Allegion plc ALLE is scheduled to release second-quarter 2026 results on July 23, before market open.
The Zacks Consensus Estimate for ALLE’s second-quarter revenues is pegged at $1.11 billion, indicating growth of 8.4% from the prior-year quarter’s figure. The consensus mark for earnings is pinned at $2.23 per share, which has decreased a penny in the past 60 days. The figure indicates growth of 9.3% from the year-ago quarter's figure.
The company delivered lackluster results twice in the trailing four quarters, the earnings surprise being negative 0.4% on average. In the last reported quarter, its bottom line missed the consensus estimate by 4.3%.
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 second quarter, driven by stable demand across end markets like education, healthcare, government, hospitality and retail. A rise in demand for non-residential products is expected to have aided the segment’s performance. We expect revenues from the segment to increase 4.1% year over year to $854.9 million.
Allegion International segment’s performance is likely to have been augmented by solid demand for its electronic security products and effective pricing actions. We expect revenues from the segment to increase 19.2% year over year to $239.0 million. However, softness in the mechanical end market, due to disruptions from ERP implementation and decreased demand for products, is expected to have hurt the segment’s performance.
Nevertheless, 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-eps-surprise | Allegion PLC Quote
Earnings Whisper
Our proven model predicts an earnings beat for ALLE 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 the case here, as elaborated below.
Earnings ESP: ALLE has an Earnings ESP of +1.12% as the Most Accurate Estimate is pegged at $2.25 per share, higher than the Zacks Consensus Estimate of $2.23. 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.
Other Stocks to Consider
Here are some other companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
Crane Company CR has an Earnings ESP of +4.73% and a Zacks Rank of 2 at present. The company is scheduled to release second-quarter 2026 results on July 28.
Crane’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 11.3%.
Ingersoll Rand Inc. IR has an Earnings ESP of +0.61% and a Zacks Rank of 3 at present. The company is slated to release second-quarter 2026 results on July 30.
Ingersoll Rand’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters while matching the mark in two, the average surprise being 2.4%.
Illinois Tool Works Inc. ITW has an Earnings ESP of +0.31% and a Zacks Rank of 3 at present. The company is slated to release second-quarter 2026 results on July 28.
Illinois Tool’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 2.8%.
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Allegion PLC (ALLE): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).