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 2.810-2.810 for the period, compared to the consensus estimate of 2.680. The company issued revenue guidance of $1.1 billion-$1.1 billion, compared to the consensus revenue estimate of $1.1 billion.

Analyst Ratings Changes

A number of equities analysts have issued reports on the stock. Barclays cut their target price on shares of Alarm.com from $56.00 to $50.00 and set an “equal weight” rating on the stock in a report on Friday, February 20th. Weiss Ratings reissued a “hold (c-)” rating on shares of Alarm.com in a report on Friday, April 24th. JPMorgan Chase & Co. cut their target price on shares of Alarm.com from $55.00 to $40.00 and set an “underweight” rating on the stock in a report on Wednesday, February 18th. Finally, Zacks Research cut shares of Alarm.com from a “strong-buy” rating to a “hold” rating in a report on Wednesday, March 25th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Alarm.com currently has an average rating of “Hold” and a consensus price target of $56.67.

Alarm.com Stock Performance

Shares of ALRM traded up $1.56 during mid-day trading on Thursday, reaching $47.00. 621,535 shares of the company’s stock traded hands, compared to its average volume of 469,610. The business’s 50-day moving average price is $45.66 and its 200-day moving average price is $48.46. The stock has a market capitalization of $2.32 billion, a P/E ratio of 19.11, a price-to-earnings-growth ratio of 1.59 and a beta of 0.79. The company has a debt-to-equity ratio of 0.58, a quick ratio of 1.78 and a current ratio of 1.92. Alarm.com has a 12 month low of $41.50 and a 12 month high of $60.76.

Alarm.com (NASDAQ:ALRM) last released its quarterly earnings results on Thursday, May 7th. The software maker reported $0.65 earnings per share for the quarter, beating analysts’ consensus estimates of $0.60 by $0.05. The company had revenue of $265.19 million for the quarter, compared to analysts’ expectations of $250.94 million. Alarm.com had a return on equity of 14.79% and a net margin of 13.11%.The business’s revenue for the quarter was up 11.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.54 earnings per share. Alarm.com has set its FY 2026 guidance at 2.810-2.810 EPS. Equities analysts predict that Alarm.com will post 2.24 earnings per share for the current year.

Insider Buying and Selling at Alarm.com

In related news, CFO Kevin Christopher Bradley sold 1,510 shares of the firm’s stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $45.97, for a total transaction of $69,414.70. Following the transaction, the chief financial officer owned 51,546 shares in the company, valued at $2,369,569.62. This trade represents a 2.85% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 5.80% of the company’s stock.

Key Headlines Impacting Alarm.com

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

• Positive Sentiment: Q1 results: Alarm.com reported $0.65 EPS versus the $0.60 consensus and revenue of $265.2M vs. ~$251M expected — a clear beat on both earnings and top line that signals accelerating growth. Business Wire: Q1 Results
• Positive Sentiment: Raised FY‑2026 guidance: Management set FY EPS at 2.810 (vs. street ~2.68), and reiterated revenue expectations around $1.1B — the firm guidance raise reduces execution risk and supports multiple expansion. Business Wire: Guidance
• Positive Sentiment: Recurring revenue strength: SaaS & license revenue grew ~10.8% to $181.5M, underlining the subscription-driven model and predictable cash flow that investors value. Higher net margin (13.1%) and ROE (~14.8%) also support profitability narratives. Business Wire: SaaS Growth
• Neutral Sentiment: Coverage and detail: Multiple outlets published earnings snapshots and the full call transcript (Yahoo, MSN, The Motley Fool), useful for traders seeking quarter detail but largely reiterative of the beat and guidance. Yahoo: Earnings Snapshot MSN: Coverage Fool: Transcript
• Neutral Sentiment: Critical/analyst takes: A recent critical review compares Alarm.com to peers; it may offer longer‑term valuation or competitive concerns but did not appear to blunt the market’s positive reaction to the beat and guidance. American Banking News: Review

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in ALRM. Amundi increased its stake in shares of Alarm.com by 6.8% during the first quarter. Amundi now owns 17,532 shares of the software maker’s stock valued at $920,000 after acquiring an additional 1,113 shares during the period. AQR Capital Management LLC increased its stake in shares of Alarm.com by 7.8% during the first quarter. AQR Capital Management LLC now owns 59,005 shares of the software maker’s stock valued at $3,284,000 after acquiring an additional 4,246 shares during the period. Woodline Partners LP acquired a new position in shares of Alarm.com during the first quarter valued at approximately $514,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Alarm.com by 4.9% during 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 acquiring an additional 6,080 shares during the period. Finally, Jane Street Group LLC increased its stake in shares of Alarm.com by 610.0% during the first quarter. Jane Street Group LLC now owns 114,715 shares of the software maker’s stock valued at $6,384,000 after acquiring an additional 98,557 shares during the period. Institutional investors and hedge funds own 91.74% of the company’s stock.

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.