, net 4.1 7.0  25.6  22.0Miscellaneous expense, net 2.9 35.9  7.4  41.7Total other expense 7.0 42.9  33.0  63.7Income before income taxes 220.0 137.7  680.7  500.2Income tax expense 47.0 23.7  149.4  103.6Net income$173.0$114.0 $531.3 $396.6       Earnings per share(1):      Basic earnings per share$5.77$3.71 $17.49 $12.85Basic weighted average number of shares outstanding 29.960 30.689  30.384  30.859Diluted earnings per share$5.63$3.61 $17.05 $12.53Diluted weighted average number of shares outstanding 30.755 31.533  31.151  31.641Dividends declared per share$0.20$0.17 $0.77 $0.66 ______________________________
(1) Earnings per share is calculated using unrounded numbers. Amounts in the table may not recalculate exactly due to rounding.

ACUITY INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
 Year Ended August 31,  2026   2025     Cash flows from operating activities:   Net income$531.3  $396.6 Adjustments to reconcile net income to cash flows from operating activities:   Depreciation and amortization 156.4   133.1 Share-based payment expense 49.5   45.1 Asset impairments 6.0   16.7 Other operating activities 82.4   9.9 Net cash provided by operating activities 825.6   601.4 Cash flows from investing activities:   Purchases of property, plant, and equipment (77.7)  (68.4)Acquisitions of businesses, net of cash acquired —   (1,189.4)Other investing activities (1.5)  (22.9)Net cash used for investing activities (79.2)  (1,280.7)Cash flows from financing activities:   Borrowings on credit agreement 200.0   — Borrowings from term loan —   600.0 Repayments of term loan borrowings (400.0)  (200.0)Repurchases of common stock (287.2)  (118.5)Proceeds from stock option exercises and other 7.5   28.4 Payments of taxes withheld on net settlement of equity awards (29.4)  (24.6)Dividends paid (23.8)  (20.6)Other financing activities (3.6)  (9.3)Net cash (used for) provided by financing activities (536.5)  255.4 Effect of exchange rate changes on cash and cash equivalents 3.9   0.6 Net change in cash and cash equivalents 213.8   (423.3)Cash and cash equivalents at beginning of year 422.5   845.8 Cash and cash equivalents at end of year$636.3  $422.5  ACUITY INC.
DISAGGREGATED NET SALES
(In millions)

The following table shows net sales by channel for the periods presented:

 Three Months Ended August 31,    2026   2025  Increase (Decrease) Percent ChangeAcuity Brands Lighting:       Independent sales network$729.2  $702.4  $26.8  3.8%Direct sales network 79.8   105.3   (25.5) (24.2)%Retail sales 41.7   43.4   (1.7) (3.9)%Corporate accounts 55.2   52.9   2.3  4.3%Original equipment manufacturer and other 52.8   58.4   (5.6) (9.6)%Total Acuity Brands Lighting 958.7   962.4   (3.7) (0.4)%Acuity Intelligent Spaces 297.6   255.2   42.4  16.6%Eliminations (11.9)  (8.5)  (3.4) 40.0%Total$1,244.4  $1,209.1  $35.3  2.9%  Year Ended August 31,    2026   2025  Increase (Decrease) Percent ChangeAcuity Brands Lighting:       Independent sales network$2,702.7  $2,646.8  $55.9  2.1%Direct sales network 314.2   411.4   (97.2) (23.6)%Retail sales 169.2   170.7   (1.5) (0.9)%Corporate accounts 182.1   156.7   25.4  16.2%Original equipment manufacturer and other 208.2   226.6   (18.4) (8.1)%Total Acuity Brands Lighting 3,576.4   3,612.2   (35.8) (1.0)%Acuity Intelligent Spaces 1,106.6   764.3   342.3  44.8%Eliminations (41.2)  (30.9)  (10.3) 33.3%Total$4,641.8  $4,345.6  $296.2  6.8% ACUITY INC.
Reconciliation of Non-U.S. GAAP Measures

The tables below reconcile certain GAAP financial measures to the corresponding non-GAAP measures for the Company as well as our reportable operating segments:

(In millions except per share data)Three Months Ended August 31,       2026     2025    Increase (Decrease)Percent ChangeNet sales$1,244.4    $1,209.1    $35.32.9%           Gross profit (GAAP)$670.1    $591.0    $79.113.4%Percent of net sales (GAAP)  53.8%   48.9%  490 bpsLess: Tariff refunds (44.9)    —      Adjusted gross profit (Non-GAAP)$625.2    $591.0    $34.25.8%Percent of net sales (Non-GAAP)  50.2%   48.9%  130 bps           Operating profit (GAAP)$227.0    $180.6    $46.425.7%Percent of net sales (GAAP)  18.2%   14.9%  330 bpsAdd-back: Amortization of acquired intangible assets 22.7     31.0      Add-back: Share-based payment expense 10.3     11.1      Add-back: Acquisition-related costs(1) —     2.6      Add-back: Special charges 17.8     —      Less: Tariff refunds (44.9)    —      Adjusted operating profit (Non-GAAP)$232.9    $225.3    $7.63.4%Percent of net sales (Non-GAAP)  18.7%   18.6%  10 bps           Net income (GAAP)$173.0    $114.0    $59.051.8%Add-back: Amortization of acquired intangible assets 22.7     31.0      Add-back: Share-based payment expense 10.3     11.1      Add-back: Acquisition-related costs(1) —     2.6      Add back: Pension settlement loss —     30.9      Add-back: Special charges 17.8     —      Less: Tariff refunds (44.9)    —      Total pre-tax adjustments to net income 5.9     75.6      Income tax effects (1.3)    (17.4)     Less: One-time tax benefit —     (8.2)     Adjusted net income (Non-GAAP)$177.6    $164.0    $13.68.3%           Diluted earnings per share (GAAP)(2)$5.63    $3.61    $2.0256.0%Adjusted diluted earnings per share (Non-GAAP)(2)$5.77    $5.20    $0.5711.0%           Net income (GAAP)$173.0    $114.0    $59.051.8%Percent of net sales (GAAP)  13.9%   9.4%  450 bpsInterest expense, net 4.1     7.0      Income tax expense 47.0     23.7      Depreciation 15.9     15.4      Amortization 22.7     31.0      EBITDA (Non-GAAP) 262.7     191.1     71.637.5%Percent of net sales (Non-GAAP)  21.1%   15.8%  530 bpsShare-based payment expense 10.3     11.1      Miscellaneous expense, net 2.9     35.9      Special charges 17.8     —      Acquisition-related costs(1) —     2.6      Tariff refunds (44.9)    —      Adjusted EBITDA (Non-GAAP)$248.8    $240.7    $8.13.4%Percent of net sales (Non-GAAP)  20.0%   19.9%  10 bps ______________________________
(1) Acquisition-related costs include professional fees.
(2) Earnings per share is calculated using unrounded numbers. Amounts in the table may not recalculate exactly due to rounding.

(In millions) Three Months Ended August 31,    Acuity Brands Lighting  2026   2025  Increase (Decrease) Percent ChangeNet sales $958.7  $962.4  $(3.7) (0.4)%         Gross profit (GAAP) $474.8  $439.8  $35.0  8.0%Less: Tariff refunds  (31.8)  —     Adjusted gross profit (Non-GAAP) $443.0  $439.8  $3.2  0.7%         Gross profit margin (GAAP)  49.5%  45.7%  380
 bpsAdjusted gross profit margin (Non-GAAP)  46.2%  45.7%  50
 bps         Operating profit (GAAP) $188.8  $183.0  $5.8  3.2%Add-back: Amortization of acquired intangible assets  6.1   6.2     Add-back: Share-based payment expense  2.0   4.4     Add back: Special charges  14.7   —     Less: Tariff refunds  (31.8)  —     Adjusted operating profit (Non-GAAP) $179.8  $193.6  $(13.8) (7.1)%         Operating profit margin (GAAP)  19.7%  19.0%  70
 bpsAdjusted operating profit margin (Non-GAAP)  18.8%  20.1%  (130) bps (In millions) Three Months Ended August 31,    Acuity Intelligent Spaces  2026   2025  Increase (Decrease) Percent ChangeNet sales $297.6  $255.2  $42.4 16.6%         Gross profit (GAAP) $195.3  $151.2  $44.1 29.2%Less: Tariff refunds  (13.1)  —     Adjusted gross profit (Non-GAAP) $182.2  $151.2  $31.0 20.5%         Gross profit margin (GAAP)  65.6%  59.2%  640 bpsAdjusted gross profit margin (Non-GAAP)  61.2%  59.2%  200 bps         Operating profit (GAAP) $64.7  $28.0  $36.7 131.1%Add-back: Amortization of acquired intangible assets  16.6   24.8     Add-back: Share-based payment expense  2.8   1.8     Add back: Special charges  3.1   —     Less: Tariff refunds  (13.1)  —     Adjusted operating profit (Non-GAAP) $74.1  $54.6  $19.5 35.7%         Operating profit margin (GAAP)  21.7%  11.0%  1,070 bpsAdjusted operating profit margin (Non-GAAP)  24.9%  21.4%  350 bps (In millions, except per share data)Year Ended August 31,       2026     2025    Increase (Decrease)Percent ChangeNet sales$4,641.8    $4,345.6    $296.26.8%           Gross profit (GAAP)$2,350.7    $2,078.5    $272.213.1%Percent of net sales (GAAP)  50.6%   47.8%  280 bpsAdd-back: Acquired profit in inventory —     29.6      Less: Tariff refunds (51.3)    —      Adjusted gross profit (Non-GAAP)$2,299.4    $2,108.1    $191.39.1%Percent of net sales (Non-GAAP)  49.5%   48.5%  100 bps           Operating profit (GAAP)$713.7    $563.9    $149.826.6%Percent of net sales (GAAP)  15.4%   13.0%  240 bpsAdd-back: Acquired profit in inventory —     29.6      Add-back: Amortization of acquired intangible assets 93.1     76.5      Add-back: Share-based payment expense 49.5     45.1      Add-back: Acquisition-related costs(1) —     23.8      Add-back: Special charges 23.7     29.7      Less: Tariff refunds (51.3)    —      Adjusted operating profit (Non-GAAP)$828.7    $768.6    $60.17.8%Percent of net sales (Non-GAAP)  17.9%   17.7%  20 bps           Net income (GAAP)$531.3    $396.6    $134.734.0%Add-back: Acquired profit in inventory —     29.6      Add-back: Amortization of acquired intangible assets 93.1     76.5      Add-back: Share-based payment expense 49.5     45.1      Add-back: Acquisition-related costs(1) —     23.8      Add-back: Special charges 23.7     29.7      Add back: Pension settlement loss —     30.9      Less: Tariff refunds (51.3)    —      Total pre-tax adjustments to net income 115.0     235.6      Income tax effect (26.4)    (54.2)     Less: One-time tax benefit —     (8.2)     Adjusted net income (Non-GAAP)$619.9    $569.8    $50.18.8%           Diluted earnings per share (GAAP)(2)$17.05    $12.53    $4.5236.1%Adjusted diluted earnings per share (Non-GAAP)(2)$19.90    $18.01    $1.8910.5%           Net income (GAAP)$531.3    $396.6    $134.734.0%Percent of net sales (GAAP)  11.4%   9.1%  230 bpsInterest expense, net 25.6     22.0      Income tax expense 149.4     103.6      Depreciation 63.3     56.6      Amortization 93.1     76.5      EBITDA (Non-GAAP) 862.7     655.3     207.431.6%Percent of net sales (Non-GAAP)  18.6%   15.1%  350 bpsShare-based payment expense 49.5     45.1      Miscellaneous expense, net 7.4     41.7      Special charges 23.7     29.7      Acquisition-related costs(1) —     23.8      Acquired profit in inventory —     29.6      Tariff refunds (51.3)    —      Adjusted EBITDA (Non-GAAP)$892.0    $825.2    $66.88.1%Percent of net sales (Non-GAAP)  19.2%   19.0%  20 bps ______________________________
(1) Acquisition-related costs include professional fees.
(2) Earnings per share is calculated using unrounded numbers. Amounts in the table may not recalculate exactly due to rounding.

(In millions) Year Ended August 31,    Acuity Brands Lighting  2026   2025  Increase (Decrease) Percent ChangeNet sales $3,576.4  $3,612.2  $(35.8) (1.0)%         Gross profit (GAAP) $1,672.6  $1,654.5  $18.1  1.1%Less: Tariff refunds  (38.2)  —     Adjusted gross profit (Non-GAAP) $1,634.4  $1,654.5  $(20.1) (1.2)%         Gross profit margin (GAAP)  46.8%  45.8%  100
 bpsAdjusted gross profit margin (Non-GAAP)  45.7%  45.8%  (10) bps         Operating profit (GAAP) $623.5  $590.6  $32.9  5.6%Add-back: Amortization of acquired intangible assets  25.3   25.2     Add-back: Share-based payment expense  14.8   16.8     Add-back: Special charges  20.6   29.7     Less: Tariff refunds  (38.2)  —     Adjusted operating profit (Non-GAAP) $646.0  $662.3  $(16.3) (2.5)%         Operating profit margin (GAAP)  17.4%  16.4%  100
 bpsAdjusted operating profit margin (Non-GAAP)  18.1%  18.3%  (20) bps (In millions) Year Ended August 31,    Acuity Intelligent Spaces  2026   2025  Increase (Decrease) Percent ChangeNet sales $1,106.6  $764.3  $342.3 44.8%         Gross profit (GAAP) $678.1  $424.0  $254.1 59.9%Add-back: Acquired profit in inventory  —   29.6     Less: Tariff refunds  (13.1)  —     Adjusted gross profit (Non-GAAP) $665.0  $453.6  $211.4 46.6%         Gross profit margin (GAAP)  61.3%  55.5%  580 bpsAdjusted gross profit margin (Non-GAAP)  60.1%  59.3%  80 bps         Operating profit margin (GAAP) $186.5  $76.1  $110.4 145.1%Add-back: Amortization of acquired intangible assets  67.8   51.3     Add-back: Share-based payment expense  10.7   7.3     Add-back: Acquired profit in inventory  —   29.6     Add back: Special charges  3.1   —     Less: Tariff refunds  (13.1)  —     Adjusted operating profit (Non-GAAP) $255.0  $164.3  $90.7 55.2%         Operating profit margin (GAAP)  16.9%  10.0%  690 bpsAdjusted operating profit margin (Non-GAAP)  23.0%  21.5%  150 bps (In millions)Year Ended August 31,     2026   2025  Increase (Decrease)Percent ChangeNet cash provided by operating activities (GAAP)$825.6  $601.4  $224.237.3%Less: Purchases of property, plant, and equipment (77.7)  (68.4)   Free cash flow (Non-GAAP)$747.9  $533.0  $214.940.3% Investor Contact:
Charlotte McLaughlin
Vice President, Investor Relations
(404) 853-1456
[email protected]

Media Contact:
April Appling
Senior Vice President, Corporate Marketing and Communications
[email protected]

 | Source: Acuity Inc.

ATLANTA, Sept. 29, 2026 (GLOBE NEWSWIRE) -- Acuity Inc. (NYSE: AYI) announces that its Board of Directors has elected Nick Tzitzon as an Independent Director, effective September 24, 2026.

In connection with the appointment, the Board approved an increase in its size from nine to ten directors. Tzitzon will serve on the Audit and Governance Committees, and his initial term will expire at the Company’s next annual meeting of stockholders.

Tzitzon currently serves as Vice Chairman of ServiceNow and leads the company's AI Institute, where he works with customers, partners and policymakers on the transformative potential of artificial intelligence. He brings extensive experience leading growth, strategy and digital transformation initiatives across the technology sector.

“Nick’s experience helping organizations harness software, data and AI to drive productivity and business outcomes aligns with how we are creating value for customers and shareholders,” said Neil Ashe, Chairman, President and Chief Executive Officer of Acuity. “We are pleased to welcome Nick to the Board and look forward to the perspective he will bring as we advance our strategy.”

“I am honored to join Acuity's Board of Directors,” said Tzitzon, “Under Neil's leadership, Acuity is positioned to lead the next wave of AI value creation. Industrial intelligence is a massive global growth opportunity. I'm enthusiastic about the company's bright future and look forward to supporting the team on that journey.”

About Acuity Inc.

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.

Investor Contact: 
Charlotte McLaughlin 
Vice President, Investor Relations 
(404) 853-1456 
[email protected]

Media Contact: 
April Appling 
Senior Vice President, Corporate Marketing and Communications 
[email protected]

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/2ef46fca-56ea-4e4b-950b-9652414dfb6a

Nick Tzitzon Acuity Inc. Appoints Nick Tzitzon to its Board of Directors

 | Source: Acuity Inc.

Atlanta, Sept. 24, 2026 (GLOBE NEWSWIRE) -- Acuity Inc. (NYSE: AYI) will pay a quarterly dividend of 20 cents per share. The dividend is payable on November 2, 2026, to shareholders of record on October 16, 2026.

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.

Investor Contact: 
Charlotte McLaughlin 
Vice President, Investor Relations 
(404) 853-1456 
[email protected] 

Media Contact:  
April Appling
Senior Vice President, Corporate Marketing and Communications
[email protected]  

Corient Private Wealth LP lifted its position in Acuity, Inc. (NYSE:AYI – Free Report) by 63.7% in the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 20,170 shares of the electronics maker’s stock after buying an additional 7,846 shares during the period. Corient Private Wealth LP owned about 0.07% of Acuity worth $7,597,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new stake in Acuity during the 2nd quarter worth approximately $1,121,983,000. Geode Capital Management LLC raised its holdings in shares of Acuity by 3.8% during the fourth quarter. Geode Capital Management LLC now owns 570,088 shares of the electronics maker’s stock worth $205,296,000 after acquiring an additional 20,859 shares during the period. Dimensional Fund Advisors LP raised its holdings in shares of Acuity by 8.2% during the first quarter. Dimensional Fund Advisors LP now owns 635,160 shares of the electronics maker’s stock worth $177,970,000 after acquiring an additional 47,880 shares during the period. Norges Bank bought a new stake in Acuity in the 4th quarter valued at $138,747,000. Finally, Bank of America Corp DE bought a new stake in Acuity in the 2nd quarter valued at $106,018,000. 98.21% of the stock is owned by institutional investors and hedge funds.

Acuity Price Performance Shares of NYSE AYI opened at $298.78 on Friday. The company has a debt-to-equity ratio of 0.24, a current ratio of 2.05 and a quick ratio of 1.47. The business has a 50-day moving average of $335.53 and a 200-day moving average of $309.28. The stock has a market capitalization of $8.95 billion, a price-to-earnings ratio of 19.81, a PEG ratio of 1.45 and a beta of 1.29. Acuity, Inc. has a fifty-two week low of $257.04 and a fifty-two week high of $380.17.

Acuity (NYSE:AYI – Get Free Report) last released its earnings results on Thursday, June 25th. The electronics maker reported $5.31 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.17 by $0.14. Acuity had a return on equity of 20.26% and a net margin of 10.25%.The business had revenue of $1.20 billion for the quarter, compared to analyst estimates of $1.18 billion. During the same quarter in the prior year, the company posted $5.12 earnings per share. Acuity’s revenue was up 1.6% on a year-over-year basis. As a group, sell-side analysts predict that Acuity, Inc. will post 18.49 earnings per share for the current fiscal year. Acuity Dividend Announcement The company also recently announced a quarterly dividend, which was paid on Monday, August 3rd. Investors of record on Friday, July 17th were issued a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date was Friday, July 17th. Acuity’s payout ratio is presently 5.31%.

Wall Street Analyst Weigh In Several research analysts have recently weighed in on AYI shares. Robert W. Baird upped their price objective on Acuity from $315.00 to $390.00 and gave the stock a “neutral” rating in a research report on Friday, June 26th. Weiss Ratings raised Acuity from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, June 26th. The Goldman Sachs Group boosted their target price on Acuity from $295.00 to $358.00 and gave the company a “neutral” rating in a research note on Friday, June 26th. Oppenheimer set a $465.00 price target on Acuity in a research report on Friday, June 26th. Finally, Wall Street Zen raised shares of Acuity from a “hold” rating to a “buy” rating in a research note on Sunday, August 30th. Five research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $397.17.

Check Out Our Latest Stock Analysis on AYI

Insider Transactions at Acuity In other Acuity news, CFO Karen Holcom sold 2,000 shares of the company’s stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $329.62, for a total transaction of $659,240.00. Following the sale, the chief financial officer directly owned 17,447 shares of the company’s stock, valued at approximately $5,750,880.14. This represents a 10.28% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 2.90% of the company’s stock.

Acuity Profile (Free Report)

Acuity, formerly known as Acuity Brands, Inc, is an industrial technology company that develops products and systems for lighting, building management and connected spaces. Its offerings are designed for commercial, institutional, industrial and residential applications, helping customers manage illumination, energy use, occupancy and other aspects of the built environment.

The company’s lighting portfolio includes indoor and outdoor fixtures, lighting controls, and related components.

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Acuity Brands offers a compelling bull case as Intelligent Spaces' growth and margin expansion offset lighting cyclicality. AYI's Intelligent Spaces segment grew 14.9% YoY with a 25.1% margin, driving higher profit per dollar than lighting. Valuation at 14x estimated future earnings provides 22% upside to $365, with a conservative 17x multiple justified by cyclicality and integration risks.

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A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Acuity (AYI - Free Report) Headquartered in Atlanta, GA, Acuity, Inc. is the parent company of Acuity Brands Lighting, Inc. and other subsidiaries. The company manufactures and distributes lighting fixtures and related components that comprise devices such as luminaries, lighting controls, and controllers for various building systems, power supplies, prismatic skylights, and drivers, as well as integrated systems designed to optimize energy efficiency and comfort for various indoor and outdoor applications.

AYI is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 15.32; value investors should take notice.

For fiscal 2026, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.19 to $19.82 per share. AYI boasts an average earnings surprise of +4.9%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, AYI should be on investors' short list.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Acuity (AYI - Free Report) Headquartered in Atlanta, GA, Acuity, Inc. is the parent company of Acuity Brands Lighting, Inc. and other subsidiaries. The company manufactures and distributes lighting fixtures and related components that comprise devices such as luminaries, lighting controls, and controllers for various building systems, power supplies, prismatic skylights, and drivers, as well as integrated systems designed to optimize energy efficiency and comfort for various indoor and outdoor applications.

AYI is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. AYI has a Growth Style Score of B, forecasting year-over-year earnings growth of 10.1% for the current fiscal year.

For fiscal 2026, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.20 to $19.82 per share. AYI boasts an average earnings surprise of +4.9%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, AYI should be on investors' short list.

Canada Pension Plan Investment Board bought a new stake in shares of Acuity, Inc. (NYSE:AYI – Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor bought 29,260 shares of the electronics maker’s stock, valued at approximately $11,021,000. Canada Pension Plan Investment Board owned 0.10% of Acuity as of its most recent filing with the Securities and Exchange Commission.

Several other large investors also recently modified their holdings of AYI. Thrivent Financial for Lutherans increased its stake in Acuity by 499.6% in the fourth quarter. Thrivent Financial for Lutherans now owns 164,275 shares of the electronics maker’s stock valued at $59,145,000 after acquiring an additional 136,879 shares during the last quarter. Intech Investment Management LLC lifted its stake in Acuity by 57.0% during the fourth quarter. Intech Investment Management LLC now owns 31,233 shares of the electronics maker’s stock worth $11,245,000 after purchasing an additional 11,341 shares during the last quarter. UBS Group AG boosted its holdings in shares of Acuity by 37.3% in the 4th quarter. UBS Group AG now owns 308,665 shares of the electronics maker’s stock valued at $111,132,000 after purchasing an additional 83,936 shares in the last quarter. Arbejdsmarkedets Tillaegspension acquired a new stake in shares of Acuity in the 4th quarter valued at $22,572,000. Finally, ABN AMRO Bank N.V. bought a new position in shares of Acuity in the 2nd quarter valued at $9,736,000. 98.21% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets A number of equities analysts have recently commented on the company. Wall Street Zen raised Acuity from a “hold” rating to a “buy” rating in a report on Sunday. Oppenheimer set a $465.00 price objective on Acuity in a research note on Friday, June 26th. TD Cowen reiterated a “buy” rating on shares of Acuity in a research report on Thursday, June 25th. Morgan Stanley boosted their target price on Acuity from $400.00 to $410.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 1st. Finally, Weiss Ratings raised shares of Acuity from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, June 26th. Five research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Acuity currently has an average rating of “Moderate Buy” and a consensus target price of $397.17.

Read Our Latest Research Report on AYI Acuity Stock Performance NYSE AYI opened at $335.44 on Friday. The firm’s fifty day moving average price is $342.80 and its two-hundred day moving average price is $308.53. The stock has a market cap of $10.04 billion, a PE ratio of 22.24, a PEG ratio of 1.81 and a beta of 1.29. The company has a debt-to-equity ratio of 0.24, a quick ratio of 1.47 and a current ratio of 2.05. Acuity, Inc. has a fifty-two week low of $257.04 and a fifty-two week high of $380.17.

Acuity (NYSE:AYI – Get Free Report) last released its quarterly earnings data on Thursday, June 25th. The electronics maker reported $5.31 earnings per share for the quarter, beating the consensus estimate of $5.17 by $0.14. Acuity had a return on equity of 20.26% and a net margin of 10.25%.The company had revenue of $1.20 billion for the quarter, compared to the consensus estimate of $1.18 billion. During the same quarter last year, the business posted $5.12 EPS. Acuity’s revenue for the quarter was up 1.6% on a year-over-year basis. On average, equities analysts expect that Acuity, Inc. will post 18.49 EPS for the current fiscal year.

Acuity Announces Dividend The company also recently declared a quarterly dividend, which was paid on Monday, August 3rd. Stockholders of record on Friday, July 17th were issued a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a dividend yield of 0.2%. The ex-dividend date was Friday, July 17th. Acuity’s payout ratio is 5.31%.

About Acuity (Free Report)

Acuity Brands, Inc (NYSE: AYI) is a leading provider of lighting fixtures, controls and building management solutions designed for commercial, institutional, industrial and residential markets. The company’s core offerings include a broad range of LED luminaires, lighting controls, sensors and networked building systems that enhance energy efficiency, occupant comfort and operational productivity. Acuity Brands’ portfolio spans indoor and outdoor lighting fixtures, emergency lighting, task lighting and architectural products, as well as advanced controls such as daylight harvesting, occupancy sensing and wireless sensor networks.

Beyond traditional lighting, Acuity Brands delivers integrated digital solutions through its Connected Building platform, which combines smart sensors, cloud-based analytics and mobile applications to enable real-time monitoring and remote management of lighting and environmental systems.

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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Acuity (AYI - Free Report) Headquartered in Atlanta, GA, Acuity, Inc. is the parent company of Acuity Brands Lighting, Inc. and other subsidiaries. The company manufactures and distributes lighting fixtures and related components that comprise devices such as luminaries, lighting controls, and controllers for various building systems, power supplies, prismatic skylights, and drivers, as well as integrated systems designed to optimize energy efficiency and comfort for various indoor and outdoor applications.

AYI is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Business Services stock. AYI has a Momentum Style Score of B, and shares are up 5.2% over the past four weeks.

For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.41 to $19.82 per share. AYI boasts an average earnings surprise of +4.9%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, AYI should be on investors' short list.

Investors looking for stocks in the Technology Services sector might want to consider either Acuity (AYI) or Trane Technologies (TT). But which of these two stocks presents investors with the better value opportunity right now?

For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Acuity (AYI - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Acuity is a member of the Business Services sector. This group includes 246 individual stocks and currently holds a Zacks Sector Rank of #8. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Acuity is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for AYI's full-year earnings has moved 2.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, AYI has moved about 0.1% on a year-to-date basis. Meanwhile, stocks in the Business Services group have lost about 8.7% on average. This shows that Acuity is outperforming its peers so far this year.

One other Business Services stock that has outperformed the sector so far this year is FirstCash Holdings (FCFS - Free Report) . The stock is up 35.7% year-to-date.

In FirstCash Holdings' case, the consensus EPS estimate for the current year increased 4.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Acuity belongs to the Technology Services industry, which includes 121 individual stocks and currently sits at #150 in the Zacks Industry Rank. This group has lost an average of 7% so far this year, so AYI is performing better in this area.

On the other hand, FirstCash Holdings belongs to the Financial Transaction Services industry. This 37-stock industry is currently ranked #96. The industry has moved -7.4% year to date.

Acuity and FirstCash Holdings could continue their solid performance, so investors interested in Business Services stocks should continue to pay close attention to these stocks.

Posted by Defense World Staff on Aug 12th, 2026

Assenagon Asset Management S.A. cut its position in Acuity, Inc. (NYSE:AYI – Free Report) by 78.9% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 15,109 shares of the electronics maker’s stock after selling 56,569 shares during the quarter. Assenagon Asset Management S.A. owned about 0.05% of Acuity worth $5,691,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently made changes to their positions in the company. Assetmark Inc. raised its stake in Acuity by 6.4% in the 4th quarter. Assetmark Inc. now owns 617 shares of the electronics maker’s stock valued at $222,000 after acquiring an additional 37 shares during the period. Brown Advisory Inc. increased its stake in shares of Acuity by 1.8% in the second quarter. Brown Advisory Inc. now owns 2,134 shares of the electronics maker’s stock worth $637,000 after purchasing an additional 37 shares in the last quarter. Quadrant Capital Group LLC increased its stake in shares of Acuity by 1.6% in the third quarter. Quadrant Capital Group LLC now owns 2,488 shares of the electronics maker’s stock worth $857,000 after purchasing an additional 38 shares in the last quarter. Northwestern Mutual Investment Management Company LLC lifted its stake in shares of Acuity by 0.6% during the 4th quarter. Northwestern Mutual Investment Management Company LLC now owns 6,805 shares of the electronics maker’s stock valued at $2,450,000 after buying an additional 41 shares in the last quarter. Finally, Parallel Advisors LLC boosted its holdings in Acuity by 1.8% in the 1st quarter. Parallel Advisors LLC now owns 2,338 shares of the electronics maker’s stock worth $655,000 after buying an additional 41 shares during the period. Hedge funds and other institutional investors own 98.21% of the company’s stock.

Acuity Trading Up 0.8% Shares of Acuity stock opened at $356.15 on Wednesday. Acuity, Inc. has a 1 year low of $257.04 and a 1 year high of $380.17. The company has a 50 day simple moving average of $331.24 and a two-hundred day simple moving average of $305.53. The firm has a market cap of $10.66 billion, a PE ratio of 23.62, a PEG ratio of 1.92 and a beta of 1.29. The company has a debt-to-equity ratio of 0.24, a current ratio of 2.05 and a quick ratio of 1.47.

Acuity (NYSE:AYI – Get Free Report) last issued its quarterly earnings results on Thursday, June 25th. The electronics maker reported $5.31 EPS for the quarter, beating analysts’ consensus estimates of $5.17 by $0.14. Acuity had a net margin of 10.25% and a return on equity of 20.26%. The business had revenue of $1.20 billion for the quarter, compared to analysts’ expectations of $1.18 billion. During the same period last year, the business earned $5.12 earnings per share. The business’s quarterly revenue was up 1.6% on a year-over-year basis. Analysts expect that Acuity, Inc. will post 18.44 earnings per share for the current fiscal year.

Acuity Announces Dividend The firm also recently disclosed a quarterly dividend, which was paid on Monday, August 3rd. Shareholders of record on Friday, July 17th were issued a $0.20 dividend. The ex-dividend date was Friday, July 17th. This represents a $0.80 annualized dividend and a yield of 0.2%. Acuity’s dividend payout ratio (DPR) is 5.31%.

Wall Street Analyst Weigh In AYI has been the subject of a number of recent research reports. Robert W. Baird lifted their price objective on shares of Acuity from $315.00 to $390.00 and gave the company a “neutral” rating in a research note on Friday, June 26th. TD Cowen reaffirmed a “buy” rating on shares of Acuity in a report on Thursday, June 25th. The Goldman Sachs Group lifted their price target on Acuity from $295.00 to $358.00 and gave the company a “neutral” rating in a research report on Friday, June 26th. Weiss Ratings upgraded Acuity from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, June 26th. Finally, Oppenheimer set a $465.00 price objective on Acuity in a report on Friday, June 26th. Five research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $397.17.

View Our Latest Stock Analysis on Acuity

Acuity Company Profile (Free Report)

Acuity Brands, Inc (NYSE: AYI) is a leading provider of lighting fixtures, controls and building management solutions designed for commercial, institutional, industrial and residential markets. The company’s core offerings include a broad range of LED luminaires, lighting controls, sensors and networked building systems that enhance energy efficiency, occupant comfort and operational productivity. Acuity Brands’ portfolio spans indoor and outdoor lighting fixtures, emergency lighting, task lighting and architectural products, as well as advanced controls such as daylight harvesting, occupancy sensing and wireless sensor networks.

Beyond traditional lighting, Acuity Brands delivers integrated digital solutions through its Connected Building platform, which combines smart sensors, cloud-based analytics and mobile applications to enable real-time monitoring and remote management of lighting and environmental systems.

Featured Articles Five stocks we like better than Acuity Atlassian Just Pulled Off the Software Comeback Wall Street Wanted AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be NVIDIA’s Rally Sets Up a Bigger Test Ahead of Earnings Apple’s Next iPhone Could Test How Much Pricing Power Is Left Want to see what other hedge funds are holding AYI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Acuity, Inc. (NYSE:AYI – Free Report).

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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Acuity (AYI - Free Report) Headquartered in Atlanta, GA, Acuity, Inc. is the parent company of Acuity Brands Lighting, Inc. and other subsidiaries. The company manufactures and distributes lighting fixtures and related components that comprise devices such as luminaries, lighting controls, and controllers for various building systems, power supplies, prismatic skylights, and drivers, as well as integrated systems designed to optimize energy efficiency and comfort for various indoor and outdoor applications.

AYI is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. AYI has a Growth Style Score of B, forecasting year-over-year earnings growth of 9.8% for the current fiscal year.

Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.33 to $19.77 per share. AYI also boasts an average earnings surprise of +4.9%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, AYI should be on investors' short list.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Acuity (AYI - Free Report) Headquartered in Atlanta, GA, Acuity, Inc. is the parent company of Acuity Brands Lighting, Inc. and other subsidiaries. The company manufactures and distributes lighting fixtures and related components that comprise devices such as luminaries, lighting controls, and controllers for various building systems, power supplies, prismatic skylights, and drivers, as well as integrated systems designed to optimize energy efficiency and comfort for various indoor and outdoor applications.

AYI is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 17.09; value investors should take notice.

Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.33 to $19.77 per share. AYI boasts an average earnings surprise of +4.9%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, AYI should be on investors' short list.

Posted by Defense World Staff on Jul 23rd, 2026

California Public Employees Retirement System boosted its holdings in shares of Acuity, Inc. (NYSE:AYI – Free Report) by 3.4% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 71,436 shares of the electronics maker’s stock after buying an additional 2,368 shares during the quarter. California Public Employees Retirement System owned approximately 0.24% of Acuity worth $20,018,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently bought and sold shares of AYI. Orion Porfolio Solutions LLC increased its holdings in shares of Acuity by 50,220.2% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 2,268,433 shares of the electronics maker’s stock worth $676,764,000 after acquiring an additional 2,263,925 shares during the last quarter. M&T Bank Corp lifted its holdings in Acuity by 6,496.7% during the 4th quarter. M&T Bank Corp now owns 692,189 shares of the electronics maker’s stock valued at $249,216,000 after purchasing an additional 681,696 shares during the last quarter. Norges Bank acquired a new stake in Acuity during the 4th quarter valued at $138,747,000. Palestra Capital Management LLC bought a new position in Acuity during the third quarter worth $91,539,000. Finally, Adage Capital Partners GP L.L.C. acquired a new position in shares of Acuity in the fourth quarter valued at $78,249,000. Institutional investors own 98.21% of the company’s stock.

Wall Street Analysts Forecast Growth AYI has been the subject of a number of research reports. Weiss Ratings upgraded shares of Acuity from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, June 26th. Oppenheimer set a $465.00 price target on shares of Acuity in a report on Friday, June 26th. The Goldman Sachs Group raised their price objective on shares of Acuity from $295.00 to $358.00 and gave the stock a “neutral” rating in a research report on Friday, June 26th. TD Cowen restated a “buy” rating on shares of Acuity in a report on Thursday, June 25th. Finally, Morgan Stanley upped their target price on Acuity from $400.00 to $410.00 and gave the company an “overweight” rating in a research report on Wednesday, July 1st. Five equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $397.17.

Get Our Latest Report on AYI

Acuity Stock Performance Shares of NYSE:AYI opened at $331.82 on Thursday. Acuity, Inc. has a 12-month low of $257.04 and a 12-month high of $380.17. The company’s 50 day moving average price is $316.73 and its two-hundred day moving average price is $304.70. The firm has a market cap of $9.93 billion, a PE ratio of 22.00, a PEG ratio of 1.77 and a beta of 1.27. The company has a quick ratio of 1.47, a current ratio of 2.05 and a debt-to-equity ratio of 0.24.

Acuity (NYSE:AYI – Get Free Report) last issued its quarterly earnings results on Thursday, June 25th. The electronics maker reported $5.31 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.17 by $0.14. The business had revenue of $1.20 billion during the quarter, compared to analysts’ expectations of $1.18 billion. Acuity had a return on equity of 20.26% and a net margin of 10.25%.The firm’s revenue for the quarter was up 1.6% compared to the same quarter last year. During the same period in the previous year, the company posted $5.12 earnings per share. Equities research analysts predict that Acuity, Inc. will post 18.44 earnings per share for the current year.

Acuity Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Monday, August 3rd. Investors of record on Friday, July 17th will be given a dividend of $0.20 per share. The ex-dividend date of this dividend is Friday, July 17th. This represents a $0.80 annualized dividend and a yield of 0.2%. Acuity’s dividend payout ratio is currently 5.31%.

Insider Activity at Acuity In other news, Director Maya Leibman bought 200 shares of the company’s stock in a transaction dated Thursday, April 30th. The stock was bought at an average cost of $288.83 per share, for a total transaction of $57,766.00. Following the transaction, the director owned 400 shares of the company’s stock, valued at $115,532. This represents a 100.00% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 2.90% of the company’s stock.

Acuity News Summary Here are the key news stories impacting Acuity this week:

Positive Sentiment: Zacks Research lifted Acuity’s FY2027 EPS estimate to $20.26 from $20.07 and FY2028 EPS to $21.96 from $21.77, suggesting stronger longer-term earnings power. Positive Sentiment: The firm also raised its Q3 2027 estimate to $5.53 from $5.32 and Q4 2027 estimate to $5.60 from $5.57, indicating continued confidence in near-term performance. Positive Sentiment: Several revised estimates remain above the current full-year consensus of $18.44 EPS, reinforcing the view that Acuity may outperform expectations. Neutral Sentiment: Zacks also trimmed a few quarterly estimates, including Q4 2026 to $5.14 from $5.23, Q2 2027 to $4.31 from $4.40, and Q1 2028 to $5.09 from $5.11, which slightly tempers the overall bullish tone. Acuity Company Profile (Free Report)

Acuity Brands, Inc (NYSE: AYI) is a leading provider of lighting fixtures, controls and building management solutions designed for commercial, institutional, industrial and residential markets. The company’s core offerings include a broad range of LED luminaires, lighting controls, sensors and networked building systems that enhance energy efficiency, occupant comfort and operational productivity. Acuity Brands’ portfolio spans indoor and outdoor lighting fixtures, emergency lighting, task lighting and architectural products, as well as advanced controls such as daylight harvesting, occupancy sensing and wireless sensor networks.

Beyond traditional lighting, Acuity Brands delivers integrated digital solutions through its Connected Building platform, which combines smart sensors, cloud-based analytics and mobile applications to enable real-time monitoring and remote management of lighting and environmental systems.

Further Reading Five stocks we like better than Acuity Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play

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Posted by Defense World Staff on Jul 19th, 2026

Copeland Capital Management LLC bought a new stake in shares of Acuity, Inc. (NYSE:AYI – Free Report) in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor bought 31,768 shares of the electronics maker’s stock, valued at approximately $8,902,000. Copeland Capital Management LLC owned about 0.10% of Acuity as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors and hedge funds have also recently modified their holdings of the business. AEGON ASSET MANAGEMENT UK Plc bought a new stake in shares of Acuity in the 4th quarter worth about $2,019,000. Thrivent Financial for Lutherans lifted its holdings in shares of Acuity by 499.6% in the 4th quarter. Thrivent Financial for Lutherans now owns 164,275 shares of the electronics maker’s stock valued at $59,145,000 after acquiring an additional 136,879 shares during the last quarter. Hudson Bay Capital Management LP bought a new position in shares of Acuity in the 3rd quarter valued at about $6,762,000. UBS Group AG grew its position in Acuity by 37.3% in the fourth quarter. UBS Group AG now owns 308,665 shares of the electronics maker’s stock worth $111,132,000 after acquiring an additional 83,936 shares in the last quarter. Finally, Wealth Enhancement Advisory Services LLC grew its position in Acuity by 120.2% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 13,820 shares of the electronics maker’s stock worth $5,177,000 after acquiring an additional 7,543 shares in the last quarter. 98.21% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Acuity In other Acuity news, Director Maya Leibman acquired 200 shares of the company’s stock in a transaction that occurred on Thursday, April 30th. The stock was bought at an average price of $288.83 per share, for a total transaction of $57,766.00. Following the acquisition, the director directly owned 400 shares in the company, valued at $115,532. The trade was a 100.00% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 2.90% of the stock is currently owned by insiders.

Analysts Set New Price Targets A number of equities research analysts have issued reports on AYI shares. Robert W. Baird upped their price objective on Acuity from $315.00 to $390.00 and gave the company a “neutral” rating in a research report on Friday, June 26th. Wall Street Zen upgraded Acuity from a “hold” rating to a “buy” rating in a report on Sunday, June 21st. TD Cowen reissued a “buy” rating on shares of Acuity in a research report on Thursday, June 25th. The Goldman Sachs Group increased their price target on Acuity from $295.00 to $358.00 and gave the company a “neutral” rating in a report on Friday, June 26th. Finally, Oppenheimer set a $465.00 price target on Acuity in a research report on Friday, June 26th. Five investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $397.17.

Read Our Latest Research Report on Acuity

Acuity Stock Performance Acuity stock opened at $333.45 on Friday. The company has a debt-to-equity ratio of 0.24, a current ratio of 2.05 and a quick ratio of 1.47. The firm has a market capitalization of $9.98 billion, a P/E ratio of 22.11, a price-to-earnings-growth ratio of 1.83 and a beta of 1.27. Acuity, Inc. has a 1-year low of $257.04 and a 1-year high of $380.17. The company’s 50-day moving average is $314.25 and its 200 day moving average is $305.85.

Acuity (NYSE:AYI – Get Free Report) last announced its earnings results on Thursday, June 25th. The electronics maker reported $5.31 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.17 by $0.14. The business had revenue of $1.20 billion during the quarter, compared to analyst estimates of $1.18 billion. Acuity had a return on equity of 20.26% and a net margin of 10.25%.The company’s revenue for the quarter was up 1.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $5.12 earnings per share. Research analysts forecast that Acuity, Inc. will post 18.28 EPS for the current year.

Acuity Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Monday, August 3rd. Investors of record on Friday, July 17th will be paid a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.2%. The ex-dividend date of this dividend is Friday, July 17th. Acuity’s dividend payout ratio (DPR) is currently 5.31%.

About Acuity (Free Report)

Acuity Brands, Inc (NYSE: AYI) is a leading provider of lighting fixtures, controls and building management solutions designed for commercial, institutional, industrial and residential markets. The company’s core offerings include a broad range of LED luminaires, lighting controls, sensors and networked building systems that enhance energy efficiency, occupant comfort and operational productivity. Acuity Brands’ portfolio spans indoor and outdoor lighting fixtures, emergency lighting, task lighting and architectural products, as well as advanced controls such as daylight harvesting, occupancy sensing and wireless sensor networks.

Beyond traditional lighting, Acuity Brands delivers integrated digital solutions through its Connected Building platform, which combines smart sensors, cloud-based analytics and mobile applications to enable real-time monitoring and remote management of lighting and environmental systems.

Further Reading Five stocks we like better than Acuity Netflix May Be Cheap Enough to Tempt Buyers After Earnings Drop Delta vs. United: Which Airline Is Better Built for Higher Fuel Costs? The Market Sold Alcoa After Earnings—But It May Be Missing the Real Story Why Intuitive Surgical’s Strong Quarter Still Spooked Investors Want to see what other hedge funds are holding AYI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Acuity, Inc. (NYSE:AYI – Free Report).

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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Acuity (AYI - Free Report) Headquartered in Atlanta, GA, Acuity, Inc. is the parent company of Acuity Brands Lighting, Inc. and other subsidiaries. The company manufactures and distributes lighting fixtures and related components that comprise devices such as luminaries, lighting controls, and controllers for various building systems, power supplies, prismatic skylights, and drivers, as well as integrated systems designed to optimize energy efficiency and comfort for various indoor and outdoor applications.

AYI is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 16.97; value investors should take notice.

For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.19 to $19.63 per share. AYI boasts an average earnings surprise of +4.9%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, AYI should be on investors' short list.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Acuity (AYI - Free Report) Headquartered in Atlanta, GA, Acuity, Inc. is the parent company of Acuity Brands Lighting, Inc. and other subsidiaries. The company manufactures and distributes lighting fixtures and related components that comprise devices such as luminaries, lighting controls, and controllers for various building systems, power supplies, prismatic skylights, and drivers, as well as integrated systems designed to optimize energy efficiency and comfort for various indoor and outdoor applications.

AYI is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. AYI has a Growth Style Score of B, forecasting year-over-year earnings growth of 8.1% for the current fiscal year.

One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.02 to $19.46 per share. AYI boasts an average earnings surprise of +4.9%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, AYI should be on investors' short list.

AYI's Q3 beat, cash flow and AIS growth support the bull case, but valuation and lighting weakness keep the stock looking more like a hold.

Key Takeaways AYI said lighting demand is firming after winter softness, with project flow normalizing into Q4.AIS sales rose 14.9% to $303.5 million, driven by Distech, QSC and open-architecture wins.Acuity cited AIS product launches, data center momentum and organic growth in controllers. Acuity Inc. (AYI - Free Report) 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.

AYI Sees a Better Setup in LightingChairman, 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.

Acuity Leans Harder on AIS GrowthIf 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.

AYI Protects Margins While InvestingThe 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%.

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.

Acuity Keeps Capital Deployment FlexibleHolcom 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.

AYI Uses Q&A to Expand the Data Center StoryAnalyst 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.

Acuity Leaves the Call With a Clearer ToneThe 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.

Zacks Signals Still Call for SelectivityAYI 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.

Acuity Inc. surged 17.5% post-Q3 2026 earnings, driven by a double beat and robust Intelligent Spaces segment performance. AYI's Intelligent Spaces revenue jumped nearly 15%, with gross margins exceeding 60% and operating margin up over 800 basis points to 18.6%. Management guided FY2026 revenue to $4.8 billion and non-GAAP EPS to $19.75, both above consensus, signaling continued momentum.

Acuity Inc. (AYI) Q3 2026 Earnings Call Transcript

Acuity (AYI - Free Report) 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%.

What's Next for Acuity?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 - Free Report) , 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.