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Quad/Graphics (QUAD) Q3 2026 Earnings Report
QUAD Q3 2026 EPS Results
- Actual EPS
- $0.35
- Consensus EPS
- $0.37
- Beat/Miss
- Missed by -$0.02
- One Year Ago EPS
- $0.31
QUAD Q3 2026 Revenue Results
- Actual Revenue
- $586.70M
- Expected Revenue
- $583.27M
- Beat/Miss
- Beat by +$3.43M
- YoY Revenue Growth
- -0.22%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/28/2026
- Time
- After Close
- Conference Call
- Wednesday, October 28, 2026
Quad/Graphics's next earnings date is estimated for February 23, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was predominantly positive. Management highlighted improving revenue trends, strong new business momentum, expanding targeted print and integrated solutions, significant earnings per share growth, shareholder returns, debt reduction, and continued investment in growth initiatives. These positives were partly offset by declining net sales, lower adjusted EBITDA, negative year-to-date free cash flow, margin dilution from mix and pass-through revenue, the outstanding Capmont receivable, and macroeconomic, postage, and supply chain challenges.
For full year 2026, Quad expects net sales to decline 1%-3% compared to 2025, excluding $23 million of 2025 net sales from the divestiture of its European operations; adjusted EBITDA is expected to be between $185 million and $195 million, free cash flow between $45 million-$55 million despite the Mexico tax payment of $12 million, and capital expenditures approximately $55 million. Fourth-quarter free cash flow is expected to be in the range of $145 million-$155 million, while year-end net debt leverage is expected to be approximately 1.5x, the low end of the long-term targeted net debt leverage range of 1.5x to 2.0x. By 2028, integrated solutions and targeted print are expected to represent 76% of total net sales, Quad expects an inflection point of net sales growth, increased adjusted EBITDA margin over the current margin, free cash flow conversion to improve from approximately 26% in 2025 to 35% by 2028, and the long-term targeted net debt leverage ratio to remain in the range of 1.5x to 2.0x; Quad also expects a year-over-year benefit of approximately $9 million in 2027 from returning to 52 weekly payrolls, with the next 53-payroll calendar year not occurring until 2032.
- Updated Guidance Reflects Improving Revenue TrajectoryThird quarter results were in line with expectations. The company improved its full-year 2026 net sales guidance to a decline of 1%-3% compared to 2025, excluding $23 million of 2025 net sales from the European divestiture, while narrowing adjusted EBITDA guidance to $185 million-$195 million and free cash flow guidance to $45 million-$55 million.
- Strong Earnings per Share GrowthAdjusted diluted earnings per share increased to $0.35 in the third quarter of 2026 from $0.31 in the third quarter of 2025, an increase of $0.04 or 13%. Year-to-date adjusted diluted earnings per share rose to $0.84 from $0.65, an increase of $0.19 or 29%, primarily due to higher adjusted net earnings, lower interest expense, lower depreciation and amortization, and share buybacks.
- Shareholder Returns and Dividend IncreaseQuad returned $23 million to shareholders during the first three quarters of 2026, including $15 million in regular cash dividends and $8 million in share repurchases. The quarterly dividend was increased by 33% to $0.10 per share, or $0.40 per share annually.
- Integrated Marketing and New Business MomentumThe company reported particularly strong momentum across direct marketing, in-store, and retail media solutions. Quad said new sales are accelerating across both new logos and existing clients adding new products or services, with its integrated approach expanding client relationships and targeted print opportunities.
- Launch of Direct Marketing AgencyQuad launched Direct, a full-service direct marketing agency that unifies audience intelligence, strategy, creative, execution, and measurement. The offering is intended to help clients use direct mail more effectively through audience targeting, pre-market testing, physical execution, and ongoing iteration.
- New National Financial Services PartnershipDirect won a national financial services client to restart a direct mail student loan acquisition program after a multi-year pause. Quad supported strategy, creative production, distribution, pre-market testing, print, and postal optimization, with insights expected to inform a larger program planned for the peak 2027 student loan application season.
- Expansion of Client Relationships Through In-Store ServicesFlavCity's relationship expanded from a single end-cap display project to five product lines across Target, Walmart, and Meijer. Quad was selected to manage the client's retail display and signage fulfillment business and is expanding into agency services for an upcoming product launch.
- In-Store Connect Network ExpansionQuad is deploying In-Store Connect across more than 100 additional stores, bringing the total footprint near 160 stores by year-end. A large national discount store chain agreed to deploy the network in an initial 30 Florida stores, while Chedraui USA is deploying it in 25 Smart & Final stores in California.
- Growing Adoption of In-Store ConnectQuad said one West Coast customer is already moving to the next phase and doubling its store count. Early adopters took about 18 months to expand, while newer customers are discussing expansion in at least half that time or less. Quad also reported that one early store group was close to selling out its advertising inventory.
- Consumer Research Supports Physical Marketing ChannelsQuad's research with The Harris Poll found that 70% of Americans say seeing how a brand appears in physical space helps them understand it better, and 71% say in-store experiences deepen brand connection and loyalty. In addition, 84% reported greater trust when brands pay attention to packaging details, while 55% said packaging has influenced a purchase decision.
- Revenue Mix DiversificationTargeted print increased by 2% as a percentage of first-nine-month net sales, driven by direct mail, packaging, and in-store offerings. Logistics increased by 1%, supported by fuel surcharges, higher volume, and additional list services. Integrated solutions and targeted print grew from 54% of net sales in 2018 to 69% in 2025, and Quad expects them to represent 76% of total net sales by 2028.
- Improved Operating EfficiencyYear-to-date adjusted EBITDA margin remained consistent at 7.9%, with lower selling, general, and administrative expenses from efficiency initiatives partially offsetting the impact of lower net sales and unfavorable mix. Management also described progress in making labor costs more variable and managing weekly production peaks and valleys.
- Debt Reduction and Year-End Leverage TargetWhen removing seasonality, Quad reduced net debt by $43 million, or 9%, from September 30, 2025, to September 30, 2026. The company reaffirmed its expectation for a year-end 2026 net debt leverage ratio of approximately 1.5x, at the low end of its long-term targeted range of 1.5x to 2.0x.
- Expected Fourth-Quarter Cash Flow StrengthQuad expects fourth-quarter 2026 free cash flow of $145 million-$155 million, reflecting its typical seasonal pattern of negative free cash flow during the first nine months followed by stronger collections after the production peak.
- Asset Sale Proceeds and Capital Allocation FlexibilityQuad received proceeds of over $17 million in the third quarter from selling its Lima, Peru building and equipment. Management intends to continue investing for growth, maintain low debt balances, and return capital to shareholders through dividends and share repurchases.
- 2028 Long-Term OutlookQuad continues to expect an inflection point to net sales growth in 2028, increased adjusted EBITDA margin over the current margin, and improved free cash flow conversion from approximately 26% of adjusted EBITDA in 2025 to 35% by 2028. The company also expects to maintain long-term net debt leverage of 1.5x to 2.0x.
- Industry RecognitionBetty Creative Agency and Rise Media Agency earned a Silver Jay Chiat Award for work with Jelmar CLR Brands. Rise was named an AdExchanger Award finalist for work with Dairy Management Incorporated, and Quad received a Path to Purchase Institute OmniShopper Award for an end-cap design launched for Pura Smart Home Fragrance products in Target nationwide.
- Interest Rate Risk ManagementQuad's debt had a blended interest rate of 6.6% at the end of the third quarter, with the next significant debt maturity of $205 million due in October 2029. Including interest rate derivatives, 48% of interest rate exposure was capped if rates rise, and new collars with total notional value of $60 million were entered into to replace a maturing collar.
QUAD Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 23, 2027 | 2026 (Q4) | 0.44- | 0.36 | ― | ― |
| Oct 28, 2026 | 2026 (Q3) | 0.370.35 | 0.31 | 12.90% (+0.04) | |
| Jul 28, 2026 | 2026 (Q2) | 0.200.24 | 0.14 | 71.43% (+0.10) | |
| Apr 28, 2026 | 2026 (Q1) | 0.210.25 | 0.2 | 25.00% (+0.05) | |
| Feb 17, 2026 | 2025 (Q4) | 0.360.36 | 0.36 | 0.00% (+0.00) | |
| Oct 28, 2025 | 2025 (Q3) | 0.270.31 | 0.26 | 19.23% (+0.05) | |
| Jul 29, 2025 | 2025 (Q2) | 0.140.14 | 0.12 | 16.67% (+0.02) | |
| Apr 29, 2025 | 2025 (Q1) | 0.090.20 | 0.1 | 100.00% (+0.10) | |
| Feb 18, 2025 | 2024 (Q4) | 0.380.36 | 0.23 | 56.52% (+0.13) | |
| Oct 28, 2024 | 2024 (Q3) | 0.240.26 | 0.11 | 136.36% (+0.15) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
