Acuity Inc.

NYSE:AYI Stock Report

Market Cap: US$8.5b

Acuity Future Growth

Future criteria checks 1/6

Acuity is forecast to grow earnings and revenue by 10.9% and 4.7% per annum respectively. EPS is expected to grow by 10.5% per annum. Return on equity is forecast to be 14.7% in 3 years.

Key information

10.9%

Earnings growth rate

10.52%

EPS growth rate

Electrical earnings growth18.3%
Revenue growth rate4.7%
Future return on equity14.74%
Analyst coverage

Good

Last updated24 Apr 2026

Recent future growth updates

Recent updates

Narrative Update • May 11

AYI: Nonresidential Recovery And Second Half Seasonality Will Drive Future Upside

Acuity's analyst price target has been trimmed by several firms, with cuts ranging from $5 to $60. Analysts cite ongoing pressure in nonresidential activity and broader project uncertainty, even as some still point to potential upside if conditions improve later in the year.
Narrative Update • Apr 22

AYI: Nonresidential Recovery And Seasonal Strength Will Support Future Upside

The updated analyst price target for Acuity reflects a modest reduction of about $1, as analysts factor in slightly higher discount rates and a higher assumed future P/E, along with relatively steady revenue growth and profit margin expectations. Analyst Commentary Recent research commentary on Acuity clusters around revised price targets and cautious tweaks to earnings assumptions, with most analysts citing project uncertainty and pressure in nonresidential activity as key inputs to their models.
New Narrative • Apr 18

Intelligent Building Automation Will Anchor Margins While Supply Constraints Limit Upside Potential

Catalysts About Acuity Acuity provides lighting solutions and intelligent building and AV control systems across commercial, infrastructure and entertainment spaces. What are the underlying business or industry changes driving this perspective?
Narrative Update • Apr 08

AYI: Q1 Pullback Will Set Up Recovery As Nonresidential Activity Stabilizes

Analysts have trimmed the consolidated price target for Acuity to $353.75 from $389.38, reflecting updated views on slower revenue growth, a slightly lower discount rate, modestly higher profit margin assumptions, and reduced future P/E expectations after a series of recent target cuts across major research firms. Analyst Commentary Recent Street research on Acuity clusters around a series of price target cuts, with analysts recalibrating their models after Q1 results, shifting views on end markets, and updated assumptions on margins and valuation multiples.
New Narrative • Apr 04

Intelligent Building Platforms And Productivity Gains Will Drive Stronger Future Performance

Catalysts About Acuity Acuity develops lighting solutions and intelligent building and AV platforms through its Acuity Brands Lighting and Acuity Intelligent Spaces segments. What are the underlying business or industry changes driving this perspective?
Seeking Alpha • Apr 02

Acuity's Loss Makes Buying A Bright Idea (Upgrade)

Summary Acuity Inc. is upgraded from Hold to a very soft Buy after a 17% share price decline, making valuation more attractive. Despite Q2 revenue and earnings missing expectations, AYI delivered year-over-year growth in both, with notable strength in the Acuity Intelligent Spaces segment. Intelligent Spaces revenue surged 44.7% year-over-year, driven by the QSC acquisition and strong Distech product sales, offsetting weakness in the core lighting segment. AYI now trades at the low end of its historical valuation range and is cheaper than peers on P/E and EV/EBITDA metrics, supporting a cautious entry point. Read the full article on Seeking Alpha
Narrative Update • Mar 24

AYI: Q1 Pullback Will Set Up Recovery As Nonresidential Activity Improves

Narrative Update on Acuity Analysts have trimmed their average price target on Acuity by double digits in recent updates, with cuts such as $425 to $410, $408 to $375, and $385 to $370. These changes reflect softer margins in key segments, pressure in nonresidential activity, and lingering uncertainty around project timing and pricing power.
Narrative Update • Mar 10

AYI: Q1 Execution And Share Pullback Will Support Future Upside Potential

Acuity's analyst price targets have pulled back modestly, with the average fair value estimate easing by about $1.88 to $389.38. Analysts are factoring in softer nonresidential activity, questions around ABL segment margins and pricing power, and slightly tempered near term expectations despite recent earnings upside.
Narrative Update • Feb 23

AYI: Q1 Execution And Pullback Will Support Future Shareholder Returns

Narrative update on Acuity Analysts have trimmed their average price targets for Acuity, with recent revisions such as $425 to $410 and $408 to $375. These changes reflect concerns around softer ABL segment margins, potential Q1 pull forward, and pricing power, even as Q1 results came in ahead of expectations.
Narrative Update • Feb 09

AYI: Q1 Execution And Pullback Will Support Future Dividend Upside

Narrative Update The analyst price target for Acuity has been trimmed by a double digit dollar amount, reflecting revised Street models after Q1 results that showed softer ABL margins and concerns around pull forward and pricing power, even as some analysts still view the recent 13% share pullback as an attractive entry point. Analyst Commentary Recent Street commentary on Acuity focuses on how to balance the Q1 headline EPS beat with weaker ABL margins, questions around demand timing, and the reset in price targets following the 13% share pullback.
Narrative Update • Jan 26

AYI: Q1 Execution And Buybacks Will Support Future Dividend Upside

Narrative Update on Acuity The consolidated analyst price target for Acuity has been trimmed by $15 to $391, as analysts factor in softer ABL segment margins, concerns around Q1 pull forward and pricing power, and an unchanged forward earnings outlook following the recent 13% share move. Analyst Commentary Recent research updates on Acuity focus on how the latest fiscal Q1 results, margin trends in the ABL segment, and the post earnings share move relate to valuation and execution risk.
Narrative Update • Jan 11

AYI: Q1 Execution And Ongoing Buybacks Will Support Future Upside Potential

Narrative Update on Acuity The analyst price target for Acuity has been reduced from US$399.25 to US$391.25, as analysts factor in more moderate revenue growth and profit margin assumptions alongside a slightly higher discount rate, consistent with recent Street research updates that trimmed targets following Q1 results. Analyst Commentary Recent Street research on Acuity points to a mixed but measured view, with analysts adjusting their models after Q1 results came in modestly ahead of expectations while overall sentiment stayed cautious.
Analysis Article • Jan 05

Here's What To Make Of Acuity's (NYSE:AYI) Decelerating Rates Of Return

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Amongst other things...
Narrative Update • Dec 17

AYI: Margin Strength And Pricing Power Will Support Upside Despite Volume Headwinds

Analysts have raised their blended price target for Acuity to a range of approximately $360 to $425 per share, citing stronger than expected margin performance, improved pricing power, and conservative growth assumptions that could benefit from potential interest rate cuts. Analyst Commentary Recent Street research reflects a generally constructive tone on Acuity, with multiple firms lifting price targets to align with stronger execution and margin performance.
Narrative Update • Dec 02

AYI: Margin Leadership And Cost Controls Will Support Stability Despite Volume Risks

Analysts raised their price targets for Acuity by as much as $60 per share. They cited improved margins, ongoing pricing power, and better-than-expected cost management as key drivers behind the more bullish outlook.
Narrative Update • Nov 18

AYI: Margin Expansion and Pricing Power Will Drive Upside Amid Market Volatility

Analyst price targets for Acuity have increased significantly, rising as much as $60. This is based on strong gross margin performance, improved productivity, and expectations that cost efficiencies and potential market tailwinds could drive further upside.
Analysis Article • Nov 17

Why Acuity Inc. (NYSE:AYI) Could Be Worth Watching

Let's talk about the popular Acuity Inc. ( NYSE:AYI ). The company's shares saw a double-digit share price rise of over...
Narrative Update • Nov 01

AYI: Margin Expansion And Operational Efficiencies Will Support Balanced Outlook

Acuity's analyst price target has risen significantly, as the consensus reflects improved margin performance and ongoing cost efficiencies. These factors have prompted analysts to raise estimates by as much as $60 per share based on recent strong quarterly results and expectations for continued productivity gains.
Narrative Update • Oct 18

Electronics Investments And QSC Acquisition Will Expand Global Reach

Acuity’s analyst price target has increased from $385.50 to $399.25 as analysts cite strong margin performance, improved pricing power, and disciplined cost management as key drivers for this upward revision. Analyst Commentary Recent analyst commentary on Acuity highlights both positive momentum and areas of caution as the company continues to navigate changing market conditions.
Narrative Update • Oct 03

Electronics Investments And QSC Acquisition Will Expand Global Reach

Acuity's analyst price target has increased significantly from $340.88 to $385.50 per share, as analysts cite strong margin performance and improved pricing power, which are driving heightened expectations for the company. Analyst Commentary Bullish Takeaways Bullish analysts have raised their price targets for Acuity, reflecting greater confidence in the company’s valuation because of strong gross margin performance and cost management.
Analysis Article • Sep 24

Acuity (NYSE:AYI) Could Easily Take On More Debt

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Analysis Article • Sep 07

Investors Met With Slowing Returns on Capital At Acuity (NYSE:AYI)

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Typically, we'll...
Narrative Update • Sep 03

Electronics Investments And QSC Acquisition Will Expand Global Reach

Analysts have raised Acuity’s price target to $340.88, citing notably strong Q4 gross margin performance and improving Q3 lighting sales, though continued macroeconomic uncertainty keeps some ratings cautious. Analyst Commentary Q4 gross margin performance has been notably strong, though analysts note Q3 set a high comparative benchmark.
Analysis Article • Aug 01

Acuity Inc.'s (NYSE:AYI) Share Price Matching Investor Opinion

With a price-to-earnings (or "P/E") ratio of 23.5x Acuity Inc. ( NYSE:AYI ) may be sending bearish signals at the...
Analysis Article • Jul 11

Is Now An Opportune Moment To Examine Acuity Inc. (NYSE:AYI)?

While Acuity Inc. ( NYSE:AYI ) might not have the largest market cap around , it led the NYSE gainers with a relatively...
Analysis Article • Jun 15

Is There An Opportunity With Acuity Inc.'s (NYSE:AYI) 22% Undervaluation?

Key Insights Using the 2 Stage Free Cash Flow to Equity, Acuity fair value estimate is US$341 Acuity is estimated to be...
Seeking Alpha • Apr 01

Acuity Brands: A Bright Spot In A Market Pullback

Summary Acuity Brands has improved margins and seen sound capital allocation, positioning it for growth in 2025. The acquisition of QSC LLC enhances Acuity's market position, with pro forma sales projected around $4.5 billion and earnings between $17-$18 per share. First quarter 2025 results show modest sales growth and improved margins, with full-year guidance aligning with expectations despite economic uncertainties. Current valuation multiples are attractive, trading at 15–16 times adjusted earnings, making Acuity shares compelling for cautious, small-stake investments. Read the full article on Seeking Alpha
Seeking Alpha • Jan 12

Acuity Brands Inc.: Stay Bullish As Growth Should Turn Better

Summary I maintain a buy rating on Acuity Brands Inc. due to strong growth prospects in both ABL and ISG segments, supported by positive demand indicators. 1Q25 results showed 2% y/y revenue growth to $952 million, driven by ABL's stable performance and ISG's 15% y/y growth, with notable margin expansion. Easing interest rates and a robust non-residential construction pipeline, evidenced by the Dodge Momentum Index, bolster ABL's growth outlook for FY25. ISG's growth is fueled by escalating AI infrastructure demand, with significant investments from big tech, ensuring sustained revenue and margin improvements. Read the full article on Seeking Alpha
Seeking Alpha • Dec 15

Acuity Brands: Putting Itself In The Spotlight

Summary Acuity Brands has shown strong margin growth and prudent capital allocation, despite modest sales growth. The company's core ABL segment has improved margins, while the smaller ISG segment is the main growth driver with doubled revenues in four years. The recent acquisition of QSC, LLC for $1.1 billion is expected to boost sales and EBITDA, making a forward earnings multiple of 17-18 times realistic. Despite a solid track record and potential earnings growth, I remain cautious due to past volatility and recent rapid share price increase. Read the full article on Seeking Alpha
Seeking Alpha • Oct 09

Acuity Brands: Growth Is Finally Coming Back Online

Summary I reiterate my buy rating for Acuity Brands, Inc. due to expected near-term growth supported by strong data points and a solid balance sheet. AYI's 4Q24 results showed revenue of $1.03 billion, driven by growth in ABL and ISG segments, with strong gross and adj EBIT margins. Favorable macroeconomic trends and rising demand for data centers are expected to drive AYI's growth, supported by a robust cash position for strategic investments. Read the full article on Seeking Alpha
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New Narrative • Oct 07

Elevating Service And Expanding Verticals Poised To Boost Growth And Margins

Acuity Brands' focus on technology and operational streamlining is poised to enhance revenue growth and operational margins across sectors.
Seeking Alpha • Sep 22

Acuity Brands: Inching Closer To An Upgrade As Earnings Near

Summary Acuity Brands' revenue continues to decline, but bottom line metrics like net income and EBITDA show improvement, driven by a strong net cash position. Despite better-than-expected earnings, the stock is down 2.3% while the S&P 500 is up 9.3%, and the firm offers limited upside potential at current valuations. The company is rewarding shareholders through dividends and significant stock buybacks, enhancing shareholder value. I maintain a 'hold' rating, but could upgrade if shares get cheaper or management provides strong guidance for the 2025 fiscal year. Read the full article on Seeking Alpha

Earnings and Revenue Growth Forecasts

NYSE:AYI - Analysts future estimates and past financials data (USD Millions)
DateRevenueEarningsFree Cash FlowCash from OpAvg. No. Analysts
8/31/20285,1236017328216
8/31/20274,8635486607659
8/31/20264,6264925676499
2/28/20264,587430558640N/A
11/30/20254,538410535610N/A
8/31/20254,346397533601N/A
5/31/20254,169402506573N/A
2/28/20253,958417455518N/A
11/30/20243,858429493561N/A
8/31/20243,841423555619N/A
5/31/20243,819387492552N/A
2/29/20243,851378504564N/A
11/30/20233,889372518582N/A
8/31/20233,952346511578N/A
5/31/20234,052379556622N/A
2/28/20234,112379427495N/A
11/30/20224,078371354419N/A
8/31/20224,006384260316N/A
5/31/20223,889367207258N/A
2/28/20223,728347277323N/A
11/30/20213,595334327369N/A
8/31/20213,461306365409N/A
5/31/20213,360282396443N/A
2/28/20213,236257452503N/A
11/30/20203,284251444499N/A
8/31/20203,326248450505N/A
5/31/20203,373271510561N/A
2/29/20203,545299468521N/A
11/30/20193,575308N/A493N/A
8/31/20193,673330N/A495N/A
5/31/20193,796343N/A364N/A
2/28/20193,792327N/A362N/A
11/30/20183,770358N/A344N/A
8/31/20183,680350N/A352N/A
5/31/20183,577332N/A438N/A
2/28/20183,524341N/A424N/A
11/30/20173,497312N/A421N/A
8/31/20173,505322N/A337N/A
5/31/20173,473314N/A300N/A
2/28/20173,433306N/A316N/A
11/30/20163,406304N/A350N/A
8/31/20163,291290N/A388N/A
5/31/20163,125267N/A375N/A
2/29/20162,958258N/A333N/A
11/30/20152,796239N/A293N/A
8/31/20152,707221N/A289N/A
5/31/20152,616216N/A263N/A

Analyst Future Growth Forecasts

Earnings vs Savings Rate: AYI's forecast earnings growth (10.9% per year) is above the savings rate (3.5%).

Earnings vs Market: AYI's earnings (10.9% per year) are forecast to grow slower than the US market (16.8% per year).

High Growth Earnings: AYI's earnings are forecast to grow, but not significantly.

Revenue vs Market: AYI's revenue (4.7% per year) is forecast to grow slower than the US market (11.7% per year).

High Growth Revenue: AYI's revenue (4.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: AYI's Return on Equity is forecast to be low in 3 years time (14.7%).

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/05/18 21:13
End of Day Share Price 2026/05/15 00:00
Earnings2026/02/28
Annual Earnings2025/08/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

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Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Acuity Inc. is covered by 26 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Timothy WojsBaird
John QuealyCanaccord Genuity
Joseph OshaCitizens JMP Securities, LLC