Key Highlights

  • ALLE is trading down 0.52% at $156.22 on October 21, with a market capitalization of about $13.28 billion.
  • Third-quarter results are due Thursday, October 22, before the market opens.
  • Full-year adjusted EPS guidance is $8.85 to $9.00, raised in July from $8.70 to $8.90.
  • Second-quarter adjusted EPS was $2.40, up 17.6%, on revenue up 12.7%.
  • Trailing EPS is $7.62, the P/E is 20.49 and the dividend yield is 1.38%.

Can Allegion Extend Its Guidance Raise When It Reports on October 22?

Allegion (NYSE:ALLE) is scheduled to report third-quarter 2026 results on Thursday, October 22, before the market opens. The shares are trading down 0.52% at $156.22 on October 21, a move within about 1% of the prior close with no company-specific news.

The company makes locks, door hardware and access control products under brands including Schlage and Von Duprin. In July it raised its full-year outlook, so what the market is waiting for is whether the third quarter supports another increase or only a reaffirmation.

Guidance is for adjusted EPS of $8.85 to $9.00, organic revenue growth of 3.5% to 4.5% and reported revenue growth of 7.5% to 8.5%. Management also guided Americas organic growth to the high end of the mid-single-digit range and cut the International outlook to a low single-digit decline.

What Did the Second-Quarter Call Set Up?

Second-quarter revenue rose 12.7% to about $1.2 billion, with organic growth of 6.9% driven by price and volume. The adjusted operating margin was 24.2%, up 50 basis points, and adjusted EPS of $2.40 rose 17.6%. The year-ago third quarter produced adjusted EPS of $2.30 on revenue of about $1.07 billion.

In the Americas, revenue was $918.6 million, up 8.9% organically, with non-residential and residential both growing at a high single-digit rate and electronics up in the low teens. International revenue was $232.9 million, down 1.2% organically on weakness in Germany. Restructuring there is expected to save about $10 million a year, with the full benefit in the fourth quarter.

The company repurchased $120 million of shares and paid $47 million of dividends in the quarter, and it expects cash flow conversion of 85% to 95% of adjusted net income for 2026. Year-to-date available cash flow of $260.8 million was down 5.3% on higher receivables.

What Would Strong and Weak Readings Look Like?

Management cited office, multifamily and data center demand, which is approaching 5% of non-residential sales, along with university adoption of mobile credentials, as growth drivers. Continued Americas organic growth near the high end of the mid-single-digit range, a margin holding near 24% and a further raise to the $8.85 to $9.00 range would be positive signals.

The cautions are specific. Management noted that orders may have been pulled forward ahead of a late-May price increase, which could have boosted June, and it is monitoring tariffs and input costs. A reaffirmation without a raise, softer Americas volume or deeper European weakness would be read as negative.

These are the readings investors will look for and not predictions of the result.

Which Reading Matters Most for Thursday's Reaction?

Trailing EPS is $7.62, up 5.89%, with a P/E of 20.49 and a dividend yield of 1.38%. The consensus analyst rating is Buy, and 11 analysts had an average price target of $178 as of September 30, a data point and not a recommendation. Investors will weigh the earnings figure against the $2.30 year-ago base, the direction of the full-year range and commentary on non-residential demand and International margin.