Acuity Inc. (NYSE: AYI) announced its financial results for the first quarter of fiscal year 2026 on Thursday, reporting substantial growth in revenues and adjusted earnings per share that surpassed analyst forecasts. The period saw total net sales reach $1.14 billion, marking a 20.2% increase compared to the same quarter last year, closely matching market consensus estimates.
Adjusted earnings per share reached $4.69, exceeding the anticipated $4.59 and reflecting solid operational performance across the company's key business divisions.
Segment Analysis
The company operates mainly through two business segments: Acuity Brands Lighting & Controls and Acuity Intelligent Spaces. The former focuses on commercial and architectural lighting products and control systems, while the latter delivers integrated solutions encompassing building management, HVAC, and audiovisual systems.
During the quarter, the Acuity Intelligent Spaces segment experienced exceptional growth, with revenues soaring by 250.2% year-over-year to $257.4 million. This marks a substantial acceleration relative to the prior year and highlights increasing adoption of smart building technologies. In contrast, the Lighting & Controls segment generated $895.1 million, registering a modest 1.0% increase compared to the previous period.
Profitability and Cash Flow
Operating margins remained resilient, with the overall operating margin holding steady at 14.0% year-over-year despite a 20.3% rise in operating profit. On an adjusted basis, consolidated operating margin expanded 50 basis points to 17.2%. Within segments, adjusted operating margin improved to 17.9% in Lighting & Controls, up 60 basis points, and to 22.0% in Intelligent Spaces, an increase of 100 basis points.
Adjusted EBITDA grew significantly to $211.2 million from $171.6 million a year earlier, representing a 50 basis point improvement in margin to 18.5%. Operating cash flow during the quarter totaled $140.8 million, underscoring the company's ability to generate cash from its operations.
Balance Sheet Activity
In terms of capital allocation, Acuity repurchased approximately 77,000 shares of common stock for around $28 million during the quarter. Additionally, the company reduced debt by repaying $100 million in term loan borrowings.
The cash and cash equivalents balance at the end of the quarter was $376.1 million as of November 30, 2025, down from $422.5 million reported as of August 31, 2025, reflecting the impact of share repurchases and debt repayments.
Market Performance
Shares of Acuity have appreciated by roughly 19% over the past twelve months. In pre-market trading on Thursday, the stock was up 1.43% at $364.50, approaching its 52-week high of $380.16, according to market data.
Conclusion
The robust performance in the Intelligent Spaces segment is the primary driver behind Acuity’s strong top-line growth and improved profitability in fiscal Q1 2026. While the Lighting & Controls division showed only slight revenue gains, margin improvements across both segments contributed to healthy earnings outcomes. The company’s cash flow generation and active balance sheet management through share repurchases and debt reduction reflect disciplined financial stewardship amid growth.
Investors should monitor the sustainability of the Intelligent Spaces sales trajectory and any potential market or operational challenges that could impact future performance.