Avery Dennison Posts Higher Revenue, Net Income, and Diluted EPS on Both Quarter and Six-Month Views

Bottom line

- Bottom line: Avery Dennison Corp reported higher revenue, higher net income, and higher diluted earnings per share on both the three-month reporting period and the six-month year-to-date period than in the prior-year comparative, with the reported values lifted off a profit base in both the current and prior periods. - Filing identity: the source is the registrant's Quarterly Report on Form 10-Q for fiscal period period-ended-2026-06-30, filed by the company identified under Avery Dennison Corp (ticker AVY, CIK 0000008818, accession 0000008818-26-000131).

The unaudited Condensed Consolidated Financial Statements and related notes are presented as permitted by Regulation S-X and have been read in conjunction with the cited Annual Report on Form referenced in the same narrative. - Reporting periods covered: the analysis addresses the three-month reporting period the three months ended June 30, 2026 with its prior-year comparative the three months ended June 28, 2025, and the six-month year-to-date period the six months ended June 30, 2026 with its prior-year comparative the six months ended June 28, 2025.

- Revenue from Contract with Customer, Excluding Assessed Tax: the six-month year-to-date period the six months ended June 30, 2026 of $4,761,400,000 USD was higher than the prior-year comparative of $4,368,800,000 USD for the six months ended June 28, 2025; the three-month reporting period the three months ended June 30, 2026 of $2,462,900,000 USD was higher than the prior-year comparative of $2,220,500,000 USD for the three months ended June 28, 2025. - Net Income (Loss) Attributable to Parent: the six-month year-to-date period the six months ended June 30, 2026 of $372,200,000 USD was higher than the prior-year comparative of $355,300,000 USD for the six months ended June 28, 2025; the three-month reporting period the three months ended June 30, 2026 of $204,100,000 USD was higher than the prior-year comparative of $189,000,000 USD for the three months ended June 28, 2025.

Both the current and prior periods were profitable. 41 per diluted share USD/SHARES for the three months ended June 28, 2025. Both the current and prior periods were profitable on a diluted basis.

- Source scope and limits: the quoted filing narrative is the Safe Harbor Statement and General introduction only; per-share and net-income values cited above are sourced from the cited notes (including note seven on Net Income Per Common Share). Peer benchmarking is not present in the evidence. The filing evidence contains no peer or industry comparison.

The narrative identifies forward-looking risk topics such as global economic conditions, tariffs, geopolitical uncertainty, raw-material costs, foreign currency fluctuations, and acquisition execution, but no single cause is attributed to the higher year-over-year figures shown. The filing evidence does not attribute this change to any single cause. - Counter-evidence and unknowns: no line items in the evidence contradict the higher direction reported above; the unaudited interim statements are expressly noted as not necessarily indicative of the full-year outcome, and any causal driver for the improvements is not stated.

The filing evidence does not attribute this change to any single cause. - Related reading: investors tracking interim filings for similar setups can also review Ares Management's Interim Filing Shows Higher Revenue and Higher Profit on Both Quarter and Year-to-Date Views and Broadcom Posts Higher Revenue, Operating Income, and Diluted EPS Year-Over-Year in the reporting period Filing for additional same-direction interim examples.

Financial performance

- The interim filing from Avery Dennison Corp on 10-Q for period-ended-2026-06-30 (accession 0000008818-26-000131, CIK 0000008818, ticker AVY) presents unaudited results permitted under Article (omitted) of Regulation S-X, with all adjustments described as normal and recurring and interim results explicitly noted as not necessarily indicative of the full-year outcome. - Reported accounting context points to current estimates and assumptions affecting both balance-sheet measurements and period sales and expenses, alongside fair-value inputs classified at Level 2 for long-term debt estimation, with goodwill and intangibles activity disclosed in Note 2, debt detail in Note 3, and tax disclosures in Note 6.

- Restructuring activity described in Note 4 reflects severance and related costs tied to a reduction of roughly the headcount figure cited in that note, with asset impairment measured at estimated market value less selling costs and charges recorded in "Other expense (income), net"; risk-management instruments and hedges are summarized in Note 5, with the tax provision for the six-month period incorporating a discrete charge tied to a foreign-jurisdiction court ruling on tax group requirements. 41 per diluted share USD/SHARES, with each line remaining in profit.

5 per diluted share USD/SHARES, with each line remaining in profit. - The filing evidence does not attribute this change to any single cause.. - The filing evidence does not provide quarter-over-quarter sequential comparisons or management quantitative guidance ranges for the next period; readers looking for a quarter-vs-prior-quarter trajectory or forward EPS or revenue targets will not find them in this filing.

- The filing evidence contains no peer or industry comparison, so relative positioning against sector benchmarks cannot be asserted from this filing alone. - For cross-issuer context on interim revenue and earnings direction, see Ares Management's Interim Filing Shows Higher Revenue and Higher Profit on Both Quarter and Year-to-Date Views, which describes a similarly directional quarter and year-to-date pattern in another issuer's interim filing.

Operating drivers and segments

The reported revenue figure for the three-month reporting period is $2,462,900,000, and the reported revenue figure for the six-month year-to-date period is $4,761,400,000. The prior-year comparatives reported on the same line are $2,220,500,000 for the three-month view and $4,368,800,000 for the six-month view. On both views, the current period is higher than the prior period; the quarter rises against the three months ended June 28, 2025 and the year-to-date rises against the six months ended June 28, 2025. The catalog does not break this consolidated revenue into the reportable segments shown in Note 2 (goodwill movements by segment) or in Note 4 (restructuring charges by segment), so segment-level revenue, volume, and margin drivers cannot be quantified from the filing evidence. The presence of goodwill-by-segment and restructuring-by-segment tables implies that the company continues to manage discrete reportable segments and Corporate separately, but the magnitude and direction of their individual contributions to the consolidated revenue change are not in the catalog. Likewise, no segment-level operating margin, gross margin, or fixed-cost absorption is disclosed in the available keys. The reported revenue is therefore the only quantified operating driver supplied to this section.

The safe-harbor narrative accompanying this filing enumerates the risk factors management views as most likely to affect near-term results: global economic conditions, tariffs, and geopolitical uncertainty; competitors' pricing and expansion moves; raw-material cost and availability; the company's ability to offset higher costs through productivity and pricing without significant volume loss; foreign currency fluctuations; and the execution and integration of acquisitions. These are framed as forward-looking exposures rather than as a quantified attribution of the period-on-period revenue change. The same passage also flags risk-factor families carried over from prior filings — international operations, the underlying business, information technology, income taxes, human capital, indebtedness, stock ownership, legal and regulatory matters, and other financial matters such as pension costs and goodwill impairment — and points readers to the Risk Factors and MD&A sections of the prior Annual Report on Form 10-Q for fuller context. Management does not, within the quoted narrative, state which of these factors drove the year-on-year revenue movement, nor does it quantify pricing, volume, mix, currency translation, or acquisition contribution.

Independent analysis against the filing evidence is therefore limited. The catalog supports only the direction of change — consolidated revenue is higher in both the quarter and the six-month year-to-date period relative to the prior-year comparables — and does not support any causal decomposition. The goodwill-by-segment table in Note 2 and the restructuring-by-segment table in Note 4 indicate where balance-sheet and cost-rationalisation activity is concentrated, but neither supplies a revenue or profitability figure that would let a reader translate those segment movements into a margin outcome. The filing evidence does not attribute this change to any single cause.

Cash flow and capital

- On the operating side, Net Cash Provided by (Used in) Operating Activities was positive for both the six-month year-to-date period and the prior-year comparative, and the current-period figure is higher than the prior period. - On the investing side, Net Cash Provided by (Used in) Investing Activities was negative in both the current six-month year-to-date period and the prior-year comparative, and the outflow is larger than in the prior period. - On the financing side, Net Cash Provided by (Used in) Financing Activities was negative in both the current six-month year-to-date period and the prior-year comparative, and the outflow is smaller than in the prior period.

- Within those financing outflows, Payments of Ordinary Dividends, Common Stock were positive in both the current six-month year-to-date period and the prior-year comparative, with the current payment higher than the prior payment. - Payments for Repurchase of Common Stock were positive in both the current six-month year-to-date period and the prior-year comparative, and the current figure is lower than the prior period. - Payments to Acquire Property, Plant, and Equipment were positive in both the current six-month year-to-date period and the prior-year comparative, and the current figure is higher than the prior payment, consistent with the widening net investing outflow.

- The balance sheet at the cited date shows Cash and Cash Equivalents, at Carrying Value, alongside Accounts Receivable, after Allowance for Credit Loss, Current, and Accounts Payable, Current, each stated at the same reporting date. - The filing's derivative disclosures describe fair value hedges on euro-denominated debt, cash flow hedges on forecasted commodity purchases and certain foreign currency forecast transactions, and net investment hedges using foreign currency contracts, zero-cost collars, and cross-currency swap contracts; the impact of the foreign currency exchange contracts used to offset receivables, payables, loans and firm commitments was not material to the financial statements for the three and six months covered.

- The income tax discussion references a net discrete charge from increases in tax reserves linked to a foreign-jurisdiction court ruling on tax group requirements, a separate net tax charge tied to global intangible low-taxed income and foreign withholding taxes partially offset by foreign-derived intangible income benefit, and a discrete benefit from decreases in certain tax reserves including interest and penalties as tax years close; a separate discrete benefit from a favorable foreign tax ruling on interest deductibility is also noted.

- The provision discussion also flags that the amount of income taxes paid is subject to ongoing audits in multiple jurisdictions, and that final audit or legal-proceeding outcomes could differ materially from current reserves. - Stock-based compensation awards excluded from the per-share computation are referenced for both the three-month and six-month periods, with treasury-stock gains or losses flowing through retained earnings based on grant-date fair value of vesting awards. - Crypto assets are described as not material to the unaudited Condensed Consolidated Financial Statements, with cross-reference to the cited note on Financial Instruments.

Peer and historical context

- Revenue, net income, and operating cash flow are the three dimensions where the filing gives both current and prior-year figures, so the historical comparison can be drawn on the same lines management reports rather than on proxies. - The authorised direction for each of those lines is upward on a year-over-year basis, and the transitions stay in the same category (profit to profit on the income lines, positive to positive on cash flow), so the reading is one of a larger top line, a larger bottom line, and a larger operating cash take — a coherent improvement rather than a divergence between earnings and cash.

- Because the filing is a single-issuer interim report, peer data for labelling competitors does not appear in the filing evidence, so any read across to peer issuers has to be marked as outside the cited document. - For context on how interim filings of other issuers frame similar year-over-year moves, SMITH A O CORP (AOS) Reports Softer Revenue, Operating Income, Net Income, and Diluted EPS on Both the Quarter and Six-Month Year-to-Date Views in Form (Accession shows the opposite direction on the same lines and is a useful contrast rather than a direct peer benchmark.

- The six-month year-to-date view is more informative than the three-month view for trend purposes because both revenue lines (current and prior) and both net-income lines (current and prior) appear for the half year, which lets the reader weigh two reporting slices against two matching slices without leaning on quarter-only reads. - The authorised directions are stated at the aggregate company level; the filing does not break the same historical comparison down by reportable segment in the evidence that this section can cite.

- A direct rival-by-rival benchmark table is not in scope here, because the filing evidence contains no peer or industry comparison; The filing evidence contains no peer or industry comparison. applies for any quantitative read across to named competitors. - The reported directions are taken as given and not narrated as causes; if a reader asks why any line moved, the filing's own narrative is the place to look, and where that narrative is not available in the filing evidence the change is left undescribed.

- Counter-evidence to an upbeat read is limited inside this filing: the transitions remain profit to profit and positive to positive, so the comparison does not show a swing from loss to profit that would otherwise raise quality-of-earnings questions on the income lines. - The half-year cash-flow comparison shows operating cash flow higher than the prior year on the authorised direction, which is consistent with the higher net-income reading and does not point to a working-capital or accrual gap between earnings and cash.

- A peer-relative statement about margins, returns, or multiples cannot be supported from the cited document, because the filing evidence contains no peer or industry comparison and segment-level detail for this dimension is also not disclosed in the cited notes. - Where a cause for any year-over-year move is asked for, The filing evidence does not attribute this change to any single cause. is the appropriate machine-owned sentence; the analyst reading here does not invent a driver story.

Scenario analysis

The Avery Dennison Corp filing on 10-Q for period-ended-2026-06-30, filed under accession 0000008818-26-000131, establishes a measured starting point for thinking about what could unfold next. Both reported periods show a clear directional tilt: revenue is higher year over year on the three-month reporting period versus the prior-year three-month period (per the authorized comparison for Revenue from Contract with Customer, Excluding Assessed Tax), and the same holds true for the six-month year-to-date period versus the prior-year comparative. Net Income (Loss) Attributable to Parent is also higher on both views (per the authorized comparison), with current values remaining in profit territory versus profit in the prior periods. The current three-month net income reported is $204,100,000 USD, against the prior-year three-month figure of $189,000,000 USD; the current six-month figure is $372,200,000 USD, against the prior-year six-month figure of $355,300,000 USD. Current-period revenue is $2,462,900,000 USD for the three-month reporting period and $4,761,400,000 USD for the six-month year-to-date period, against $2,220,500,000 USD and $4,368,800,000 USD in the respective prior-year periods.

In the base scenario, the company extends its recent trajectory: revenue and net income both continue to trend higher relative to the prior-year periods, and the authorized comparisons describe a continuation of the existing year-over-year direction rather than a step change. Earnings Per Share, Diluted is also authorized to move higher on both views, reinforcing the picture of broadly steady expansion. The filing evidence does not attribute this change to any single cause.

In the upside scenario, the company builds on its existing higher-revenue, higher-profit posture, and the year-to-date revenue figure of $4,761,400,000 USD alongside the year-to-date net income figure of $372,200,000 USD sets the floor from which further improvement is measured. The corresponding three-month figures — $2,462,900,000 USD in revenue and $204,100,000 USD in net income — provide a recent run-rate that, if repeated or exceeded, would extend the authorized direction of increase. A reader weighing this scenario can also compare it against an interim peer such as the one covered in SMITH A O CORP (AOS) Reports Softer Revenue, Operating Income, Net Income, and Diluted EPS on Both the Quarter and Six-Month Year-to-Date Views in Form (Accession to gauge what divergent outcomes look like in the same reporting window. The filing evidence does not attribute this change to any single cause.

In the downside scenario, the existing higher-revenue, higher-profit position reverses or stalls. Because the authorized direction for revenue and net income on both the three-month and six-month views is increase, any deviation would represent a break from the authorized trend rather than a continuation of it. The filing's tax narrative in the cited note — referencing cross-currency swap contracts, commodity contracts, and discrete tax items across the three and six months ended June of each year — highlights the kinds of items that have historically introduced variability, but the filing evidence does not tie those items to any specific future outcome. The filing evidence does not attribute this change to any single cause.

Risks and what to watch

Reported facts - The interim filing for the three-month reporting period reports net income attributable to parent of $204,100,000 USD, against a prior-year comparative of $189,000,000 USD, and revenue of $2,462,900,000 USD versus $2,220,500,000 USD. The six-month year-to-date view carries net income attributable to parent of $372,200,000 USD against $355,300,000 USD, and revenue of $4,761,400,000 USD against $4,368,800,000 USD. 10-Q for period-ended-2026-06-30 was filed under accession 0000008818-26-000131 by Avery Dennison Corp (AVY). - Note 6 notes that tax audits and any related legal proceedings could differ materially from the amounts currently reflected in the income-tax provision and the related liabilities, and that favorable or unfavorable adjustments may be recorded in future periods. - Note 7 discloses stock-based compensation awards excluded from the diluted earnings-per-share computation for the three-month and six-month reporting periods, which can compress reported per-share figures whenever inclusion would be anti-dilutive. - Note 5 refers to financial-instrument disclosures covering derivative assets and banking arrangements across the lower fair-value tier, the cited note in the unaudited Condensed Consolidated Financial Statements.

Management explanations - Management frames tax positions as adequately provided for based on reasonably foreseeable outcomes, while explicitly reserving for the possibility of future favorable or unfavorable adjustments and shifts in the effective tax rate. - Management indicates that crypto assets were not material to the unaudited Condensed Consolidated Financial Statements, removing one potential source of quarter-to-quarter volatility from the watch list.

Analyst inference - The dual disclosure in Note 6 that tax outcomes may swing favorably or unfavorably sets up a two-sided risk around the effective tax rate that readers should treat as the most likely source of surprise in upcoming interim periods, alongside the stock-based compensation exclusion dynamic flagged in Note 7.

Counter-evidence - Note 6 also states that, with limited exceptions, the company is no longer subject to income-tax examinations by tax authorities for years prior to the cut-off reported in the cited note, which bounds the historical exposure even as forward exposure remains. - Stock-based compensation awards excluded from the diluted earnings-per-share computation appear in roughly similar magnitudes for both the current and prior-year three-month and six-month views per Note 7, suggesting limited new anti-dilutive pressure.

Unknowns - Segment-level drivers behind the year-over-year movements in revenue and net income attributable to parent are not disclosed at the line of business in the cited excerpts, so any read on Materials Group versus Solutions Group versus Industrial and Healthcare Materials Group performance is unavailable. The filing evidence does not disclose segment-level detail for this dimension. - No peer or industry benchmark is contained in the filing evidence, so relative performance against the broader labeling and packaging materials universe cannot be assessed from this filing. The filing evidence contains no peer or industry comparison. - The filing evidence does not attribute the year-over-year changes in revenue or net income to any single cause. The filing evidence does not attribute this change to any single cause.

Metrics to watch next period - Effective tax rate trajectory and any new tax-audit resolutions, given the open exposure framed in Note 6. - Diluted earnings-per-share calculation inputs and the magnitude of anti-dilutive stock-based compensation awards excluded under Note 7. - Derivative-asset and banking-related balances reported under Note 5 for any remeasurement impact through the lower fair-value tier. For comparison, the year-over-year revenue and net-income direction for this filing contrasts with the opposite-direction read reported in SMITH A O CORP (AOS) Reports Softer Revenue, Operating Income, Net Income, and Diluted EPS on Both the Quarter and Six-Month Year-to-Date Views in Form (Accession, where both the top line and bottom line moved contrary to the trajectory shown here.