NAPCO Security Technologies Inc. (NASDAQ: NSSC) surged 19.22% in pre-market trading on Monday, lifting shares to $44.98 after the company posted a fiscal fourth-quarter revenue record of $55.8 million.
The security systems provider reported a 10% year-over-year increase in net revenue, outpacing analyst expectations of roughly $53.6 million. Analysts had forecasted a more modest 3-4% revenue expansion prior to the earnings release.
Recurring service revenue, which carries gross margins near 91%, now represents nearly half of total sales and continues to compound at double-digit rates. The high-margin segment has become a key driver of the company’s growth trajectory.
Leadership changes were noted, with Kevin Buchel assuming the CEO role on July 8, 2026, following the transition of founder Richard Soloway to Executive Chairman. Needham maintained its positive rating ahead of the earnings release, citing confidence in the company’s growth strategy despite the leadership transition.
Prior to the report, shares had closed at $38.09, placing the current price near the upper end of the 52-week range of $31.47 to $48.12. Analyst price targets ahead of the earnings release averaged between $48 and $51.
