ADT (NYSE:ADT) Posts Earnings Results, Beats Expectations By $0.01 EPS

ADT (NYSE:ADT) released its earnings results on Thursday. The security and automation business reported $0.23 EPS for the quarter, beating the consensus estimate of $0.22 by $0.01, FiscalAI reports. ADT had a return on equity of 19.23% and a net margin of 12.12%.The firm had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.29 billion. During the same period in the prior year, the firm posted $0.23 earnings per share. The business’s quarterly revenue was up 1.9% compared to the same quarter last year. 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 Trading Up 1.0%

ADT traded up $0.07 on Friday, reaching $7.58. 2,150,815 shares of the company’s stock were exchanged, compared to its average volume of 10,429,892. ADT has a twelve month low of $6.24 and a twelve month high of $8.94. The company’s 50 day moving average is $6.79 and its 200-day moving average is $7.10. The company has a debt-to-equity ratio of 1.94, a quick ratio of 0.67 and a current ratio of 0.84. The company has a market cap of $5.56 billion, a price-to-earnings ratio of 10.82 and a beta of 1.01.

ADT Announces Dividend

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

Insider Buying and Selling at ADT

In other ADT news, EVP Kimberly Miller acquired 3,625 shares of the firm’s stock in a transaction on Thursday, May 14th. The stock was bought at an average cost of $6.91 per share, for a total transaction of $25,048.75. Following the completion of the purchase, the executive vice president directly owned 55,984 shares in the company, valued at $386,849.44. This represents a 6.92% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Fawad Ahmad acquired 7,500 shares of the company’s stock in a transaction dated Tuesday, May 12th. The stock was acquired at an average cost of $6.75 per share, with a total value of $50,625.00. Following the transaction, the executive vice president directly owned 302,334 shares of the company’s stock, valued at approximately $2,040,754.50. This represents a 2.54% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last three months, insiders bought 54,855 shares of company stock valued at $376,172. 3.00% of the stock is currently owned by corporate insiders.

Institutional Trading of ADT

Several large investors have recently added to or reduced their stakes in ADT. Invesco Ltd. lifted its stake in shares of ADT by 16.2% during the fourth quarter. Invesco Ltd. now owns 1,444,275 shares of the security and automation business’s stock worth $11,655,000 after purchasing an additional 201,873 shares in the last quarter. Corient Private Wealth LLC grew its stake in shares of ADT by 241.7% in the fourth quarter. Corient Private Wealth LLC now owns 92,165 shares of the security and automation business’s stock valued at $744,000 after buying an additional 65,189 shares in the last quarter. Mercer Global Advisors Inc. ADV raised its holdings in shares of ADT by 16.6% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 532,433 shares of the security and automation business’s stock valued at $4,297,000 after buying an additional 75,993 shares during the period. EP Wealth Advisors LLC purchased a new stake in shares of ADT during the 4th quarter valued at about $462,000. Finally, NewEdge Advisors LLC lifted its position in ADT by 18.8% during the 4th quarter. NewEdge Advisors LLC now owns 37,163 shares of the security and automation business’s stock worth $300,000 after acquiring an additional 5,882 shares in the last quarter. 87.22% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

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

ADT News Roundup

Here are the key news stories impacting ADT this week:

• Positive Sentiment: Q2 results exceeded expectations. ADT reported adjusted EPS of $0.23 versus the $0.22 consensus estimate and revenue of $1.312 billion, ahead of the roughly $1.30 billion forecast. Revenue rose 2% year over year, driven by higher security installation and product sales. ADT Beats Q2 CY2026 Sales Expectations
• Positive Sentiment: Cash flow improved substantially. Operating cash flow increased 18% to $666 million, while adjusted free cash flow including interest-rate swaps jumped 48% to $406 million. Management now expects approximately 30% adjusted free-cash-flow growth in 2026. ADT Reports Second Quarter 2026 Results
• Positive Sentiment: Capital returns support the stock. ADT returned $684 million to shareholders through repurchases and dividends during the first half of 2026, including $478 million of second-quarter buybacks. The board also declared a quarterly dividend of $0.055 per share, payable October 1 to eligible shareholders. ADT Cash Flow Outlook and Platform Expansion
• Neutral Sentiment: Growth initiatives offer longer-term potential. ADT is expanding its ADT+ platform, scaling dealer migration and launching ADT Blu, a self-installed product with optional professional monitoring and distribution through channels such as Amazon. These initiatives could broaden customer acquisition but require execution in a competitive market.
• Negative Sentiment: Underlying profitability and retention softened. GAAP income from continuing operations fell 8% to $155 million, adjusted income declined 6% to $180 million, recurring monthly revenue slipped 1% to $360 million, and gross customer attrition worsened to 13.1% from 12.8%. A consumer report alleging an unauthorized five-year contract extension also presents a potential customer-service and reputational risk. Customer Dispute Over Contract Extension

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.