NAPCO Security Shares Surge 20% After Earnings Beat and Record Revenue

NAPCO Security Technologies, Inc. (NASDAQ:NSSC) shares soared 20.50% in pre-market trading on Monday after the security technology company delivered fourth-quarter results that exceeded Wall Street expectations, supported by record revenue and continued growth in its recurring services business.

Adjusted earnings came in at $0.50 per share, beating the analyst consensus estimate of $0.39 by $0.11.

Quarterly revenue reached a record $55.8 million, ahead of expectations of $53.18 million and 10.0% higher than the $50.7 million generated in the corresponding period last year.

The quarterly figures included an approximately $0.09 per-share benefit from tariff refunds.

Recurring Service Revenue Continues Double-Digit Growth

NAPCO’s recurring service revenue increased 12.9% year on year to $25.3 million and delivered a gross margin of more than 90%.

Equipment revenue also advanced, rising 7.7% from a year earlier to $30.5 million.

Overall gross margin expanded significantly to 61.3% from 52.8% in the previous year’s fourth quarter. Tariff refunds contributed approximately 600 basis points to the latest margin figure.

“Our Fiscal Q4 performance completes a strong close to our fiscal year end and reflects continued positive financial results,” said Kevin Buchel, CEO and President. “We achieved record Q4 revenue and Adjusted EBITDA of $55.8 and $20.6 million, respectively, which was bolstered by our recurring service revenue with its continued year over year double digit growth.”

Full-Year Revenue Reaches Record $202.3 Million

For the full 2026 fiscal year, NAPCO generated record revenue of $202.3 million, representing an increase of 11.4% from $181.6 million in fiscal 2025.

Adjusted diluted earnings per share climbed 34.5% to $1.60 from $1.19 in the previous year, highlighting stronger underlying profitability alongside the company’s revenue expansion.

Full-year reported results were affected by a $16 million litigation settlement charge recorded during the third quarter. NAPCO said the charge reduced diluted earnings per share by approximately $0.40.

NAPCO Raises Quarterly Dividend by 13.3%

Alongside its results, NAPCO’s board declared a quarterly dividend of $0.17 per share, an increase of 13.3%.

The dividend is scheduled to be paid on October 2, 2026, to shareholders of record as of September 11, 2026.

The higher shareholder payout, combined with record annual revenue and double-digit growth in adjusted EPS, added to the positive tone surrounding the earnings announcement.

Earnings Beat Drives NASDAQ:NSSC Pre-Market Rally

The 20.50% pre-market surge in NASDAQ:NSSC reflected a combination of better-than-expected earnings, record quarterly revenue and continued momentum in NAPCO’s high-margin recurring services operation.

While tariff refunds provided a meaningful benefit to fourth-quarter earnings and margins, underlying revenue growth remained positive across both recurring services and equipment.

With full-year sales reaching a record level, adjusted EPS rising more than 30% and the dividend increasing, the latest results provided investors with several indications of continued operational and financial momentum heading into the new fiscal year.

Napco Security Technologies stock price