Allegion (NYSE:ALLE) Announces Quarterly Earnings Results

Allegion (NYSE:ALLE) announced its earnings results on Thursday. The scientific and technical instruments company reported $2.40 earnings per share for the quarter, topping the consensus estimate of $2.22 by $0.18, FiscalAI reports. Allegion had a net margin of 15.24% and a return on equity of 35.41%. The company had revenue of $1.15 billion during the quarter, compared to analyst estimates of $1.12 billion. During the same quarter last year, the firm posted $2.04 earnings per share. Allegion’s revenue was up 12.7% compared to the same quarter last year. Allegion updated its FY 2026 guidance to 8.850-9.000 EPS.

Here are the key takeaways from Allegion’s conference call:

• Allegion delivered a strong second quarter, with revenue up 12.7%, organic growth up 6.9%, and adjusted EPS up 17.6% year over year.
• The Americas segment was the main growth driver, with organic revenue up 8.9% on healthy demand across both non-residential and residential, plus strength in electronics.
• Management said non-residential specification activity remains very strong and broad-based, supporting confidence in project activity and organic growth over the next 12 to 18 months.
• The International segment saw organic revenue decline 1.2% as weaker demand in Europe, especially Germany, offset improvements from acquisitions and currency.
• Allegion raised full-year guidance for reported revenue to 7.5%-8.5% and adjusted EPS to $8.85-$9.00, while also noting about $10 million in annual benefit from European restructuring actions and continued share repurchases.

Allegion Stock Performance

Shares of ALLE stock traded up $13.80 during trading hours on Thursday, hitting $153.75. The stock had a trading volume of 868,005 shares, compared to its average volume of 1,018,731. The company has a debt-to-equity ratio of 0.97, a current ratio of 1.91 and a quick ratio of 1.19. The firm has a market capitalization of $13.21 billion, a PE ratio of 20.91, a PEG ratio of 2.85 and a beta of 0.85. The stock’s 50 day moving average is $133.79 and its 200 day moving average is $146.82. Allegion has a twelve month low of $125.00 and a twelve month high of $183.11.

Analyst Upgrades and Downgrades

ALLE has been the topic of several recent analyst reports. Evercore upgraded shares of Allegion to a “strong-buy” rating in a report on Monday, April 13th. Morgan Stanley cut their target price on Allegion from $165.00 to $142.00 and set an “equal weight” rating on the stock in a research report on Wednesday, June 3rd. JPMorgan Chase & Co. restated a “neutral” rating and set a $150.00 price target (down from $170.00) on shares of Allegion in a research note on Friday, May 15th. Longbow Research upgraded Allegion from a “neutral” rating to a “buy” rating and set a $165.00 price target for the company in a research report on Thursday, June 11th. Finally, Barclays cut their price objective on Allegion from $165.00 to $161.00 and set an “equal weight” rating on the stock in a report on Wednesday, April 29th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat.com, Allegion presently has a consensus rating of “Hold” and an average price target of $160.89.

Allegion announced that its Board of Directors has authorized a share buyback plan on Tuesday, April 28th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the scientific and technical instruments company to buy up to 3.9% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s management believes its shares are undervalued.

Insider Transactions at Allegion

In other news, SVP Robert C. Martens sold 3,993 shares of the company’s stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $137.15, for a total value of $547,639.95. Following the completion of the sale, the senior vice president directly owned 8,570 shares of the company’s stock, valued at approximately $1,175,375.50. This represents a 31.78% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.64% of the company’s stock.

Institutional Trading of Allegion

A number of hedge funds have recently added to or reduced their stakes in the stock. Diversify Advisory Services LLC raised its position in shares of Allegion by 2.7% in the 3rd quarter. Diversify Advisory Services LLC now owns 2,308 shares of the scientific and technical instruments company’s stock worth $380,000 after buying an additional 60 shares during the period. Brown Brothers Harriman & Co. grew its holdings in shares of Allegion by 2.6% during the 4th quarter. Brown Brothers Harriman & Co. now owns 2,923 shares of the scientific and technical instruments company’s stock worth $465,000 after purchasing an additional 75 shares during the period. Transamerica Financial Advisors LLC increased its position in shares of Allegion by 8.1% in the fourth quarter. Transamerica Financial Advisors LLC now owns 1,214 shares of the scientific and technical instruments company’s stock worth $193,000 after acquiring an additional 91 shares in the last quarter. Lansforsakringar Fondforvaltning AB publ lifted its position in Allegion by 0.4% during the 4th quarter. Lansforsakringar Fondforvaltning AB publ now owns 27,250 shares of the scientific and technical instruments company’s stock worth $4,339,000 after acquiring an additional 103 shares in the last quarter. Finally, Johnson Investment Counsel Inc. grew its position in Allegion by 4.1% in the fourth quarter. Johnson Investment Counsel Inc. now owns 2,717 shares of the scientific and technical instruments company’s stock valued at $433,000 after acquiring an additional 106 shares in the last quarter. 92.21% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Allegion

Here are the key news stories impacting Allegion this week:

• Positive Sentiment: Allegion reported Q2 adjusted EPS of $2.40, topping estimates, while revenue of $1.15 billion also beat expectations; the company said the quarter was driven by organic growth and margin expansion in the Americas. Allegion Reports Q2-2026 Financial Results
• Positive Sentiment: The company raised its FY 2026 EPS guidance to $8.85-$9.00, above the consensus estimate, signaling management confidence in continued demand and profitability. Allegion Reports Q2-2026 Financial Results
• Positive Sentiment: Several market reports highlighted that Allegion’s strong Q2 performance and upgraded outlook are strengthening the company’s growth narrative, with non-residential demand appearing to support results. Will Upgraded Q2 Outlook and Non-Residential Demand Shift Allegion’s (ALLE) Growth Narrative?
• Neutral Sentiment: Pre-market coverage noted Allegion among the S&P 500 names moving on earnings, reflecting investor focus on the report rather than any new negative company-specific issue. S&P 500 Futures Fall in Premarket Trading; Medpace Holdings, Allegion Lead

About Allegion

Allegion plc (NYSE: ALLE) is a global provider of security products and solutions focused on ensuring the safety and security of people and property. The company was formed in December 2013 through a corporate spin-off from Ingersoll Rand and is head­quartered in Dublin, Ireland. Allegion’s core mission is to deliver innovative mechanical and electronic access control systems for a wide range of end markets, including commercial buildings, residential properties, institutional facilities, and industrial sites.

The company’s product portfolio spans mechanical locksets, door closers, exit devices, key systems and cylinders, as well as a growing suite of electronic and smart access control offerings.