Alarm.com (NASDAQ:ALRM) Updates FY 2026 Earnings Guidance
by Michael Walen · The Markets DailyAlarm.com (NASDAQ:ALRM – Get Free Report) updated its FY 2026 earnings guidance on Thursday. The company provided earnings per share guidance of 2.780-2.790 for the period, compared to the consensus earnings per share estimate of 2.470. The company issued revenue guidance of $1.1 billion-$1.1 billion, compared to the consensus revenue estimate of $1.0 billion.
Wall Street Analysts Forecast Growth
Several brokerages have weighed in on ALRM. Zacks Research lowered shares of Alarm.com from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 12th. Weiss Ratings reissued a “hold (c-)” rating on shares of Alarm.com in a research note on Tuesday, January 27th. Barclays dropped their price objective on Alarm.com from $60.00 to $56.00 and set an “equal weight” rating for the company in a research note on Friday, November 7th. Finally, JPMorgan Chase & Co. decreased their target price on Alarm.com from $55.00 to $40.00 and set an “underweight” rating on the stock in a research report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $58.50.
Check Out Our Latest Stock Analysis on Alarm.com
Alarm.com Price Performance
Alarm.com stock traded down $0.01 during mid-day trading on Thursday, hitting $45.20. 535,090 shares of the company were exchanged, compared to its average volume of 398,527. The company has a debt-to-equity ratio of 0.59, a current ratio of 2.06 and a quick ratio of 1.92. The business’s 50 day simple moving average is $49.93 and its two-hundred day simple moving average is $51.97. The company has a market capitalization of $2.25 billion, a P/E ratio of 19.15, a PEG ratio of 1.66 and a beta of 0.79. Alarm.com has a 12-month low of $44.71 and a 12-month high of $61.41.
Alarm.com (NASDAQ:ALRM – Get Free Report) last issued its quarterly earnings data on Thursday, February 19th. The software maker reported $0.72 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.66 by $0.06. The business had revenue of $261.66 million for the quarter, compared to the consensus estimate of $250.75 million. Alarm.com had a return on equity of 14.26% and a net margin of 12.92%.Alarm.com has set its FY 2026 guidance at 2.780-2.790 EPS. Analysts forecast that Alarm.com will post 1.64 earnings per share for the current fiscal year.
Insider Transactions at Alarm.com
In other Alarm.com news, Director Stephen C. Evans sold 1,154 shares of the business’s stock in a transaction on Friday, December 12th. The stock was sold at an average price of $52.27, for a total value of $60,319.58. Following the completion of the transaction, the director directly owned 6,123 shares in the company, valued at approximately $320,049.21. The trade was a 15.86% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Jeffrey A. Bedell sold 22,727 shares of the stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $51.82, for a total value of $1,177,713.14. Following the transaction, the insider directly owned 505,805 shares in the company, valued at approximately $26,210,815.10. This represents a 4.30% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 26,154 shares of company stock valued at $1,357,388. Insiders own 5.80% of the company’s stock.
Key Stories Impacting Alarm.com
Here are the key news stories impacting Alarm.com this week:
- Positive Sentiment: Q4 results topped estimates — Alarm.com reported $0.72 EPS vs. $0.66 expected and revenue of $261.7M vs. $250.8M consensus; net margin and ROE remain healthy. Press Release
- Positive Sentiment: Raised FY‑2026 guidance — Management set EPS guidance of $2.78–$2.79 (vs. street ~2.47) and revenue guidance ~ $1.1B (vs. ~ $1.0B), indicating stronger expected growth and margin expansion for the year. Business Wire: Q4 & FY Guidance
- Positive Sentiment: SaaS momentum — SaaS & license revenue grew 8.8% year‑over‑year to $180.2M in Q4, supporting recurring revenue visibility and the raised full‑year outlook. Business Wire: SaaS Revenue
- Neutral Sentiment: Options activity noted — Media flagged unusual options interest, which can signal trader expectations for a large move but is not directional by itself. MSN: Options Flow
- Neutral Sentiment: Short‑interest data appears malformed/unclear in recent reports (reported as zero/NaN), so no reliable signal about short pressure at this time.
- Negative Sentiment: Analyst cut — JPMorgan trimmed its price target to $40 and moved to an “underweight” stance, which could exert selling pressure and weigh on sentiment despite the upbeat guidance. Benzinga: JPMorgan Lowered PT
Institutional Inflows and Outflows
Several large investors have recently made changes to their positions in ALRM. California State Teachers Retirement System raised its holdings in shares of Alarm.com by 0.5% in the 2nd quarter. California State Teachers Retirement System now owns 43,287 shares of the software maker’s stock worth $2,449,000 after purchasing an additional 226 shares during the period. Stifel Financial Corp increased its position in Alarm.com by 1.8% during the 4th quarter. Stifel Financial Corp now owns 14,176 shares of the software maker’s stock worth $723,000 after purchasing an additional 254 shares in the last quarter. Inspire Investing LLC raised its holdings in Alarm.com by 6.7% in the fourth quarter. Inspire Investing LLC now owns 9,125 shares of the software maker’s stock valued at $466,000 after buying an additional 573 shares during the period. Captrust Financial Advisors lifted its position in Alarm.com by 2.6% during the fourth quarter. Captrust Financial Advisors now owns 23,910 shares of the software maker’s stock valued at $1,220,000 after buying an additional 600 shares in the last quarter. Finally, Alps Advisors Inc. grew its stake in Alarm.com by 4.4% during the fourth quarter. Alps Advisors Inc. now owns 16,077 shares of the software maker’s stock worth $820,000 after buying an additional 678 shares during the period. 91.74% of the stock is owned by hedge funds and other institutional investors.
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.