Brady Corporation reported record adjusted earnings per share and strong organic sales growth for its fiscal third quarter ending in May 2026.
The results signal a period of aggressive expansion for the company as it integrates strategic acquisitions and capitalizes on a surge in AI-related demand for safety and identification products.
Based in Milwaukee, Wisconsin, the company reported a fiscal Q3 profit of $57.8 million [2], with net income reaching $1.21 per share [3]. The company's adjusted earnings per share saw a 23% increase [1]. CEO Russell Shaller said the period was a "fantastic quarter" [1].
Growth was bolstered by an 8.2% increase in organic sales during the quarter [4]. Management said the momentum was due to a combination of strategic acquisitions and the growing need for identification products linked to AI infrastructure. This demand contributed to a recent 17% surge in the company's stock price [5].
A significant driver of the company's current trajectory is the Honeywell PSS deal. While the PSS business experienced a decline of just under 2% in calendar 2025 [1], it has rebounded with nearly 5% growth in calendar 2026 [1]. The Honeywell PSS deal is expected to be accretive by $0.80 per share [4].
Looking ahead to the remainder of the fiscal year, Brady Corporation provided updated guidance. The company forecasts an adjusted EPS between $5.20 and $5.30 per share for the full fiscal 2026 year [4].
“"fantastic quarter"”
Brady Corporation's transition from a decline in its PSS business in 2025 to growth in 2026 suggests a successful integration of the Honeywell acquisition. By aligning its identification and safety product lines with the infrastructure needs of the AI boom, the company is diversifying its revenue streams beyond traditional industrial markers, positioning itself as a critical supplier for high-tech facility management.
