What Avery Dennison (AVY)'s Q4 EPS Outlook and Walmart RFID Deal Means For Shareholders

• Avery Dennison recently reported Q3 2025 results that exceeded analyst expectations, supported by cost controls, pricing actions and resilience amid inflation and tariff uncertainty, and it is now approaching its Q4 2025 earnings release with analysts projecting a modest increase in adjusted EPS versus the prior year.
• Investor interest has also been supported by Avery Dennison’s collaboration with Walmart to roll out new RFID sensor labels for fresh food, highlighting how its intelligent labeling technology is being applied in everyday retail supply chains.
• Next, we’ll examine how the upbeat Q4 earnings outlook and Walmart RFID rollout could influence Avery Dennison’s broader investment narrative.

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Avery Dennison Investment Narrative Recap

To own Avery Dennison, you need to believe in its ability to turn intelligent labeling into a durable, cash-generating business, even while apparel and retail demand remain uneven and tariffs create ongoing friction. The recent Q3 beat and the modestly higher Q4 EPS outlook support the near term earnings catalyst by showing cost controls holding up, but they do not fundamentally change the key risk that over 70% of Intelligent Labels is still tied to slower-growth apparel and general retail.

The RFID rollout with Walmart for fresh food is the most relevant update here, because it shows Intelligent Labels gaining traction in categories beyond apparel, such as food and everyday retail supply chains. If this kind of diversification continues, it could gradually reduce Avery Dennison’s dependence on structurally weaker apparel volumes and help balance the risk that tariff disruptions and cautious consumer sentiment keep weighing on core retail-oriented demand.

Yet, beneath the upbeat RFID headlines, investors should still be aware of how exposed profits remain to...

Read the full narrative on Avery Dennison (it's free!)

Avery Dennison's narrative projects $9.8 billion revenue and $909.0 million earnings by 2028.

Uncover how Avery Dennison's forecasts yield a $202.36 fair value, a 11% upside to its current price.

Exploring Other Perspectives

Three members of the Simply Wall St Community currently value Avery Dennison between US$165.12 and US$349.22 per share, reflecting very different expectations for its future. When you set those views against the company’s heavy Intelligent Labels exposure to slower apparel and retail end markets, it becomes even more important to compare several perspectives on where earnings growth could realistically come from next.

Explore 3 other fair value estimates on Avery Dennison - why the stock might be worth as much as 92% more than the current price!

Build Your Own Avery Dennison Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Avery Dennison research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Avery Dennison research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Avery Dennison's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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