Back to top

Image: Bigstock

Allegion Gears Up to Post Q1 Earnings: Is a Beat in the Offing?

Read MoreHide Full Article

Key Takeaways

  • Allegion expects Q1 revenue growth, driven by strong Americas demand across key non-residential markets.
  • ALLE's acquisitions, including DCI Hollow Metal and UAP Group, are set to boost top-line performance.
  • Rising material costs, investments and forex headwinds may weigh on Allegion's Q1 margins.

Allegion plc (ALLE - Free Report) is scheduled to release first-quarter 2026 results on April 28, before market open.

The Zacks Consensus Estimate for ALLE’s first-quarter revenues is pegged at $1.02 billion, indicating growth of 8% from the prior-year quarter’s figure. The consensus mark for earnings is pinned at $1.88 per share, which has decreased a penny in the past 60 days. The figure indicates growth of 1.1% from the year-ago quarter's figure.

The company delivered better-than-expected results thrice in the trailing four quarters, the earnings surprise being 3.3% on average. In the last reported quarter, its bottom line missed the consensus estimate by 3.5%.

Let us see how things have shaped up for Allegion this earnings season.

Factors Likely to Have Shaped ALLE’s Quarterly Performance

Allegion’s Americas segment is expected to have performed well in the first quarter, driven by stable demand across end markets like education, healthcare, government, hospitality and retail. The increase in demand for non-residential products is anticipated to have augmented its top-line performance. The Zacks Consensus Estimate for the segment’s revenues is pegged at $798 million, indicating a 5.3% rise from the year-ago reported number.

Allegion International segment’s performance is likely to have been augmented by solid demand for its electronic security products and effective pricing actions. However, lower demand for mechanical products and softness in the residential market are expected to have hurt the segment’s performance. The Zacks Consensus Estimate for the segment’s revenues is pegged at $219 million, indicating a 19% rise from the year-ago reported number.

Allegion has remained focused on expanding its product offerings and market presence through buyouts. In March 2026, Allegion acquired DCI Hollow Metal through one of its subsidiaries. The acquisition enabled the company to strengthen its core mechanical portfolio. 

The company also acquired Brisant and UAP Group Limited in August 2025. The addition of Brisant’s residential security solutions portfolio strengthened its presence in the U.K. residential market while complementing its non-residential portfolio. The inclusion of UAP’s comprehensive portfolio of door hardware, backed by about 200 patents, trademarks and registered designs, boosted its presence in the U.K. non-residential market. The buyouts are expected to have boosted Allegion’s top line in the quarter.

However, rising operating costs, owing to high material costs and investments in new products, channel development and growth initiatives, are expected to have affected the company’s bottom line.

Also, given the company’s extensive geographic presence, its operations are exposed to foreign exchange headwinds. A stronger U.S. dollar is likely to have hurt Allegion's overseas business.

Allegion PLC Price and EPS Surprise

Allegion PLC Price and EPS Surprise

Allegion PLC price-eps-surprise | Allegion PLC Quote

Earnings Whisper

Our proven model does not conclusively predict an earnings beat for Allegion this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.

Earnings ESP: Allegion has an Earnings ESP of -0.67% as the Zacks Consensus Estimate is pegged at $1.88 per share, higher than the Most Accurate Estimate of $1.87. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: ALLE presently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are some companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.

RBC Bearings (RBC - Free Report) has an Earnings ESP of +5.80% and a Zacks Rank of 2 at present. The company is slated to release first-quarter 2026 results on May 15.

RBC Bearings’ earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 5.3%.

Stanley Black & Decker (SWK - Free Report) has an Earnings ESP of +5.38% and a Zacks Rank of 3 at present. The company is scheduled to release first-quarter 2026 results on April 29.

Stanley Black & Decker’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 56.4%.

Illinois Tool Works (ITW - Free Report) has an Earnings ESP of +0.30% and a Zacks Rank of 3 at present. The company is slated to release first-quarter 2026 results on April 30.

Illinois Tool’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 2.1%.

Zacks' 7 Best Strong Buy Stocks (New Research Report)

Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in