ADT's Q1 beat on EPS and massive FCF growth are overshadowed by near-zero revenue growth (1%) and flat full-year guidance. The stock may see a modest positive reaction from the cash flow beat and buyback execution, but the lack of top-line momentum and worsening attrition (13.1% vs 12.6%) cap upside. Monitor the Q2 print for signs of ADT+ platform adoption accelerating revenue growth; if revenue remains stagnant, the bull case hinges entirely on capital return yield.
Price Chart
Executive Summary
ADT reported Q1 2026 GAAP EPS of $0.20 (up 25% YoY) and Adjusted EPS of $0.23 (up 10% YoY), with total revenue of $1.279B (+1% YoY). Operating cash flow surged 37% to $638M and Adjusted FCF (including swaps) jumped 83% to $414M. The company maintained its full-year 2026 outlook for flat revenue and Adjusted EPS with ~20% FCF growth, and returned $161M to shareholders via buybacks and dividends. The beat on EPS and strong cash flow generation are positive, but top-line growth remains sluggish at 1% and the company guided for flat full-year revenue and EPS, capping the bullish case.
Key Financial Metrics
Key Facts
- Q1 2026 GAAP diluted EPS from continuing operations: $0.20 (vs $0.16 YoY, +25%)
- Q1 2026 Adjusted EPS: $0.23 (vs $0.21 YoY, +10%)
- Q1 2026 total revenue: $1.279B (vs $1.267B YoY, +1%)
- Monitoring & related services revenue declined 0.3% to $1.080B (vs $1.083B YoY)
- Net cash from operations: $638M (vs $467M YoY, +37%)
- Adjusted Free Cash Flow (including interest rate swaps): $414M (vs $226M YoY, +83%)
- Returned $161M to shareholders: $116M in share repurchases (18M shares) + $45M dividends
- Full-year 2026 outlook maintained: revenue and Adjusted EPS approximately flat, Adjusted FCF growth ~20%
- Quarterly dividend declared at $0.055/share, payable July 7, 2026
- Gross customer revenue attrition worsened to 13.1% (vs 12.6% YoY, +50bps)
Financial Impact
GAAP EPS beat consensus by $0.02 (11.0% beat); revenue in line at $1.279B vs $1.27B est. Operating cash flow up $171M YoY; Adjusted FCF up $187M YoY.
Risk Factors
- Flat full-year 2026 revenue and Adjusted EPS guidance implies no fundamental acceleration
- Gross customer revenue attrition worsened 50bps YoY to 13.1%, indicating churn headwinds
- Monitoring & related services revenue declined YoY for the second consecutive quarter
- Tariff headwinds cited in outlook could pressure installation margins
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001703056-26-000052 |
| Document: adt-20260430.htm | 0001703056-26-000052 |
| Document: 0001703056-26-000052-index-headers.html | 0001703056-26-000052 |
| Document: 0001703056-26-000052-index.html | 0001703056-26-000052 |
| Document: 0001703056-26-000052.txt | 0001703056-26-000052 |
| 8-K Data (Synthetic) | 0001703056-26-000052 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 2d ago | Institutional Cluster | $6.91 | awaiting T+1 | — | $6.89 (−0.29%) |
Oct 20, 2026 5d ago | Press Release | $6.79 $6.80 | ▲ +0.15% | ▼ −0.38% | $6.89 (+1.49%) |
Oct 8, 2026 17d ago | SC 13G/A | $6.50 $6.43 | ▼ −1.08% | ▼ −1.68% | $6.89 (+6.02%) |
Jul 30, 2026 12w ago | 8-K | $7.51 $7.64 | ▲ +1.73% | ▲ +1.03% | $6.89 (−8.24%) |
Jul 30, 2026 12w ago | Press Release | $7.51 $7.64 | ▲ +1.73% | ▲ +1.03% | $6.89 (−8.24%) |
Jul 21, 2026 13w ago | Institutional Cluster | $6.89 $6.90 | ▼ −0.15% | ▼ −0.26% | $6.89 (−0.02%) |
Jul 16, 2026 14w ago | Press Release | $7.06 $7.00 | ▼ −0.85% | ▲ +0.14% | $6.89 (−2.39%) |
May 28, 2026 21w ago | 8-K | $6.71 $6.74 | ▲ +0.45% | ▲ +0.19% | $6.89 (+2.70%) |
May 18, 2026 22w ago | Insider Cluster | $6.87 $6.98 | ▲ +1.60% | ▲ +0.56% | $6.89 (+0.31%) |
May 8, 2026 24w ago | DEFA14A | $6.79 $6.79 | · 0.00% | ▲ +0.14% | $6.89 (+1.49%) |
US Market Status
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