Alarm.com (NASDAQ:ALRM) Issues FY 2026 Earnings Guidance

Alarm.com (NASDAQ:ALRM) updated its FY 2026 earnings guidance on Thursday. The company provided EPS guidance of 2.780-2.790 for the period, compared to the consensus EPS estimate of 2.470. The company issued revenue guidance of $1.1 billion-$1.1 billion, compared to the consensus revenue estimate of $1.0 billion.

Analysts Set New Price Targets

Several research analysts have commented on ALRM shares. Zacks Research cut shares of Alarm.com from a “strong-buy” rating to a “hold” rating in a report on Monday, January 12th. JPMorgan Chase & Co. cut their price target on shares of Alarm.com from $55.00 to $40.00 and set an “underweight” rating on the stock in a report on Wednesday. Barclays decreased their price objective on shares of Alarm.com from $56.00 to $50.00 and set an “equal weight” rating for the company in a research note on Friday. Finally, Weiss Ratings reiterated a “hold (c-)” rating on shares of Alarm.com in a research report on Tuesday, January 27th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $57.00.

Alarm.com Stock Up 0.7%

Shares of Alarm.com stock traded up $0.32 during trading on Friday, hitting $45.52. 174,394 shares of the stock traded hands, compared to its average volume of 392,092. The stock has a market cap of $2.27 billion, a P/E ratio of 19.29, a PEG ratio of 1.66 and a beta of 0.79. The company has a fifty day moving average price of $49.78 and a two-hundred day moving average price of $51.92. Alarm.com has a twelve month low of $44.71 and a twelve month high of $61.41. The company has a debt-to-equity ratio of 0.59, a quick ratio of 1.92 and a current ratio of 2.06.

Alarm.com (NASDAQ:ALRM) last posted its earnings results on Thursday, February 19th. The software maker reported $0.72 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.66 by $0.06. The firm had revenue of $261.66 million during the quarter, compared to analysts’ expectations of $250.75 million. Alarm.com had a net margin of 12.92% and a return on equity of 14.26%. The company’s revenue was up 8.1% compared to the same quarter last year. During the same period in the previous year, the company earned $0.58 earnings per share. Alarm.com has set its FY 2026 guidance at 2.780-2.790 EPS. Equities research analysts predict that Alarm.com will post 1.64 EPS for the current fiscal year.

Insider Buying and Selling at Alarm.com

In other news, insider Jeffrey A. Bedell sold 22,727 shares of the stock in a transaction dated Tuesday, December 16th. The stock was sold at an average price of $51.82, for a total transaction of $1,177,713.14. Following the transaction, the insider owned 505,805 shares of the company’s stock, valued at approximately $26,210,815.10. This represents a 4.30% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Stephen C. Evans sold 1,154 shares of the firm’s stock in a transaction that occurred on Friday, December 12th. The shares were sold at an average price of $52.27, for a total value of $60,319.58. Following the completion of the transaction, the director directly owned 6,123 shares in the company, valued at $320,049.21. The trade was a 15.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 26,154 shares of company stock worth $1,357,388 over the last three months. Company insiders own 5.80% of the company’s stock.

Key Alarm.com News

Here are the key news stories impacting Alarm.com this week:

• Positive Sentiment: Q4 earnings and revenue beat street estimates — Alarm.com reported $0.72 EPS vs. a $0.66 consensus and revenue of $261.66M vs. ~$250.8M expected; quarterly revenue was up ~8% year-over-year. Zacks: Q4 Earnings and Revenues Beat
• Positive Sentiment: Management raised FY?2026 guidance materially — EPS guidance of $2.78–2.79 vs. consensus ~2.47 and revenue guidance around $1.1B (above street). SaaS & license revenue grew ~8.8% to $180.2M, supporting recurring-revenue strength. Business Wire: Q4 and FY2025 Results
• Positive Sentiment: Market reaction: several outlets note the stock jumping on the beat-and-raise results, driving intraday buying interest. MSN: Stock Soars After Q4 Beat
• Neutral Sentiment: Earnings call transcripts and detail are available (useful for gauging cadence on churn, ARPU, channel trends). Read the call transcript for color on guidance assumptions and margin outlook. Seeking Alpha: Q4 Earnings Call Transcript
• Neutral Sentiment: Options activity picked up ahead of the print, suggesting traders were positioned for a big move; this can amplify intraday volatility but isn’t directional on fundamentals. MSN: Options Flow
• Neutral Sentiment: Reported short-interest data in the feeds is inconsistent/zero?valued and likely not meaningful to current trading — treat those figures with caution.
• Negative Sentiment: JPMorgan cut its price target from $55 to $40 and moved to an “underweight” stance, citing lower expectations — that downgrade injects notable sell-side skepticism and can cap near-term upside. Benzinga: JPMorgan Lowers PT
• Negative Sentiment: Additional analyst note coverage flagged reduced expectations; negative research headlines could pressure the stock even as results beat, creating a tug-of-war between fundamentals and sentiment. AmericanBankingNews: JPMorgan Lowers Expectations

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Invesco Ltd. lifted its position in Alarm.com by 8.6% during the 4th quarter. Invesco Ltd. now owns 243,828 shares of the software maker’s stock worth $12,440,000 after acquiring an additional 19,228 shares during the last quarter. EP Wealth Advisors LLC bought a new position in shares of Alarm.com in the fourth quarter worth about $241,000. Mackenzie Financial Corp lifted its position in shares of Alarm.com by 34.3% during the 4th quarter. Mackenzie Financial Corp now owns 42,044 shares of the software maker’s stock worth $2,172,000 after purchasing an additional 10,727 shares during the last quarter. NewEdge Advisors LLC boosted its stake in Alarm.com by 960.9% during the 4th quarter. NewEdge Advisors LLC now owns 14,174 shares of the software maker’s stock valued at $723,000 after purchasing an additional 12,838 shares during the period. Finally, XTX Topco Ltd grew its holdings in Alarm.com by 266.3% in the 4th quarter. XTX Topco Ltd now owns 31,209 shares of the software maker’s stock valued at $1,592,000 after buying an additional 22,689 shares during the last quarter. 91.74% of the stock is currently owned by institutional investors and hedge funds.

About Alarm.com

Alarm.com Holdings, Inc provides a cloud-based software platform for connected properties, enabling residential and commercial customers to monitor, manage and control security, energy and home automation solutions. The company’s interactive services connect security systems, smart thermostats, door locks, lights and video cameras through cellular, broadband and Z-Wave networks, offering real-time alerts and remote access via mobile and web applications.

Through its platform, Alarm.com delivers an integrated suite of products that includes intrusion detection, video monitoring and cloud recording, energy management features such as smart thermostat scheduling, and home automation controls for lighting, garage doors and connected appliances.