Avery Dennison Reports 10.9% Revenue Growth to $2.46 Billion in Q2 2026

Avery Dennison Corporation reported significant financial performance improvements in its fiscal second quarter of 2026, with net sales reaching $2.46 billion, a 10.9% increase from $2.22 billion in the same period last year. For the first half of 2026, net sales totaled $4.76 billion, up 9% from $4.37 billion in the prior year. The company’s net income also rose, amounting to $204.1 million for the second quarter, compared to $189 million in the previous year, while year-to-date net income increased to $372.2 million from $355.3 million.

The company experienced a notable increase in gross profit, which reached $729.4 million for the second quarter, up from $639.1 million a year earlier. This growth was attributed to higher sales volumes, productivity initiatives, and favorable foreign currency translation, although it was partially offset by unfavorable product mix and increased employee-related costs. Marketing, general, and administrative expenses also rose to $394.8 million from $352.4 million, primarily due to higher employee costs and growth investments.

Avery Dennison's operational metrics showed positive trends, with the Materials Group reporting net sales of $1.80 billion, a 15.9% increase year-over-year, while the Solutions Group saw a slight decline in sales to $666.8 million. The company’s restructuring actions, which included a reduction of approximately 600 positions, resulted in $34.7 million in charges during the first half of 2026. The company also made a strategic investment of approximately $75 million in Wiliot Ltd., a firm specializing in physical artificial intelligence for supply chains, which is expected to enhance its technology portfolio.

The company’s balance sheet reflected a total asset increase to $9.21 billion as of June 30, 2026, up from $8.80 billion at the end of 2025. Cash and cash equivalents rose to $227.3 million, while total debt decreased slightly to $3.68 billion. Avery Dennison maintained a strong liquidity position, with no outstanding balance under its $1.20 billion revolving credit facility. The company anticipates continued growth driven by favorable foreign currency impacts, productivity improvements, and the normalization of prior-year cost-saving measures, although it also expects higher interest expenses and a full-year effective tax rate in the high-twenty percent range.