ADT (NYSE:ADT) Announces Quarterly Earnings Results

ADT (NYSE:ADT) issued its earnings results on Monday. The security and automation business reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.20 by $0.03, FiscalAI reports. ADT had a net margin of 11.60% and a return on equity of 19.33%. The firm had revenue of $2.55 billion for the quarter, compared to the consensus estimate of $1.30 billion. During the same quarter in the prior year, the firm posted $0.20 earnings per share. The business’s revenue was up 1.3% on a year-over-year basis. ADT updated its FY 2026 guidance to 0.890-0.890 EPS.

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

• Acquired Origin AI — ADT bought a Wi‑Fi based AI sensing company (200+ patents) to add privacy‑first presence and health detection; pilot this year and broader ADT+ commercialization beginning in 2027, which management says can be turned on for many of ADT’s ~6M homes via software or simple hardware.
• 2026 strategic investments and channel shift — Management plans ≈$50M of 2026 spending to accelerate ADT+ features, AI, virtual service, and a new value line “ADT Blue” plus expanded e‑commerce/DIY presence, noting potential short‑term disruption to organic gross adds while improving long‑term acquisition economics.
• Strong cash generation and shareholder returns — ADT grew adjusted free cash flow 16% in 2025, returned nearly $800M last year, and announced a new three‑year $1.5B share repurchase authorization while maintaining the quarterly dividend.
• Near‑term revenue/EPS guidance and headwinds — Management expects 2026 revenue and EPS to be roughly flat to 2025 (prioritizing cash and buybacks), with tariff‑related SAC pressure (~$45M) and elevated non‑paid disconnects contributing to attrition concerns.
• Longer‑term financial targets and deleveraging — ADT reduced leverage to ~2.7x EBITDA, is targeting 2.5x, and published a multi‑year framework targeting ~5% revenue CAGR, ~10% EPS CAGR, >10% adjusted free cash flow growth, and +1M subscribers by 2030.

ADT Trading Down 3.7%

ADT stock opened at $6.86 on Wednesday. ADT has a 52-week low of $6.65 and a 52-week high of $8.94. The company has a market cap of $5.62 billion, a P/E ratio of 10.39 and a beta of 1.00. The company has a quick ratio of 0.54, a current ratio of 0.67 and a debt-to-equity ratio of 1.99. The business has a 50-day simple moving average of $7.98 and a two-hundred day simple moving average of $8.29.

ADT Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, April 2nd. Shareholders of record on Thursday, March 12th will be paid a dividend of $0.055 per share. This represents a $0.22 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date is Thursday, March 12th. ADT’s payout ratio is currently 31.88%.

Trending Headlines about ADT

Here are the key news stories impacting ADT this week:

• Positive Sentiment: Board authorized a new $1.5 billion share repurchase program and ADT returned $791M to shareholders in 2025, signaling aggressive capital return that supports EPS per-share upside over time. ADT Highlights 2025 Results and New Share Repurchase Plan
• Positive Sentiment: Quarterly cash dividend declared ($0.055/sh, ~3.2% yield); payable Apr 2 to holders of record Mar 12 — supports income-oriented holders and reduces supply pressure.
• Positive Sentiment: Management is pushing an AI/smart‑home growth narrative (ADT+ platform, Origin AI acquisition for ambient sensing) and set multi‑year targets (5% revenue CAGR, 10% adjusted EPS CAGR to 2030) that point to longer‑term secular opportunity in smart home products. ADT Bets On Origin AI
• Neutral Sentiment: ADT was added to the S&P SmallCap 600 — a structural positive for index inclusion flows but not an immediate operational change.
• Neutral Sentiment: Analysts on average rate ADT a “Hold,” reflecting mixed sentiment: consensus sees modest upside but expects limited near‑term acceleration. ADT Given Average Rating of “Hold” by Analysts
• Negative Sentiment: Revenue and FY‑2026 guidance disappointed: company set FY‑2026 revenue at ~$5.1B (below Street ~ $5.3B) and EPS guidance ~ $0.89 vs. consensus ~ $0.90 — investors punished the stock on the weaker outlook and near‑term growth risk. ADT Shares Fall After 4Q Profit Slips, Outlook Underwhelms
• Negative Sentiment: Mixed earnings print: adjusted EPS beat modestly (~$0.23) but some GAAP/Street metrics missed and management commentary tempered forward growth — the earnings call and transcript show near‑term softness that spooked traders. Q4 2025 Earnings Call Transcript
• Negative Sentiment: Shares plunged into a 52‑week low and fell sharply after the print and guidance — short‑term technical pressure and investor selling intensified. ADT Stock Hits 52-Week Low
• Negative Sentiment: Morgan Stanley lowered its price target from $9 to $7 and moved to an “equal weight” stance, signaling less enthusiasm from a major desk and limiting catalyst for a sentiment reversal. Morgan Stanley Price Target Cut
• Negative Sentiment: Johnson Fistel is investigating potential investor claims against ADT and its officers — an added legal/regulated‑disclosure risk that can pressure sentiment until resolved. Johnson Fistel Investigation Notice

Analyst Upgrades and Downgrades

A number of analysts have commented on the company. Zacks Research raised ADT from a “strong sell” rating to a “hold” rating in a report on Monday, February 16th. Wall Street Zen downgraded ADT from a “buy” rating to a “hold” rating in a report on Saturday, November 8th. Morgan Stanley reduced their price objective on ADT from $9.00 to $7.00 and set an “equal weight” rating for the company in a report on Tuesday. The Goldman Sachs Group reissued a “buy” rating and issued a $10.40 target price on shares of ADT in a research report on Monday. Finally, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of ADT in a report on Monday, December 29th. Two investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of “Hold” and an average price target of $9.08.

Institutional Trading of ADT

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

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.