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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.

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.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

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 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 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 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.

#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.

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.

Momentum investors should take note of this Business Services stock. AYI has a Momentum Style Score of A, and shares are up 1.6% over the past four weeks.

Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.34 to $19.78 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.

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 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, 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 ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight 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 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 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, 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.

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 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.

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.

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% for the current fiscal year.

Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.19 to $19.63 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.

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.

Featuring 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, the research service can help you become a smarter, more self-assured investor.

Zacks Premium also includes the Zacks Style Scores.

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 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 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 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 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.

#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.

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.

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.

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 A.

Momentum investors should take note of this Business Services stock. AYI has a Momentum Style Score of A, and shares are up 16.6% over the past four weeks.

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 Momentum and VGM Style Scores, AYI should be on investors' short list.

Key Takeaways AYI is shifting beyond lighting into intelligent buildings, software-enabled controls and AV platforms.AIS sales rose 14.9% in the fiscal third quarter, with adjusted operating profit up 22.5%.Lighting sales fell 1.9%, pressured by direct sales, project timing and macro uncertainty. Acuity Inc. (AYI - Free Report) is no longer just a lighting story. The company is increasingly defined by its move into intelligent buildings, software-enabled controls and audio-visual platforms.

That shift is helping support growth and margins, even as its core lighting business remains uneven. For investors, the key question is whether Acuity Intelligent Spaces can keep offsetting softness in Acuity Brands Lighting.

How Acuity Is Changing Its BusinessAcuity operates through two main segments, Acuity Brands Lighting and Acuity Intelligent Spaces. The lighting unit still anchors the business with luminaires, controls and related products for construction, renovation, retrofit and maintenance applications.

Acuity Intelligent Spaces gives the company more exposure to building automation, controls, software, data analytics and audio-visual solutions. This mix matters because AIS carries higher-growth technology characteristics and has been supporting stronger margin quality.

AYI Innovation Keeps the Growth Story AliveInnovation remains central to Acuity’s transition. The company’s portfolio now spans lighting, lighting controls, building management and audio-visual platforms, supported by Atrius, Distech Controls and QSC.

Recent lighting launches include Beyond by Lithonia, aimed at large-scale industrial applications, and CPX3P, designed to reduce SKU complexity and simplify installation. The broader strategy links product design with edge-to-cloud connectivity, data-driven automation and customer use cases across industrial sites, campuses and data centers.

Johnson Controls International plc (JCI - Free Report) is also relevant to this discussion because it competes in smart building systems, automation and connected infrastructure. Honeywell International Inc. (HON - Free Report) offers another comparison point through its building automation portfolio, where software, controls and efficiency solutions are central to customer demand.

Acuity Finds Strength Beyond Core LightingAIS has become Acuity’s clearest growth engine. In the fiscal third quarter, AIS net sales rose 14.9% year over year to $303.5 million, while adjusted operating profit increased 22.5% to $76.3 million.

The segment’s adjusted operating margin expanded 150 basis points to 25.1%. Growth in Distech and QSC, along with demand from universities, professional sports venues, data centers and enterprise campuses, is helping offset weaker trends in lighting.

Why AYI Still Faces a Split OutlookThe bullish case is not evenly spread across Acuity’s portfolio. Acuity Brands Lighting generated fiscal third-quarter net sales of $905.2 million, down 1.9% year over year, while adjusted operating profit fell 5.3% to $164.6 million.

Direct sales remain a pressure point, and the segment is exposed to project timing, macro uncertainty and construction-related demand. Tariff uncertainty, materials inflation, higher selling, distribution and administrative expenses, and memory supply costs may also pressure visibility and profitability.

What AYI Signals Mean for InvestorsThe bottom line is balanced. Acuity’s technology shift is gaining traction, with AIS growth, QSC contributions, Distech demand and cash generation supporting the long-term case. Yet lighting softness keeps the near-term setup from looking fully clean.

The stock currently carries a Zacks Rank #3 (Hold). It also has a Value Score of B, Growth Score of B, Momentum Score of F and VGM Score of B. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Those scores point to respectable value and growth characteristics, while the weak Momentum Score reflects limited near-term price strength. For now, AYI looks like a fundamentally supported transition story, but investors may want clearer evidence that AIS strength can consistently outweigh lighting softness.

Key Takeaways AYI is expanding beyond lighting into automation, analytics and cloud-manageable AV controls.AIS net sales rose 58.9% in the first nine months, while operating profit more than doubled.Lighting still weighs on AYI, with third-quarter ABL sales down 1.9% and direct sales down 27.7%. Acuity Inc. (AYI - Free Report) shows how an established lighting company can become a broader industrial technology story. Demand is increasingly tied to intelligent buildings, connected controls and data-enabled environments.

The shift is meaningful, but not complete. Acuity Intelligent Spaces is gaining momentum, while the traditional lighting business still faces uneven demand and cyclical construction exposure.

How Acuity Taps the Smart Building ShiftAcuity is positioning itself around building intelligence through Atrius, Distech Controls and QSC. The portfolio now reaches beyond hardware into automation, analytics, open building management systems and cloud-manageable audio, video and control technologies.

Atrius supports data-driven building performance and spatial intelligence. Distech provides controls, sensors and software for building management, while QSC expands the company into audio-visual and control platforms.

Johnson Controls International plc (JCI - Free Report) is relevant to this trend because it is tied to building automation and smart infrastructure. Honeywell International Inc. (HON - Free Report) also provides context, as its building technologies business overlaps with the connected controls and efficiency themes shaping demand.

AYI Gains From Data Center DemandAcuity’s intelligent spaces portfolio is gaining relevance in verticals where uptime, resilience and automation matter. Management cited growth across universities, professional sports venues, data centers and enterprise campuses.

Distech’s Eclipse Resilience programmable logic controller expands Acuity’s capabilities in mission-critical cooling applications, mainly for data centers. That broadens AIS exposure to customers that need reliable, automated control systems rather than basic building equipment.

This is an important distinction for investors. Data centers and enterprise campuses require integrated systems that can manage environmental conditions, connect devices and support real-time operational decisions.

Acuity Sees Margin Benefits From Better MixThe smart building trend is not just helping Acuity’s sales mix. It is also supporting profitability. In the first nine months of fiscal 2026, AIS net sales rose 58.9% year over year to $809 million, while operating profit increased to $121.8 million from $48.1 million.

The fiscal third quarter showed the same direction. AIS net sales rose 14.9% to $303.5 million, adjusted operating profit increased 22.5% to $76.3 million and adjusted operating margin expanded 150 basis points to 25.1%.

A higher mix of AIS sales also supported the company’s broader margin profile. Adjusted gross margin improved 10 basis points year over year to 50.1% in the fiscal third quarter, helped mainly by the stronger contribution from intelligent spaces.

Why AYI Still Needs Lighting to StabilizeAcuity’s legacy lighting business remains large and important. Acuity Brands Lighting generated fiscal third-quarter net sales of $905.2 million, far above AIS sales, but the segment declined 1.9% year over year.

Channel details show why the recovery still matters. Direct sales network revenues fell 27.7% in the quarter, retail sales declined 2.4% and original equipment manufacturer and other sales dropped 8.2%.

The first nine months showed similar pressure. ABL net sales declined 1.2% year over year to $2.62 billion, while direct sales network revenues fell 23.4%. That keeps Acuity partly tied to project timing, macro uncertainty and construction-related demand.

What AYI Ratings Say About This TrendThe bottom line is that Acuity has credible exposure to smart building demand, but investors still need proof that AIS can consistently outweigh lighting softness. The company’s technology mix is improving, yet the transition has not fully insulated results from traditional market pressures.

AYI currently carries a Zacks Rank #3 (Hold). The stock also has a Value Score of B, Growth Score of B, Momentum Score of F and VGM Score of B. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Value and Growth scores support the idea that Acuity has useful fundamental traits and participation in an attractive long-term trend. The Momentum Score of F suggests the near-term setup is less convincing, with investors still waiting for stronger evidence that intelligent spaces growth can sustainably overpower weakness in legacy lighting.

Acuity remains a 'Buy' as Q3 2026 results support the view that recent lighting weakness is timing-related, not structural. The AIS segment continues robust growth, with a 14.9% y/y revenue increase and 25.1% adj. operating margin, driving AYI's valuation case. Management commentary suggests ABL demand is stabilizing, but future quarters must confirm positive revenue and profit trends.

Rising to a level it hasn't reached in months, Acuity Brands (AYI +17.64%) stock is rocketing higher today after the company reported strong third-quarter 2026 financial results this morning. At the opening of today's market session, shares of the industrial lighting company were priced at $349.89, a level it hasn't seen since mid-January.

As of 2:40 p.m. ET, shares of Acuity are up 19.8%.

Image source: Getty Images.

Beating analysts' estimates is just part of the story Reporting Q3 2026 sales of $1.2 billion, a 2% year-over-year increase, Acuity surpassed the consensus among analysts that the company would report revenue of $1.18 billion.

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At the bottom of the income statement, the company also provided better results than what Wall Street expected. Whereas analysts had anticipated the company posting adjusted earnings per share (EPS) of $5.19, it reported $5.31, a 4% increase over the same period last year.

It wasn't only the income statement that gave investors something to celebrate.

Acuity reported Q3 2026 free cash flow of $462 million, a more than 30% increase over the $355 milion that it reported in Q3 2025.

Is Acuity stock a buy on today's news? For those seeking a conservative industrials stock, Acuity is worth strong consideration right now. The company is reporting strong free cash flow, which it's using to boost its financial health. Since the start of its fiscal year, Acuity has generated $520 million in operating cash flow and allocated $200 million to reducing debt. Trading at 22.4 times trailing earnings -- a discount to the S&P 500 P/E of 31.6 -- Acuity stock appears to be a bargain right now.

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Acuity (AYI - Free Report) reported $1.2 billion in revenue for the quarter ended May 2026, representing a year-over-year increase of 1.7%. EPS of $5.31 for the same period compares to $5.12 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $1.19 billion, representing a surprise of +1.07%. The company delivered an EPS surprise of +2.07%, with the consensus EPS estimate being $5.20.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Acuity performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net Sales by Channel- Acuity Intelligent Spaces: $303.5 million versus the four-analyst average estimate of $289.17 million. The reported number represents a year-over-year change of +14.9%.Net Sales by Channel- Acuity Brands Lighting (ABL)- Total: $905.2 million compared to the $905.34 million average estimate based on four analysts. The reported number represents a change of -2% year over year.Net Sales by Channel- Eliminations: $-10.7 million compared to the $-9.33 million average estimate based on three analysts. The reported number represents a change of +23% year over year.Adjusted operating profit- Acuity Intelligent Spaces: $76.3 million compared to the $68.32 million average estimate based on three analysts.Adjusted operating profit- Acuity Brands Lighting: $164.6 million compared to the $177.01 million average estimate based on three analysts.View all Key Company Metrics for Acuity here>>>

Shares of Acuity have returned +3% over the past month versus the Zacks S&P 500 composite's -1.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Solid Execution Delivers Sales Growth, EPS Improvement and Strong Cash Flow

Delivered Net Sales of $1.2B, an Increase of 2% Compared to the Prior YearDelivered Operating Profit of $193M, Up 38% Compared to the Prior Year; Grew Adjusted Operating Profit to $224M, Up 1% Compared to the Prior YearDelivered Diluted EPS of $4.56, Up 46% Compared to the Prior Year; Grew Adjusted Diluted EPS to $5.31, Up 4% Compared to the Prior Year ATLANTA, June 25, 2026 (GLOBE NEWSWIRE) -- Acuity Inc. (NYSE: AYI), ("Acuity"), a market-leading industrial technology company, delivered net sales of $1.2 billion in the third quarter, ended May 31, 2026, an increase of $19.4 million, or 1.6 percent, compared to the prior year.

"We demonstrated solid execution in our third quarter of fiscal 2026," stated Neil Ashe, Chairman, President and Chief Executive Officer of Acuity Inc. "We grew net sales, we expanded our adjusted operating profit and we increased our adjusted diluted earnings per share. We generated strong cash flow and allocated capital effectively."

During the third quarter of fiscal 2026, we received $6.4 million in tariff refunds in Acuity Brands Lighting, which are reflected as a non-GAAP adjustment in our results.

Operating profit was $193.3 million in the third quarter of fiscal 2026, an increase of $53.5 million, or 38.3 percent, compared to the prior year. Operating profit as a percent of net sales was 16.1 percent in the third quarter of fiscal 2026, an increase of 420 basis points compared to the prior year. Adjusted operating profit was $223.5 million in the third quarter of fiscal 2026, an increase of $1.8 million, or 0.8 percent, compared to the prior year. Adjusted operating profit as a percent of net sales was 18.7 percent in the third quarter of fiscal 2026, a decrease of 10 basis points compared to the prior year.

Diluted earnings per share was $4.56 in the third quarter of fiscal 2026, an increase of $1.44, or 46.2 percent, compared to the prior year. Adjusted diluted earnings per share was $5.31 in the third quarter of fiscal 2026, an increase of $0.19, or 3.7 percent.

Segment Performance

Acuity Brands Lighting ("ABL")

ABL generated net sales of $905.2 million in the third quarter of fiscal 2026, a decrease of $18.0 million, or 1.9 percent, compared to the prior year.

Operating profit was $160.6 million in the third quarter of fiscal 2026, an increase of $26.6 million, or 19.9 percent, compared to the prior year. Operating profit as a percent of ABL net sales was 17.7 percent in the third quarter of fiscal 2026, an increase of 320 basis points compared to the prior year. Adjusted operating profit was $164.6 million in the third quarter of fiscal 2026, a decrease of $9.3 million, or 5.3 percent, compared to the prior year. Adjusted operating profit as a percent of ABL net sales was 18.2 percent in the third quarter of fiscal 2026, a decrease of 60 basis points compared to the prior year.

Acuity Intelligent Spaces ("AIS")

AIS generated net sales of $303.5 million in the third quarter of fiscal 2026, an increase of $39.4 million, or 14.9 percent, compared to the prior year.

Operating profit was $56.5 million in the third quarter of fiscal 2026, an increase of $29.1 million, or 106.2 percent, compared to the prior year. Operating profit as a percent of AIS net sales was 18.6 percent in the third quarter of fiscal 2026, an increase of 820 basis points compared to the prior year. Adjusted operating profit was $76.3 million in the third quarter of fiscal 2026, an increase of $14.0 million, or 22.5 percent, compared to the prior year. Adjusted operating profit as a percent of AIS net sales was 25.1 percent in the third quarter of fiscal 2026, an increase of 150 basis points compared to the prior year.

Cash Flow and Capital Allocation

Net cash from operating activities was $520.2 million for the first nine months of fiscal 2026. Year to date, we repurchased approximately 766,000 shares of common stock for a total of $230 million.

Call Details

We will host a conference call at 8:00 a.m. ET today, Thursday, June 25, 2026. Neil Ashe, Chief Executive Officer of Acuity Inc. will lead the call. The conference call and earnings release can be accessed via our Investor Relations section of our website at www.investors.acuityinc.com. A replay of the call will also be posted to the Investor Relations website within two hours of the completion of the conference call and will be available on the website for a limited time.

About Acuity

Acuity Inc. (NYSE: AYI) is a market-leading industrial technology company. We use technology to solve problems in spaces, light and more things to come. Through our two business segments, Acuity Brands Lighting (ABL) and Acuity Intelligent Spaces (AIS), we design, manufacture, and bring to market products and services that make a valuable difference in people’s lives.

We achieve growth through the development of innovative new products and services, including lighting, lighting controls, building management solutions, and an audio, video and control platform. We focus on customer outcomes and drive growth and productivity to increase market share and deliver superior returns. We look to aggressively deploy capital to grow the business and to enter attractive new verticals.

Acuity Inc. is based in Atlanta, Georgia, with operations across North America, Europe and Asia. The Company is powered by approximately 13,000 dedicated and talented associates. Visit us at www.acuityinc.com. 

Non-GAAP Financial Measures

This news release includes the following non-generally accepted accounting principles (“GAAP”) financial measures: "adjusted gross profit", "adjusted gross profit margin", “adjusted operating profit” and “adjusted operating profit margin” for total company and by segment; for total company only we additionally include: “adjusted net income;” “adjusted diluted EPS;” “earnings before interest, taxes, depreciation and amortization (“EBITDA”);" "EBITDA margin;" “adjusted EBITDA;” and "adjusted EBITDA margin". These non-GAAP financial measures are provided to enhance the reader's overall understanding of our current financial performance and prospects for the future. Specifically, management believes that these non-GAAP measures provide useful information to investors by excluding or adjusting items for amortization of acquired intangible assets, share-based payment expense, acquired profit in inventory, acquisition-related items, and special charges.

We also provide “free cash flow” (“FCF”) to enhance the reader’s understanding of our ability to generate additional cash from its business.

Management typically adjusts for these items for internal reviews of performance and uses the above non-GAAP measures for baseline comparative operational analysis, decision making and other activities. Management believes these non-GAAP measures provide greater comparability and enhanced visibility into our results of operations as well as comparability with many of its peers, especially those companies focused more on technology and software. Non-GAAP financial measures included in this news release should be considered in addition to, and not as a substitute for or superior to, results prepared in accordance with GAAP.

The most directly comparable GAAP measures for adjusted gross profit and adjusted gross profit margin for total company are “gross profit” and “gross profit margin,” respectively, which include the impact of acquired profit in inventory and tariff refunds. Adjusted gross profit margin is adjusted gross profit divided by net sales for total company and by segment. The most directly comparable GAAP measures for adjusted operating profit and adjusted operating profit margin for total company and by segment are “operating profit” and “operating profit margin,” respectively, which include the impact of amortization of acquired intangible assets, share-based payment expense, acquired profit in inventory, acquisition-related costs, special charges, and tariff refunds. Adjusted operating profit margin is adjusted operating profit divided by net sales for total company and by segment. The most directly comparable GAAP measures for adjusted net income and adjusted diluted EPS are “net income” and “diluted EPS,” respectively, which include the impact of amortization of acquired intangible assets, share-based payment expense, acquired profit in inventory, acquisition-related costs, special charges, and tariff refunds. Adjusted diluted EPS is adjusted net income divided by diluted weighted average shares outstanding. The most directly comparable GAAP measure for EBITDA is “net income”, which includes the impact of net interest expense, income taxes, depreciation and amortization of acquired intangible assets. EBITDA margin is EBITDA divided by net sales for total company. The most directly comparable GAAP measure for adjusted EBITDA is “net income”, which includes the impact of net interest expense, income taxes, depreciation, amortization of acquired intangible assets, share-based payment expense, acquired profit in inventory, acquisition-related items, special charges, miscellaneous (income) expense, net, and tariff refunds. Adjusted EBITDA margin is adjusted EBITDA divided by net sales for total company. A reconciliation of each measure to the most directly comparable GAAP measure is available in this news release.

We define FCF as net cash provided by operating activities less purchases of property, plant and equipment. A calculation of this measure is available in this news release.

Our non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures used by other companies, have limitations as an analytical tool, and should not be considered in isolation or as a substitute for GAAP financial measures. Our presentation of such measures, which may include adjustments to exclude unusual or non-recurring items, should not be construed as an inference that our future results will be unaffected by other unusual or non-recurring items.

Forward-Looking Information

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements include, but are not limited to, statements that describe or relate to our plans, initiatives, projections, vision, goals, targets, commitments, expectations, objectives, prospects, strategies, or financial outlook, and the assumptions underlying or relating thereto. In some cases, we may use words such as “expect,” “believe,” “intend,” “anticipate,” “estimate,” “forecast,” “indicate,” “project,” “predict,” “plan,” “may,” “will,” “could,” “should,” “would,” “potential,” and words of similar meaning, as well as other words or expressions referencing future events, conditions, or circumstances, to identify forward-looking statements. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Act. Forward-looking statements are not guarantees of future performance. Our forward-looking statements are based on our current beliefs, expectations, and assumptions, which may not prove to be accurate, and are subject to known and unknown risks and uncertainties, assumptions, and other important factors, many of which are outside of our control and any of which could cause our actual results to differ materially from those expressed or implied by the forward-looking statements. These risks and uncertainties are discussed in our filings with the U.S. Securities and Exchange Commission, including our most recent annual report on Form 10-K (including, but not limited to, the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations"), quarterly reports on Form 10-Q, and current reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made. This press release is not comprehensive, and for that reason, should be read in conjunction with such filings. You are cautioned not to place undue reliance on any forward-looking statements. Except as required by law, we undertake no obligation to publicly update or release any revisions to these forward-looking statements to reflect any events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events, or otherwise.

ACUITY INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except per-share data)
  May 31, 2026 August 31, 2025 (unaudited)  ASSETS   Current assets:   Cash and cash equivalents$411.9  $422.5 Accounts receivable, less reserve for doubtful accounts of $7.0 and $4.3, respectively 610.9   593.9 Inventories 458.3   526.7 Prepayments and other current assets 137.4   108.4 Total current assets 1,618.5   1,651.5 Property, plant, and equipment, net 345.9   343.2 Operating lease right-of-use assets 96.8   97.4 Goodwill 1,494.6   1,495.5 Intangible assets, net 1,028.9   1,099.0 Deferred income taxes 4.8   23.4 Other long-term assets 45.9   45.2 Total assets$4,635.4  $4,755.2 LIABILITIES AND STOCKHOLDERS’ EQUITY   Current liabilities:   Accounts payable$363.9  $454.5 Current operating lease liabilities 27.0   23.3 Accrued compensation 126.4   110.0 Other current liabilities 271.0   258.0 Total current liabilities 788.3   845.8 Long-term debt 697.3   896.8 Long-term operating lease liabilities 80.0   84.3 Accrued pension liabilities 40.1   39.2 Deferred income taxes 40.2   24.9 Other long-term liabilities 138.0   139.3 Total liabilities 1,783.9   2,030.3 Stockholders’ equity:   Preferred stock, $0.01 par value per share; 50.0 shares authorized; none issued —   — Common stock, $0.01 par value per share; 500.0 shares authorized; 55.0 and 54.9 issued, respectively 0.6   0.5 Paid-in capital 1,178.4   1,164.7 Retained earnings 4,626.4   4,285.8 Accumulated other comprehensive loss (71.6)  (76.5)Treasury stock, at cost, of 24.9 and 24.2 shares, respectively (2,882.3)  (2,649.6)Total stockholders’ equity 2,851.5   2,724.9 Total liabilities and stockholders’ equity$4,635.4  $4,755.2  ACUITY INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In millions, except per-share data)
  Three Months Ended Nine Months Ended May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025Net sales$1,198.0 $1,178.6 $3,397.4 $3,136.5Cost of products sold 591.6  608.4  1,716.8  1,649.0Gross profit 606.4  570.2  1,680.6  1,487.5Selling, distribution, and administrative expenses 413.1  400.7  1,188.0  1,074.5Special charges —  29.7  5.9  29.7Operating profit 193.3  139.8  486.7  383.3Other expense (income):       Interest expense, net 6.1  12.1  21.5  15.0Miscellaneous expense, net 2.0  2.3  4.5  5.8Total other expense 8.1  14.4  26.0  20.8Income before income taxes 185.2  125.4  460.7  362.5Income tax expense 44.2  27.0  102.4  79.9Net income$141.0 $98.4 $358.3 $282.6        Earnings per share(1):       Basic earnings per share$4.66 $3.19 $11.74 $9.14Basic weighted average number of shares outstanding 30.268  30.851  30.520  30.912Diluted earnings per share$4.56 $3.12 $11.45 $8.92Diluted weighted average number of shares outstanding 30.954  31.565  31.278  31.673Dividends declared per share$0.20 $0.17 $0.57 $0.49 (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 (Unaudited)
(In millions)
  Nine Months Ended May 31, 2026 May 31, 2025Cash flows from operating activities:   Net income$358.3  $282.6 Adjustments to reconcile net income to cash flows from operating activities:   Depreciation and amortization 117.8   86.7 Share-based payment expense 39.2   34.0 Asset impairments —   16.7 Changes in operating assets and liabilities, net of acquisitions   Accounts receivable (16.6)  10.4 Inventories 66.9   5.1 Accounts payable (82.5)  38.1 Other operating activities 37.1   (74.7)Net cash provided by operating activities 520.2   398.9 Cash flows from investing activities:   Purchases of property, plant, and equipment (58.5)  (43.6)Acquisition of business, net of cash acquired —   (1,189.4)Other investing activities 0.3   (16.3)Net cash used for investing activities (58.2)  (1,249.3)Cash flows from financing activities:   Borrowings on credit agreement 200.0   — Borrowings from term loan —   600.0 Repayments of term loan borrowings (400.0)  (100.0)Repurchases of common stock (229.9)  (91.3)Proceeds from stock option exercises and other 2.9   17.5 Payments of taxes withheld on net settlement of equity awards (28.4)  (24.0)Dividends paid (17.7)  (15.3)Other financing activities (3.6)  (9.3)Net cash (used for) provided by financing activities (476.7)  377.6 Effect of exchange rate changes on cash and cash equivalents 4.1   (1.2)Net change in cash and cash equivalents (10.6)  (474.0)Cash and cash equivalents at beginning of period 422.5   845.8 Cash and cash equivalents at end of period$411.9  $371.8  ACUITY INC.
DISAGGREGATED NET SALES
(In millions) The following tables show net sales by channel for the periods presented:
  Three Months Ended   May 31, 2026 May 31, 2025 Increase
(Decrease) Percent ChangeAcuity Brands Lighting:       Independent sales network$690.5  $685.3  $5.2  0.8%Direct sales network 73.4   101.5   (28.1) (27.7)%Retail sales 40.4   41.4   (1.0) (2.4)%Corporate accounts 46.3   35.5   10.8  30.4%Original equipment manufacturer and other 54.6   59.5   (4.9) (8.2)%Total Acuity Brands Lighting 905.2   923.2   (18.0) (1.9)%Acuity Intelligent Spaces 303.5   264.1   39.4  14.9%Eliminations (10.7)  (8.7)  (2.0) 23.0%Total$1,198.0  $1,178.6  $19.4  1.6%  Nine Months Ended   May 31, 2026 May 31, 2025 Increase
(Decrease) Percent ChangeAcuity Brands Lighting:       Independent sales network$1,973.5  $1,944.4  $29.1  1.5%Direct sales network 234.4   306.1   (71.7) (23.4)%Retail sales 127.5   127.3   0.2  0.2%Corporate accounts 126.9   103.8   23.1  22.3%Original equipment manufacturer and other 155.4   168.2   (12.8) (7.6)%Total Acuity Brands Lighting 2,617.7   2,649.8   (32.1) (1.2)%Acuity Intelligent Spaces 809.0   509.1   299.9  58.9%Eliminations (29.3)  (22.4)  (6.9) 30.8%Total$3,397.4  $3,136.5  $260.9  8.3% ACUITY INC.
Reconciliation of Non-U.S. GAAP MeasuresThe tables below reconcile certain GAAP financial measures to the corresponding non-GAAP measures for total Company as well as our reportable operating segments (in millions except per share data):
        Three Months Ended      May 31, 2026   May 31, 2025  Increase
(Decrease) Percent
ChangeNet sales$1,198.0    $1,178.6   $19.4  1.6%           Gross profit (GAAP)$606.4    $570.2   $36.2  6.3%Percent of net sales  50.6%   48.4% 220  bpsAdd-back: Acquired profit in inventory —     19.2      Less: Tariff refunds (6.4)    —      Adjusted gross profit (Non-GAAP)$600.0    $589.4   $10.6  1.8%Percent of net sales  50.1%   50.0% 10  bps           Operating profit (GAAP)$193.3    $139.8   $53.5  38.3%Percent of net sales (GAAP)  16.1%   11.9% 420  bpsAdd-back: Amortization of acquired intangible assets 23.0     20.0      Add-back: Share-based payment expense 13.6     10.5      Add-back: Acquisition-related costs(1) —     2.5      Add-back: Acquired profit in inventory —     19.2      Add-back: Special charges —     29.7      Less: Tariff refunds (6.4)    —      Adjusted operating profit (Non-GAAP)$223.5    $221.7   $1.8  0.8%Percent of net sales (Non-GAAP)  18.7%   18.8% (10) bps           Net income (GAAP)$141.0    $98.4   $42.6  43.3%Add-back: Amortization of acquired intangible assets 23.0     20.0      Add-back: Share-based payment expense 13.6     10.5      Add-back: Acquisition-related costs(1) —     2.5      Add-back: Acquired profit in inventory —     19.2      Add-back: Special charges —     29.7      Less: Tariff refunds (6.4)    —      Total pre-tax adjustments to net income 30.2     81.9      Income tax effects (6.9)    (18.8)     Adjusted net income (Non-GAAP)$164.3    $161.5   $2.8  1.7%           Diluted earnings per share (GAAP)$4.56    $3.12   $1.44  46.2%Adjusted diluted earnings per share (Non-GAAP)$5.31    $5.12   $0.19  3.7%           Net income (GAAP)$141.0    $98.4   $42.6  43.3%Percent of net sales (GAAP)  11.8%   8.3% 350  bpsInterest expense, net 6.1     12.1      Income tax expense 44.2     27.0      Depreciation 17.7     14.6      Amortization of acquired intangible assets 23.0     20.0      EBITDA (Non-GAAP) 232.0     172.1    59.9  34.8%Percent of net sales (Non-GAAP)  19.4%   14.6% 480  bpsShare-based payment expense 13.6     10.5      Acquisition-related costs(1) —     2.5      Acquired profit in inventory —     19.2      Miscellaneous expense, net 2.0     2.3      Special charges —     29.7      Tariff refunds (6.4)    —      Adjusted EBITDA (Non-GAAP)$241.2    $236.3   $4.9  2.1%Percent of net sales (Non-GAAP)  20.1%   20.0% 10  bps (1) Acquisition-related items include professional fees.

  Three Months Ended    Acuity Brands Lighting May 31, 2026 May 31, 2025 Increase
(Decrease) Percent
ChangeNet sales $905.2  $923.2  $(18.0) (1.9)%         Gross profit (GAAP) $423.4  $430.4  $(7.0) (1.6)%Less: Tariff refunds  (6.4)  —     Adjusted gross profit (Non-GAAP) $417.0  $430.4  $(13.4) (3.1)%         Gross profit margin (GAAP)  46.8%  46.6%  20  bpsAdjusted gross profit margin (Non-GAAP)  46.1%  46.6%  (50) bps         Operating profit (GAAP) $160.6  $134.0  $26.6  19.9%Add-back: Amortization of acquired intangible assets  6.1   6.3     Add-back: Share-based payment expense  4.3   3.9     Add-back: Special charges  —   29.7     Less: Tariff refunds  (6.4)  —     Adjusted operating profit (Non-GAAP) $164.6  $173.9  $(9.3) (5.3)%         Operating profit margin (GAAP)  17.7%  14.5%  320  bpsAdjusted operating profit margin (Non-GAAP)  18.2%  18.8%  (60) bps   Three Months Ended    Acuity Intelligent Spaces May 31, 2026 May 31, 2025 Increase
(Decrease) Percent
ChangeNet sales $303.5  $264.1  $39.4 14.9%         Gross profit (GAAP) $183.0  $139.8  $43.2 30.9%Add-back: Acquired profit in inventory  —   19.2     Adjusted gross profit (Non-GAAP) $183.0  $159.0  $24.0 15.1%         Gross profit margin (GAAP)  60.3%  52.9%  740 bpsAdjusted gross profit margin (Non-GAAP)  60.3%  60.2%  10 bps         Operating profit (GAAP) $56.5  $27.4  $29.1 106.2%Add-back: Amortization of acquired intangible assets  16.9   13.7     Add-back: Share-based payment expense  2.9   2.0     Add-back: Acquired profit in inventory  —   19.2     Adjusted operating profit (Non-GAAP) $76.3  $62.3  $14.0 22.5%         Operating profit margin (GAAP)  18.6%  10.4%  820 bpsAdjusted operating profit margin (Non-GAAP)  25.1%  23.6%  150 bps (In millions, except per share data)Nine Months Ended      May 31, 2026   May 31, 2025   Increase
(Decrease)Percent
ChangeNet sales$3,397.4    $3,136.5    $260.98.3%           Gross profit (GAAP)$1,680.6    $1,487.5    $193.113.0%Percent of net sales (GAAP)  49.5%   47.4%  210bpsAdd-back: Acquired profit in inventory —     29.6      Less: Tariff refunds (6.4)    —      Adjusted gross profit (Non-GAAP)$1,674.2    $1,517.1    $157.110.4%Percent of net sales (Non-GAAP)  49.3%   48.4%  90bps           Operating profit (GAAP)$486.7    $383.3    $103.427.0%Percent of net sales (GAAP)  14.3%   12.2%  210bpsAdd-back: Amortization of acquired intangible assets 70.4     45.5      Add-back: Share-based payment expense 39.2     34.0      Add-back: Acquisition-related costs(1) —     21.2      Add-back: Acquired profit in inventory —     29.6      Add-back: Special charges 5.9     29.7      Less: Tariff refunds (6.4)    —      Adjusted operating profit (Non-GAAP)$595.8    $543.3    $52.59.7%Percent of net sales (Non-GAAP)  17.5%   17.3%  20bps           Net income (GAAP)$358.3    $282.6    $75.726.8%Add-back: Amortization of acquired intangible asset 70.4     45.5      Add-back: Share-based payment expense 39.2     34.0      Add-back: Acquisition-related costs(1) —     21.2      Add-back: Acquired profit in inventory —     29.6      Add-back: Special charges 5.9     29.7      Less: Tariff refunds (6.4)    —      Total pre-tax adjustments to net income 109.1     160.0      Income tax effect (25.1)    (36.8)     Adjusted net income (Non-GAAP)$442.3    $405.8    $36.59.0%           Diluted earnings per share (GAAP)$11.45    $8.92    $2.5328.4%Adjusted diluted earnings per share (Non-GAAP)$14.14    $12.81    $1.3310.4%           Net income (GAAP)$358.3    $282.6    $75.726.8%Percent of net sales (GAAP)  10.5%   9.0%  150bpsInterest expense, net 21.5     15.0      Income tax expense 102.4     79.9      Depreciation 47.4     41.2      Amortization 70.4     45.5      EBITDA (Non-GAAP) 600.0     464.2     135.829.3%Percent of net sales (Non-GAAP)  17.7%   14.8%  290bpsShare-based payment expense 39.2     34.0      Miscellaneous expense, net 4.5     5.8      Special charges 5.9     29.7      Acquisition-related costs(1) —     21.2      Acquired profit in inventory —     29.6      Tariff refunds (6.4)    —      Adjusted EBITDA (Non-GAAP)$643.2    $584.5    $58.710.0%Percent of net sales (Non-GAAP)  18.9%   18.6%  30bps (1) Acquisition-related items include professional fees.

  Nine Months Ended    Acuity Brands Lighting May 31, 2026 May 31, 2025 Increase
(Decrease) Percent
ChangeNet sales $2,617.7  $2,649.8  $(32.1) (1.2)%         Gross profit (GAAP) $1,197.8  $1,214.8  $(17.0) (1.4)%Less: Tariff refunds  (6.4)  —     Adjusted gross profit (Non-GAAP) $1,191.4  $1,214.8  $(23.4) (1.9)%         Gross profit margin (GAAP)  45.8%  45.8%  —  bpsAdjusted Gross profit margin (Non-GAAP)  45.5%  45.8%  (30) bps         Operating profit (GAAP) $434.7  $407.6  $27.1  6.6%Add-back: Amortization of acquired intangible assets  19.2   19.0     Add-back: Share-based payment expense  12.8   12.4     Add-back: Special charges  5.9   29.7     Less: Tariff refunds  (6.4)  —     Adjusted operating profit (Non-GAAP) $466.2  $468.7  $(2.5) (0.5)%         Operating profit margin (GAAP)  16.6%  15.4%  120  bpsAdjusted operating profit margin (Non-GAAP)  17.8%  17.7%  10  bps   Nine Months Ended    Acuity Intelligent Spaces May 31, 2026 May 31, 2025 Increase
(Decrease) Percent
ChangeNet sales $809.0  $509.1  $299.9 58.9%         Gross profit (GAAP) $482.8  $272.7  $210.1 77.0%Add-back: Acquired profit in inventory  —   29.6     Adjusted gross profit (Non-GAAP) $482.8  $302.3  $180.5 59.7%         Gross profit margin (GAAP)  59.7%  53.6%  610 bpsAdjusted gross profit margin (Non-GAAP)  59.7%  59.4%  30 bps         Operating profit (GAAP) $121.8  $48.1  $73.7 153.2%Add-back: Amortization of acquired intangible assets  51.2   26.5     Add-back: Share-based payment expense  7.9   5.5     Add-back: Acquired profit in inventory  —   29.6     Adjusted operating profit (Non-GAAP) $180.9  $109.7  $71.2 64.9%         Operating profit margin (GAAP)  15.1%  9.4%  570 bpsAdjusted operating profit margin (Non-GAAP)  22.4%  21.5%  90 bps  Nine Months Ended     May 31, 2026 May 31, 2025 Increase
(Decrease) Percent
ChangeNet cash provided by operating activities (GAAP)$520.2  $398.9  $121.3 30.4%Less: Purchases of property, plant, and equipment (58.5)  (43.6)    Free cash flow (Non-GAAP)$461.7  $355.3  $106.4 29.9% 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] 

Key Takeaways Acuity Brands is expected to post modest sales growth, driven by double-digit expansion in the AIS segment.QSC integration, cross-selling opportunities and building-automation offerings are supporting AIS momentum.Margin gains from cost discipline and business mix may help offset lighting weakness & tariff pressures. Acuity Brands, Inc. (AYI - Free Report) is scheduled to announce third-quarter fiscal 2026 results on June 25, before the opening bell.

In the last reported quarter, the company’s adjusted earnings surpassed the Zacks Consensus Estimate by 3.4% while the net sales missed the same by 1.9%. On a year-over-year basis, both metrics increased 11% and 4.9%, respectively.

Acuity Brands beat earnings estimates in each of the trailing four quarters, with an average surprise of 8.4%.

How are Estimates Placed for AYI Stock?For the fiscal third quarter, AYI’s Zacks Consensus Estimate for earnings per share (EPS) has increased to $5.20 from $5.16 in the past seven days. The estimated figure indicates an increase of 1.6% from $5.12 per share reported in the year-ago quarter.

The consensus mark for net sales is pegged at $1.18 billion, indicating a 0.4% increase from the year-ago reported figure.

Factors to Shape Acuity Brands’ Q3 ResultsSales

During the fiscal third quarter, Acuity Brands' top-line performance is expected to have inched up year over year, as the Acuity Intelligent Spaces (AIS) segment continues to be a key growth engine. The AIS segment is likely to have been sailing the ship forward through enhanced building intelligence, efficiency and user experience through platforms Atrius and Distech Controls. The acquisition and integration of QSC, LLC in January 2025 into the AIS segment is expected to have boosted the growth further. The integration of QSC continues to progress well, enabling cross-selling opportunities and expanding capabilities through the Q-SYS platform. Besides, recent innovations, including scalable AV solutions for smaller collaboration spaces and enhanced building automation offerings, further strengthen the segment’s value proposition.

This growth trajectory is likely to have been subdued to some extent during the fiscal third quarter by the weak performance of the Acuity Brands Lighting (ABL) segment. The segment’s poor contribution to Acuity Brands’ sales performance is expected to have been due to lower net sales within the direct sales network.

Segment-wise, for the to-be-reported quarter, our Zacks model predicts total ABL segment (contributed 77.4% to the second quarter of fiscal 2026 net sales) revenues to decline 0.3% year over year to $920.1 million. Within the ABL segment, we expect Independent Sales Network and Retail revenues to increase 1.8% and 0.7%, respectively, while Corporate Accounts, Direct Sales Network and Other revenues are anticipated to decrease 4.1%, 11.6% and 3.6%, respectively, year over year.

Our model predicts the AIS segment’s (contributed 23.5% to the second quarter of fiscal 2026 net sales) revenues in the fiscal third quarter to climb 13.1% year over year to $298.8 million.

Margins

The bottom line is likely to have been supported by continued cost discipline, productivity improvements and a favorable business mix, with the higher-margin AIS segment contributing meaningfully to overall profitability. Strategic pricing actions and ongoing operational efficiencies are likely to have helped mitigate external pressures, including tariffs, while strong cash flow generation and disciplined capital allocation are expected to have further supported earnings growth.

We expect the company’s adjusted EBITDA margin to increase 40 basis points (bps) year over year in the fiscal third quarter to 20.4%. We project adjusted operating margin to inch up 20 bps to 19% year over year.

However, these tailwinds are expected to have been partially offset by persistent softness in the lighting market, tariff-related cost volatility and the normalization of previously elevated backlog levels, which are likely to have weighed on near-term growth momentum.

What Our Model Indicates for AYIOur proven model does predict an earnings beat for Acuity Brands this time around. The company has the right combination of the two key ingredients, a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the odds of an earnings beat.

AYI’s Earnings ESP: The company has an earnings ESP of +0.63%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

AYI’s Zacks Rank: The stock currently has a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks With the Favorable CombinationHere are some other companies in the Zacks Business Services sector that, according to our model, have the right combination of elements to post earnings beats in the quarter to be reported.

V2X, Inc. (VVX - Free Report) has an Earnings ESP of +0.41% and currently carries a Zacks Rank of 2.

V2X’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 22.8%. V2X’s earnings for the third quarter of 2026 are expected to increase 9%.

Insperity, Inc. (NSP - Free Report) presently has an Earnings ESP of +6.06% and a Zacks Rank of 3.

Insperity’s earnings beat estimates in one of the trailing four quarters and missed on the other three occasions, with an average negative surprise of 61.1%. Insperity’s earnings for the third quarter of 2026 are expected to increase 26.9%.

WEX Inc. (WEX - Free Report) currently has an Earnings ESP of +4.82% and a Zacks Rank of 3.

WEX’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 4.8%. WEX’s earnings for the third quarter of 2026 are expected to increase 28.1%.

On June 23, 2026, Acuity Inc AYI shares fell 7.1% today, bringing the current price to $298.69. The stock has traded within a 52-week range of $257.04 to $380.17, indicating significant volatility over the past year.

GF Value™ verdict: The current price is $298.69, while the GF Value™ is estimated at $307.83, representing a 3.0% undervaluation.GF Score™: The stock has a strong GF Score™ of 89/100, indicating a solid overall health and performance potential.Most notable signal: Insider activity shows that insiders bought $0.3 million and sold $0.6 million in the last 3 months, suggesting mixed confidence in the company's future. Is AYI Overvalued or Undervalued? Currently, Acuity Inc AYI has a GF Value™ of $307.83, while its shares are trading at $298.69, reflecting a 3.0% margin of safety. This undervaluation suggests there may be an opportunity for potential upside if the market corrects. The GF Valuation label indicates that AYI is fairly valued based on its intrinsic value metrics. However, investors should consider the risks associated with market volatility and the recent decline in share price.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. With the current price being below the GF Value™, there is potential for appreciation, yet caution is advised due to the stock's recent price drop and overall market conditions.

How Does AYI's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)21.9x20.3x Forward P/E14.1xN/A Acuity Inc's current P/E ratio of 21.9x is 8% above its 5-year median of 20.3x, indicating that the stock is trading at a premium compared to its historical valuation. This analysis aligns with the GF Value™ verdict, suggesting that while AYI may be undervalued according to its GF Value™, the current trading multiples indicate it is on the higher end of its historical range.

What Does AYI's GF Score™ Tell Us? MetricRating GF Score™89/100 Financial Strength8/10 Profitability9/10 Growth8/10 Valuation7/10 Momentum5/10 The GF Score™ of 89/100 indicates that Acuity Inc is positioned for strong long-term returns, supported by a high Profitability Score of 9/10. Financial Strength is also solid at 8/10, suggesting that the company has a robust balance sheet. However, the Momentum Rank of 5/10 indicates that recent performance may be lacking, potentially contributing to the decline in share price. Overall, AYI shows strengths in profitability and financial metrics, but there may be concerns regarding its recent momentum.

What Are Insiders Doing with AYI Stock? In the last three months, insider activity in Acuity Inc AYI shows a mixed sentiment with insiders buying $0.3 million worth of shares while selling $0.6 million. This pattern may suggest that while some insiders are confident in the company's potential, others may be looking to cash in on recent gains or manage their holdings. Such activity can signal varying levels of confidence among insiders regarding the company's future performance.

What This Means for Investors Based on the GF Value™ assessment, Acuity Inc AYI is currently undervalued with a margin of safety of 3.0%. However, investors should consider the mixed signals from insider activity and the recent downturn in share price before making any decisions.

For the complete analysis, visit the Acuity Inc AYI stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is AYI's GF Score™?

AYI's GF Score™ is 89/100, indicating strong overall health and potential for long-term returns based on various performance metrics.

Is AYI overvalued or undervalued?

AYI is currently undervalued with a GF Value™ of $307.83 compared to its trading price of $298.69, suggesting potential for price appreciation.

What is AYI's P/E ratio?

AYI's P/E (TTM) is 21.9x, which is 8% above its 5-year median of 20.3x, indicating that the stock is trading at a premium compared to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

The upcoming report from Acuity (AYI - Free Report) is expected to reveal quarterly earnings of $5.16 per share, indicating an increase of 0.8% compared to the year-ago period. Analysts forecast revenues of $1.18 billion, representing an increase of 0.4% year over year.

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

Bearing this in mind, let's now explore the average estimates of specific Acuity metrics that are commonly monitored and projected by Wall Street analysts.

The combined assessment of analysts suggests that 'Net Sales by Channel- Acuity Intelligent Spaces' will likely reach $289.17 million. The estimate indicates a year-over-year change of +9.5%.

The consensus estimate for 'Net Sales by Channel- Acuity Brands Lighting (ABL)- Total' stands at $903.59 million. The estimate indicates a change of -2.1% from the prior-year quarter.

Analysts forecast 'Adjusted operating profit- Acuity Intelligent Spaces' to reach $68.32 million. Compared to the current estimate, the company reported $62.30 million in the same quarter of the previous year.

Analysts predict that the 'Adjusted operating profit- Acuity Brands Lighting' will reach $177.01 million. The estimate compares to the year-ago value of $173.90 million.

View all Key Company Metrics for Acuity here>>>

Over the past month, Acuity shares have recorded returns of +13% versus the Zacks S&P 500 composite's +1.4% change. Based on its Zacks Rank #3 (Hold), AYI will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Acuity (AYI) came out with quarterly earnings of $4.14 per share, beating the Zacks Consensus Estimate of $4.01 per share. This compares to earnings of $3.73 per share a year ago.

Key Takeaways Acuity posted Q2 EPS of $4.14, beating estimates, while sales of $1.06B missed expectations.AYI's AIS segment surged 44.7%, offsetting declines in its core Lighting segment sales.Acuity raised its quarterly dividend by 18% and boosted margins with improved operating performance. Acuity Inc. (AYI - Free Report) reported mixed results for the second quarter of fiscal 2026 (ended Feb. 28, 2026), with adjusted earnings topping the Zacks Consensus Estimate but net sales missing the same. However, both metrics increased year over year.

The quarter’s performance was driven by the increased contributions from its Acuity Intelligent Spaces (AIS) segment, which was somewhat pulled back by reduced sales in the Acuity Brands Lighting (ABL) segment. Besides, the integration of QSC with Atrius and Distech aided the quarter’s growth.

Acuity stock inched down 0.8% during today’s pre-market trading session.

Acuity’s Q2 Earnings & Sales PerformanceThe company reported adjusted earnings per share (EPS) of $4.14, which topped the Zacks Consensus Estimate of $4.01 by 3.4%. The metric also increased 11% from the year-ago reported EPS of $3.73.

Net sales of $1.06 billion missed the consensus mark of $1.08 billion by 1.9% but improved 4.9% from the prior-year quarter’s level.

Acuity’s Segment DetailsThe Acuity Brands Lighting segment, responsible for the majority of sales, experienced a decline in quarterly sales by 2.8% to $817.4 million. Our estimate for the metric was $856.7 million.

Net sales in the Independent Sales Network inched up 0.2% year over year to $616.7 million. Sales from the Direct Sales Network were down 27.5% from the prior-year period’s level to $70.6 million.

Retail sales of $40.3 million tumbled 1.7% from the prior-year quarter’s level. Sales in the Corporate Accounts channel increased 14.3% from the prior-year quarter to $40.7 million. The Original equipment manufacturer and other channel sales of $49.1 million were down 4.5% from the prior-year period’s level.

The adjusted operating profit in the segment inched up 0.4% from the prior year’s level to $141.8 million. The adjusted operating margin was up 50 basis points (bps) year over year to 17.3%.

Acuity Intelligent Spaces generated net sales of $248.1 million, which was significantly up 44.7% year over year. The reported figure came below our estimate of $250 million.

The adjusted operating profit was $48 million, up 50% from the year-ago period. The adjusted operating margin expanded 60 bps year over year to 19.3%.

AYI’s Operating HighlightsThe adjusted operating profit increased 8% year over year to $176 million. The adjusted operating margin of 16.7% was up 50 bps year over year.

Adjusted EBITDA rose 8% to $190.8 million from the year-ago period. The adjusted EBITDA margin expanded 60 bps from the year-ago period to 18.1%.

Acuity’s FinancialsAs of the fiscal second quarter, Acuity had cash and cash equivalents of $272.5 million compared with $422.5 million at the fiscal 2025-end. Long-term debt was $697.1 million as of Feb. 28, 2026, down from $896.8 million at the fiscal 2025-end.

During the first six months of fiscal 2026, cash provided by operating activities totaled $229.9 million, up from $191.6 million in the prior-year period. Adjusted free cash flow was up 15.4% year over year to $188.1 million in the first six months of fiscal 2026.

During the first six months of fiscal 2026, the company repurchased approximately 318,000 shares of its common stock for $106 million and paid $11.6 million through dividends. Acuity also hiked its quarterly dividend payment by 18% to 20 cents per share (80 cents per share annually).

AYI Stock’s Zacks RankAcuity currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stocks With the Favorable CombinationHere are some companies in the Zacks Business Services sector, which per our model, have the right combination of a positive Earnings ESP and a Zacks Rank of 1, 2 (Buy) or 3, to post an earnings beat in the respective quarters to be reported.

Remitly Global, Inc. (RELY - Free Report) has an Earnings ESP of +2.85% and a Zacks Rank of 1 at present.

Remitly reported better-than-expected earnings in three of the last four quarters and missed on the remaining occasion, the average surprise being 391.7%. Remitly’s earnings for the first quarter of 2026 are expected to grow 140% from the prior year.

Coherent Corp. (COHR - Free Report) currently has an Earnings ESP of +2.70% and a Zacks Rank of 2.

Coherent’s earnings for the third quarter of fiscal 2026 are expected to increase 53.9% year over year. Coherent reported better-than-expected earnings in each the last four quarters, the average surprise being 7.7%.

EVERTEC, Inc. (EVTC - Free Report) currently has an Earnings ESP of +1.94% and a Zacks Rank of 2.

EVERTEC reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 4.1%. EVERTEC’s earnings for the first quarter of 2026 are expected to increase year over year by 3.5%.

U.S. stocks traded lower midway through trading, with the Dow Jones index falling more than 100 points on Thursday.

The Dow traded down 0.27% to 46,441.45 while the NASDAQ fell 0.08% to 21,823.12. The S&P 500 also fell, dropping, 0.06% to 6,571.55.

Leading and Lagging Sectors

Real estate shares climbed by 0.8% on Thursday.

In trading on Thursday, consumer discretionary stocks fell by 1.1%.

Top Headline

Shares of Acuity Inc. (NYSE:AYI) fell around 5% on Thursday after the company reported mixed fiscal second-quarter 2026 results, as a revenue miss offset an earnings beat.

Quarterly net sales rose 4.9% year over year to $1.06 billion, falling short of the $1.09 billion consensus estimate. Adjusted earnings came in at $4.14 per share, ahead of expectations of $4.06.

Equities Trading UP
           

Equities Trading DOWN

Commodities

In commodity news, oil traded up 10.7% to $110.83 while gold traded down 2.2% at $4,705.50.

Silver traded down 4.7% to $72.485 on Thursday, while copper fell 0.6% to $5.6115.

Euro zone

European shares were mostly lower today. The eurozone's STOXX 600 fell 0.16%, while Spain's IBEX 35 Index fell 0.36%. London's FTSE 100 gained 0.85%, Germany's DAX dipped 0.73% and France's CAC 40 fell 0.12% during the session.

Asia Pacific Markets

Asian markets closed mixed on Thursday, with Japan's Nikkei 225 falling 2.38%, Hong Kong's Hang Seng index falling 0.70%, China's Shanghai Composite falling 0.74% and India's BSE Sensex gaining 0.25%.

Economics

U.S. initial jobless claims declined by 9,000 to 202,000 in the fourth week of March, compared to market estimates of 212,000. The U.S. goods trade deficit increased to $83.5 billion in February versus a revised $80.9 billion in the prior month. Photo via Shutterstock

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Acuity (NYSE: AYI) reported fiscal 2026 second-quarter results that executives said reflected "strong execution" despite a soft lighting market. Chairman, President and CEO Neil Ashe said the company grew net sales, expanded adjusted operating profit and margin, increased adjusted diluted earnings per share, and generated strong cash flow while continuing to invest in technology and manage

Acuity Inc.'s NYSE: AYI stock price is under pressure due to tepid revenue and its impact on analysts' sentiment. The critical takeaway for investors is that this high-quality, cash-producing, capital-return machine trades at a low valuation relative to its growth outlook and ability to drive shareholder value. The stock price may decline in the near term; if it does, good. The value will only deepen, and the potential for rebounding will increase. 

Acuity Today

$292.14 +3.54 (+1.23%)

As of 10:14 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$257.04▼

$380.17Dividend Yield0.27%

P/E Ratio21.43

Price Target$369.17

Analysts are lowering price targets following the report. However, the lowest targets, including a fresh low of $320, are still well above the early April price action, suggesting not only value, but deep value is present.

Get Acuity alerts:

Assuming a rebound begins soon, the stock price could rise by 20% and still have an ample upside left. As it is, the consensus of nine tracked by MarketBeat forecasts over a 40% upside from the early April support target, and even higher highs are possible. They rate the stock as a Moderate Buy, and sentiment has been steady for months.

Acuity is well-positioned for the AI age. It doesn’t reflect a boom today, but there is one coming down the pipe. The data centers, AI factories, models, and applications that drive the robust AI outlook are still in the early build-out phase; when reality catches up with the potential, the AYI business will boom alongside the Internet of Things and physical AI. Its Intelligent Spaces segment connects technology with building systems, including occupant interfaces, to enable efficient, AI-assisted operations.

AYI Capital Returns Underpin Stock Price Outlook Acuity’s capital returns are not robust but include dividends and buybacks, are sustainable, and are on track to grow. The company already exhibits a tendency and commitment to dividend increases, having issued its fourth increase in early fiscal 2026. The yield is low, about 0.3%, but incredibly safe at about 5% of earnings, suggesting the mid-single-digit compound annual growth is also sustainable.

Overall MarketRank™99th Percentile

Analyst RatingModerate Buy

Upside/Downside27.9% Upside

Short Interest LevelHealthy

Dividend StrengthWeak

News Sentiment1.55 Insider TradingAcquiring Shares

Proj. Earnings Growth9.91%

See Full Analysis

Buybacks are slightly more substantial, having reduced the share count approximately 0.9% on a year-to-date (YTD) basis. They, too, appear to be sustainable with potential for growth, as the year-to-date (YTD) buybacks are less than 50% of free cash flow.

The balance sheet reflects the impact of its capital return, including reduced cash, current and total assets. However, YTD activity also includes strong cash flow generation and debt reduction, resulting in reduced current and total liabilities and long-term debt. The net result is an increase in equity of about 4.25%, leaving the company's leverage very low. Total liabilities are less than 1X equity; long-term debt is less than 0.25X. 

Institutional and short-selling activity highlights the quality of capital returns and the potential for a rebound. Short interest is marginal; at 2%, it aligns with the average for other blue-chip-quality names. There is some short interest, but not enough to signal negative sentiment, create a headwind for the market, or cap upward movement. On the flip side, institutions, which control 98% of the stock, have been buying on balance, accumulating at a pace of $2-to-$1, and ramping activity in Q1 2026. They present a solid support base and market tailwind, likely to increase their activity as share prices decline. 

Acuity Poised for Big Drop? Acuity’s stock price action isn’t bullish. The market shows resistance at a critical level, reinforced by a cluster of moving averages, suggesting another drop ahead. However, the market is oversold, so the downside may be limited. The critical target is near $271; if the market fails to reclaim this level, a deeper decline is likely; however, support may appear near $260. If this market can regain the upper $271 level, consolidation will likely ensue, and recovery will begin later this year. 

Catalysts include growing its Intelligent Spaces business and margin improvement. The company is leaning into operational efficiency and strategic pricing increases and may outperform expectations. The Intelligent Spaces segment is focusing on higher-margin businesses, including automation and AI. Risks include weakness in the core lighting segment. High interest rates and macro headwinds are sapping demand and undercutting business. The offset is significant, leading to tepid expectations in 2026. 

Should You Invest $1,000 in Acuity Right Now?Before you consider Acuity, you'll want to hear this.

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Get This Free Report

Posted by Defense World Staff on Apr 27th, 2026

Acuity (NYSE:AYI – Get Free Report) and Brand Engagement Network (NASDAQ:BNAI – Get Free Report) are both business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.

Earnings and Valuation This table compares Acuity and Brand Engagement Network”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Acuity $4.35 billion 2.02 $396.60 million $13.64 21.26 Brand Engagement Network $280,000.00 628.28 -$8.62 million ($6.50) -4.62 Acuity has higher revenue and earnings than Brand Engagement Network. Brand Engagement Network is trading at a lower price-to-earnings ratio than Acuity, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility Acuity has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, Brand Engagement Network has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Insider & Institutional Ownership 98.2% of Acuity shares are owned by institutional investors. Comparatively, 15.8% of Brand Engagement Network shares are owned by institutional investors. 2.9% of Acuity shares are owned by insiders. Comparatively, 25.6% of Brand Engagement Network shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations This is a breakdown of current ratings and price targets for Acuity and Brand Engagement Network, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Acuity 0 4 5 0 2.56 Brand Engagement Network 1 0 0 0 1.00 Acuity presently has a consensus target price of $369.17, suggesting a potential upside of 27.29%. Given Acuity’s stronger consensus rating and higher probable upside, equities analysts clearly believe Acuity is more favorable than Brand Engagement Network.

Profitability This table compares Acuity and Brand Engagement Network’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Acuity 9.37% 20.74% 12.20% Brand Engagement Network -3,137.73% -308.17% -73.77% Summary Acuity beats Brand Engagement Network on 12 of the 14 factors compared between the two stocks.

About Acuity (Get Free Report)

Acuity Brands, Inc. provides lighting, lighting controls, building management system, location-aware applications in the United States and internationally. The company operates in two segments, Acuity Brands Lighting and Lighting Controls (ABL); and the Intelligent Spaces Group (ISG). The ABL segment provides commercial, architectural, and specialty lighting solutions, as well as lighting controls and components for various indoor and outdoor applications under the A-Light, Aculux, American Electric Lighting, Cyclone, Dark to Light, eldoLED, Eureka, Gotham, Healthcare Lighting, Holophane, Hydrel, Indy, IOTA, Juno, Lithonia Lighting, Luminaire LED, Luminis, Mark Architectural Lighting, nLight, OPTOTRONIC, Peerless, RELOCWiring Solutions, and Sensor Switch. This segment serves electrical distributors, retail home improvement centers, electric utilities, national accounts, original equipment manufacturers, digital retailers, lighting showrooms, and energy service companies. The ISG segment offers building management solutions, such as products for controlling heating, ventilation, air conditioning, lighting, shades, refrigeration, and building access that deliver end-to-end optimization of those building systems; and building management software that enhances building system management and automates labor intensive tasks. This segment serves system integrators, as well as retail stores, airports, and enterprise campuses. The company offers its products and solutions under the Atrius, Distech Controls, and KE2 Therm Solutions brands. Acuity Brands, Inc. was incorporated in 2001 and is headquartered in Atlanta, Georgia.

About Brand Engagement Network (Get Free Report)

Brand Engagement Network, Inc. provides conversational AI assistants. The company offers security-focused, multimodal communication, and human-like assistants. Its AI assistants are built on proprietary natural language processing, anomaly detection, multisensory awareness, sentiment, and environmental analysis, as well as real-time individuation and personalization capabilities. It serves the automotive, healthcare, and other industries through direct sales force and channel partners. Brand Engagement Network, Inc. was formerly known as Blockchain Exchange Network Inc. and changed its name to Brand Engagement Network, Inc. in April 2023. The company was founded in 2018 and is based in Jackson, Wyoming.

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Growth investment strengthens Acuity's ability to combine market, event and trade intelligence with real-time market move attribution London, United Kingdom--(Newsfile Corp. - May 12, 2026) - Acuity Trading, a global provider of AI-driven market, event and trade intelligence solutions for brokers, platforms and financial institutions, today announced a growth investment in MarketReader, an AI-powered financial intelligence platform focused on explaining why markets move in real time. To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/12397/296897_acuity.jpg The investment marks a significant step in Acuity's long-term strategy to build a broader, more complete intelligence offering for financial institutions and their end users.

On May 26, 2026, Acuity Inc (AYI) shares rose 3.5% today, bringing the current price to $297.58. The stock has traded within a 52-week range of $253.03 to $380.

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