Resideo Technologies (NYSE:REZI) Stock Jumps 11.4% on Better-Than-Expected Earnings

Key Points

• Resideo shares jumped 11.4% after adjusted quarterly EPS of $0.52 beat the $0.40 consensus; revenue of $727 million also topped expectations at $712.64 million.
• Revenue grew 3% year over year (6% excluding OEM Security), while adjusted EBITDA rose 5% and gross margin expanded for a 14th consecutive quarter. The company also repaid $1.1 billion in gross debt.
• Guidance remained cautious: Resideo forecast 2026 revenue of $2.927 billion to $2.947 billion, with continued weakness in OEM Security weighing on growth expectations.

Resideo Technologies, Inc. (NYSE:REZI - Get Free Report)'s stock price was up 11.4% during mid-day trading on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $21.62 and last traded at $21.6760. Approximately 1,253,359 shares were traded during mid-day trading, a decline of 24% from the average daily volume of 1,646,366 shares. The stock had previously closed at $19.45.

The company reported $0.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.40 by $0.12. The firm had revenue of $727.00 million during the quarter, compared to analysts' expectations of $712.64 million. Resideo Technologies had a net margin of 5.37% and a return on equity of 17.79%. The firm's revenue for the quarter was down 61.0% on a year-over-year basis. During the same period in the prior year, the company posted $0.89 earnings per share.

Key Stories Impacting Resideo Technologies

These are some of the REZI stories that stood out recently:

• Positive Sentiment: Third-quarter revenue was $727 million, up 3% year over year; excluding OEM Security, revenue grew 6%. Adjusted diluted EPS of $0.52 beat the $0.40 consensus, while adjusted EBITDA rose 5% and gross margin expanded for a 14th consecutive quarter. Resideo Q3 results and outlook
• Positive Sentiment: Resideo said it repaid $1.1 billion of gross debt during the quarter, leaving gross debt at $2.1 billion—progress that may ease balance-sheet concerns. Resideo Q3 results and outlook
• Negative Sentiment: Management’s cautious outlook weighed on the earnings reaction. Resideo forecasts 2026 revenue of $2.927 billion to $2.947 billion, and coverage highlights continued OEM Security weakness as a drag on growth. Resideo posts better-than-expected sales but weak guidance Q3 2026 deep dive

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on REZI shares. Citizens Jmp started coverage on Resideo Technologies in a research note on Monday, October 19th. They issued a "market outperform" rating and a $22.00 target price on the stock. Evercore initiated coverage on shares of Resideo Technologies in a research report on Monday, September 28th. They set an "outperform" rating and a $30.00 price target for the company. Weiss Ratings lowered Resideo Technologies from a "hold (c)" rating to a "hold (c-)" rating in a research note on Monday. Oppenheimer reaffirmed an "outperform" rating on shares of Resideo Technologies in a research report on Thursday, August 13th. Finally, Zacks Research raised shares of Resideo Technologies from a "strong sell" rating to a "hold" rating in a research report on Tuesday, October 13th. Five analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, Resideo Technologies has a consensus rating of "Moderate Buy" and an average target price of $31.75.

Insider Activity

In other news, SVP Joshua Foster purchased 15,317 shares of the firm's stock in a transaction on Friday, August 14th. The stock was purchased at an average cost of $20.58 per share, with a total value of $315,223.86. Following the purchase, the senior vice president owned 183,509 shares in the company, valued at $3,776,615.22. This trade represents a 9.11% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Thomas A. Surran bought 15,000 shares of the stock in a transaction that occurred on Friday, August 14th. The shares were purchased at an average cost of $20.46 per share, for a total transaction of $306,900.00. Following the completion of the acquisition, the chief executive officer owned 338,573 shares of the company's stock, valued at $6,927,203.58. This trade represents a 4.64% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last 90 days, insiders have acquired 41,245 shares of company stock valued at $848,115. Insiders own 1.60% of the company's stock.

Hedge Funds Weigh In On Resideo Technologies

Hedge funds have recently made changes to their positions in the business. Ancora Advisors LLC bought a new position in shares of Resideo Technologies in the second quarter valued at $13,546,000. J. Goldman & Co LP acquired a new stake in shares of Resideo Technologies during the 2nd quarter valued at $17,983,000. Bank of America Corp DE bought a new stake in shares of Resideo Technologies during the 2nd quarter worth $32,325,000. Hsbc Holdings PLC boosted its stake in shares of Resideo Technologies by 659.0% during the 1st quarter. Hsbc Holdings PLC now owns 50,832 shares of the company's stock worth $1,706,000 after acquiring an additional 44,135 shares in the last quarter. Finally, Healthcare of Ontario Pension Plan Trust Fund bought a new stake in shares of Resideo Technologies during the 1st quarter worth $1,497,000. Institutional investors and hedge funds own 91.71% of the company's stock.

Resideo Technologies Stock Up 11.7%

The company has a current ratio of 2.22, a quick ratio of 1.41 and a debt-to-equity ratio of 1.41. The firm has a market capitalization of $3.30 billion, a price-to-earnings ratio of 9.62 and a beta of 1.58. The stock has a fifty day moving average of $18.41 and a 200-day moving average of $29.34.

About Resideo Technologies

Resideo Technologies is a provider of products and services for home comfort, safety, security and energy management. Its offerings include thermostats and other heating and cooling controls, indoor air quality products, water leak detection devices, fire and carbon monoxide alarms, and security systems. Products are sold under brands that include Honeywell Home and First Alert. The company also operates ADI Global Distribution, a distributor of security, audio-visual, communications and smart-home products.

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