ADT (NYSE:ADT) Issues Earnings Results, Beats Estimates By $0.01 EPS

ADT (NYSE:ADT) announced its quarterly earnings results on Tuesday. The security and automation business reported $0.24 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.23 by $0.01, FiscalAI reports. The firm had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.32 billion. ADT had a return on equity of 18.99% and a net margin of 11.85%. The firm’s quarterly revenue was up 3.9% compared to the same quarter last year. During the same period in the prior year, the company posted $0.23 earnings per share.

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

• ADT agreed to be acquired by Thrive Holdings for $10 per share in cash, representing a 46% premium to its unaffected share price and valuing the company at approximately $7.6 billion in equity value. The transaction is expected to close in the first quarter of 2027, subject to stockholder, antitrust, and other customary approvals.
• ADT withdrew its previously issued financial guidance and will not provide new guidance because of the pending transaction. The company also declined to take questions on the earnings call.
• Third-quarter results showed 4% revenue growth to $1.35 billion, adjusted EPS growth of 4% to $0.24, and adjusted free cash flow of $217 million. Year-to-date free cash flow exceeded $1 billion, up 46%, supported by lower cash taxes and interest as well as working-capital management.
• Core operating trends were mixed, with gross customer revenue attrition increasing to 13.1% from 13.0% and monitoring and related-services revenue declining 1%. Adjusted EBITDA fell 2% due largely to higher general and administrative costs, including technology investments.
• ADT continued expanding its offerings and partnerships, including Unusual Activity Alerts, Origin AI pilots, broader ADT Blu distribution through Walmart.com, and a new service arrangement with Apple Retail. The company also reported net leverage of 2.7 times adjusted EBITDA and returned $64 million to shareholders during the quarter.

ADT Price Performance

Shares of ADT stock traded up $0.04 during midday trading on Wednesday, reaching $9.89. 7,094,777 shares of the company traded hands, compared to its average volume of 10,687,712. The firm’s 50 day simple moving average is $7.08 and its two-hundred day simple moving average is $7.11. ADT has a 1-year low of $6.03 and a 1-year high of $9.99. The company has a debt-to-equity ratio of 2.14, a current ratio of 0.69 and a quick ratio of 0.52. The firm has a market cap of $7.23 billion, a PE ratio of 13.94 and a beta of 0.95.

Analysts Set New Price Targets

Several analysts recently commented on the stock. Morgan Stanley reduced their price target on shares of ADT from $7.75 to $7.25 and set an “equal weight” rating for the company in a research report on Tuesday, October 13th. Weiss Ratings raised shares of ADT from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, October 29th. Finally, BTIG Research initiated coverage on shares of ADT in a research note on Monday, August 17th. They issued a “neutral” rating on the stock. Two investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $8.13.

Trending Headlines about ADT

Here are the key news stories impacting ADT this week:

• Positive Sentiment: Thrive Holdings has agreed to acquire ADT in a take-private transaction for $10 per share in cash, valuing the deal at about $15.3 billion. ADT expects the transaction to close in the first quarter of 2027. The offer is likely to support the shares, though trading near the offer price would leave limited upside unless the terms improve. ADT to Be Acquired by Thrive Holdings in $15.3B Take-Private Deal
• Positive Sentiment: ADT’s third-quarter results modestly beat expectations: EPS was $0.24 versus a $0.23 consensus, while revenue of about $1.35 billion exceeded estimates and rose 4% year over year. Year-to-date adjusted free cash flow topped $1 billion, and the company reported returning $748 million to shareholders through repurchases and dividends. ADT Reports Third Quarter 2026 Results
• Neutral Sentiment: A law firm is investigating whether the proposed $10-per-share consideration and sale process are adequate. The inquiry adds uncertainty but, based on the reported information, does not indicate that the transaction has been blocked or changed. ADT Investor Alert: Investigation of Proposed Sale

ADT Company Profile

ADT Inc is a security and smart-home services company that provides monitored protection and automation solutions for residential and commercial customers. Its offerings include professionally installed security systems, 24-hour alarm monitoring, video surveillance, fire and life-safety systems, access control, home automation and related emergency response services.

The company serves customers primarily in the United States, offering solutions designed to help protect homes, businesses and other facilities from burglary, fire and other risks.