ADT Plunges to 52-Week Low After Mixed Q4, Weak 2026 Outlook
ADT reported Q4 revenue of $1.276 billion, up 1% year-over-year, and adjusted EPS of $0.23, beating estimates but missing the $1.296 billion revenue target. The company forecast flat 2026 sales of $5.129 billion and 89 cents EPS, sending shares to a 52-week low.
1. Q4 Financial Results
ADT delivered fourth-quarter revenue of $1.276 billion, a 1% increase year-over-year, and adjusted earnings of $0.23 per share, topping the $0.22 consensus. GAAP income fell to $146 million, or $0.17 per share, from $197 million a year earlier.
2. Cash Flow and Capital Allocation
Operating cash flow reached $374 million in the quarter and $1.884 billion for the year, while adjusted free cash flow was $154 million. ADT ended 2025 with $81 million in cash, $7.379 billion in long-term debt and returned $791 million to shareholders through $604 million of buybacks and $187 million in dividends.
3. 2026 Outlook and Market Reaction
The company projects flat revenue of $5.129 billion and adjusted EPS of $0.89, below analyst expectations, and expects free cash flow to grow 20%. Shares tumbled over 10% to a new 52-week low as investors reacted to softer guidance and tariff headwinds.