Amcor Shares Rise 3% as Investors Seek Defensive Plays After Wall Street Sell-Off Ahead of Quarterly Results

Shares of packaging giant Amcor rose 3% on the Australian Securities Exchange on Friday, as investors sought out defensive companies following a sharp sell-off in technology stocks on Wall Street.

Amcor shares gained A$1.925, or 3%, to A$66.025, after trading between A$65.54 and A$66.23. About 374,000 shares changed hands on the ASX.

The company did not release any price-sensitive announcement on Friday. The gain came two days after Amcor confirmed the date of its next quarterly results.

Defensive appeal

Amcor, which makes flexible and rigid packaging for food, beverages, medicines and household products, is often viewed as a defensive investment because demand for its products tends to remain steady regardless of economic conditions.

That appeal was evident on Friday, as investors moved away from technology and resources stocks after the Nasdaq Composite fell 2.9% overnight on concerns about the cost of artificial intelligence investments.

"Money is shifting into safer sectors, such as health care, insurers and consumer staples," said Tapas Strickland of Moomoo Australia and New Zealand.

The S&P/ASX 200 index fell 0.15% to 8,780.1.

Berry merger transforms Amcor

Amcor has been reshaped by its combination with U.S. packaging company Berry Global, which created one of the world's largest packaging companies.

In fiscal 2026, its first full year after the deal, Amcor reported net sales of US$23.5 billion, up from about US$15 billion a year earlier, largely reflecting the acquired Berry operations. Net income attributable to Amcor rose to US$1.106 billion from US$511 million.

Adjusted earnings before interest, taxes, depreciation and amortization were US$3.67 billion, and adjusted free cash flow reached US$1.3 billion.

However, the merger also increased the company's debt. Net debt stood at about US$12.9 billion at the end of June.

New financial year

Amcor is changing its financial year-end from June to December. For the six-month transition period ending Dec. 31, 2026, the company has forecast adjusted diluted earnings of US$1.80 to US$1.90 per share and an indicative leverage ratio of 3.5 to 3.6 times earnings.

Integration of Berry's manufacturing operations, procurement and customer arrangements remains an ongoing process and a key area of focus for investors.

Results ahead

Amcor said it will report results for the September quarter after the U.S. market closes on Nov. 4, with a conference call scheduled for 9:30 a.m. Australian Eastern Daylight Time on Nov. 5.

Investors will be looking for updates on the progress of the Berry integration, cost savings from the merger and the company's ability to reduce debt.

Performance

Amcor shares are up about 5% over the past year on the ASX. The company's primary listing is on the New York Stock Exchange, and its shares also trade on the ASX.

Packaging companies have faced pressure in recent years from weaker volumes as consumers cut back spending and retailers reduced inventories, though demand for essential products such as food and health care packaging has remained relatively steady.

What's next

The November results will be the next major test for Amcor. Investors will watch for signs of volume growth, progress on merger savings and confirmation that the company remains on track to meet its forecast for the transition period.