| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 82 | 7.6x | 17.8x | Top tier | |
Growth | 60 | 3.4% | 7.1% | Around median | |
Quality | 40 | 7.9% | 4.5% | Bottom tier | |
Safety | 37 | 4.7x | 2.6x | Bottom tier | |
Capital Return | 7 | — | 2.12% | Bottom tier | |
Momentum | 9 | -18.6% | 2.9% | Bottom tier | |
Sentiment | 85 | 2 | 3 | Top tier |
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.
Following the spin-off of ADI Global Distribution on August 3, 2026, Resideo Technologies became a pure-play building technology company. The company generates revenue from products such as smart thermostats, smoke and carbon monoxide detectors, dehumidification and water filtration products, combustion solutions, video surveillance systems, and intrusion security systems, selling them through retail, HVAC distribution, electrical and security distribution channels, and OEM customers. During Q2 fiscal 2026, consolidated results still included the Products & Solutions and ADI segments, while ADI's results will be classified as discontinued operations beginning in Q3 fiscal 2026.
Resideo reported record revenue of nearly $1.98 billion in Q2 fiscal 2026, up 2% year over year, while gross profit according to EDGAR data was approximately $595 million, net income was $97 million, and diluted earnings per share were $0.51. On an adjusted basis, earnings before interest, taxes, depreciation, and amortization increased 19% to a record $249 million, and earnings per share rose 26% to $0.83, with adjusted earnings benefiting from $27 million in tariff refunds, most of which went to ADI. Products & Solutions revenue increased 4%, and gross margin reached 43.6%, up 70 basis points year over year and 100 basis points from the previous quarter, marking the thirteenth consecutive quarter of year-over-year expansion.
The latest trailing twelve-month data for 2026 show revenue of $7.7 billion, gross profit of $2.3 billion, net income of $427 million, and earnings per share of approximately $2.77, compared with a net loss of $527 million and negative earnings per share of $3.77 in fiscal 2025. However, these historical figures include ADI and do not represent the new standalone size of Resideo; management expects standalone fiscal 2026 revenue of between $2.9 billion and $2.95 billion and adjusted earnings before interest, taxes, depreciation, and amortization of between $605 million and $625 million. The company also repaid $900 million of the Term Loan B principal on August 3, 2026, and expects to repay approximately another $200 million during Q3 fiscal 2026 following the post-spin cash settlement.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is "Buy," with an average target of $42.33 and a wide range of $27 to $55; the average target is approximately 34% above the top of the 52-week range of $31.51705, while the lowest target falls within the 52-week range of $18.59429 to $31.51705. This dispersion reflects substantial differences in assessing the impact of the ADI spin-off, improving Products & Solutions margins, input cost pressures, and lower revenue from an OEM security customer. The absence of a published earnings multiple also makes the valuation of the standalone company more dependent on the execution of fiscal 2026 guidance.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Resideo completed the spin-off of ADI Global Distribution on August 3, 2026, and ADI began trading independently on the New York Stock Exchange under the ticker ADIG. Following the spin-off, Resideo became a building technology company whose products include thermostats, smoke and carbon monoxide detectors, air and water quality products, and security solutions. ADI will be presented as discontinued operations beginning in Q3 fiscal 2026, so historical consolidated revenue will not be directly comparable with subsequent results. Standalone Resideo expects revenue of between $2.9 billion and $2.95 billion in fiscal 2026, including approximately $175 million in sales to ADI as an external customer.
Consolidated revenue was approximately $1.98 billion, up 2% year over year and reaching a quarterly record. Net income according to EDGAR was approximately $97 million, and earnings per share were $0.51, while adjusted earnings per share reached $0.83, up 26%. Adjusted earnings before interest, taxes, depreciation, and amortization increased 19% to $249 million, including a $27 million benefit from tariff refunds. Products & Solutions achieved 4% revenue growth and a gross margin of 43.6%.
Honeywell Home Elite Pro was one of the main drivers of the HVAC distribution channel, as management said demand exceeded its expectations and strengthened the company's presence in the high-value connected category. Strong adoption also continued for combination smoke and carbon monoxide detectors and dehumidification and water filtration products during Q2 fiscal 2026. The company plans to launch a new platform for smoke and carbon monoxide detectors, alongside video surveillance and intrusion security products, during the second half of fiscal 2026. Resideo continues to spend approximately 5% of segment Products & Solutions revenue on research and development to support launches and accelerate time to market.
A major OEM security customer is moving toward vertical integration and changing its business model, reducing its purchases from Resideo. The company expects this to cause a shortfall of between $40 million and $50 million in revenue during the second half of fiscal 2026 compared with the same period of the previous year. Management said the impact will appear in Q3 and be greater in Q4 fiscal 2026, then gradually stabilize by Q2 of the following fiscal year. It emphasized that this business is low margin and is not associated with the Resideo, First Alert, or Honeywell Home brands, and that its impact is already incorporated into the medium-term financial targets.
The costs of memory, metals, printed circuit boards, semiconductors, and freight are rising faster than management expected, with memory costs increasing fourfold and metals costs by 35% according to the August 12, 2026 call. Resideo implemented price increases in Q2 fiscal 2026, but notice provisions for some customers delay their impact and do not allow costs to be offset dollar for dollar. Management expects the greatest pressure in Q3 fiscal 2026 and higher input costs to represent a modest headwind to gross margin during the second half. The company also does not expect material tariff refunds for the remainder of fiscal 2026 after consolidated Q2 results benefited by $27 million.
Cash generated from operating activities was $148 million in Q2 fiscal 2026, compared with $200 million in the corresponding period. The decline reflected approximately $45 million in business separation payments and nonrecurring settlements, in addition to a $20 million cash outflow due to higher interest paid. On August 3, 2026, Resideo repaid $900 million of the Term Loan B principal. Management expects to repay approximately another $200 million during Q3 fiscal 2026 after completing the post-spin cash settlement for ADI.
