New York, Feb 27, 2026, 08:45 ET — Premarket
- FTDR edged down 0.1% in premarket trading, pulling back after a 16.8% jump the previous session.
- Frontdoor laid out its 2026 growth outlook and said it’s looking for member numbers to swing back into positive territory.
- Oppenheimer bumped its price target up to $70 while sticking with its Outperform rating
Frontdoor, Inc. slipped 0.1% to $65.71 before the bell Friday, with shares pulling back after a strong surge sparked by the company’s new 2026 targets. 1
Thursday’s rally in the stock revived a question that’s been nagging investors: whether Frontdoor can get membership growth moving again without relying heavily on discounts. The issue isn’t small. Renewals — when current customers sign on for another contract — typically deliver stronger economics than the first-year memberships sold through real estate partners.
The timing comes as Wall Street wrestles with the question: can Frontdoor’s latest profit streak hold up if claims costs climb? Home warranty outfits pick up the tab for repairs, so when demand jumps, rising labor and parts prices can quickly squeeze margins.
Shares of Frontdoor finished Thursday at $65.76, up 16.8%. The stock ranged from $59.90 to $67.46 during the session. 2
Fourth-quarter revenue hit $433 million, a 13% increase from the same period last year, the company said Thursday. Full-year revenue climbed to $2.093 billion, up 14%. Net income for the year came in at $255 million. Adjusted EBITDA, their preferred operating metric, jumped 25% to $553 million. 3
Chairman and CEO Bill Cobb pointed to “stabilized member count” and noted share buybacks, with Frontdoor eyeing “re-igniting member growth” and raising its long-term margin target. 4
Frontdoor is projecting 2026 revenue between $2.155 billion and $2.195 billion, with adjusted EBITDA expected in the $565 million to $580 million range. That works out to an adjusted EBITDA margin of roughly 26%. The company expects its home-warranty member count to move into positive territory that year, citing an anticipated 5% bump in first-year members as the main driver. For the first quarter, it’s guiding revenue to land between $440 million and $445 million. 5
Oppenheimer’s Ian Zaffino bumped his price target on the stock to $70, up from $63, while maintaining an Outperform rating, according to StreetInsider. Zaffino cited “strength in the renewals channel and cost control.” 6
Even so, a sharp one-day jump isn’t always a pure win. Rising service requests, or ongoing increases in labor and parts costs, could push claims costs above pricing, squeezing the profit outlook.
Looking ahead to the next session and into next week, traders are eyeing whether the stock can stay close to those recent highs—and if the wave of analyst upgrades keeps building after the new guidance. The next earnings report lands April 30, based on TradingView’s earnings calendar. 7
