Allegion beats Q2 EPS estimates, shares jump 10% on strong revenue growth and undervaluation potential.

Allegion reported strong Q2 2026 results with earnings per share of $2.40, beating estimates by $0.18. Revenue rose nearly 13% year-over-year to $1.15 billion, driven by almost 12% growth in the Americas segment and signs of recovery internationally. The company's shares surged over 10% following the earnings announcement. Based on a free cash flow valuation model, Allegion appears undervalued by about 6%, suggesting a potential return near 12% for investors.