Security technology and services company ADT (NYSE: ADT) announced better-than-expected revenue in Q2 CY2026, with sales up 1.9% year on year to $1.31 billion. Its non-GAAP profit of $0.23 per share was in line with analysts’ consensus estimates.
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ADT (ADT) Q2 CY2026 Highlights:
- Revenue: $1.31 billion vs analyst estimates of $1.29 billion (1.9% year-on-year growth, 1.7% beat)
- Adjusted EPS: $0.23 vs analyst estimates of $0.22 (in line)
- Adjusted EBITDA: $671 million vs analyst estimates of $667 million (51.1% margin, 0.6% beat)
- Operating Margin: 24.1%, down from 26.6% in the same quarter last year
- Free Cash Flow Margin: 47.3%, up from 20% in the same quarter last year
- Market Capitalization: $5.37 billion
“ADT delivered another quarter of solid performance reflecting the resilience of our business model. Strong cash generation supported significant capital returns to shareholders, including elevated share repurchases, underscoring our disciplined approach to capital allocation while continuing to invest in the business,” said ADT Chairman, President and CEO, Jim DeVries.
Company Overview
Founded in 1874 and headquartered in Boca Raton, Florida, ADT (NYSE: ADT) is a provider of security, automation, and smart home solutions, offering comprehensive services for home and business protection.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Unfortunately, ADT struggled to consistently increase demand as its $5.16 billion of sales for the trailing 12 months was close to its revenue five years ago. This was below our standards and is a sign of poor business quality.
We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. ADT’s annualized revenue growth of 4.3% over the last two years is above its five-year trend, which is encouraging. 
This quarter, ADT reported modest year-on-year revenue growth of 1.9% but beat Wall Street’s estimates by 1.7%.
Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months, a deceleration versus the last two years. This projection doesn’t excite us and suggests its products and services will see some demand headwinds.
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Operating Margin
Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.
ADT’s operating margin has more or less stayed the same over the last 12 months , and we generally like to see margin increases due to economies of scale and cost efficiency over time.
This quarter, ADT generated an operating margin profit margin of 24.1%, down 2.5 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth — for example, a company could inflate its sales through excessive spending on advertising and promotions.
ADT’s full-year EPS flipped from negative to positive over the last five years. This is encouraging and shows it’s at a critical moment in its life.
In Q2, ADT reported adjusted EPS of $0.23, in line with the same quarter last year. This print beat analysts’ estimates by 3.1%. Over the next 12 months, Wall Street expects ADT’s full-year EPS to grow 1.3% from $0.92 to $0.93.
Key Takeaways from ADT’s Q2 Results
It was encouraging to see ADT beat analysts’ revenue expectations this quarter. We were also glad its EPS was in line with Wall Street’s estimates. Overall, this print had some key positives. The stock remained flat at $7.34 immediately after reporting.
Big picture, is ADT a buy here and now? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
