Acuity Inc (NYSE:AYI) stock fell 2.34% (As on January 9, 11:24:09 AM UTC-4, Source: Google Finance) after the company reported fiscal first-quarter earnings above market estimates, but left its full-year outlook unchanged. Revenue in the brands lighting segment ticked up 1% to $895.1 million in the first quarter, buoyed by growth in the independent sales network. The independent sales network benefited from an elevated backlog that resulted from orders that were accelerated in advance of price increases in the back half of fiscal 2025. Acuity Brands Lighting (ABL), has been affected by tariffs and other factors. Sales in the intelligent spaces business surged to $257.4 million from $73.5 million, also benefitting from an elevated backlog.

Moreover, Acuity Inc launched the EAX Area Luminaire product family, enhancing its product portfolio with over 60 configurable options. The company’s Acuity Intelligence Spaces (AIS) segment showed strong performance, with Atrius, Distech, and QSC technologies driving productivity. Meanwhile, the backlog normalization may lead to slower growth in upcoming quarters as the elevated backlog from previous price increases is worked through. Acuity Inc faces competition in the refuel market, with gaps in its product portfolio such as digital signage.

AYI in the first quarter of FY26 has reported the adjusted earnings per share of $4.62, beating the analysts’ estimates for the adjusted earnings per share of $4.59, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 20 percent to $1.14 billion in the first quarter of FY26, which met the analysts’ estimates for revenue of $1.14 billion. Adjusted operating profit was $196.3 million in the first quarter of fiscal 2026, an increase of $37.6 million, or 23.7 percent, compared to the prior year. Adjusted operating profit as a percent of net sales was 17.2 percent in the first quarter of fiscal 2026, an increase of 50 basis points compared to the prior year.

Additionally, Net cash from operating activities was $140.8 million for the first three months of fiscal 2026. During the quarter, AYI repurchased approximately 77,000 shares of common stock for around $28 million, and repaid $100.0 million of term-loan borrowings.

Acuity continues to anticipate adjusted EPS between $19 and $20.50 for fiscal 2026 on sales of $4.7 billion to $4.9 billion, according to an earnings presentation. The Street is currently looking for non-GAAP EPS of $19.97 and sales of $4.77 billion.