ADT tumbles after annual outlook disappoints

Home security firm ADT ADT.N shares tumble 11% to $7.14 and on track for steepest daily decline in nearly two years after annual forecast below Wall Street's expectations

ADT falls as low as $6.65 on the session, lowest since Aug 2024

Boca Raton, Florida-based firm early Mon said sees 2026 rev and adj profit to be flat after posting 2025 rev of $5.1 bln, up 5%, and adj EPS of 89 cents/sh

Analysts had modeled 2026 rev of $5.3 bln and adj EPS of 95 cents, per LSEG data

Co said 2026 outlook reflects cash flow prioritization, share repurchases, subscriber acquisition spending, along with planned growth investments, as well as headwinds from tariffs

For Q4, rev of $1.28 bln was just shy of $1.3 bln estimate while adj EPS of 23 cents beat by a penny

It also announced new $1.5 bln stock buyback

Avg rating of 5 analysts is "buy"; median PT $9

With move on Mon, stock down ~11.5% YTD and 20% below its 52-week intraday high of $8.94 hit last Sept

State Farm Insurance is top ADT holder with ~133.3 mln shares, or ~17.4% stake, followed by Apollo Global Management APO.N (102 mln, 13.3%) and index giant Vanguard (63.5 mln, 8.3%) - LSEG