NAPCO Security Technologies (NASDAQ:NSSC) Issues Earnings Results

NAPCO Security Technologies (NASDAQ:NSSC) announced its quarterly earnings results on Monday. The industrial products company reported $0.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.39 by $0.11, Zacks reports. NAPCO Security Technologies had a return on equity of 28.93% and a net margin of 18.70%.The firm had revenue of $55.81 million during the quarter, compared to the consensus estimate of $52.51 million. During the same period in the prior year, the firm earned $0.33 EPS. The firm’s quarterly revenue was up 10.1% compared to the same quarter last year.

Here are the key takeaways from NAPCO Security Technologies’ conference call:

• Record fiscal 2026 results included revenue of $202.3 million, non-GAAP EPS growth of 34.5% to $1.60, adjusted EBITDA of $66.7 million, and $59.2 million in free cash flow.
• Recurring service revenue grew 13% to $97.5 million, with gross margins above 90%; the July annualized recurring revenue run rate reached approximately $103 million, supported by strong StarLink radio sales.
• Management reported a larger project funnel across schools, healthcare, airports, multifamily housing, and government, while expecting MVP cloud access control to begin generating meaningful recurring revenue around October or November 2026.
• NAPCO ended the year with $137.6 million in cash and no debt, raised its quarterly dividend 13.3% to $0.17 per share, and said it has flexibility for continued investment or potential acquisitions.
• Management flagged potential fiscal 2027 pressure from tariffs, electronic-component costs linked to data-center expansion, and supply-chain constraints; quarterly equipment margins also benefited materially from tariff refunds, including an approximately $0.09 EPS benefit.

NAPCO Security Technologies Stock Down 1.3%

NASDAQ:NSSC opened at $37.59 on Tuesday. The stock has a market cap of $1.34 billion, a P/E ratio of 36.14 and a beta of 1.45. NAPCO Security Technologies has a twelve month low of $31.47 and a twelve month high of $51.77. The business’s 50-day moving average price is $37.56 and its two-hundred day moving average price is $40.01.

NAPCO Security Technologies Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 2nd. Stockholders of record on Friday, September 11th will be given a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.8%. This is an increase from NAPCO Security Technologies’s previous quarterly dividend of $0.15. The ex-dividend date is Friday, September 11th. NAPCO Security Technologies’s dividend payout ratio (DPR) is 57.69%.

Trending Headlines about NAPCO Security Technologies

Here are the key news stories impacting NAPCO Security Technologies this week:

• Positive Sentiment: Strong earnings and revenue beat: Fiscal Q4 2026 earnings were $0.50 per share, exceeding the $0.39 analyst consensus and rising from $0.33 a year earlier. Revenue reached $55.81 million, above expectations of $52.51 million and up 10.1% year over year. Reports characterized revenue as a record, supporting the market’s favorable reaction. NAPCO Fiscal Q4 and Full Year 2026 Results
• Positive Sentiment: Recurring-revenue momentum: Management indicated that recurring revenue is running at approximately $103 million, a favorable signal for revenue visibility, margins and the company’s subscription-oriented security business. Napco Signals $103M Recurring Revenue Run Rate
• Positive Sentiment: Higher dividend: NAPCO raised its quarterly dividend to $0.17 from $0.15, a 13.3% increase. The annualized payout is approximately $0.68 per share, representing a yield of about 1.8% and reinforcing confidence in cash generation. Napco Raises Quarterly Dividend
• Neutral Sentiment: Investor consideration: Despite the earnings momentum, NSSC trades at a relatively high trailing P/E ratio of roughly 36, so continued share-price support may depend on sustaining recurring-revenue growth and earnings expansion.

Hedge Funds Weigh In On NAPCO Security Technologies

Hedge funds have recently bought and sold shares of the company. IFP Advisors Inc boosted its stake in shares of NAPCO Security Technologies by 193.3% during the 3rd quarter. IFP Advisors Inc now owns 572 shares of the industrial products company’s stock worth $25,000 after acquiring an additional 377 shares during the last quarter. Advisory Services Network LLC acquired a new stake in NAPCO Security Technologies in the third quarter valued at approximately $41,000. Kemnay Advisory Services Inc. purchased a new stake in shares of NAPCO Security Technologies during the fourth quarter worth about $107,000. Acadian Asset Management LLC acquired a new position in NAPCO Security Technologies during the 1st quarter valued at approximately $91,000. Finally, Raymond James Financial Inc. purchased a new stake in NAPCO Security Technologies during the 2nd quarter valued at about $130,000. Institutional investors own 85.07% of the company’s stock.

Wall Street Analyst Weigh In

A number of research analysts recently commented on the stock. Needham & Company LLC reaffirmed a “buy” rating and set a $49.00 price objective on shares of NAPCO Security Technologies in a research report on Friday. Wall Street Zen lowered shares of NAPCO Security Technologies from a “buy” rating to a “hold” rating in a report on Saturday, July 4th. Weiss Ratings reiterated a “hold (c)” rating on shares of NAPCO Security Technologies in a report on Friday, August 7th. DA Davidson reissued a “buy” rating and set a $52.00 price target on shares of NAPCO Security Technologies in a research report on Tuesday, May 5th. Finally, TD Cowen reaffirmed a “buy” rating and set a $53.00 price target (up from $50.00) on shares of NAPCO Security Technologies in a report on Tuesday, May 5th. Six equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $48.67.

About NAPCO Security Technologies

NAPCO Security Technologies, Inc (NASDAQ: NSSC) is a designer and manufacturer of electronic security solutions for commercial and residential applications. The company’s product portfolio spans intrusion and fire alarm control panels, alarm communicators, access control locks and readers, as well as a broad range of peripheral modules and integrated security accessories. NAPCO’s offerings are engineered to deliver scalable, networked security systems suitable for new installations and retrofit projects alike.

Key product lines include hybrid alarm control panels that support both wired and wireless peripherals, cellular and IP alarm communicators for reliable central station reporting, and the acclaimed “Alarm Lock” series of standalone and networked electronic door locks.