Fiscal Q4 2026 and Fiscal 2026
Filed Oct 1, 2026Solid Execution Delivers Net Sales Growth, Improved Operating Performance, and Strong Cash Flow
Fiscal Q4 net sales increased 2.9%, adjusted operating profit increased 3.4%, and adjusted diluted EPS increased 11.0%. Fiscal 2026 net sales increased 6.8%, supported by 44.8% AIS sales growth, while full-year free cash flow increased 40.3%. ABL sales and adjusted operating profit declined in both the quarter and year.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Fiscal Q4 2026 net salesGAAP | $1.24B | – | 2.9% |
| Fiscal Q4 2026 gross profitGAAP | $670.1M | – | 13.4% |
| Fiscal Q4 2026 gross profit marginGAAP | 53.8% | – | 490 bps |
| Fiscal Q4 2026 adjusted gross profitnon-GAAP | $625.2M | – | 5.8% |
| Fiscal Q4 2026 adjusted gross profit marginnon-GAAP | 50.2% | – | 130 bps |
| Fiscal Q4 2026 operating profitGAAP | $227M | – | 25.7% |
| Fiscal Q4 2026 operating profit marginGAAP | 18.2% | – | 330 bps |
| Fiscal Q4 2026 adjusted operating profitnon-GAAP | $232.9M | – | 3.4% |
| Fiscal Q4 2026 adjusted operating profit marginnon-GAAP | 18.7% | – | 10 bps |
| Fiscal Q4 2026 net incomeGAAP | $173M | – | 51.8% |
| Fiscal Q4 2026 adjusted net incomenon-GAAP | $177.6M | – | 8.3% |
| Fiscal Q4 2026 diluted earnings per shareGAAP | $5.63 | – | 56.0% |
| Fiscal Q4 2026 adjusted diluted earnings per sharenon-GAAP | $5.77 | – | 11.0% |
| Fiscal Q4 2026 EBITDAnon-GAAP | $262.7M | – | 37.5% |
| Fiscal Q4 2026 EBITDA marginnon-GAAP | 21.1% | – | 530 bps |
| Fiscal Q4 2026 adjusted EBITDAnon-GAAP | $248.8M | – | 3.4% |
| Fiscal Q4 2026 adjusted EBITDA marginnon-GAAP | 20.0% | – | 10 bps |
| Fiscal 2026 net salesGAAP | $4.64B | – | 6.8% |
| Fiscal 2026 gross profitGAAP | $2.35B | – | 13.1% |
| Fiscal 2026 gross profit marginGAAP | 50.6% | – | 280 bps |
| Fiscal 2026 adjusted gross profitnon-GAAP | $2.30B | – | 9.1% |
| Fiscal 2026 adjusted gross profit marginnon-GAAP | 49.5% | – | 100 bps |
| Fiscal 2026 operating profitGAAP | $713.7M | – | 26.6% |
| Fiscal 2026 operating profit marginGAAP | 15.4% | – | 240 bps |
| Fiscal 2026 adjusted operating profitnon-GAAP | $828.7M | – | 7.8% |
| Fiscal 2026 adjusted operating profit marginnon-GAAP | 17.9% | – | 20 bps |
| Fiscal 2026 net incomeGAAP | $531.3M | – | 34.0% |
| Fiscal 2026 adjusted net incomenon-GAAP | $619.9M | – | 8.8% |
| Fiscal 2026 diluted earnings per shareGAAP | $17.05 | – | 36.1% |
| Fiscal 2026 adjusted diluted earnings per sharenon-GAAP | $19.90 | – | 10.5% |
| Fiscal 2026 EBITDAnon-GAAP | $862.7M | – | 31.6% |
| Fiscal 2026 EBITDA marginnon-GAAP | 18.6% | – | 350 bps |
| Fiscal 2026 adjusted EBITDAnon-GAAP | $892M | – | 8.1% |
| Fiscal 2026 adjusted EBITDA marginnon-GAAP | 19.2% | – | 20 bps |
| Fiscal 2026 net cash provided by operating activitiesGAAP | $825.6M | – | 37.3% |
| Fiscal 2026 free cash flownon-GAAP | $747.9M | – | 40.3% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Acuity Brands Lighting, Fiscal Q4 2026Independent sales network increased $26.8 million, or 3.8%, while direct sales network decreased $25.5 million, or (24.2)%. | $958.7M | – | (0.4)% |
| Acuity Intelligent Spaces, Fiscal Q4 2026AIS operating profit increased $36.7 million, or 131.1%, and adjusted operating profit increased $19.5 million, or 35.7%. | $297.6M | – | 16.6% |
| Acuity Brands Lighting, Fiscal 2026Independent sales network increased $55.9 million, or 2.1%, while direct sales network decreased $97.2 million, or (23.6)%. | $3.58B | – | (1.0)% |
| Acuity Intelligent Spaces, Fiscal 2026AIS operating profit increased $110.4 million, or 145.1%, and adjusted operating profit increased $90.7 million, or 55.2%. | $1.11B | – | 44.8% |
Capital returns
- Repaid $200 million of our term loan during fiscal 2026.
- Repurchased over 940,000 shares of common stock for $287.2 million during fiscal 2026.
- Increased our dividend by 18 percent during fiscal 2026.
- Dividends declared per share were $0.20 for the three months ended August 31, 2026 and $0.77 for the year ended August 31, 2026.
What drove it
- Fiscal Q4 net sales increased $35.3 million, or 2.9%, compared to the prior year.
- AIS fiscal Q4 net sales increased $42.4 million, or 16.6%, compared to the prior year.
- During fiscal Q4 2026, the Company received $44.9 million in tariff refunds, reflected as a non-GAAP adjustment.
- Fiscal Q4 special charges were $17.8 million, including $14.7 million related to ABL initiatives involving the product portfolio, supply chain, and operating footprint, and $3.1 million related to an AIS facility impairment.
- Fiscal 2026 adjusted gross profit margin increased 100 bps to 49.5%, and adjusted operating profit margin increased 20 bps to 17.9%.
Concerns
- ABL fiscal Q4 net sales decreased $3.7 million, or 0.4%, and fiscal 2026 net sales decreased $35.8 million, or 1.0%.
- ABL fiscal Q4 adjusted operating profit decreased $13.8 million, or 7.1%, and adjusted operating profit margin decreased 130 bps to 18.8%.
- ABL fiscal 2026 adjusted operating profit decreased $16.3 million, or 2.5%, and adjusted operating profit margin decreased 20 bps to 18.1%.
- Reported results are preliminary pending completion of the audit and filing of the annual report on Form 10-K.
- GAAP results included tariff refunds of $44.9 million in fiscal Q4 2026 and $51.3 million in fiscal 2026.
What to watch
- Acuity Brands Lighting sales trends across the independent sales network, direct sales network, retail sales, corporate accounts, and original equipment manufacturer and other channels.
- Whether AIS sustains sales growth and adjusted operating profit margin expansion.
- The effect of tariff refunds and special charges on future comparisons.
- Completion of the fiscal year-end audit and the annual report on Form 10-K.
Balance sheet and cash flow
- Cash and cash equivalents were $636.3 million as of August 31, 2026, compared with $422.5 million as of August 31, 2025.
- Current maturities of debt were $200.0 million as of August 31, 2026.
- Long-term debt was $497.4 million as of August 31, 2026, compared with $896.8 million as of August 31, 2025.
- Net cash provided by operating activities was $825.6 million for fiscal 2026, compared with $601.4 million for fiscal 2025.
- Purchases of property, plant, and equipment were $(77.7) million for fiscal 2026, compared with $(68.4) million for fiscal 2025.
- Free cash flow was $747.9 million for fiscal 2026, compared with $533.0 million for fiscal 2025.
Analysis
Acuity reported fiscal Q4 2026 net sales of $1,244.4 million, up 2.9%, with GAAP gross profit margin rising 490 bps to 53.8% and GAAP operating profit margin rising 330 bps to 18.2%. On an adjusted basis, gross profit margin increased 130 bps to 50.2% and operating profit margin increased 10 bps to 18.7%. Adjusted diluted EPS increased 11.0% to $5.77, while GAAP diluted EPS increased 56.0% to $5.63.
The growth mix was led by AIS. AIS fiscal Q4 sales increased 16.6% to $297.6 million, and adjusted operating profit increased 35.7% to $74.1 million. Its adjusted operating profit margin increased 350 bps to 24.9%. In contrast, ABL sales declined 0.4% to $958.7 million and adjusted operating profit declined 7.1% to $179.8 million. ABL's independent sales network grew 3.8%, but direct sales network revenue declined 24.2%.
For fiscal 2026, net sales increased 6.8% to $4,641.8 million and adjusted operating profit increased 7.8% to $828.7 million. AIS fiscal-year sales increased 44.8% to $1,106.6 million and adjusted operating profit increased 55.2% to $255.0 million. ABL fiscal-year sales decreased 1.0% to $3,576.4 million, while adjusted operating profit decreased 2.5% to $646.0 million. The company-wide adjusted operating profit margin nevertheless increased 20 bps to 17.9%.
Cash generation was strong. Fiscal 2026 net cash provided by operating activities increased 37.3% to $825.6 million, and free cash flow increased 40.3% to $747.9 million. The company repaid $200 million of its term loan, repurchased over 940,000 shares for $287.2 million, and increased its dividend by 18 percent. Cash and cash equivalents ended the year at $636.3 million, while long-term debt was $497.4 million.
Investors should distinguish reported results from underlying adjusted performance because tariff refunds of $44.9 million in fiscal Q4 and $51.3 million in fiscal 2026 were excluded from non-GAAP measures. Fiscal Q4 special charges were $17.8 million. No fiscal 2027 outlook was provided in the release, and the company stated that the reported financial results remain preliminary pending completion of the audit and filing of its Form 10-K.
Management, verbatim
We demonstrated solid execution in the fourth quarter of fiscal 2026. We grew sales and expanded our adjusted operating profit and adjusted operating profit margin. We increased our adjusted diluted earnings per share, generated strong cash flow and allocated capital effectively.
Neil Ashe, Chairman, President and Chief Executive Officer of Acuity Inc.
Throughout fiscal 2026 we strengthened Acuity Brands Lighting while continuing to scale Acuity Intelligent Spaces, building the operating and financial capacity needed to compound growth and value over time.
Neil Ashe, Chairman, President and Chief Executive Officer of Acuity Inc.
Not in the filing
stated, not guessed- Forward financial guidance was not provided.
- Previous-release outlook was not provided.
- Prior-quarter comparisons were not provided for reported metrics.
- Fiscal Q4 operating cash flow was not provided.
- Fiscal Q4 free cash flow was not provided.
- Income tax rate was not provided.
- Q4 and fiscal-year total debt were not printed as a single total line item.
- Fiscal Q4 basic earnings per share and weighted-average share count comparisons were not included in key metrics.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.