ADT Q2 revenue beats on higher security installations

Overview

• U.S. security solutions firm's Q2 revenue rose 2%, beating analyst expectations

• Adjusted EPS for Q2 was flat year-over-year

• Company returned $523 mln to shareholders via buybacks and dividends in Q2

Outlook

• ADT raises 2026 outlook, sees Adjusted Free Cash Flow growth of about 30% vs prior yr

• Company expects 2026 total revenue growth of about 2% vs prior yr

• ADT projects 2026 Adjusted EPS growth of about 2% vs prior yr

Result Drivers

• INSTALLATION AND PRODUCT REVENUE - Q2 revenue growth was primarily driven by higher security installation, product, and other revenue due to an increased mix of professionally installed systems under the outright sales model

• HIGHER OPERATING EXPENSES - Lower income from continuing operations was mainly due to higher selling, general, and administrative expenses, partially offset by increased revenue net of related costs

• STRONG CASH GENERATION - Operating cash flow and adjusted free cash flow rose, benefiting from lower cash taxes, working capital discipline, and lower spending on subscriber acquisition

Company press release: ID:nGNX4dNkJd

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the communications networking peer group is "buy"

• Wall Street's median 12-month price target for ADT Inc is $8.50, about 14.7% above its July 29 closing price of $7.41

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads

• July 30 - Europe's Verisure Q2 revenue rises on customer growth, confirms 2026 outlook

• July 29 - Porch Group Q2 adjusted core profit eases past estimates; annual outlook lifted

• July 28 - Skyworks beats Q3 revenue, adjusted EPS estimates; sets $2 bln buyback

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)