Acuity Brands Inc. (NYSE:AYI) reported better-than-expected first-quarter fiscal 2026 results on Thursday, supported by robust revenue growth and improving margins across the business.
For the quarter ended November 30, 2025, the group delivered adjusted earnings of $4.69 per share, topping the analyst consensus of $4.58. Revenue rose 20.2% year on year to $1.14 billion, broadly in line with market expectations. Despite the solid performance, Acuity Brands shares edged down 0.27% following the announcement.
Growth was driven primarily by the Acuity Intelligent Spaces (AIS) division, where sales surged 250.2% to $257.4 million. By contrast, the Acuity Brands Lighting segment recorded more modest growth, with revenue increasing 1% to $895.1 million.
Commenting on the quarter, chairman, president and chief executive officer Neil Ashe said: “We delivered strong performance in our first quarter of fiscal 2026.” He added: “We grew net sales, we expanded our adjusted operating profit and adjusted operating profit margin, and we increased our adjusted diluted earnings per share.”
Adjusted operating profit increased 23.7% to $196.3 million, while adjusted operating margin improved by 50 basis points to 17.2%. The company generated $140.8 million in operating cash flow during the quarter and repurchased approximately 77,000 shares for about $28 million.
Acuity Brands also strengthened its balance sheet, repaying $100 million of term-loan borrowings over the period as part of its capital allocation strategy.
At segment level, AIS delivered notable margin expansion, with adjusted operating profit margin rising 100 basis points to 22.0%. The lighting business also saw margin improvement, with adjusted operating margin increasing by 60 basis points to 17.9%.