Allegion (NYSE:ALLE) Posts Earnings Results, Beats Estimates By $0.18 EPS

Key Points

• Allegion beat quarterly expectations, reporting adjusted EPS of $2.40 versus estimates of $2.22 and revenue of $1.15 billion versus $1.12 billion expected. Revenue rose 12.7% year over year, with adjusted EPS up 17.6% from a year ago.
• The Americas segment drove the growth, with organic revenue up 8.9% on solid demand in both non-residential and residential markets, while management said non-residential specification activity remains very strong.
• Allegion raised its FY 2026 guidance to $8.85-$9.00 in adjusted EPS and 7.5%-8.5% reported revenue growth, signaling confidence in continued demand and profitability.

Allegion (NYSE:ALLE - Get Free Report) announced its earnings results on Thursday. The scientific and technical instruments company reported $2.40 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.22 by $0.18, FiscalAI reports. Allegion had a return on equity of 35.41% and a net margin of 15.24%.The firm had revenue of $1.15 billion for the quarter, compared to analyst estimates of $1.12 billion. During the same quarter last year, the firm posted $2.04 EPS. The business's revenue was up 12.7% on a year-over-year basis. Allegion updated its FY 2026 guidance to 8.850-9.000 EPS.

Here are the key takeaways from Allegion's conference call:

• Allegion delivered a strong second quarter, with revenue up 12.7%, organic growth up 6.9%, and adjusted EPS up 17.6% year over year.
• The Americas segment was the main growth driver, with organic revenue up 8.9% on healthy demand across both non-residential and residential, plus strength in electronics.
• Management said non-residential specification activity remains very strong and broad-based, supporting confidence in project activity and organic growth over the next 12 to 18 months.
• The International segment saw organic revenue decline 1.2% as weaker demand in Europe, especially Germany, offset improvements from acquisitions and currency.
• Allegion raised full-year guidance for reported revenue to 7.5%-8.5% and adjusted EPS to $8.85-$9.00, while also noting about $10 million in annual benefit from European restructuring actions and continued share repurchases.

Allegion Price Performance

NYSE ALLE traded up $13.80 during trading hours on Thursday, hitting $153.75. 868,005 shares of the company's stock traded hands, compared to its average volume of 1,018,731. The company has a market capitalization of $13.21 billion, a PE ratio of 20.91, a PEG ratio of 2.85 and a beta of 0.85. The company has a debt-to-equity ratio of 0.97, a current ratio of 1.91 and a quick ratio of 1.19. Allegion has a 52-week low of $125.00 and a 52-week high of $183.11. The firm's 50-day moving average is $133.79 and its 200-day moving average is $146.82.

Allegion declared that its board has authorized a share repurchase program on Tuesday, April 28th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the scientific and technical instruments company to repurchase up to 3.9% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's management believes its stock is undervalued.

Insider Buying and Selling at Allegion

In other news, SVP Robert C. Martens sold 3,993 shares of the company's stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $137.15, for a total value of $547,639.95. Following the completion of the sale, the senior vice president directly owned 8,570 shares in the company, valued at $1,175,375.50. This represents a 31.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.64% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Allegion

Several institutional investors and hedge funds have recently bought and sold shares of the company. Compound Planning Inc. increased its holdings in shares of Allegion by 11.5% during the 4th quarter. Compound Planning Inc. now owns 2,515 shares of the scientific and technical instruments company's stock worth $400,000 after buying an additional 259 shares during the last quarter. Invesco Ltd. lifted its holdings in Allegion by 12.7% in the fourth quarter. Invesco Ltd. now owns 1,402,682 shares of the scientific and technical instruments company's stock valued at $223,335,000 after acquiring an additional 157,724 shares during the last quarter. Corient Private Wealth LLC lifted its holdings in Allegion by 143.9% in the fourth quarter. Corient Private Wealth LLC now owns 17,668 shares of the scientific and technical instruments company's stock valued at $2,813,000 after acquiring an additional 10,425 shares during the last quarter. Mercer Global Advisors Inc. ADV grew its position in Allegion by 1.8% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 14,775 shares of the scientific and technical instruments company's stock worth $2,352,000 after acquiring an additional 257 shares during the period. Finally, Beacon Pointe Advisors LLC increased its stake in Allegion by 22.1% during the fourth quarter. Beacon Pointe Advisors LLC now owns 1,423 shares of the scientific and technical instruments company's stock worth $227,000 after acquiring an additional 258 shares during the last quarter. 92.21% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on ALLE shares. Bank of America decreased their price objective on shares of Allegion from $185.00 to $157.00 and set a "neutral" rating on the stock in a report on Monday, April 20th. Morgan Stanley reduced their price target on shares of Allegion from $165.00 to $142.00 and set an "equal weight" rating for the company in a research report on Wednesday, June 3rd. Barclays decreased their price target on shares of Allegion from $165.00 to $161.00 and set an "equal weight" rating on the stock in a research note on Wednesday, April 29th. Robert W. Baird set a $165.00 price objective on Allegion in a report on Wednesday, April 29th. Finally, JPMorgan Chase & Co. reiterated a "neutral" rating and set a $150.00 price objective (down from $170.00) on shares of Allegion in a research note on Friday, May 15th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $160.89.

Key Allegion News

Here are the key news stories impacting Allegion this week:

• Positive Sentiment: Allegion reported Q2 adjusted EPS of $2.40, topping estimates, while revenue of $1.15 billion also beat expectations; the company said the quarter was driven by organic growth and margin expansion in the Americas. Allegion Reports Q2-2026 Financial Results
• Positive Sentiment: The company raised its FY 2026 EPS guidance to $8.85-$9.00, above the consensus estimate, signaling management confidence in continued demand and profitability. Allegion Reports Q2-2026 Financial Results
• Positive Sentiment: Several market reports highlighted that Allegion’s strong Q2 performance and upgraded outlook are strengthening the company’s growth narrative, with non-residential demand appearing to support results. Will Upgraded Q2 Outlook and Non-Residential Demand Shift Allegion's (ALLE) Growth Narrative?
• Neutral Sentiment: Pre-market coverage noted Allegion among the S&P 500 names moving on earnings, reflecting investor focus on the report rather than any new negative company-specific issue. S&P 500 Futures Fall in Premarket Trading; Medpace Holdings, Allegion Lead

Allegion Company Profile

Allegion plc NYSE: ALLE is a global provider of security products and solutions focused on ensuring the safety and security of people and property. The company was formed in December 2013 through a corporate spin-off from Ingersoll Rand and is head­quartered in Dublin, Ireland. Allegion's core mission is to deliver innovative mechanical and electronic access control systems for a wide range of end markets, including commercial buildings, residential properties, institutional facilities, and industrial sites.

The company's product portfolio spans mechanical locksets, door closers, exit devices, key systems and cylinders, as well as a growing suite of electronic and smart access control offerings.

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