ACCO Brands Corporation (NYSE:ACCO) reported first-quarter results for the period ended March 31, 2026, that managed to surpass analyst expectations on both the top and bottom lines, sending shares sharply higher in after-market trading. The office supplies and technology peripherals company posted adjusted earnings per share of $0.02, compared to the consensus estimate which had called for a loss of $0.054 per share. Revenue also came in ahead of projections at $343.7 million, topping the $326.3 million analysts had forecast.
Following the release, the stock surged roughly 5.2% in after-market activity, reflecting investor relief that the company is building momentum from its recent acquisition of EPOS and cost-cutting initiatives even as its traditional office products business continues to face headwinds.
First Quarter Results
On a reported GAAP basis, ACCO Brands swung to net income of $19.4 million, or $0.20 per diluted share, compared to a net loss of $13.2 million, or a loss of $0.14 per share, in the same quarter last year. The bottom line was significantly boosted by a $37.6 million bargain purchase gain related to the preliminary purchase price allocation from the EPOS acquisition.
However, on an adjusted basis – which strips out restructuring costs, amortization of intangibles, and the bargain purchase gain – adjusted net income came in at $1.8 million, or $0.02 per share, a notable improvement from the adjusted net loss of $2.0 million, or a loss of $0.02 per share, a year earlier.
Total net sales for the quarter increased 8.3% to $343.7 million from $317.4 million in the prior year. On a comparable basis (excluding the impact of foreign exchange and the EPOS acquisition), sales declined 2.5%, as reduced demand for office product categories offset growth in computer accessories and Latin America.
Key operational highlights from the quarter:
- Gross margin slipped slightly to 31.1% from 31.4% in the prior year.
- Adjusted operating income rose to $11.7 million, compared to $6.9 million in 2025, driven by cost savings.
- Restructuring expenses totaled $6.7 million for the quarter, primarily related to the EPOS integration and the company’s multi-year cost reduction program.
- Free cash flow was $1.4 million, compared to $3.3 million in the first quarter of 2025.
Segment Performance
ACCO Brands Americas reported net sales of $178.5 million, up 2.6% year-over-year, benefiting from favorable foreign exchange, the EPOS acquisition, and growth in Latin America and computer accessories. However, comparable sales were $169.9 million, down 2.3%, reflecting softer demand for traditional office categories. Adjusted operating income improved to $12.8 million from $10.0 million, as cost savings more than offset an unfavorable product mix and lower volumes in certain categories.
ACCO Brands International posted net sales of $165.2 million, a 15.1% increase, with foreign exchange contributing 9.8% of that growth plus the benefit of the EPOS acquisition. Comparable sales were $139.5 million, down 2.8% year-over-year. Adjusted operating income increased to $11.1 million from $9.6 million, driven largely by cost savings.
Balance Sheet and Leverage
The company ended the quarter with $118.9 million in cash and cash equivalents, roughly double the $64.4 million at the end of 2025. Total debt, net of cash, stood at approximately $778.4 million. The consolidated leverage ratio was 4.1x at quarter-end, above the company’s target range as it continues to digest the EPOS acquisition.
During the quarter, ACCO Brands paid $6.9 million in dividends and maintained its quarterly payout of $0.075 per share.
Outlook
Management reaffirmed its full-year 2026 guidance, signaling confidence in the trajectory despite a dynamic operating environment. For the full year, the company expects:
- Reported sales growth in the range of flat to up 3.0%.
- Adjusted earnings per share of $0.84 to $0.89, which compares to the current analyst consensus of $0.86 for the full year.
- Free cash flow between $75 million and $85 million.
- Consolidated leverage ratio of 3.7x to 3.9x by year-end.
For the second quarter of 2026, ACCO Brands projects reported sales growth of 1.0% to 4.0% and adjusted EPS of $0.24 to $0.28. Wall Street had been modeling Q2 sales of $406.5 million and EPS of $0.29, so the midpoint of the company’s EPS guidance falls slightly short of that estimate.
CEO Tom Tedford highlighted that the company’s multi-year cost reduction program remains on track to deliver $100 million in savings by year-end, and that the integration of EPOS is progressing well, with meaningful opportunities to expand the brand across its global portfolio.
Market Reaction
The after-market move of approximately +5.2% suggests that investors are rewarding the company for beating significantly lowered expectations. The fact that adjusted EPS turned positive versus a forecasted loss, combined with revenue that exceeded estimates by more than $17 million, appears to have overshadowed the slight softness in the Q2 guidance relative to analyst projections. The broader context of stabilizing demand in certain categories and the visible path to lower leverage also seems to be contributing to positive sentiment.
For more detailed historical earnings data and future projections, including analyst estimates, visit the ACCO earnings page and the analyst ratings page.
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