GET DAILY SIGNALSResideo Technologies (NYSE: REZI): First Standalone Earnings After the ADI Spin-Off
Key Takeaways
- Resideo Technologies (NYSE: REZI) reports its fiscal third quarter 2026 results after the market close on Tuesday, November 10, 2026 — its first report as a standalone building technologies company.
- The quarter follows the completion of the spin-off of its ADI Global Distribution segment on August 3, 2026, leaving Resideo focused on higher-margin comfort, safety, and water products.
- Management's standalone third-quarter guidance calls for revenue of $705 million to $730 million and adjusted EBITDA of $145 million to $155 million.
- Wall Street consensus points to revenue of roughly $712–716 million, with earnings per share estimates in the $0.34–$0.40 range depending on the source.
- Year-over-year comparisons will show steep declines of about 60% simply because ADI is no longer included in results, not because of weakening demand.
- Investors will be watching gross margin, new product adoption, and the expected $40–$50 million revenue headwind from a large OEM security customer in the second half of 2026.
Earnings Context and Why It Matters
This quarter marks a structural turning point for REZI. After spinning off ADI Global Distribution in early August, the company now reports as a pure-play building technologies business centered on residential controls, life safety, security, and water products. The results offer investors the first clean look at the "new" Resideo's standalone economics, including its gross margin profile and operating leverage. Prior comparisons are distorted because ADI's lower-margin distribution revenue — roughly $1.2 billion per quarter — is no longer consolidated. Against that backdrop, management's ability to hit its standalone guidance and confirm the durability of recent gross-margin gains will be the central focus for shareholders reassessing the company's post-separation valuation. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Earnings Expectations
Resideo has guided third-quarter standalone revenue to $705 million to $730 million and adjusted EBITDA to $145 million to $155 million. Analysts broadly align with the top end of that range, with consensus revenue near $712–716 million. Earnings per share expectations cluster between roughly $0.34 and $0.40, depending on whether estimates are measured on a GAAP or adjusted basis. For context, the year-ago quarter reported $1.86 billion in revenue and $0.89 in earnings per share, but those figures included the now-separated ADI business, so the decline is largely structural rather than operational. Beyond the headline numbers, investors will scrutinize the Products & Solutions segment's gross margin, progress on new product introductions such as combination smoke and carbon monoxide detectors and smart thermostats, and any update on the $40–$50 million second-half revenue headwind tied to a large OEM security customer pursuing vertical integration.
Market Reaction and Investor Sentiment
Sentiment heading into the report is cautious. REZI shares have been under pressure since the separation, falling roughly 25–35% over the past 90 days as investors digested the mechanics of the spin-off and the resulting change in the company's revenue base. The stock's post-earnings announcement drift has been notably negative since the August report, according to third-party tracking data. Key risk factors include the soft U.S. residential housing market, rising input costs for memory, metals, printed circuit boards, and semiconductors, and the loss of business from a large OEM security customer. A beat against standalone guidance, combined with steady gross-margin expansion, could help restore confidence in the newly focused company. From what I see, this is important because it sets the tone for how the market values the post-spin entity.
Forward Outlook and Key Factors to Monitor
Looking ahead, the most important question is whether Resideo can deliver on the standalone economics management laid out at its investor day. The company has targeted revenue growth and a higher adjusted EBITDA margin over time as a pure-play business, and the third quarter offers an early test of that framework.
Investors should monitor several catalysts. First, input-cost inflation across memory, metals, and electronic components is running ahead of management's earlier expectations, creating a modest gross-margin headwind in the second half of the year that pricing actions may only partially offset. Second, the OEM security headwind is expected to trim $40–$50 million from second-half revenue, so offsetting growth in retail, HVAC distribution, and other channels will be critical.
New product momentum is another variable to watch. Adoption of combination smoke and carbon monoxide detectors, the Honeywell Home thermostat line, and new water-filtration and dehumidification products has been a key growth driver, and continued traction would support the top line. Finally, balance-sheet execution matters: Resideo paid down $900 million of debt following the separation, and further deleveraging would strengthen the company's flexibility as it navigates a still-soft residential market. I’m watching this closely for signs of execution.
Using Tickeron’s AI Tools for Research
In my view, tools like Tickeron’s AI Screener help streamline the process of comparing post-spin names like REZI against peers and spotting technical setups. I rely on it to quickly filter for industry trends, volatility signals, and performance metrics that would otherwise take hours to review manually. It also supports scanning for comparable building-products companies or emerging patterns across the broader market, which adds useful context when evaluating earnings like these.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
REZI in upward trend: 10-day moving average moved above 50-day moving average on November 04, 2026
The 10-day moving average for REZI crossed bullishly above the 50-day moving average on November 04, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 14 of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 78%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 22, 2026. You may want to consider a long position or call options on REZI as a result. In 60 of 90 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 67%.
The Moving Average Convergence Divergence (MACD) for REZI just turned positive on October 20, 2026. Looking at past instances where REZI's MACD turned positive, the stock continued to rise in 30 of 45 cases over the following month. The odds of a continued upward trend are 67%.
REZI moved above its 50-day moving average on October 29, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +2.79% 3-day Advance, the price is estimated to grow further. Considering data from situations where REZI advanced for three days, in 222 of 315 cases, the price rose further within the following month. The odds of a continued upward trend are 70%.
Bearish Trend Analysis
The 10-day RSI Indicator for REZI moved out of overbought territory on November 05, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 similar instances where the indicator moved out of overbought territory. In 23 of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at 64%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 38 of 54 cases where REZI's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 70%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where REZI declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 70%.
REZI broke above its upper Bollinger Band on November 04, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for REZI entered a downward trend on October 23, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 31 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.167) is normal, around the industry mean (4.173). P/E Ratio (7.519) is within average values for comparable stocks, (2.286). Projected Growth (PEG Ratio) (0.050) is also within normal values, averaging (2.538). Dividend Yield (0.000) settles around the average of (0.448) among similar stocks. P/S Ratio (0.372) is also within normal values, averaging (3.013).
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 51 (best 1 - 100 worst), indicating fairly steady price growth. REZI’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 53 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 85 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. REZI’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 66, placing this stock worse than average.
The Tickeron PE Growth Rating for this company is 88 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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