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Napco Security Posts Strong Q3 2026 Revenue Growth

Story Highlights
  • Napco’s fiscal Q3 2026 revenue grew 11.8%, led by strong recurring service and equipment sales.
  • Despite a litigation-driven GAAP loss, non-GAAP profits and cash flows rose and the dividend was maintained.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Napco Security Posts Strong Q3 2026 Revenue Growth

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Napco Security Technologies ( (NSSC) ) has issued an announcement.

In the third quarter of fiscal 2026, ended March 31, NAPCO Security Technologies reported net revenue of $49.2 million, up 11.8% year on year, driven by an 8.4% rise in equipment sales to $24.2 million and a 15.4% increase in recurring service revenue to $24.9 million, which carried a 90.4% gross margin and represented roughly 51% of total revenue. Overall gross margin improved to 60% while a $16 million litigation settlement pushed the quarter to a GAAP net loss of $0.4 million, though non-GAAP net income rose 36.9%, diluted non-GAAP EPS climbed to $0.39, adjusted EBITDA grew 20.2% to $15.8 million, and the board maintained its capital-return stance by declaring a $0.15 per share dividend payable on July 3, 2026 to shareholders of record on June 12, 2026.

The most recent analyst rating on (NSSC) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Napco Security Technologies stock, see the NSSC Stock Forecast page.

Spark’s Take on NSSC Stock

According to Spark, TipRanks’ AI Analyst, NSSC is a Outperform.

Strong overall score driven primarily by high-quality financial performance (strong margins, ROE, cash generation, low leverage) and a positive earnings-call outlook with continued revenue, margin, and free-cash-flow momentum. Offsetting factors are mixed technical signals (negative MACD; price below 100DMA) and a somewhat elevated P/E despite a modest dividend yield.

To see Spark’s full report on NSSC stock, click here.

More about Napco Security Technologies

NAPCO Security Technologies, Inc. is a U.S.-based manufacturer and designer of high-tech electronic security equipment and wireless communication devices for intrusion and fire alarm systems, and it also provides school safety solutions. The company generates a significant portion of its revenue from high-margin recurring service revenue associated with these security and communication platforms.

Average Trading Volume: 620,383

Technical Sentiment Signal: Buy

Current Market Cap: $1.67B

For an in-depth examination of NSSC stock, go to TipRanks’ Overview page.

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