Earnings call transcript: Allegion tops Q3 2026 estimates as shares jump premarket

In Allegion's third-quarter earnings call of 2026, the security and access company surpassed Wall Street expectations. The firm reported adjusted earnings of $2.60 per share and revenue of $1.17 billion, exceeding the estimated $2.50 per share and $1.14 billion in revenue. Allegion also raised its full-year outlook, and shares surged 5.42% in premarket trading, reaching $167.61.

Prior to the close, the share price was $159. The earnings beat resulted in a 4.0% increase in earnings per share (EPS) and a 2.63% rise in revenue, surpassing forecasts by $30 million. The company's adjusted operating margin expanded to 24.7%, signaling ongoing pricing discipline and productivity gains. Despite soft demand in residential and international markets, the company's non-residential business in the Americas, which grew in the low double digits, helped offset these weaknesses.

Management raised full-year 2026 guidance for revenue and adjusted EPS, with expectations of 9.5% to 10.5% growth in revenue and $9.05 to $9.10 in EPS. The stock's performance suggests a favorable read from the market, with Allegion emerging as an undervalued opportunity.