NAPCO Security Technologies (NSSC) stock surged 5.83% in pre-market trading on Monday following the release of its strong fiscal first-quarter results. The company reported earnings and revenue that surpassed analyst expectations, demonstrating robust growth across its business segments.

For the first quarter of fiscal 2026, NAPCO reported earnings per share (EPS) of $0.34, beating the consensus estimate of $0.30 and marking a 13.33% increase from the same period last year. The company's revenue also impressed, coming in at $49.2 million, significantly above the expected $46.9 million and representing an 11.74% year-over-year growth.

The strong performance was driven by growth in both equipment and recurring service revenue. Equipment revenue increased by 12.3% to $25.7 million, while recurring service revenue rose 11.1% to $23.4 million, maintaining an impressive 90% gross margin. The company's overall gross margin improved to 56.6%, up from 55.9% in the prior year. Additionally, NAPCO's board declared a quarterly dividend of $0.14 per share, payable on January 2, 2026, further boosting investor confidence. With these positive results and the company's focus on expanding its recurring service solutions, including the growing MVP Access platform, NAPCO Security Technologies appears well-positioned for continued growth in fiscal 2026.