Allegion PLC's stock experienced a significant pre-market plunge of 6.94% 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 represents a 3.2% decrease from the $1.86 per share reported in the same period last year. The earnings 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, investors reacted negatively to the profit shortfall and concerns about the residential segment's performance. The company's Americas division saw revenue increase 6.9%, with non-residential business showing growth, but the residential segment remained under pressure.