ADT Q4 revenue misses, launches $1.5 bln buyback

Reuters
Mar 02
ADT Q4 revenue misses, launches $1.5 bln buyback

Overview

  • Security solutions provider's Q4 revenue missed analyst expectations

  • Adjusted EPS for Q4 rose yr/yr

  • Company announced $1.5 bln share repurchase plan

Outlook

  • Company expects 2026 adjusted free cash flow growth of approximately 20%

  • ADT anticipates flat revenue and adjusted EPS for 2026

  • Company announces $1.5 bln share repurchase plan through April 2029

Result Drivers

  • SMART SECURITY PLATFORM - ADT's rollout of ADT+ platform integrating Google Nest and Yale devices drove growth

  • AI ACQUISITION - Acquisition of Origin AI added ambient sensing capabilities, enhancing smart home offerings

  • OPERATIONAL EFFICIENCY - Remote Assistance program improved service efficiency, reducing costs and vehicle trips

Company press release: ID:nGNX9sd3nB

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Miss

$1.28 bln

$1.30 bln (3 Analysts)

Q4 Adjusted EPS from continuing operations

$0.23

Q4 EPS

$0.17

Q4 Adjusted Income from Cont Ops

$186 mln

Q4 Net Income

$145 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "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 $9.00, about 12.2% above its February 27 closing price of $8.02

  • The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)

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