ADT (NYSE:ADT) Issues FY 2026 Earnings Guidance

ADT (NYSE:ADT) issued an update on its FY 2026 earnings guidance on Thursday. The company provided EPS guidance of 0.910-0.910 for the period, compared to the consensus earnings per share estimate of 0.910. The company issued revenue guidance of $5.2 billion-$5.2 billion, compared to the consensus revenue estimate of $5.1 billion.

ADT Trading Up 1.7%

Shares of ADT stock traded up $0.12 during midday trading on Thursday, reaching $7.53. The company had a trading volume of 10,899,992 shares, compared to its average volume of 10,488,330. The stock has a fifty day moving average price of $6.79 and a 200 day moving average price of $7.10. The company has a debt-to-equity ratio of 1.94, a current ratio of 0.84 and a quick ratio of 0.67. The firm has a market cap of $5.52 billion, a PE ratio of 10.76 and a beta of 1.01. ADT has a fifty-two week low of $6.24 and a fifty-two week high of $8.94.

ADT (NYSE:ADT) last released its earnings results on Thursday, July 30th. The security and automation business reported $0.23 earnings per share for the quarter, beating analysts’ consensus estimates of $0.22 by $0.01. ADT had a net margin of 12.12% and a return on equity of 19.23%. The business had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.29 billion. During the same quarter in the prior year, the firm posted $0.23 EPS. The company’s revenue for the quarter was up 1.9% compared to the same quarter last year. ADT has set its FY 2026 guidance at 0.910-0.910 EPS. On average, equities analysts anticipate that ADT will post 0.87 earnings per share for the current year.

ADT Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th will be given a dividend of $0.055 per share. The ex-dividend date is Thursday, September 10th. This represents a $0.22 annualized dividend and a dividend yield of 2.9%. ADT’s dividend payout ratio is 31.43%.

Wall Street Analyst Weigh In

ADT has been the topic of several recent analyst reports. Weiss Ratings restated a “hold (c)” rating on shares of ADT in a report on Wednesday, July 15th. UBS Group set a $7.50 price objective on ADT in a research report on Friday, May 1st. Two equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $8.08.

Insider Activity at ADT

In related news, EVP Fawad Ahmad purchased 7,500 shares of the firm’s stock in a transaction on Tuesday, May 12th. The stock was purchased at an average cost of $6.75 per share, with a total value of $50,625.00. Following the completion of the purchase, the executive vice president owned 302,334 shares in the company, valued at approximately $2,040,754.50. This trade represents a 2.54% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Omar Khan acquired 7,280 shares of the company’s stock in a transaction dated Monday, May 11th. The shares were bought at an average price of $6.88 per share, for a total transaction of $50,086.40. Following the acquisition, the executive vice president directly owned 7,280 shares of the company’s stock, valued at approximately $50,086.40. This trade represents a ? increase in their position. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders have purchased 54,855 shares of company stock worth $376,172. 3.00% of the stock is owned by insiders.

ADT News Summary

Here are the key news stories impacting ADT this week:

• Positive Sentiment: Q2 results exceeded expectations: ADT reported adjusted EPS of $0.23, above the $0.22 consensus estimate, while revenue rose 2% year over year to $1.312 billion, surpassing the roughly $1.30 billion forecast. ADT Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Cash flow improved sharply: Operating cash flow increased 18% to $666 million, and adjusted free cash flow including interest-rate swaps jumped 48% to $406 million. ADT returned $684 million to shareholders during the first half through repurchases and dividends.
• Positive Sentiment: Share repurchases provided support: ADT repurchased $478 million of stock during the quarter and has $906 million remaining under its repurchase authorization. The reduced share count also helped support per-share results.
• Positive Sentiment: Outlook and product expansion were encouraging: Management now expects approximately 30% growth in 2026 adjusted free cash flow, about 2% revenue growth, and about 2% adjusted EPS growth. Revenue guidance of approximately $5.2 billion is above the $5.1 billion consensus, while ADT Blu, ADT+, AI customer service, and connected-home technology are intended to expand future growth.
• Positive Sentiment: Dividend declared: ADT approved a quarterly dividend of $0.055 per share, payable October 1 to shareholders of record September 10, representing an annualized yield of approximately 2.9%.
• Neutral Sentiment: EPS guidance was in line with expectations: Full-year adjusted EPS guidance of $0.91 matched consensus, limiting the upside surprise from the earnings outlook.
• Negative Sentiment: Underlying profitability weakened: GAAP income from continuing operations fell 8% to $155 million, adjusted income declined 6% to $180 million, and adjusted EBITDA was essentially flat. Higher selling, general, and administrative expenses pressured results.
• Negative Sentiment: Customer metrics remained challenging: Gross revenue attrition increased to 13.1% from 12.8%, recurring monthly revenue declined 1% to $360 million, and monitoring revenue fell 1%, highlighting competitive and retention risks.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in ADT. AQR Capital Management LLC increased its holdings in shares of ADT by 124.6% during the third quarter. AQR Capital Management LLC now owns 36,160,099 shares of the security and automation business’s stock valued at $314,954,000 after acquiring an additional 20,062,625 shares in the last quarter. Wasatch Advisors LP bought a new position in shares of ADT in the 4th quarter worth $56,927,000. Zimmer Partners LP grew its position in ADT by 164.8% in the 3rd quarter. Zimmer Partners LP now owns 8,077,811 shares of the security and automation business’s stock valued at $70,358,000 after purchasing an additional 5,026,754 shares during the period. Two Sigma Investments LP grew its position in ADT by 275.6% in the 3rd quarter. Two Sigma Investments LP now owns 5,483,043 shares of the security and automation business’s stock valued at $47,757,000 after purchasing an additional 4,023,072 shares during the period. Finally, Arrowstreet Capital Limited Partnership increased its stake in ADT by 27.6% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 17,476,972 shares of the security and automation business’s stock valued at $152,224,000 after purchasing an additional 3,783,455 shares in the last quarter. 87.22% of the stock is owned by institutional investors and hedge funds.

ADT Company Profile

ADT Inc is a leading provider of security and automation solutions for residential and commercial customers. The company offers a comprehensive suite of products and services, including intrusion detection systems, video surveillance, fire and carbon monoxide monitoring, and integrated smart home automation platforms. Through professional installation, continuous monitoring, and a network of 24/7 monitoring centers, ADT helps customers protect their properties, assets and loved ones.

Founded in 1874 as the American District Telegraph Company, ADT has evolved from one of the first telegraph-based alarm services into a modern security technology enterprise.