Allegion (NYSE:ALLE) Announces Quarterly Earnings Results

Allegion (NYSE:ALLE) issued its quarterly earnings results on Tuesday. The scientific and technical instruments company reported $1.94 earnings per share for the quarter, missing analysts’ consensus estimates of $2.01 by ($0.07), FiscalAI reports. Allegion had a return on equity of 40.83% and a net margin of 16.09%.The company had revenue of $1.03 billion during the quarter, compared to analyst estimates of $1.04 billion. During the same period in the prior year, the company posted $1.86 earnings per share. The company’s revenue was up 9.3% on a year-over-year basis. Allegion updated its FY 2026 guidance to 8.700-8.900 EPS.

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

• 2026 guidance: Allegion expects total revenue growth of 5%–7% (organic 2%–4%) and issued Adjusted EPS guidance of $8.70–$8.90, implying roughly 8% EPS growth at the midpoint.
• U.S. residential softness: Residential volumes were weaker than expected in Q4 and management assumes residential demand will remain soft in 2026, which pressured Americas margins in the quarter.
• M&A and electronics-led growth: The company deployed about $630 million of acquisitions in 2025 to expand mechanical, electronics, and software capabilities, and electronics grew low double-digits, supporting long-term revenue diversification.
• Strong cash generation and disciplined capital allocation: Available cash flow was $685.7 million (up 17.6%), net debt/Adjusted EBITDA is ~1.6x, the dividend was raised for the 12th consecutive year, and management says it will remain balanced and disciplined on buybacks vs. M&A.

Allegion Price Performance

Shares of ALLE opened at $162.74 on Wednesday. The company has a debt-to-equity ratio of 1.06, a current ratio of 1.77 and a quick ratio of 1.11. The company has a market capitalization of $14.00 billion, a price-to-earnings ratio of 22.02, a P/E/G ratio of 3.28 and a beta of 1.03. The business’s 50-day moving average is $165.44 and its 200-day moving average is $168.21. Allegion has a fifty-two week low of $116.57 and a fifty-two week high of $183.11.

Allegion Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Friday, March 13th will be issued a $0.55 dividend. The ex-dividend date is Friday, March 13th. This represents a $2.20 dividend on an annualized basis and a dividend yield of 1.4%. This is a positive change from Allegion’s previous quarterly dividend of $0.51. Allegion’s dividend payout ratio is currently 29.77%.

Analyst Ratings Changes

ALLE has been the topic of several research analyst reports. Weiss Ratings reiterated a “buy (b)” rating on shares of Allegion in a research report on Wednesday, January 21st. Robert W. Baird raised their price objective on shares of Allegion from $175.00 to $190.00 and gave the company a “neutral” rating in a research report on Tuesday, October 21st. Barclays dropped their target price on shares of Allegion from $187.00 to $180.00 and set an “equal weight” rating on the stock in a report on Wednesday, January 7th. Finally, Wells Fargo & Company reissued a “positive” rating on shares of Allegion in a research note on Tuesday, December 16th. Three investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $174.25.

Key Headlines Impacting Allegion

Here are the key news stories impacting Allegion this week:

• Positive Sentiment: Company laid out FY‑2026 EPS guidance of $8.70–$8.90 and reiterated focus on accelerating electronics growth and M&A to expand recurring‑revenue and higher‑margin products — this frames a multi‑year growth strategy that could support valuation if execution continues. Allegion outlines 2026 EPS guidance
• Positive Sentiment: Q4 revenue rose ~9% year‑over‑year with margin expansion and strong cash generation; management highlighted accretive capital deployment — these fundamentals partially offset the EPS miss and support medium‑term earnings visibility. Allegion Reports Q4, Full-Year 2025 Financial Results
• Positive Sentiment: Product and channel initiatives — Schlage’s new Aspect Collection and integration with NterNow for self‑guided home tours — expand product relevance in residential and builder channels, which could help stabilize demand over time. Schlage’s Pin & Tumbler Studio Reveals the Aspect Collection
• Neutral Sentiment: Allegion remains a steady Russell 1000 constituent with distribution patterns unchanged — a passive index weighting note that has limited immediate price impact but supports liquidity and institutional ownership. Allegion Update Shows Steady Distributions Within Russell 1000
• Negative Sentiment: Q4 EPS of $1.94 missed consensus of $2.01 and revenue of $1.03B was slightly below estimates — the miss prompted downward pressure as investors weigh near‑term margin and demand sensitivity (weak residential demand was flagged). Allegion’s Q4 Earnings Miss Estimates
• Negative Sentiment: Company disclosed a new Cyber Security risk — management says Allegion faces increasingly sophisticated threats that could harm operations, data and financial performance; this elevated disclosure can increase perceived operational risk and valuation discount. Allegion Faces Rising Cybersecurity Risks
• Negative Sentiment: Coverage notes the stock underperformed peers and is trading lower on the combination of the EPS miss, cautious guidance and execution concerns — momentum and relative performance pressure can exacerbate near‑term downside. Allegion stock underperforms competitors

Institutional Investors Weigh In On Allegion

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Franklin Resources Inc. increased its stake in shares of Allegion by 163.9% in the fourth quarter. Franklin Resources Inc. now owns 529,243 shares of the scientific and technical instruments company’s stock worth $84,266,000 after acquiring an additional 328,701 shares during the last quarter. Millennium Management LLC increased its stake in shares of Allegion by 817.1% during the 3rd quarter. Millennium Management LLC now owns 308,430 shares of the scientific and technical instruments company’s stock worth $54,700,000 after purchasing an additional 274,800 shares during the last quarter. State Street Corp increased its stake in shares of Allegion by 6.6% during the 3rd quarter. State Street Corp now owns 4,232,208 shares of the scientific and technical instruments company’s stock worth $750,584,000 after purchasing an additional 260,973 shares during the last quarter. Janney Montgomery Scott LLC raised its holdings in shares of Allegion by 292.9% during the 4th quarter. Janney Montgomery Scott LLC now owns 266,985 shares of the scientific and technical instruments company’s stock valued at $42,509,000 after purchasing an additional 199,026 shares in the last quarter. Finally, Caisse de depot et placement du Quebec lifted its stake in shares of Allegion by 188.2% in the 3rd quarter. Caisse de depot et placement du Quebec now owns 289,761 shares of the scientific and technical instruments company’s stock valued at $51,389,000 after purchasing an additional 189,236 shares during the last quarter. Hedge funds and other institutional investors own 92.21% of the company’s stock.

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.