Allegion (NYSE:ALLE) Releases Quarterly Earnings Results, Beats Expectations By $0.18 EPS

Allegion (NYSE:ALLE) announced its earnings results on Thursday. The scientific and technical instruments company reported $2.40 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.22 by $0.18, FiscalAI reports. The business had revenue of $1.15 billion for the quarter, compared to analyst estimates of $1.12 billion. Allegion had a net margin of 15.24% and a return on equity of 35.41%. Allegion’s revenue was up 12.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.04 earnings per share. Allegion updated its FY 2026 guidance to 8.850-9.000 EPS.

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

• Allegion delivered a strong second quarter, with revenue up 12.7%, organic growth up 6.9%, and adjusted EPS up 17.6% year over year.
• The Americas segment was the main growth driver, with organic revenue up 8.9% on healthy demand across both non-residential and residential, plus strength in electronics.
• Management said non-residential specification activity remains very strong and broad-based, supporting confidence in project activity and organic growth over the next 12 to 18 months.
• The International segment saw organic revenue decline 1.2% as weaker demand in Europe, especially Germany, offset improvements from acquisitions and currency.
• Allegion raised full-year guidance for reported revenue to 7.5%-8.5% and adjusted EPS to $8.85-$9.00, while also noting about $10 million in annual benefit from European restructuring actions and continued share repurchases.

Allegion Price Performance

NYSE:ALLE opened at $154.43 on Friday. The company has a 50-day moving average of $134.25 and a 200-day moving average of $146.77. The company has a market capitalization of $13.27 billion, a price-to-earnings ratio of 21.10, a PEG ratio of 2.90 and a beta of 0.85. Allegion has a 52 week low of $125.00 and a 52 week high of $183.11. The company has a debt-to-equity ratio of 0.97, a quick ratio of 1.19 and a current ratio of 1.91.

Allegion declared that its Board of Directors has initiated a share repurchase plan on Tuesday, April 28th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the scientific and technical instruments company to reacquire up to 3.9% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

Analyst Ratings Changes

Several research firms have issued reports on ALLE. Evercore upgraded shares of Allegion to a “strong-buy” rating in a research report on Monday, April 13th. Morgan Stanley reduced their target price on shares of Allegion from $165.00 to $142.00 and set an “equal weight” rating for the company in a research note on Wednesday, June 3rd. Barclays decreased their target price on Allegion from $165.00 to $161.00 and set an “equal weight” rating on the stock in a research report on Wednesday, April 29th. Weiss Ratings lowered Allegion from a “hold (c+)” rating to a “hold (c)” rating in a research note on Friday, May 29th. Finally, JPMorgan Chase & Co. reaffirmed a “neutral” rating and issued a $150.00 price target (down from $170.00) on shares of Allegion in a report on Friday, May 15th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $160.89.

Insider Transactions at Allegion

In other Allegion news, SVP Robert C. Martens sold 3,993 shares of the firm’s stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $137.15, for a total transaction of $547,639.95. Following the completion of the transaction, the senior vice president owned 8,570 shares in the company, valued at $1,175,375.50. This trade represents a 31.78% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.64% of the stock is owned by company insiders.

Hedge Funds Weigh In On Allegion

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Sivia Capital Partners LLC bought a new position in shares of Allegion in the second quarter valued at about $208,000. Transamerica Financial Advisors LLC grew its holdings in Allegion by 8.1% during the 4th quarter. Transamerica Financial Advisors LLC now owns 1,214 shares of the scientific and technical instruments company’s stock worth $193,000 after acquiring an additional 91 shares during the last quarter. PCM Encore LLC acquired a new position in shares of Allegion during the fourth quarter valued at $208,000. Advisors Asset Management Inc. lifted its stake in shares of Allegion by 105.3% during the fourth quarter. Advisors Asset Management Inc. now owns 655 shares of the scientific and technical instruments company’s stock valued at $104,000 after acquiring an additional 336 shares during the period. Finally, Integrated Quantitative Investments LLC bought a new position in Allegion in the fourth quarter valued at about $205,000. Institutional investors own 92.21% of the company’s stock.

Key Headlines Impacting Allegion

Here are the key news stories impacting Allegion this week:

• Positive Sentiment: Allegion beat Q2 expectations, reporting adjusted EPS of $2.40 versus consensus around $2.22-$2.23 and revenue of $1.15 billion versus estimates near $1.12 billion, signaling solid demand and execution. Article: Allegion (NYSE: ALLE) Reports Q2-2026 Financial Results
• Positive Sentiment: The company raised FY2026 guidance, lifting adjusted EPS outlook to $8.85-$9.00 and increasing revenue expectations, which suggests management sees continued strength in the business. Article: Allegion (NYSE: ALLE) Reports Q2-2026 Financial Results
• Positive Sentiment: Management highlighted organic growth and margin expansion in the Americas, reinforcing the view that core operations are improving rather than just benefiting from one-time factors. Article: Allegion Q2 Earnings Beat on Americas Growth, Outlook Raised
• Neutral Sentiment: One item notes Allegion disclosed a new regulation-related risk but says there were no material changes beyond the 2025 Form 10-K, so this appears to be limited incremental disclosure rather than a fresh operational concern. Article: Allegion PLC Signals Stable Risk Profile but Offers Limited New Transparency Beyond 2025 Form 10-K

Allegion Company Profile

Allegion plc (NYSE: ALLE) is a global provider of security products and solutions focused on ensuring the safety and security of people and property. The company was formed in December 2013 through a corporate spin-off from Ingersoll Rand and is head­quartered in Dublin, Ireland. Allegion’s core mission is to deliver innovative mechanical and electronic access control systems for a wide range of end markets, including commercial buildings, residential properties, institutional facilities, and industrial sites.

The company’s product portfolio spans mechanical locksets, door closers, exit devices, key systems and cylinders, as well as a growing suite of electronic and smart access control offerings.