Alarm.com (NASDAQ:ALRM) Issues FY 2026 Earnings Guidance

Key Points

• Alarm.com set FY2026 guidance at EPS 2.81 and revenue of $1.1 billion, outperforming the consensus EPS estimate of 2.68 while matching revenue expectations.
• Several analysts have lowered price targets and turned more cautious—Barclays and JPMorgan cut targets to $50 and $40 respectively—and MarketBeat shows a consensus Hold rating with a $56.67 price target.
• The company beat Q1 estimates (EPS $0.65 vs. $0.60; revenue $265.2M vs. $250.9M), and the stock rose about 3.4% to $47, giving Alarm.com a market cap near $2.32 billion and a P/E of ~19.1.

Alarm.com (NASDAQ:ALRM - Get Free Report) updated its FY 2026 earnings guidance on Thursday. The company provided EPS guidance of 2.810-2.810 for the period, compared to the consensus EPS estimate of 2.680. The company issued revenue guidance of $1.1 billion-$1.1 billion, compared to the consensus revenue estimate of $1.1 billion.

Wall Street Analyst Weigh In

Several equities analysts recently commented on the company. Barclays reduced their target price on Alarm.com from $56.00 to $50.00 and set an "equal weight" rating for the company in a research report on Friday, February 20th. JPMorgan Chase & Co. reduced their target price on Alarm.com from $55.00 to $40.00 and set an "underweight" rating for the company in a research report on Wednesday, February 18th. Weiss Ratings restated a "hold (c-)" rating on shares of Alarm.com in a research report on Friday, April 24th. Finally, Zacks Research cut Alarm.com from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, March 25th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Alarm.com has a consensus rating of "Hold" and a consensus price target of $56.67.

Alarm.com Trading Up 3.4%

ALRM stock traded up $1.56 during trading on Thursday, hitting $47.00. 621,489 shares of the company traded hands, compared to its average volume of 448,569. The firm has a market capitalization of $2.32 billion, a PE ratio of 19.11, a P/E/G ratio of 1.63 and a beta of 0.79. Alarm.com has a 1 year low of $41.50 and a 1 year high of $60.76. The company has a 50-day moving average of $45.63 and a 200-day moving average of $48.48. The company has a debt-to-equity ratio of 0.58, a quick ratio of 1.78 and a current ratio of 1.92.

Alarm.com (NASDAQ:ALRM - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The software maker reported $0.65 EPS for the quarter, beating analysts' consensus estimates of $0.60 by $0.05. The business had revenue of $265.19 million during the quarter, compared to analyst estimates of $250.94 million. Alarm.com had a return on equity of 14.79% and a net margin of 13.11%.Alarm.com has set its FY 2026 guidance at 2.810-2.810 EPS. Analysts predict that Alarm.com will post 2.24 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Alarm.com news, CFO Kevin Christopher Bradley sold 1,510 shares of the company's stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $45.97, for a total transaction of $69,414.70. Following the completion of the transaction, the chief financial officer owned 51,546 shares of the company's stock, valued at $2,369,569.62. This represents a 2.85% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 5.80% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in ALRM. Amundi raised its position in shares of Alarm.com by 6.8% in the 1st quarter. Amundi now owns 17,532 shares of the software maker's stock worth $920,000 after acquiring an additional 1,113 shares in the last quarter. AQR Capital Management LLC boosted its stake in Alarm.com by 7.8% during the 1st quarter. AQR Capital Management LLC now owns 59,005 shares of the software maker's stock valued at $3,284,000 after purchasing an additional 4,246 shares during the last quarter. Woodline Partners LP purchased a new stake in Alarm.com during the 1st quarter valued at $514,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Alarm.com by 4.9% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 131,200 shares of the software maker's stock valued at $7,301,000 after purchasing an additional 6,080 shares during the last quarter. Finally, Jane Street Group LLC boosted its stake in shares of Alarm.com by 610.0% in the 1st quarter. Jane Street Group LLC now owns 114,715 shares of the software maker's stock worth $6,384,000 after buying an additional 98,557 shares during the last quarter. Institutional investors own 91.74% of the company's stock.

Alarm.com Company Profile

Alarm.com Holdings, Inc provides a cloud-based software platform for connected properties, enabling residential and commercial customers to monitor, manage and control security, energy and home automation solutions. The company's interactive services connect security systems, smart thermostats, door locks, lights and video cameras through cellular, broadband and Z-Wave networks, offering real-time alerts and remote access via mobile and web applications.

Through its platform, Alarm.com delivers an integrated suite of products that includes intrusion detection, video monitoring and cloud recording, energy management features such as smart thermostat scheduling, and home automation controls for lighting, garage doors and connected appliances.

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