ADT (NYSE:ADT) Releases Earnings Results, Beats Estimates By $0.01 EPS

ADT (NYSE:ADT) posted its quarterly earnings data on Thursday. The security and automation business reported $0.23 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.22 by $0.01, FiscalAI reports. ADT had a return on equity of 18.99% and a net margin of 11.85%.The business had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.29 billion. During the same period last year, the company earned $0.23 earnings per share. ADT’s quarterly revenue was up 1.9% on a year-over-year basis. ADT updated its FY 2026 guidance to 0.910-0.910 EPS.

Here are the key takeaways from ADT’s conference call:

• Adjusted free cash flow rose 48% year over year to $406 million in Q2 and 64% year to date to $820 million, supporting $684 million in shareholder returns during the first half.
• ADT modestly raised its 2026 outlook, now expecting approximately 2% revenue growth, 2% adjusted EPS growth, and roughly 30% adjusted free cash flow growth.
• Subscriber momentum remained pressured, with softness in the dealer channel, reduced affiliate spending, and only 10,000 bulk accounts purchased versus 50,000 in the prior-year quarter; attrition held at 13.1%.
• New growth and efficiency initiatives are progressing, including the early launch of lower-cost ADT Blu, migration of dealers to the ADT+ platform, and AI tools that reduced human-agent contacts and service tickets by nearly 20% while improving customer satisfaction.
• Management expects higher cash taxes and interest expense in 2027, potentially creating $50 million–$100 million of headwind from each item as tax benefits diminish and favorable interest-rate swaps expire.

ADT Stock Performance

Shares of ADT stock traded up $0.14 during trading on Friday, hitting $7.64. 9,168,552 shares of the stock were exchanged, compared to its average volume of 7,412,982. The company has a current ratio of 0.69, a quick ratio of 0.67 and a debt-to-equity ratio of 2.14. The company has a fifty day moving average price of $6.81 and a 200-day moving average price of $7.10. The stock has a market capitalization of $5.61 billion, a price-to-earnings ratio of 10.77 and a beta of 1.01. ADT has a 1-year low of $6.24 and a 1-year high of $8.94.

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 paid 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 payout ratio is currently 31.43%.

Insiders Place Their Bets

In other ADT news, Director Daniel Joseph Houston purchased 36,450 shares of ADT stock in a transaction that occurred on Friday, May 8th. The stock was acquired at an average price of $6.87 per share, for a total transaction of $250,411.50. Following the completion of the acquisition, the director owned 74,812 shares of the company’s stock, valued at approximately $513,958.44. This trade represents a 95.02% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Fawad Ahmad acquired 7,500 shares of the company’s stock in a transaction on Tuesday, May 12th. The stock was acquired at an average price of $6.75 per share, for a total transaction of $50,625.00. Following the purchase, the executive vice president directly owned 302,334 shares of the company’s stock, valued at approximately $2,040,754.50. This trade represents a 2.54% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders have acquired 54,855 shares of company stock worth $376,172. Company insiders own 3.00% of the company’s stock.

Institutional Investors Weigh In On ADT

A number of large investors have recently added to or reduced their stakes in ADT. Osaic Holdings Inc. boosted its position in ADT by 39.9% during the second quarter. Osaic Holdings Inc. now owns 4,351 shares of the security and automation business’s stock worth $37,000 after purchasing an additional 1,240 shares during the period. Legal & General Group Plc lifted its position in ADT by 0.3% during the fourth quarter. Legal & General Group Plc now owns 501,861 shares of the security and automation business’s stock worth $4,050,000 after acquiring an additional 1,445 shares during the last quarter. F m Investments LLC grew its position in shares of ADT by 0.7% in the third quarter. F m Investments LLC now owns 239,027 shares of the security and automation business’s stock valued at $2,082,000 after purchasing an additional 1,602 shares during the last quarter. Amundi lifted its holdings in ADT by 0.5% during the 3rd quarter. Amundi now owns 356,404 shares of the security and automation business’s stock worth $3,104,000 after purchasing an additional 1,899 shares during the last quarter. Finally, Neuberger Berman Group LLC lifted its holdings in shares of ADT by 2.4% during the fourth quarter. Neuberger Berman Group LLC now owns 106,428 shares of the security and automation business’s stock worth $859,000 after buying an additional 2,446 shares in the last quarter. Institutional investors own 87.22% of the company’s stock.

Key Headlines Impacting ADT

Here are the key news stories impacting ADT this week:

• Positive Sentiment: Quarterly results exceeded expectations. ADT reported adjusted earnings of $0.23 per share versus the $0.22 consensus estimate, while revenue rose approximately 2% year over year to $1.312 billion, above analysts’ expectations. 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 now expects adjusted free cash flow to grow approximately 30% in 2026. ADT Reports Second Quarter 2026 Results
• Positive Sentiment: Management raised its full-year outlook. ADT maintained adjusted EPS guidance at approximately $0.91 and lifted revenue guidance to about $5.2 billion, above the roughly $5.1 billion analyst consensus. The company also projects approximately 2% growth in revenue and adjusted EPS.
• Positive Sentiment: Shareholder returns remained substantial. ADT returned $684 million through repurchases and dividends during the first half of 2026, including $478 million of second-quarter buybacks. It declared a quarterly dividend of $0.055 per share, payable October 1 to shareholders of record September 10.
• Positive Sentiment: New growth initiatives—including the self-installed ADT Blu offering, expansion of ADT+, AI-powered customer service and Wi-Fi-based presence sensing—could broaden customer acquisition and improve operating efficiency.
• Neutral Sentiment: Core recurring monthly revenue declined 1% to $360 million, while gross customer attrition rose to 13.1% from 12.8%, highlighting continued competitive and retention challenges.
• Negative Sentiment: GAAP income from continuing operations fell 8% to $155 million, and adjusted income declined 6% to $180 million as selling, general and administrative expenses increased. A consumer report alleging an unauthorized five-year contract extension also presents a potential customer-service and reputational risk. Customer Contract Dispute

Analyst Ratings Changes

Several equities research analysts have commented on the stock. Morgan Stanley boosted their price target on shares of ADT from $7.50 to $7.75 and gave the stock an “equal weight” rating in a research report on Friday. Weiss Ratings reiterated a “hold (c)” rating on shares of ADT in a report on Wednesday, July 15th. Finally, UBS Group set a $7.50 price target on ADT in a research report on Friday, May 1st. Two analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $8.23.

About ADT

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.