Key insights
- ACCO Brands reported Q1 2026 earnings and revenue above expectations, leading to a 3.74% premarket stock increase. The company's EPS of $0.02 beat forecasts of -$0.02, while revenue reached $343.7 million against a $320.2 million forecast. Trading at a low P/E ratio with a high dividend yield, ACCO appears undervalued. While positive for ACCO, the broader market impact is limited.
ACCO Brands Corporation reported first-quarter 2026 earnings that surpassed market expectations, with an adjusted earnings per share (EPS) of $0.02, outperforming the forecast of -$0.02. The company’s revenue also exceeded projections, coming in at $343.7 million against a forecast of $320.2 million. Following these results, ACCO’s stock rose 3.74% in premarket trading.
ACCO Brands delivered robust performance in the first quarter of 2026, surpassing its own financial expectations despite a challenging macroeconomic environment. The company reported an 8% increase in consolidated sales, primarily due to favorable foreign exchange rates and the impact of the EPOS acquisition. This growth was achieved even as comparable sales declined slightly by less than 3%.
ACCO Brands’ actual EPS of $0.02 was a substantial improvement over the forecasted -$0.02, marking a 200% surprise. Revenue also exceeded expectations by 7.34%, reaching $343.7 million compared to the forecasted $320.2 million. This positive surprise is notable compared to previous quarters, indicating strong operational execution.
Following the earnings announcement, ACCO Brands’ stock price rose by 3.74% in premarket trading, reaching $3.33. This movement reflects investor confidence in the company’s ability to exceed financial projections and execute its strategic initiatives effectively. The stock’s performance is notable given its 52-week range of $2.81 to $4.30.
The company’s valuation metrics suggest significant upside potential. Trading at a P/E ratio of just 7.3, ACCO appears undervalued according to InvestingPro analysis, which places it among stocks on the platform’s Most Undervalued list. The stock also offers an attractive dividend yield of 9.35%, providing income-focused investors with substantial returns while they wait for potential price appreciation.
ACCO Brands has set ambitious targets for 2026, focusing on expanding its technology peripherals portfolio. The company aims for these products to represent 25% of its revenue by year-end. Future EPS forecasts for upcoming quarters range from $0.23 to $0.40, with full-year projections at $0.87 for 2026 and $0.94 for 2027. Analysts covering the stock have set price targets ranging from $5 to $9, suggesting potential upside of 50% to 180% from current levels.
According to InvestingPro Tips, analysts predict the company will be profitable this year, supporting management’s optimistic guidance. Investors seeking deeper insights can access 11 additional ProTips, along with comprehensive financial health scores and Fair Value analysis on the platform.
CEO Boris Elisman stated, "Our strong first-quarter results reflect the successful execution of our strategic initiatives, particularly in expanding our technology peripherals business." He emphasized the importance of the EPOS acquisition in driving growth and enhancing the company’s market position.
During the earnings call, analysts inquired about the integration progress of the EPOS acquisition and its expected impact on future earnings. Management expressed confidence in achieving cost synergies and highlighted the strategic fit of EPOS within ACCO’s broader portfolio. Additionally, questions addressed the company’s approach to mitigating potential supply chain disruptions and managing foreign exchange risks.
For investors seeking a comprehensive analysis of ACCO Brands’ financial position and growth prospects, the company is one of 1,400+ US equities covered by InvestingPro’s detailed Pro Research Reports, which transform complex Wall Street data into clear, actionable intelligence through intuitive visuals and expert analysis.
Operator: Hello, everyone. Thank you for joining us, and welcome to ACCO Brands’ First Quarter 2026 earnings call. After today’s prepared remarks, we will host a question and answer session. I will now hand the conference over to Christopher McGinnis, Director of Investor Relations. Please go ahead.
Christopher McGinnis, Director of Investor Relations, ACCO Brands: Thank you. Good morning, welcome to the ACCO Brands conference call to review our first quarter 2026 results. Speaking on the call today is Tom Tedford, President, Chief Executive Officer of ACCO Brands, and Deborah O’Connor, Executive Vice President and Chief Financial Officer. Slides that accompany this call have been posted to the investor relations section of accobrands.com. When speaking about our results, we may refer to adjusted results. Adjusted results exclude amortization and restructuring costs, non-cash goodwill and intangible asset impairment charges, bargain purchase gain, and other non-recurring items and unusual tax items, and include adjustments to reflect the estimated annual tax rate on quarterly earnings. Schedules of adjusted results and other non-GAAP financial measures and a reconciliation of these measures to the most directly comparable GAAP measures are in the earnings release and slides that accompany this call.
Due to the inherent difficulty in forecasting and quantifying certain amounts, we do not reconcile our forward-looking non-GAAP financial measures. Forward-looking statements made during the call are based on the beliefs and assumptions of management based on information available to us at the time the statements are made. Our forward-looking statements are subject to risks and uncertainties, and our actual results could differ materially. Please refer to our earnings release and SEC filings for an explanation of certain risk factors and assumptions. Our forward-looking statements are made as of today, and we assume no obligation to update them going forward. I will turn the call over to Tom Tedford.
Tom Tedford, President and Chief Executive Officer, ACCO Brands: Thank you, Chris. Good morning, everyone, and thank you for joining us today for ACCO Brands’ first quarter earnings call. Last night, we reported first quarter results with sales and adjusted EPS above our outlook. We also reiterated full year guidance. We are pleased with the strong start to the year, and the results indicate we are executing well on our key operational and strategic initiatives. First quarter consolidated sales grew 8%, higher than our expectations, driven by favorable comparable sales and better first quarter performance from the EPOS acquisition. Additionally, as expected, foreign exchange had a significant positive impact on revenue in the quarter. In the Americas segment, sales growth was driven by favorable currency translation, computer accessories, and the EPOS acquisition. Sales for computer accessories within the segment were strong, reflecting new products and a meaningful end user pipeline.
In North America, early purchases of back-to-school products were better than anticipated. While it is still early, we are confident in the upcoming back-to-school season due to increased listings and the absence of order cancellations due to tariffs in the prior year. For the season, we’re expecting back-to-school sales to be flat to up low single digits. Sales of office products were down across the segment, but the rate of decline improved. In Latin America, sales improved due to a combination of a change in go-to-market strategies and new products. Turning to the international segment, sales growth of 15% was driven by favorable currency translation and the EPOS acquisition, which I’ll discuss in more detail shortly. The rate of decline improved in the quarter, reflecting the positive impact of price, broad-based improvement in core category demand, and favorable mix.
Our overall strategy remains focused on expanding our product range in faster-growing categories with an emphasis on technology peripherals. Our target for 2026 is for peripherals to grow to represent 25% of the company’s projected revenue. In support of our strategy, our acquisition of EPOS was completed in the first quarter. We are excited about the potential of this addition to ACCO Brands. The integration is on track with expected 2026 sales of approximately $80 million over 11 months of the year and a modest contribution to profit. As a result of the acquisition, Jeppe Dalberg-Larsen, the President of EPOS, will now lead technology peripherals for ACCO Brands. Jeppe has over 20 years of experience leading technology peripheral businesses and is a strong operator who will drive our growth initiatives.
This change in leadership is another step to better position ACCO Brands to execute on our strategy of expanding our global market shares and enhancing our product portfolio and technology peripherals through organic and inorganic initiatives in these large and growing categories. Pivoting to gaming accessories, the global gaming market faced headwinds in the 1st quarter from broad industry challenges and softer consumer spending. Our PowerA brand is well-positioned to capitalize on 2 significant catalysts that we believe will improve performance throughout the year: the continued adoption of Nintendo Switch 2 consoles by the consumer and the expected 4th quarter release of Grand Theft Auto VI.
Additionally, our product pipeline is robust as we are expanding our gaming portfolio to include simulation as well as a revamped audio offering. Our leading product portfolio, the important work we do with OEMs, and our strong channel partnerships give us confidence in the back half of the year. In computer accessories, the Americas delivered solid sales growth. In the international segment, sales were down versus the prior year as we comped a large government order in the U.K. in 2025. Normalized computer accessory sales in the segment were up modestly year-over-year. We have an expansive range of new products and an improving pipeline throughout 2026 that will support our growth objectives. Transitioning to our cost optimization work, we continue to execute on our cost reduction and footprint optimization program.
We remain on track to achieve the $100 million cost redu