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

Alarm.com (NASDAQ:ALRM) updated its FY 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 2.780-2.790 for the period, compared to the consensus 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

A number of analysts have recently issued reports on the stock. JPMorgan Chase & Co. lowered their target price on shares of Alarm.com from $55.00 to $40.00 and set an “underweight” rating for the company in a research note 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 report on Friday. Zacks Research downgraded shares of Alarm.com from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 12th. Finally, Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Alarm.com in a research report on Tuesday, January 27th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Alarm.com has a consensus rating of “Hold” and an average target price of $57.00.

Alarm.com Price Performance

Shares of ALRM opened at $45.59 on Friday. The company has a debt-to-equity ratio of 0.59, a quick ratio of 1.92 and a current ratio of 2.06. The company has a 50 day moving average price of $49.65 and a 200-day moving average price of $51.85. Alarm.com has a fifty-two week low of $44.71 and a fifty-two week high of $61.41. The stock has a market capitalization of $2.27 billion, a PE ratio of 18.53, a PEG ratio of 1.66 and a beta of 0.79.

Alarm.com (NASDAQ:ALRM) last issued its quarterly earnings data on Thursday, February 19th. The software maker reported $0.72 EPS for the quarter, topping analysts’ consensus estimates of $0.66 by $0.06. The company had revenue of $261.66 million during the quarter, compared to the consensus estimate of $250.75 million. Alarm.com had a net margin of 13.11% and a return on equity of 15.04%. Alarm.com’s revenue for the quarter was up 8.1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.58 earnings per share. Alarm.com has set its FY 2026 guidance at 2.780-2.790 EPS. Equities analysts predict that Alarm.com will post 1.64 earnings per share for the current fiscal year.

Insider Buying and Selling at Alarm.com

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

Alarm.com News Roundup

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

• Positive Sentiment: Q4 results beat consensus — EPS $0.72 vs. $0.66 expected and revenue $261.7M vs. ~$250.8M expected; SaaS & license revenue grew ~8.8% year-over-year. Alarm.com Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Company raised FY2026 guidance to $2.780–2.790 EPS and ~ $1.1B revenue vs. street ~ $2.47 EPS / ~$1.0B — a material upward revision that supports higher valuation multiples. Alarm.com Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Market writeups emphasize the beat and rally — headlines note the stock “soars” after results, reinforcing the positive sentiment and likely driving intraday buying. Alarm.com (NASDAQ:ALRM) beats Q4 CY2025 sales expectations, stock soars
• Neutral Sentiment: Earnings-call highlights and full transcripts available for detail on product mix, churn and margin drivers — useful for fundamental follow-up but mostly confirmatory. Alarm.com Holdings Inc (ALRM) Q4 2025 Earnings Call Highlights Earnings Call Transcript
• Neutral Sentiment: Short‑interest entries for February in the feed show zero/NaN values and an effectively 0.0 days ratio — the data appears erroneous and is unlikely to be driving moves.
• Negative Sentiment: JPMorgan lowered expectations for ALRM’s stock price — an analyst note that could restrain upside or prompt profit-taking despite the upbeat quarter. JPMorgan Chase & Co. Has Lowered Expectations for Alarm.com (NASDAQ:ALRM) Stock Price

Institutional Investors Weigh In On Alarm.com

Institutional investors have recently bought and sold shares of the company. Amundi lifted its holdings in shares of Alarm.com by 6.8% during the 1st quarter. Amundi now owns 17,532 shares of the software maker’s stock valued at $920,000 after purchasing an additional 1,113 shares during the last quarter. AQR Capital Management LLC grew its stake in Alarm.com by 7.8% during the 1st quarter. AQR Capital Management LLC now owns 59,005 shares of the software maker’s stock worth $3,284,000 after buying an additional 4,246 shares during the last quarter. Woodline Partners LP purchased a new stake in Alarm.com in the first quarter valued at about $514,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Alarm.com by 4.9% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 131,200 shares of the software maker’s stock valued at $7,301,000 after buying an additional 6,080 shares during the last quarter. Finally, Jane Street Group LLC boosted its holdings in Alarm.com by 610.0% in the first quarter. Jane Street Group LLC now owns 114,715 shares of the software maker’s stock worth $6,384,000 after acquiring an additional 98,557 shares in 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.