Resideo Technologies (NYSE:REZI) Releases Earnings Results, Beats Expectations By $0.36 EPS

Resideo Technologies (NYSE:REZI) posted its quarterly earnings results on Wednesday. The company reported $0.83 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.47 by $0.36, FiscalAI reports. The company had revenue of $1.98 billion during the quarter, compared to analyst estimates of $1.94 billion. Resideo Technologies had a net margin of 5.37% and a return on equity of 18.04%. Resideo Technologies’s revenue for the quarter was up 2.0% compared to the same quarter last year. During the same period last year, the firm posted $0.66 EPS.

Here are the key takeaways from Resideo Technologies’ conference call:

• Q2 results exceeded the high end of guidance, with revenue up 2% year over year to nearly $2 billion, adjusted EBITDA up 19% to $249 million, and adjusted EPS up 26% to $0.83. Results benefited from $27 million in tariff refunds, primarily at ADI.
• Resideo completed the ADI Global Distribution spin-off on August 3 and began deleveraging with a $900 million Term Loan B repayment; management expects to repay another approximately $200 million in the third quarter.
• Products & Solutions revenue increased 4% year over year, while gross margin expanded 70 basis points to 43.6% for the 13th consecutive quarter. Growth was led by higher volumes, new thermostats, smoke and CO detectors, and continued operational efficiency.
• Management expects $40 million-$50 million of second-half revenue pressure from lower volumes at a large OEM security customer pursuing vertical integration, with the impact concentrated in the third and fourth quarters.
• Resideo initiated standalone 2026 guidance for revenue of $2.9 billion-$2.95 billion and adjusted EBITDA of $605 million-$625 million. Rising memory, metals, printed-circuit-board, semiconductor, and shipping costs are expected to pressure margins in the third quarter before price increases and operational actions provide greater offsets.

Resideo Technologies Stock Performance

NYSE:REZI opened at $20.39 on Friday. The company has a debt-to-equity ratio of 1.30, a quick ratio of 1.19 and a current ratio of 2.07. The stock has a market capitalization of $3.09 billion, a PE ratio of 9.02 and a beta of 1.63. Resideo Technologies has a fifty-two week low of $20.33 and a fifty-two week high of $45.29. The company has a fifty day moving average of $31.60 and a two-hundred day moving average of $34.02.

Resideo Technologies News Roundup

Here are the key news stories impacting Resideo Technologies this week:

• Positive Sentiment: Second-quarter results exceeded expectations. Resideo reported record revenue of $1.98 billion, up 2% year over year, with gross margin reaching 30%. Adjusted EPS was $0.83, up 26% year over year and above the high end of management’s outlook, while adjusted EBITDA rose 19% to a record $249 million. Resideo Announces Record Second Quarter 2026 Financial Results
• Positive Sentiment: The company’s Products & Solutions segment grew 4%, and Resideo said it completed the separation of ADI Global Distribution on August 3. The transaction could allow investors to value the remaining business more clearly, although it also makes comparisons and guidance more complex. Resideo Q2 FY2026 Earnings Call Transcript
• Neutral Sentiment: Shane Harrison was appointed chief financial officer effective September 1, replacing the current finance leadership. The appointment provides a permanent CFO following the company’s separation of ADI, but investors may wait for more details on his strategic and capital-allocation priorities. Resideo Appoints Shane Harrison as Chief Financial Officer
• Negative Sentiment: Forward guidance was the key negative catalyst. Resideo’s standalone full-year revenue outlook reportedly fell significantly short of analyst expectations, while third-quarter revenue guidance of $705 million to $730 million also raised concerns about demand and the near-term scale of the post-ADI business. Resideo Falls on Weak Annual Revenue Guidance
• Negative Sentiment: Although adjusted EPS beat estimates, GAAP diluted EPS was $0.51, and operating profit declined year over year in third-party reported figures. The combination of modest revenue growth, softer outlook, and uncertainty following the ADI separation outweighed the quarter’s earnings strength. Why Resideo Stock Is Trading Lower Today

Analysts Set New Price Targets

REZI has been the topic of several recent research reports. Zacks Research lowered shares of Resideo Technologies from a “hold” rating to a “strong sell” rating in a report on Thursday, July 9th. Morgan Stanley reduced their price target on Resideo Technologies from $50.00 to $45.00 and set an “overweight” rating for the company in a research report on Monday, July 13th. Oppenheimer reaffirmed an “outperform” rating on shares of Resideo Technologies in a research note on Thursday. Weiss Ratings reiterated a “sell (d+)” rating on shares of Resideo Technologies in a research report on Friday, July 17th. Finally, Seaport Research Partners initiated coverage on Resideo Technologies in a research report on Wednesday, July 1st. They set a “buy” rating and a $55.00 target price on the stock. Two analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $41.00.

Institutional Trading of Resideo Technologies

A number of institutional investors and hedge funds have recently modified their holdings of REZI. Larson Financial Group LLC boosted its holdings in Resideo Technologies by 283.8% in the 3rd quarter. Larson Financial Group LLC now owns 568 shares of the company’s stock worth $25,000 after buying an additional 420 shares during the last quarter. McMillan Office Inc. acquired a new position in shares of Resideo Technologies during the fourth quarter valued at approximately $33,000. Headlands Technologies LLC purchased a new position in shares of Resideo Technologies in the second quarter valued at approximately $34,000. Kestra Advisory Services LLC purchased a new position in shares of Resideo Technologies in the fourth quarter valued at approximately $34,000. Finally, Los Angeles Capital Management LLC acquired a new stake in shares of Resideo Technologies in the fourth quarter worth approximately $39,000. Hedge funds and other institutional investors own 91.71% of the company’s stock.

About Resideo Technologies

Resideo Technologies, Inc, headquartered in Austin, Texas, is a global provider of home comfort, security and energy management solutions. Formed as an independent company in 2018 following its spin-off from Honeywell, Resideo leverages decades of engineering experience to deliver connected products and services to residential and light commercial customers.

The company’s core offerings include smart thermostats, security systems, video doorbells, water leak and freeze detection devices, and indoor air quality monitors.