New York, Feb 26, 2026, 09:33 EST — Regular session
- Resideo slipped roughly 1.5% at the open, coming off a 14% surge just yesterday.
- The company is projecting adjusted EPS for 2026 in the $3.00 to $3.20 range, with revenue seen landing between $7.8 billion and $7.9 billion.
- Morgan Stanley bumped its price target up to $50 while maintaining an Overweight rating.
Resideo Technologies slipped early Thursday, trimming part of its big gains from the previous session. Investors took in the company’s new 2026 forecast and a round of fresh analyst notes. Shares traded around $40.25, off roughly 1.5% in New York.
Resideo shares surged 14.39% Wednesday to finish at $40.86, reclaiming levels not seen since last year’s highs. That rally leaves little margin for error ahead of the next update.
The key point right now: this marks the first comprehensive outlook for 2026, dropping as the company’s already knee-deep in breaking itself up into two separate public entities. Traders are left to sift “earnings momentum” from the “structure story.” Those two themes aren’t always in sync.
Resideo sells HVAC controls, detectors, and security gear, and operates the ADI distribution arm. The company often stands in for repair-and-remodel demand, tracking contractor activity. End markets here can turn quickly if credit gets tight—investors tend to sell into sharp rallies.
Resideo on Tuesday reported record net revenue for 2025, reaching $7.472 billion, an 11% increase, along with adjusted EBITDA that jumped 20% to $833 million. The company, though, logged a net loss for the year of $527 million, citing costs from ending an indemnification agreement. Cash used in operating activities included a one-off $1.59 billion payment to Honeywell related to that agreement’s termination. Looking to 2026, Resideo projected revenue between $7.8 billion and $7.9 billion, and adjusted earnings per share in the $3.00 to $3.20 range. “Adjusted” numbers strip out items Resideo says aren’t part of its core operating picture. CEO Jay Geldmacher said results “either exceeded or were at the high end of our outlook range.” SEC
Products & Solutions posted a 6% revenue increase in the fourth quarter, reaching $712 million. ADI, on the other hand, saw revenue dip 1% to $1.183 billion, with the company pointing to soft demand in video surveillance as the key factor.
Morgan Stanley bumped up its price target on Resideo to $50, up from $42, sticking with its Overweight rating. After the quarter, analysts said they’re “incrementally better” on execution, though they cautioned there’s still “wood to chop” in 2026. TipRanks
Investors are watching to see if Resideo turns guidance into more predictable quarters, particularly at ADI, where both product mix and installer buying patterns have swung around. Margin gains are another key issue, after the company pointed to multi-quarter expansion in both divisions.
But there are plenty of caveats. In its annual report, Resideo said it’s aiming to finish the planned ADI spin-off in the back half of 2026, assuming requirements like an effective Form 10, board sign-off, tax guidance or possibly an IRS ruling, financing arrangements, and regulatory green lights all fall into place. The company flagged the separation as complicated, warning it might hit delays or could even be scrapped.
Traders now turn their focus to the anticipated Form 10 filing for ADI, which would mark the initial concrete regulatory move on the separation. Any shift in the company’s timeline for pushing further into its 2026 execution plan will also be closely watched.
