Avery Dennison Reports Strong Q3 Revenue Growth Amid Cost Cuts, Innovation

Avery Dennison reported Q3 2025 revenue of $2.22 billion, matching analyst expectations, with adjusted EPS of $2.37 surpassing estimates. Despite flat organic revenue and slower sales growth in some segments, the company saw strong performance in its Solutions Group, particularly in high-value and intelligent labels, which helped offset weaker areas. Inflation and tariffs prompted price increases to maintain margins, while cost efficiencies and productivity gains further supported profitability. The company maintains a solid financial position with a strong balance sheet, efficient operating margins, and a positive outlook, projecting Q4 adjusted EPS between $2.35 and $2.45 in line with analyst expectations. Avery Dennison also expanded through the acquisition of Meridian Adhesives Group's flooring adhesives business and launched RFID sensor labels for fresh food in partnership with Walmart to enhance inventory accuracy and reduce waste. Overall, investors remain optimistic, with most analysts rating the stock as a 'buy' or 'strong buy,' reflecting confidence in the company's strategic focus on innovation and growth in high-margin categories.