Allegion’s 2026 Revenue And EPS Guidance Might Change The Case For Investing In Allegion (ALLE)

• In February 2026, Allegion plc reported fourth-quarter 2025 sales of US$1,033.2 million and full-year 2025 sales of US$4,067.3 million, alongside higher net income and earnings per share than the prior year.

• At the same time, the company issued 2026 guidance calling for reported revenue growth of 5% to 7% and adjusted EPS of US$8.70 to US$8.90, giving investors clearer visibility into its expected performance.

• We’ll now examine how Allegion’s 2026 revenue and earnings guidance may influence the existing investment narrative around margin resilience.

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To own Allegion, you have to believe in its ability to protect margins while shifting its portfolio toward higher value electronic and software security. The latest 2025 results and 2026 guidance support the ongoing margin resilience narrative, but do not materially change the near term focus on nonresidential demand as the key catalyst or the risk that weakness in international and legacy mechanical businesses could reintroduce earnings volatility.

The February 2026 dividend increase to US$0.55 per share, marking a 12th consecutive annual raise, sits alongside the 2026 guidance and reinforces Allegion’s message of cash flow consistency. For investors watching the evolution toward electronics and recurring software revenue, that dividend track record provides another reference point when weighing the upside from new IoT and access control offerings against the execution risks in acquisitions and integrations.

Yet behind Allegion’s margin story, investors still need to watch the risk that international mechanical weakness could…

Read the full narrative on Allegion (it’s free!)

Allegion’s narrative projects $4.8 billion revenue and $825.7 million earnings by 2028. This requires 7.1% yearly revenue growth and a roughly $199.5 million earnings increase from $626.2 million today.

Uncover how Allegion’s forecasts yield a $179.55 fair value, a 10% upside to its current price.

Three Simply Wall St Community fair value estimates for Allegion range from US$137.62 to US$179.55, highlighting how far apart individual views can be. You may want to weigh these against Allegion’s reliance on resilient nonresidential demand and its shift toward higher margin electronic security when thinking about future performance.

Explore 3 other fair value estimates on Allegion – why the stock might be worth 15% less than the current price!

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ALLE.

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