Security technology and services company ADT (NYSE: ADT) reported Q1 CY2026 results topping the market’s revenue expectations, but sales were flat year on year at $1.28 billion. Its non-GAAP profit of $0.23 per share was 11% above analysts’ consensus estimates.
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ADT (ADT) Q1 CY2026 Highlights:
- Revenue: $1.28 billion vs analyst estimates of $1.27 billion (flat year on year, 0.8% beat)
- Adjusted EPS: $0.23 vs analyst estimates of $0.21 (11% beat)
- Adjusted EBITDA: $674 million vs analyst estimates of $645 million (52.7% margin, 4.5% beat)
- Operating Margin: 25.4%, in line with the same quarter last year
- Free Cash Flow Margin: 46.1%, up from 16.6% in the same quarter last year
- Market Capitalization: $5.69 billion
“ADT delivered another quarter of solid results highlighted by strong cash generation, and returned $161 million to shareholders through share repurchases and dividends, reflecting our disciplined approach to capital allocation while continuing to invest in our future,” said ADT Chairman, President and CEO, Jim DeVries.
Company Overview
Founded in 1874 and headquartered in Boca Raton, Florida, ADT (NYSE: ADT) is a provider of security, automation, and smart home solutions, offering comprehensive services for home and business protection.
Revenue Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Unfortunately, ADT struggled to consistently increase demand as its $5.14 billion of sales for the trailing 12 months was close to its revenue five years ago. This wasn’t a great result and is a sign of poor business quality.
We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. ADT’s annualized revenue growth of 4.5% over the last two years is above its five-year trend, which is encouraging. 
This quarter, ADT’s $1.28 billion of revenue was flat year on year but beat Wall Street’s estimates by 0.8%.
Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and suggests its products and services will face some demand challenges.
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Operating Margin
Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.
ADT’s operating margin has generally stayed the same over the last 12 months, and we generally like to see margin increases due to economies of scale and cost efficiency over time.
In Q1, ADT generated an operating margin profit margin of 25.4%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
ADT’s full-year EPS flipped from negative to positive over the last five years. This is encouraging and shows it’s at a critical moment in its life.
In Q1, ADT reported adjusted EPS of $0.23, up from $0.21 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects ADT’s full-year EPS of $0.92 to shrink by 1.2%.
Key Takeaways from ADT’s Q1 Results
It was good to see ADT beat analysts’ EPS expectations this quarter. We were also happy its adjusted operating income outperformed Wall Street’s estimates. Overall, this print had some key positives. The stock traded up 4.8% to $7.52 immediately following the results.
Indeed, ADT had a rock-solid quarterly earnings result, but is this stock a good investment here? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).
