Brady 2026 Q1 Earnings 15.3% Net Income Growth and Guidance Raise

Brady Corporation (BRC) reported fiscal 2026 Q1 earnings on Nov 17, 2025, delivering results that exceeded revenue expectations and raised full-year guidance. The company’s $405.29 million revenue beat estimates by $10.28 million, while its $1.14 EPS marked a 16.3% year-over-year increase. Brady raised its 2026 adjusted EPS guidance to $4.90–$5.15, reflecting confidence in sustained profitability and strategic cost management.

Revenue

Brady’s total revenue rose 7.5% year-over-year to $405.29 million in Q1 2026, driven by a 2.8% organic sales increase, 3.2% from acquisitions, and 1.5% from favorable foreign currency translation. Regional performance varied: the Americas & Asia region led with a 9.6% sales increase (4.7% organic growth), while Europe & Australia saw a 3.6% rise despite a 0.8% organic sales decline.

Earnings/Net Income

The company’s EPS surged 16.3% to $1.14, with net income climbing 15.3% to $53.94 million. Adjusted EPS reached $1.21, up 8.0% year-over-year. Brady’s profitability has remained robust for over two decades, underscoring operational resilience. The EPS growth reflects strong margin expansion and effective cost control.

Price Action

Despite strong earnings, Brady’s stock faced downward pressure in the immediate aftermath. Shares fell 5.05% on the latest trading day, 3.49% for the week, and 2.52% month-to-date.

Post-Earnings Price Action Review

The post-earnings price action highlighted mixed investor sentiment. While the company’s adjusted EPS and revenue exceeded expectations, the stock’s decline suggested short-term profit-taking or concerns about macroeconomic headwinds. Brady’s guidance upgrade to $4.90–$5.15 per share provided some optimism, but near-term volatility persisted amid broader market uncertainties.

CEO Commentary

Russell Shaller, CEO, emphasized Brady’s 2.8% organic sales growth and 8% adjusted EPS expansion, crediting strong Americas and Asia performance and Europe’s improved segment profit. Strategic investments in connected products, like BradyScan, and geographic expansion in Southeast Asia were highlighted. Shaller acknowledged U.S. tariff challenges but noted cost mitigation efforts limited 2026 impacts to $8 million.

Guidance

Brady raised 2026 adjusted diluted EPS guidance to $4.90–$5.15, reflecting 6.5%–12% growth over 2025. GAAP EPS guidance was set at $4.57–$4.82. The company targets low single-digit organic sales growth, a 21% tax rate, and $40 million in capex. Risks include USD strength, inflation, and economic slowdowns, but Brady remains focused on organic growth, acquisitions, and dividends, supported by a $66.8 million net cash position.

Additional News

Recent developments include the acquisition of Mecco, enhancing Brady’s laser marking systems, and a dividend hike to $0.245 per share. Institutional ownership rose as Campbell & CO and others increased stakes, though insiders sold 28,973 shares. Brady also launched BradyScan, an industrial barcode app, to boost traceability and productivity. Analysts raised price targets, with Weiss Ratings reiterating a “buy” and Wall Street Zen cutting to “hold.”

Revenue

Americas & Asia: $405.3 million revenue, with 9.6% growth driven by 4.7% organic sales and acquisitions. Europe & Australia: 3.6% increase, offset by 0.8% organic decline.

Earnings/Net Income

EPS: $1.14 (GAAP) and $1.21 (adjusted), up 16.3% and 8.0% respectively. Net income: $53.94 million, a 15.3% year-over-year increase.

Price Action

Stock fell 5.05% on the latest trading day, 3.49% weekly, and 2.52% month-to-date.

Guidance

2026 adjusted EPS: $4.90–$5.15 (raised from $4.85–$5.15). GAAP EPS: $4.57–$4.82.

Additional News

• Acquired Mecco to bolster laser marking systems.

• Dividend increased to $0.245/share (1.3% yield).

• Institutional ownership rose; insiders sold 28,973 shares.

• Analysts raised price targets; Weiss Ratings maintained “buy.”