| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 94 | 9.2x | 17.8x | Top tier | |
Growth | 32 | 2.1% | 7.1% | Bottom tier | |
Quality | 88 | 9.2% | 4.5% | Top tier | |
Safety | 45 | 2.9x | 2.6x | Around median | |
Capital Return | 82 | 3.12% | 2.12% | Top tier | |
Momentum | 32 | -11.9% | 2.9% | Bottom tier | |
Sentiment | 64 | 3 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
ADT Inc. provides smart home security solutions through an ecosystem that combines professional monitoring, system installation, and the connected ADT Plus platform. Its revenue model relies on recurring monitoring and service fees, along with equipment installation and sales revenue; its recurring monthly revenue balance reached $360 million at the end of the quarter. The company is expanding its reach through ADT Blue, a low-cost, self-install security solution, while retaining professional monitoring as an option within its plans.
In fiscal Q2 2026, total revenue increased 2% to $1.3 billion, and net income according to EDGAR data was approximately $153.8 million. The company reported adjusted income from continuing operations of $180 million and adjusted diluted earnings per share of $0.23, with no year-over-year growth, in addition to adjusted earnings before interest, taxes, depreciation, and amortization of $671 million.
The revenue mix reveals a divergence between recurring operations and equipment sales: monitoring and services revenue declined 1%, while installation revenue increased 17% to $230 million, supported by an approximately 30% increase in direct equipment sales. ADT added approximately 190 thousand new subscribers with total recurring monthly revenue of $11.9 million, but total new units declined 22% year over year and total recurring monthly revenue additions declined 17% due to fewer bulk account purchases and weakness in the dealer channel.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $8.55, within a relatively wide range of $7.50 to $10.40, with an overall consensus rating of “Buy.” The average is below the upper end of the 52-week range of $8.935, while the highest target exceeds that level and the lowest target is above the range low of $6.24; this valuation balances strong cash flow and share repurchases on one hand against weak additions, net debt of $7.4 billion, and expected tax and interest pressures in 2027 on the other.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Revenue reached $1.3 billion, representing 2% year-over-year growth, and net income according to EDGAR was approximately $153.8 million. Adjusted income from continuing operations was $180 million, while adjusted earnings per share remained unchanged at $0.23. Installation revenue increased 17% to $230 million, while monitoring and services revenue declined 1%.
The company launched ADT Blue in fiscal Q2 2026 to target customers who prefer self-installation and are more price-sensitive. The video-only plan starts at $10 per month, while the fully monitored security plan starts at $34.99, and initial results showed that most customers selected the full security plan. Sales were initially concentrated on Amazon, with a lower acquisition cost than traditional solutions and lower average revenue per user.
ADT added approximately 190 thousand new subscribers in fiscal Q2 2026, but total new units declined 22% year over year and total recurring monthly revenue additions declined 17%. The company purchased 10 thousand bulk accounts compared with 50 thousand in the comparable period, reduced its reliance on high-cost commission-based sales channels, and experienced weakness in the dealer channel. In contrast, direct residential installation activity grew at a high-single-digit rate, and the small and medium-sized business segment grew by approximately 4%.
Adjusted free cash flow, including interest rate swaps, increased 48% to $406 million in fiscal Q2 2026 and reached $820 million in the first half. The improvement came from working capital management, lower cash taxes and interest, and reduced subscriber acquisition spending, with approximately half of the first half's year-over-year increase related to working capital. Management warned that second-half cash flow would be lower than in the first half and that taxes and interest could each add a headwind of between $50 million and $100 million in 2027.
ADT combined AI-powered call routing with virtual agents, reducing customer interactions handled by employees and service tickets by approximately 20% each while improving customer satisfaction. In June 2026, more than three-quarters of the code created by the product software team was generated, accepted, and committed through AI tools. The company intends to begin rolling out Origin AI capabilities for motion classification, alarm event analysis, and home zone intelligence through ADT Plus in the first half of 2027.
ADT ended fiscal Q2 2026 with net debt of approximately $7.4 billion and leverage of 2.8 times adjusted earnings before interest, taxes, depreciation, and amortization, compared with a target of 2.5 times. The weighted average cost of debt was approximately 4.3%, while an $800 million revolving credit facility remained undrawn. During the first half, the company returned $684 million to shareholders, including $594 million to repurchase and retire 86 million shares and $90 million in dividends.
