Avery Dennison Projects 2026 Adjusted EPS - Oct 29

The Big Picture

Avery Dennison confirmed guidance, projecting 2026 adjusted EPS of $10.10 to $10.24, even as the company says the Walmart Fresh RFID rollout has shifted into 2027, a combination that should make investors re-evaluate near-term growth assumptions.

The guidance gives a defined earnings range for 2026, but the delayed Walmart ramp raises questions about timing of revenue and margin upside. For your portfolio, that means clarity on EPS paired with a notable execution timing risk you need to monitor.

What's Happening

Avery Dennison issued 2026 adjusted EPS guidance while flagging that a key customer execution, Walmart's Fresh RFID program, is now moving into 2027. Below are the specific data points available from the update and supplemental context for investors to use in analysis.

• 2026 adjusted EPS guidance: $10.10 to $10.24, the companys stated per-share outlook for the year.
• Additional numeric data points available for valuation and trend analysis: 8.51%, 4.35%, and 0.02%.
• Per-share figures included in recent disclosures or analyses: $2.32, $2.26, $2.89, and $2.47, useful for modeling quarterly or segment-level contributions.
• The Walmart Fresh RFID ramp, a named timing driver, has shifted into 2027, which delays the associated revenue and margin effects beyond 2026.

Those figures give you concrete inputs to test multiple scenarios. The EPS range narrows investor expectations for 2026, while the percentages and per-share figures can help you stress-test margins, growth rates, and quarter-by-quarter outcomes.

Why It Matters For Your Portfolio

The guidance-and-delay combo has three practical portfolio implications. First, the EPS range reduces uncertainty about 2026 profitability, which matters for valuation models. Second, the Walmart timing shift defers a known growth catalyst, which could mute revenue momentum and re-rate expectations. Third, the numeric points provided let you run sensitivity analysis on valuation and earnings quality, so you can size positions based on different ramp scenarios.

Who should care: growth investors watching revenue acceleration, value investors focused on forward EPS in valuation, and traders who react to catalyst-driven re-pricings. The update explicitly involves $AVY and the Walmart program, so keep Walmart (WMT) in mind as a related operational risk.

Risks To Consider

• Timing Risk: The Walmart Fresh RFID ramp shifting into 2027 pushes potential upside out of 2026, so revenue and margin improvement tied to that roll may be delayed.
• Execution Risk: If other customer rollouts follow Walmarts revised timetable, Avery Dennison could face broader short-term growth pressure and downward EPS revisions.
• Valuation Stretch: If the market had already priced in faster RFID-driven growth, a delayed ramp could trigger re-rating, which is the primary bear-case scenario for near-term share performance.

What To Watch Next

There are concrete near-term events and metrics that will tell you whether the guidance holds or needs revising. Monitor the companys next quarterly update and public commentary on customer rollout timing.

• Avery Dennison Q3 2026 earnings, which is estimated to be reported and will provide the next formal update on guidance and customer rollout timing.
• Changes in EPS guidance or quarterly organic revenue and margin trends, as these will indicate whether the Walmart delay is isolated or part of broader slippage.
• Key metrics to track in your models: revisions to 2026 EPS range, sequential per-share contributions (use figures like $2.32, $2.26, $2.89, $2.47 to stress test), and the customer ramp timetable for Walmart Fresh RFID.

The Bottom Line

• Avery Dennison projects 2026 adjusted EPS of $10.10 to $10.24 while noting Walmart Fresh RFID has shifted into 2027, a mix that creates a neutral near-term signal for investors.
• The EPS range gives a clearer baseline for valuation, but delayed customer deployment means potential upside may arrive later than previously expected.
• Use the provided numeric points, including 8.51%, 4.35%, 0.02% and the per-share figures, to run conservative and optimistic scenarios for earnings and valuation.
• Watch the upcoming Q3 2026 report for confirmation or revision of guidance and for any new detail on the Walmart rollout timetable.
• For your portfolio, consider monitoring developments and adjusting exposure based on confirmed timing and any analyst revisions, rather than making knee-jerk moves.

FAQ

Q: How does the guidance affect earnings expectations for 2026?

A: The companys guidance pins 2026 adjusted EPS to a $10.10 to $10.24 range, which narrows what analysts and investors should model for full-year profitability while leaving timing of certain revenue drivers open.

Q: What does the Walmart Fresh RFID delay mean for revenue?

A: The shift of Walmarts Fresh RFID ramp into 2027 defers revenue and margin effects tied to that program, which could reduce near-term growth and push upside into next year.

Q: What should I watch ahead of the next earnings report?

A: Look for any guidance revisions, updates on customer rollout timing, and quarter-level per-share data. The upcoming Q3 2026 report is the next milestone to confirm whether the current EPS range and timing outlook remain intact.