Security technology and services company ADT (NYSE: ADT) reported revenue ahead of Wall Street’s expectations in Q3 2026, with revenue up 3.9% year on year to $1.35 billion. Its non-GAAP profit of $0.24 per share was in line with analysts’ consensus estimates.
For more on ADT, read our free full research report.
ADT (ADT) Q3 2026 highlights:
- Revenue $1.35 billion vs S&P analysts’ consensus estimates of $1.32 billion (3.9% year-on-year growth, 2% beat)
- Adjusted EPS $0.24 vs S&P analysts’ consensus estimates of $0.23 (in line)
- Adjusted EBITDA $665 million vs analysts’ consensus estimates of $663.1 million (49.3% margin, in line)
- Operating margin 23.1%, down from 24.3% in the same quarter last year
- Free cash flow margin 15.3%, similar to the same quarter last year
- Market capitalization $7.18 billion
Revenue growth
A company’s long-term revenue performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones sustain growth for years. ADT struggled to consistently increase demand as its $5.22 billion in revenue for the trailing 12 months was close to its revenue five years ago. That underwhelming result points to poor business quality.
Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. ADT’s annualized revenue growth of 4.1% over the last two years is above its five-year trend, a positive sign. 
This quarter, ADT reported modest year-on-year revenue growth of 3.9% but beat Wall Street’s consensus estimates by 2%.
Looking ahead, sell-side analysts expect revenue to grow 2.1% over the next 12 months, according to S&P, a slight deceleration versus the last two years. This underwhelming projection indicates its products and services will see some demand headwinds.
Operating margin
Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses, from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.
ADT’s operating margin has generally stayed the same over the last 12 months, although gains from economies of scale and cost efficiency would be preferable over time.
This quarter, ADT generated an operating margin of 23.1%, down 1.2 percentage points year on year. This small decline indicates the company’s overall cost structure has been relatively stable.
Earnings per share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share, or EPS, points to the profitability of that growth – for example, a company could inflate its revenue through excessive spending on advertising and promotions.
ADT’s full-year EPS turned positive over the last five years. That improvement marks a critical stage for the company.
In Q3, ADT reported adjusted EPS of $0.24, in line with the same quarter last year. This result beat analysts’ consensus estimates by 4.3%. Over the next 12 months, Wall Street expects ADT’s full-year EPS to grow 4.2% from $0.93 to $0.97, according to S&P.
Key takeaways from ADT’s Q3 results
ADT’s revenue beat analysts’ consensus estimates in Q3, with EPS meeting Wall Street’s expectations. The revenue beat was a key positive in a quarter that had some clear positives overall. Shares remained flat at $9.85 immediately after the release.
Is ADT an attractive investment at its current price? The latest quarter matters, but longer-term business quality and valuation matter more when deciding whether to invest in the stock. For more on ADT, read our full research report here (it’s free).
