Allegion PLC's stock plummeted 8.54% in early trading on Tuesday, following the release of its first-quarter financial results.

The lockmaker reported adjusted earnings of $1.80 per share for Q1 2026, falling short of Wall Street estimates which ranged from $1.89 to $1.90. This profit miss was attributed to continued soft demand in its residential security business, which has been weighed down by higher borrowing costs and economic uncertainty affecting the housing market.

Despite revenue rising 9.7% to $1.03 billion, which slightly exceeded analyst estimates, and the company reaffirming its full-year adjusted EPS forecast, investors reacted negatively to the quarterly profit shortfall and concerns about the residential segment's performance.