ADT (NYSE:ADT) Issues Earnings Results

ADT (NYSE:ADT) announced its quarterly earnings data on Thursday. The security and automation business reported $0.23 earnings per share (EPS) for the quarter, topping 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 analysts’ expectations of $1.29 billion. During the same period last year, the business posted $0.23 earnings per share. The company’s revenue for the quarter 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 Price Performance

ADT traded up $0.12 during midday trading on Thursday, hitting $7.53. 10,899,978 shares of the company traded hands, compared to its average volume of 10,488,329. The business has a 50 day simple moving average of $6.78 and a two-hundred day simple moving average of $7.11. ADT has a 52-week low of $6.24 and a 52-week high of $8.94. The company has a market capitalization of $5.52 billion, a price-to-earnings ratio of 10.76 and a beta of 1.01. The company has a current ratio of 0.84, a quick ratio of 0.67 and a debt-to-equity ratio of 1.94.

Insider Activity at ADT

In related news, EVP Omar Khan purchased 7,280 shares of ADT stock in a transaction that occurred on Monday, May 11th. The stock was purchased at an average price of $6.88 per share, for a total transaction of $50,086.40. Following the transaction, the executive vice president directly owned 7,280 shares in the company, valued at approximately $50,086.40. This trade represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Fawad Ahmad purchased 7,500 shares of the firm’s stock in a transaction that occurred on Tuesday, May 12th. The stock was bought at an average cost of $6.75 per share, for a total transaction of $50,625.00. Following the completion of the purchase, the executive vice president directly owned 302,334 shares in the company, valued at $2,040,754.50. This represents a 2.54% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders acquired 54,855 shares of company stock worth $376,172 over the last three months. Company insiders own 3.00% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Sivia Capital Partners LLC acquired a new position in shares of ADT during the 2nd quarter worth approximately $93,000. Aptus Capital Advisors LLC acquired a new stake in shares of ADT in the third quarter valued at approximately $118,000. Kestra Advisory Services LLC purchased a new position in ADT during the fourth quarter worth approximately $115,000. NewEdge Advisors LLC lifted its position in ADT by 503.0% during the first quarter. NewEdge Advisors LLC now owns 13,279 shares of the security and automation business’s stock worth $108,000 after buying an additional 11,077 shares in the last quarter. Finally, VARCOV Co. acquired a new position in ADT during the fourth quarter worth $105,000. 87.22% of the stock is owned by institutional investors and hedge funds.

More ADT News

Here are the key news stories impacting ADT this week:

• Positive Sentiment: Adjusted EPS beat estimates: ADT reported adjusted earnings of $0.23 per share versus the $0.22 consensus estimate, while revenue reached $1.312 billion, up 2% year over year. ADT Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Cash flow improved sharply: Operating cash flow rose 18% to $666 million, and adjusted free cash flow including interest-rate swaps increased 48% to $406 million. The stronger cash generation supports debt management, investment and capital returns. ADT Reports Second Quarter 2026 Results
• Positive Sentiment: Shareholder returns remained substantial: ADT returned $684 million through buybacks and dividends during the first half, including $478 million of repurchases in the quarter. The board also declared a quarterly dividend of $0.055 per share, payable October 1.
• Positive Sentiment: Full-year outlook was raised: Management now expects approximately 30% growth in 2026 adjusted free cash flow, alongside roughly 2% growth in revenue and adjusted EPS. New initiatives including ADT Blu, the ADT+ platform, AI-powered customer service and presence-sensing technology could support longer-term growth.
• Neutral Sentiment: Management completed a $18 million bulk purchase of approximately 10,000 customer accounts and said Apollo no longer owns ADT shares following a secondary offering.
• Negative Sentiment: Underlying profitability and customer metrics were softer: GAAP income from continuing operations fell 8% to $155 million, adjusted income declined 6% to $180 million, recurring monthly revenue decreased 1% to $360 million, and gross customer attrition rose to 13.1% from 12.8%.

Analysts Set New Price Targets

Several research firms have recently issued reports on ADT. UBS Group set a $7.50 target price on shares of ADT in a research note on Friday, May 1st. Weiss Ratings reissued a “hold (c)” rating on shares of ADT in a report on Wednesday, July 15th. Two analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, ADT presently has an average rating of “Hold” and a consensus price target of $8.08.

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.