ADT Raises 2026 Outlook After Strong Q2 Cash Flow, Repurchases $478M in Shares
ADT sits 19% above its 52-week low of $6.24.
Summary
ADT reported Q2 2026 results with revenue of $1.31B and adjusted free cash flow of $406M, raised full-year guidance, and returned $523M to shareholders via buybacks and dividends.
Key Events · Earnings and Guidance · ADT
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Q2 Revenue and Cash Flow Beat
Total revenue rose 2% to $1.31B; adjusted free cash flow (including swaps) jumped 48% to $406M, driven by lower cash taxes and working capital discipline.
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Full-Year 2026 Guidance Raised
Management now projects ~30% growth in adjusted free cash flow, ~2% revenue growth, and ~2% adjusted EPS growth for 2026, up from prior expectations.
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Massive Share Repurchases
ADT repurchased 68M shares for $478M in Q2, including 29M shares from Apollo's secondary offering; $906M remains under the $1.5B buyback authorization.
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Quarterly Dividend Declared
Board declared a $0.055 per share cash dividend, payable October 1, 2026 to shareholders of record September 10, 2026.
Analysis · ADT · Trade & Services
A solid second quarter saw revenue climb 2% to $1.31 billion, while adjusted free cash flow surged 48% to $406 million, fueled by lower cash taxes and disciplined spending. Reflecting confidence in sustained momentum, management raised its full-year 2026 guidance across all key metrics—free cash flow, revenue, and adjusted EPS. The quarter also featured a substantial return of capital to shareholders: $523 million in total, including $478 million in share repurchases that absorbed the Apollo overhang. With $906 million remaining on its buyback authorization and a newly declared $0.055 quarterly dividend, the company is aggressively returning capital while investing in growth initiatives like ADT Blu and AI-powered service. The raised outlook and strong cash generation reinforce the investment thesis, though the competitive environment and attrition trends bear watching.
At the time of this filing, ADT was trading at $7.41 on NYSE in the Trade & Services sector, with a market capitalization of approximately $5B. The 52-week trading range was $6.24 to $8.94. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.