ADT NYSE Russell 1000 Earnings call
ADT Inc. (ADT) · Q2 2026 results and valuation
Share price: $9.92 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 30 Jul 2026 and 30 Apr 2026
Net income down 8.6% on the previous quarter, guidance raised. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−8.6%
Net income vs Q1 2026
Guidance raised
Net income 153.8M vs 168.4M
Revenue +2.6%
2 · How management spoke
Typical
Less upbeat than 52% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
ADT returned $684 million to shareholders in the first half as adjusted free cash flow jumped nearly 50% and Apollo fully exited.
Valuation
Is ADT Inc. undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 5.4% growth a year (3-year revenue growth), the model's fair value is $28.80 a share — the stock trades 66% below it. Today's price assumes −3.7% growth a year.
Current price
$9.92
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
-3.7% for 10 yrs
Fair value / share
$28.80
Buy below
$21.60
Price vs fair value
Undervalued 66%
Price vs buy-below price
Undervalued 54%
Read between the lines
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Guidance ↑
ADT raised its guidance for revenue and earnings per share.
Source quote
“And into next year and even more pleased that we were able to raise our guidance across each of the 3 measurements revenue and earnings per share and especially...”
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Guidance
ADT now expects volumes to begin growing in the third and fourth quarters, suggesting a second-half pickup.
Source quote
“We expect volumes to begin to grow in the third and fourth quarters.”
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Figure
ADT's second quarter revenue grew 2% to $1.3 billion, while recurring monthly revenue reached $360 million, indicating reliable subscription-driven growth.
Source quote
“Total second quarter revenue grew 2% to $1.3 billion, and our end of period recurring monthly revenue was $360 million.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Driving better customer engagement, improving efficiency, and ultimately supporting more sustainable growth.”
“On a year-to-date basis, our adjusted EPS is $0.47, up $0.03 Beyond the effect of revenue and gross margins, our earnings reflect ongoing efficiency actions and cost controls some offsetting...”
“We believe we are still in the early stages of this opportunity and that these initiatives will be a meaningful contributor to both growth and margin expansion.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.31B | 1.28B | +2.6% | 1.29B | +2.0% |
| Operating income | 315.9M | 325.4M | −2.9% | 342.0M | −7.6% |
| Net income | 153.8M | 168.4M | −8.6% | 165.2M | −6.9% |
| P/E | — | — | — | — | — |
Topics
Most discussed now
- This result was driven primarily by working capital timing, lower cash taxes and interest, and lower subscriber acquisition spending.
- Reconciliation to the most comparable GAAP measures are included in the earnings presentation on ADT's Web...
- Trailing 12 month attrition remains at approximately 13%, Subscriber and recurring revenue trends remain consistent with the first quarter…
- On a year-to-date basis, ADT's adjusted EPS is $0.47, up $0.03 Beyond the effect of revenue and gross margins, its...
- ADT agains delivered solid financial performance with very strong cash generation as a continued highlight.
Faded since Q1 2026
- Dropped I am not sure that it will continue to be linear like that, but ADT has a fantastic internal leadership...
- Fading ADT's overall strategy remains anchored in three core differentiators: unrivaled safety, premium experience, and innovative offerings.
Latest announcements
Official filings, newest first.
- Material agreement; New financial obligation · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Material agreement; New financial obligation; Shareholder vote results · SEC 8-K
- Director or officer change; Articles or bylaws amended; Other events · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Other events · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Regulation FD disclosure · SEC 8-K