Resideo Q1 revenue climbs 8% as earnings surge, ADI spin-off nears

SCOTTSDALE, Ariz.—Resideo Technologies reported Q1 2026 results that exceeded its outlook across key metrics, driven by steady growth in both its Products & Solutions (P&S) and ADI Global Distribution businesses.

The performance reflects continued operational execution across both segments, with strength in core security, pro audiovisual (AV) and data communications categories, alongside momentum from new product introductions and pricing actions.

“Our first quarter results reflect the continued strong operational execution of both businesses in a dynamic macro-economic environment,” said President and CEO Jay Geldmacher. “The team’s operational performance, along with the achievement of key business separation milestones, builds momentum and conviction for each company as we approach completion of the ADI spin-off later this year.”

Resideo Q1 2026: By the Numbers

• Revenue: $1.91 billion, up 8% year over year
• Net income: $38 million (vs. $6 million in Q1 2025)
• Adjusted EBITDA: $215 million, up 28%
• Diluted EPS: $0.17
• Adjusted EPS: $0.65, up 3%

Products & Solutions (P&S):

• Revenue: $706 million, up 9%
• Gross margin: 41.8%, up 40 basis points
• Adjusted EBITDA: $177 million, up 12%

ADI Global Distribution:

• Revenue: $1.21 billion, up 8%
• Gross margin: 21.2%, down 40 basis points
• Adjusted EBITDA: $66 million, down 8%

Cash & balance sheet:

• Cash and equivalents: $438 million
• Total debt: $3.23 billion
• Operating cash flow: -$145 million

Segment performance

Products & Solutions delivered broad-based growth across most channels and product families, supported by price realization in original equipment manufacturer (OEM) and security channels and demand for newer offerings in retail and electrical distribution.

Margin expansion continued, marking the segment’s 12th consecutive quarter of year-over-year improvement, driven by structural operating efficiencies. However, profit was tempered by higher R&D investment, a one-time litigation settlement, and restructuring costs tied to manufacturing optimization.

ADI Global Distribution growth was supported by demand in security, professional AV and data communications, as well as increased e-commerce adoption and gains in exclusive brands. Residential AV continued to weigh on performance, reflecting continued softness in the U.S. housing market.

Margins were pressured by higher freight costs and unfavorable product mix, while additional sales days and higher variable expenses also weighed on profitability.

Cash flow and outlook

Operating cash flow declined year over year, reflecting business separation activities, higher interest payments and working capital dynamics.

Resideo reaffirmed its full-year 2026 outlook, calling for revenue of $7.8 billion to $7.9 billion and adjusted EBITDA of $935 million to $985 million.

For the second quarter, the company expects revenue between $1.92 billion and $1.94 billion, with adjusted EPS of $0.71 to $0.75.