Allegion (NYSE:ALLE) Announces Quarterly Earnings Results

Allegion (NYSE:ALLE) issued its quarterly earnings data on Thursday. The scientific and technical instruments company reported $2.60 EPS for the quarter, topping the consensus estimate of $2.50 by $0.10, FiscalAI reports. The business had revenue of $1.17 billion during the quarter, compared to analyst estimates of $1.14 billion. Allegion had a net margin of 15.74% and a return on equity of 35.52%. Allegion’s quarterly revenue was up 9.6% compared to the same quarter last year. During the same period last year, the business posted $2.30 earnings per share.

Here are the key takeaways from Allegion’s conference call:

• Allegion raised its 2026 outlook, increasing reported revenue growth guidance to 9.5%–10.5%, organic revenue growth to 5%–6%, and adjusted EPS to $9.05–$9.10, implying low-double-digit EPS growth.
• Third-quarter revenue rose 9.6% to approximately $1.2 billion, while adjusted EPS increased 13% to $2.60 and adjusted operating margin expanded 60 basis points to 24.7%; year-to-date available cash flow rose 11.2% to $539.4 million.
• The Americas delivered 9.1% organic growth, led by low-double-digit non-residential growth, healthy specification activity, and strong electronics demand. Management expects non-residential momentum to continue into 2027, although residential growth remains primarily price-driven.
• International organic revenue declined slightly as weak Western European demand, particularly in Germany, reduced volumes and pressured margins; management expects international markets to remain soft in 2027.
• Allegion completed its approximately $90 million acquisition of Overly Door Company, invested another $40 million in Ambient.ai, launched its connected-product Optimize app, and returned $166 million to shareholders through dividends and share repurchases.

Allegion Stock Performance

Shares of ALLE opened at $178.95 on Friday. The company has a quick ratio of 1.23, a current ratio of 1.90 and a debt-to-equity ratio of 0.94. The business’s 50 day moving average price is $156.32 and its 200-day moving average price is $146.36. Allegion has a 52 week low of $125.00 and a 52 week high of $183.11. The stock has a market cap of $15.22 billion, a P/E ratio of 22.29, a P/E/G ratio of 3.53 and a beta of 0.81.

Allegion Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th were given a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend was Tuesday, September 15th. Allegion’s payout ratio is currently 27.40%.

Insider Activity at Allegion

In related news, SVP Timothy P. Eckersley sold 6,417 shares of the firm’s stock in a transaction that occurred on Monday, July 27th. The stock was sold at an average price of $157.26, for a total transaction of $1,009,137.42. Following the completion of the transaction, the senior vice president owned 29,919 shares of the company’s stock, valued at $4,705,061.94. This trade represents a 17.66% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Vincent Wenos sold 1,000 shares of the business’s stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $168.25, for a total value of $168,250.00. Following the completion of the sale, the senior vice president directly owned 12,096 shares in the company, valued at $2,035,152. This trade represents a 7.64% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.64% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the company. Robert W. Baird set a $196.00 target price on Allegion in a research note on Friday. Weiss Ratings raised Allegion from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, October 8th. JPMorgan Chase & Co. increased their price objective on Allegion from $170.00 to $183.00 and gave the stock a “neutral” rating in a report on Friday. Bank of America raised Allegion from a “neutral” rating to a “buy” rating and raised their price objective for the company from $164.00 to $200.00 in a research report on Friday. Finally, Evercore restated an “outperform” rating and set a $180.00 target price on shares of Allegion in a report on Tuesday, September 22nd. Four equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Allegion presently has an average rating of “Moderate Buy” and a consensus target price of $173.56.

More Allegion News

Here are the key news stories impacting Allegion this week:

• Positive Sentiment: Q3 earnings and revenue beat estimates. Allegion reported adjusted earnings of $2.60 per share versus the $2.50 consensus, while revenue rose 9.6% year over year to $1.17 billion, ahead of the $1.14 billion estimate. Allegion Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management raised full-year guidance. Allegion now expects 2026 adjusted EPS of $9.05–$9.10, above the roughly $8.96 consensus, and revenue of approximately $4.5 billion versus estimates near $4.4 billion. Its reported revenue-growth outlook was raised to 9.5%–10.5%. Allegion Raises 2026 Adjusted EPS Outlook
• Positive Sentiment: Americas demand is driving the recovery. Low-double-digit organic growth in Americas non-residential markets, combined with margin expansion, helped offset weaker international performance and strengthened confidence in volume growth. Allegion Key Takeaways for Long-Term Investors
• Positive Sentiment: Analyst sentiment improved. Bank of America upgraded Allegion to Buy from Neutral and lifted its price target to $200 from $164. JPMorgan raised its target to $183, while Morgan Stanley increased its target to $170. BofA said improving volumes could support a further valuation re-rating. B of A Securities Upgrades Allegion

About Allegion

Allegion plc (NYSE:ALLE) is a global security products and solutions company focused on protecting people and property. Its portfolio includes mechanical and electronic locks, access control systems, door closers, exit devices, door controls, and commercial doors and frames.

The company serves commercial, institutional, industrial, and residential customers through well-known brands including Schlage, Von Duprin, LCN, Steelcraft, Briton, and aptiQ. Its offerings range from traditional hardware to connected and electronic access solutions designed for offices, schools, healthcare facilities, multifamily properties, and homes.

Allegion was established as an independent public company in 2013 following its separation from Ingersoll Rand.