Filing update · Acuity (AYI)

Acuity's record year rests on Intelligent Spaces while its lighting core shrinks

Acuity's fiscal 2026 sales rose 6.8% to $4.64 billion and diluted EPS 36.1% to $17.05, with operating cash flow up to $825.6 million. Underneath, lighting sales fell in each of the last two reported quarters, most of the GAAP profit jump reflects last year's acquisition charges rolling off, and about half its products are made in Mexico just as the U.S. declined to renew the USMCA.

Published
October 24, 2026
Data through
August 31, 2026
Latest filing used
October 23, 2026
Key numbers
Net sales, FY26
$4.64B
Up 6.8% [1]
Diluted EPS, FY26
$17.05
Up 36.1% from $12.53 [1]
Operating cash flow
$825.6M
From $601.4 million [1]
Made in Mexico
~49%
Of finished products [1]
What changed

Acuity, the lighting and building technology company, closed fiscal 2026 with record sales, earnings and cash flow, according to its annual report filed on October 23. The segment detail shows where that growth comes from.

  • Net sales rose 6.8% to $4,641.8 million [1].
  • Operating profit rose 26.6% to $713.7 million, and diluted EPS 36.1% to $17.05 [1].
  • Intelligent Spaces sales rose 44.8% for the year [1], helped by the QSC acquisition.
  • Cash: operating cash flow reached $825.6 million, and Acuity bought back $289.5 million of stock [1].
  • Debt was $697.4 million at year-end [1].
The trajectory

Quarterly sales dipped in the middle of the year and recovered by the fourth quarter.

Charts: net sales
Net sales
$0M$500M$1,000M$1,500MQ4 FY25: $1,209M$1,209MQ4FY25Q1 FY26: $1,144MQ1FY26Q2 FY26: $1,056MQ2FY26Q3 FY26: $1,198MQ3FY26Q4 FY26: $1,244M (calculated)$1,244M*Q4FY26

Net sales by fiscal quarter; Acuity's fiscal year ends on August 31. * Q4 FY26 is the full-year figure less the first three quarters (calculated). Hover over or tab to a column for its value.

The numbers and their sources
Quarter Net sales
Q4 FY25 $1,209.1M [9]
Q1 FY26 $1,143.7M [6]
Q2 FY26 $1,055.7M [4]
Q3 FY26 $1,198.0M [2]
Q4 FY26 $1,244.4M (calculated)

Q4 FY26 is full-year net sales of $4,641.8 million [1] less the three quarters above (calculated).

Two segments, two directions

Lighting shrank while Intelligent Spaces grew.

Chart: Net sales by segment, third quarter
Net sales by segment, third quarter
$0M$250M$500M$750M$1BAcuity Brands Lighting: Q3 FY25 $923M, Q3 FY26 $905M$905MAcuity Brands LightingIntelligent Spaces: Q3 FY25 $264M, Q3 FY26 $304M$304MIntelligent Spaces
As Acuity reported them [2]. The QSC acquisition was in both periods.
Show the numbers
ItemQ3 FY25Q3 FY26
Acuity Brands Lighting$923M$905M
Intelligent Spaces$264M$304M
GAAP and adjusted profit

The gap between GAAP and adjusted profit narrowed sharply as acquisition costs rolled off.

Chart: Third-quarter operating profit, GAAP against adjusted
Third-quarter operating profit, GAAP against adjusted
$0M$100M$200M$300MGAAP: Q3 FY25 $140M, Q3 FY26 $193M$193MGAAPAdjusted: Q3 FY25 $222M, Q3 FY26 $224M$224MAdjusted
As reported [2]. Adjusted operating profit is a non-GAAP measure that excludes acquisition-related and other items.
Show the numbers
ItemQ3 FY25Q3 FY26
GAAP$140M$193M
Adjusted$222M$224M
Debt paid down

Acuity cut debt by about $200 million over the year (calculated).

Chart: Outstanding debt
Outstanding debt
$0M$250M$500M$750M$1BAug 2025: $897M$897MAug 2025Nov 2025: $797M$797MNov 2025Feb 2026: $697M$697MFeb 2026Aug 2026: $697M$697MAug 2026
As reported [8] [7] [5] [1].
Show the numbers
ItemQuarter end
Aug 2025$897M
Nov 2025$797M
Feb 2026$697M
Aug 2026$697M
Anomalies worth a closer look

Five things in the filings that change how the record year should be read.

Anomalies (5)
Two ways to read it

The same filings support two different conclusions. We set out both; this is not a view on whether to buy or sell the stock.

The two readings

The case that Acuity is becoming an industrial technology company

On this reading the shift to building technology is working and cash generation is excellent.

  1. 01
    Strong cash flow
    Operating cash flow rose $224.2 million to $825.6 million [1].
  2. 02
    Debt is down
    Debt fell to $697.4 million from $896.8 million a year earlier [1] [8].
  3. 03
    Buybacks stepped up
    Acuity repurchased about 0.9 million shares for $289.5 million in fiscal 2026, against $117.1 million a year earlier [1].
  4. 04
    Investing in R&D
    R&D rose to $165.6 million from $140.2 million [1].
  5. 05
    Intelligent Spaces is growing
    The segment grew 14.9% organically in the third quarter [2].

The case that the core is stalling and trade risk is rising

On this reading the headline growth hides a declining lighting business and new exposure to North American trade policy.

  1. 01
    Lighting is declining
    Lighting sales fell in both the second and third quarters [4] [2].
  2. 02
    Flat adjusted profit
    Third-quarter adjusted operating profit rose only 0.8% [2].
  3. 03
    Trade exposure
    About 49% of products are made in Mexico [1], and USMCA's future is uncertain [1].
  4. 04
    Construction-driven demand
    Demand depends on non-residential construction activity [1], which higher interest rates can slow [1].
  5. 05
    Component costs
    Shortages of microchips and electronics have raised prices and logistics costs [1].
Hypotheses: short, medium and long term

Testable statements, each with what would support or contradict it and when the next evidence arrives. Thresholds marked "our marker" are ours, not Acuity's.

Hypotheses (3)
  1. Short termH1
    Next quarter: Q1 FY27 results

    Lighting sales stop falling

    Lighting fell 2.8% and 1.9% in the last two reported quarters [4] [2].
    What would support it
    Acuity Brands Lighting sales flat or higher year on year, with adjusted margin at or above 18.7% [2].
    What would contradict it
    A third straight quarter of lighting decline.
    Next check: Q1 FY27 results, likely early January 2027 (last year's came on January 8 [6]).
  2. Medium termH2
    Fiscal 2027

    Intelligent Spaces keeps growing in double digits organically

    Organic growth was 14.9% in the third quarter [2].
    What would support it
    Intelligent Spaces growth above 10% (our marker) each quarter with no new large acquisition.
    What would contradict it
    Segment growth slowing to single digits.
    Next check: Each quarterly report in fiscal 2027.
  3. Long termH3
    Three years and more

    Acuity absorbs a tougher North American trade regime

    The USMCA now faces yearly reviews [1], with about 49% of products made in Mexico [1].
    What would support it
    Margins holding through any tariff changes, helped by pricing or production shifts.
    What would contradict it
    A U.S. withdrawal from USMCA or new tariffs that compress margins.
    Next check: Each annual report and trade policy developments.
Risks and contrary evidence
  • Trade. Trade disputes or a U.S. withdrawal from USMCA could hurt results [1].
  • Construction cycle. Demand depends on non-residential construction [1].
  • Supply chain. Component shortages have raised costs [1].
  • Product liability. Acuity could be liable if its products cause harm [1].
  • Taxes. Unfavourable tax interpretations could raise its effective rate [1].
What would change the view
  • Lighting sales returning to growth.
  • Adjusted operating profit growing faster than sales again.
  • Clarity on USMCA that removes the trade overhang.
Next check

First-quarter fiscal 2027 results. Last year's came on January 8, 2026 [6], so expect the next update in early January 2027.

How this report was made

Every figure comes from Acuity's own SEC filings, listed below; no market prices or third-party data were used. Statements were extracted from the filings with the help of an AI model, each quoted passage was matched against the filing text, and this report was written by Claude (Anthropic) from that evidence. Every figure was checked against the quoted filing text before publication. Figures marked "calculated" are simple arithmetic on reported numbers.

AI-Inflect screen

The deterministic screen's current reading for this company, market data through October 23, 2026. It is separate from the filing analysis above and can change daily; it is not a view on the stock. Open in AI-Inflect

Stage and setup
Stage
Watch
Fundamentals
Improving
Inflection type
Multi factor inflection
Technical setup
Base building
Sector
Industrials materials
Condition matrix · 6 true, 11 false, 0 unknown
  • Revenue growth positiveTrue
  • Revenue growth improvingFalse
  • Revenue growth acceleratingFalse
  • Revenue zero-crossing (loss→growth)False
  • Revenue improved 2 straight qtrsFalse
  • Revenue improved 3 straight qtrsFalse
  • Revenue improved 4 straight qtrsFalse
  • EPS improvingTrue
  • EPS loss→profit crossingFalse
  • Earnings acceleratingFalse
  • Gross margin expandingTrue
  • Operating margin expandingTrue
  • Operating leverageFalse
  • FCF improvingTrue
  • FCF negative→positive crossingFalse
  • FCF margin expandingTrue
  • Cash conversion improvingFalse
Sources

Company filings with the U.S. Securities and Exchange Commission (SEC).

  1. [1]Annual report for fiscal 2026 · Form 10-K, filed October 23, 2026 · accession 0001144215-26-000052
  2. [2]Third-quarter fiscal 2026 earnings release · Form 8-K, filed June 25, 2026 · accession 0001144215-26-000038
  3. [3]Quarterly report, quarter ended May 31, 2026 · Form 10-Q, filed June 25, 2026 · accession 0001144215-26-000036
  4. [4]Second-quarter fiscal 2026 earnings release · Form 8-K, filed April 2, 2026 · accession 0001144215-26-000023
  5. [5]Quarterly report, quarter ended February 28, 2026 · Form 10-Q, filed April 2, 2026 · accession 0001144215-26-000021
  6. [6]First-quarter fiscal 2026 earnings release · Form 8-K, filed January 8, 2026 · accession 0001144215-26-000012
  7. [7]Quarterly report, quarter ended November 30, 2025 · Form 10-Q, filed January 8, 2026 · accession 0001144215-26-000010
  8. [8]Annual report for fiscal 2025 · Form 10-K, filed October 27, 2025 · accession 0001144215-25-000082
  9. [9]Fourth-quarter fiscal 2025 earnings release · Form 8-K, filed October 1, 2025 · accession 0001144215-25-000076

This report is general information and education, not a recommendation to buy or sell any security and not personalised financial advice. It follows our editorial principles: every figure traces to the sources above, and figures we calculated are marked as such.

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