ADT Q2 revenue beats on higher security installations
ADT•Outlook
- ADT raises 2026 outlook, sees Adjusted Free Cash Flow growth of about 30% vs prior yr
- Company expects 2026 total revenue growth of about 2% vs prior yr
- ADT projects 2026 Adjusted EPS growth of about 2% vs prior yr
Overview
- U.S. security solutions firm's Q2 revenue rose 2%, beating analyst expectations
- Adjusted EPS for Q2 was flat year-over-year
- Company returned $523 mln to shareholders via buybacks and dividends in Q2
Result Drivers
- Installation and product revenue - Q2 revenue growth was primarily driven by higher security installation, product, and other revenue due to an increased mix of professionally installed systems under the outright sales model
- Higher operating expenses - Lower income from continuing operations was mainly due to higher selling, general, and administrative expenses, partially offset by increased revenue net of related costs
- Strong cash generation - Operating cash flow and adjusted free cash flow rose, benefiting from lower cash taxes, working capital discipline, and lower spending on subscriber acquisition
Key details and analyst coverage
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