Allegion Jumps 11% After Q3 Beat and Raised 2026 Outlook

ALLE shares jumped 11% on Thursday, Oct. 22, closing at $176.52, after the security-products maker reported third-quarter results ahead of expectations and raised its full-year outlook. Adjusted earnings came in at $2.60 a share on revenue of $1.17 billion, against analyst expectations of about $2.50 and $1.14 billion, according to Investing.com. Revenue rose 9.6% to $1,172.6 million, or 7.2% organically, and adjusted operating margin widened to 24.7% from 24.1% a year earlier.

The Americas did the work. Segment revenue rose 11.7% to $942.4 million, or 9.1% organically, with the non-residential business up low double digits, electronics up low double digits, and data centers described by management as a growing contributor. International was the soft spot: revenue of $230.2 million rose 1.8% as reported but slipped 0.2% organically, as lower volumes in Western Europe outweighed pricing.

Allegion now expects 2026 adjusted EPS of $9.05 to $9.10, up from $8.85 to $9.00 in July, organic growth of 5% to 6%, up from 3.5% to 4.5%, and reported revenue growth of 9.5% to 10.5%. In the quarter it paid $46 million in dividends and bought back $120 million of stock.

The rally left the stock at about 21.7 times earnings, and Simply Wall St argued the valuation now leans rich. Shares added another 1.4% on Friday to about $178.98, per SentiSense price data. What to watch: whether International returns to organic growth, how far price increases can run as management flags an inflationary environment into 2027, and the contribution from the roughly $90 million Overly Door acquisition.