Itron (NASDAQ:ITRI) Posts Earnings Results, Beats Expectations By $0.30 EPS

Itron (NASDAQ:ITRI) announced its earnings results on Tuesday. The scientific and technical instruments company reported $1.59 earnings per share for the quarter, beating analysts’ consensus estimates of $1.29 by $0.30, Briefing.com reports. Itron had a return on equity of 19.26% and a net margin of 11.90%.The company had revenue of $562.90 million during the quarter, compared to analyst estimates of $566.34 million. During the same period last year, the company posted $1.62 earnings per share. The firm’s quarterly revenue was down 7.2% compared to the same quarter last year. Itron updated its Q3 2026 guidance to 1.500-1.600 EPS and its FY 2026 guidance to 6.300-6.500 EPS.

Here are the key takeaways from Itron’s conference call:

• Profitability exceeded expectations in Q2, with record adjusted gross margin of 41.4%, adjusted EBITDA of $97 million, and free cash flow of $81 million despite revenue being down year over year.
• Itron reported a $4.4 billion backlog, record pipeline levels, and growing adoption among mid-market utilities; annual recurring revenue rose approximately 21% year over year to $417 million.
• Management raised the full-year non-GAAP EPS outlook to $6.30-$6.50, while narrowing revenue guidance to $2.37 billion-$2.41 billion; second-half revenue is expected to grow about 8% year over year.
• Revenue declines in Device Solutions and Networked Solutions reflected product sales and project-deployment timing, respectively, while Outcomes revenue grew 13% and Resiliency Solutions contributed $16 million following the Urbint and Locusview acquisitions.
• Management sees durable demand for grid modernization, resiliency, gas-system safety upgrades, and grid-edge intelligence, including solutions that can defer infrastructure spending; gas refresh opportunities are described as multiple times historical norms.

Itron Trading Down 3.7%

NASDAQ ITRI traded down $3.77 during trading hours on Thursday, hitting $98.56. The company’s stock had a trading volume of 579,932 shares, compared to its average volume of 901,566. Itron has a twelve month low of $77.77 and a twelve month high of $142.00. The firm has a market capitalization of $4.37 billion, a P/E ratio of 16.42, a PEG ratio of 0.88 and a beta of 1.32. The company has a quick ratio of 2.24, a current ratio of 2.75 and a debt-to-equity ratio of 0.96. The stock has a fifty day moving average of $84.04 and a 200 day moving average of $89.82.

Key Headlines Impacting Itron

Here are the key news stories impacting Itron this week:

• Positive Sentiment: Profitability significantly exceeded expectations. Itron reported Q2 adjusted EPS of $1.59, well above the $1.29 analyst consensus. Strong margins, project execution and demand for the company’s utility technology helped offset lower revenue. ITRI Q2 Earnings Top Despite Soft Revenues, Solid View Lifts Stock 26%
• Positive Sentiment: Itron raised its full-year outlook. The company now expects 2026 EPS of $6.30-$6.50 and guided for Q3 EPS of $1.50-$1.60, supporting investor confidence in earnings growth despite uneven revenue trends. Backlog and healthy margins were key factors behind the improved outlook. Itron jumps after profit beat and upbeat outlook
• Positive Sentiment: Analyst sentiment remains constructive. Needham raised its price target from $116 to $128 and maintained a Buy rating. The broader analyst consensus implies approximately 25% potential upside, although price targets are not reliable guarantees of future returns. Wall Street Analysts Believe Itron Could Rally 25.09%
• Neutral Sentiment: Valuation and estimate revisions are being reassessed. Zacks is evaluating whether investors are undervaluing Itron based on earnings estimates, revisions, value and momentum factors. The stock’s forward outlook is improving, but its recent rally raises the risk of volatility. Are Investors Undervaluing Itron Right Now?
• Negative Sentiment: Revenue remains the principal concern. Q2 revenue of $562.9 million missed the $566.3 million consensus and declined 7.2% year over year. Softer sales expectations and uneven revenue growth may encourage profit-taking after the earnings-driven rally. Itron Raises Profit Outlook While Revenue Growth Remains Uneven

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the stock. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Itron in a research note on Friday, May 8th. Seaport Research Partners reissued a “buy” rating and issued a $150.00 price target on shares of Itron in a report on Wednesday. JPMorgan Chase & Co. dropped their price objective on shares of Itron from $133.00 to $113.00 and set an “overweight” rating for the company in a research report on Thursday, April 16th. Needham & Company LLC increased their price objective on Itron from $116.00 to $128.00 and gave the company a “buy” rating in a research report on Wednesday. Finally, Robert W. Baird set a $125.00 target price on Itron in a research note on Wednesday. Eight investment analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $131.33.

Insiders Place Their Bets

In other Itron news, SVP Donald L. Reeves III sold 319 shares of the company’s stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $84.37, for a total transaction of $26,914.03. Following the completion of the sale, the senior vice president owned 29,100 shares in the company, valued at approximately $2,455,167. The trade was a 1.08% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP John F. Marcolini sold 322 shares of the stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $84.37, for a total value of $27,167.14. Following the completion of the transaction, the senior vice president directly owned 24,689 shares in the company, valued at approximately $2,083,010.93. This trade represents a 1.29% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 3,946 shares of company stock valued at $324,420. Company insiders own 1.77% of the company’s stock.

Hedge Funds Weigh In On Itron

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ITRI. Employees Retirement System of Texas acquired a new position in shares of Itron during the 3rd quarter worth about $32,000. Northwestern Mutual Wealth Management Co. boosted its stake in Itron by 29.5% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 443 shares of the scientific and technical instruments company’s stock worth $41,000 after acquiring an additional 101 shares during the last quarter. Advisory Services Network LLC bought a new position in Itron during the 3rd quarter worth approximately $49,000. EverSource Wealth Advisors LLC grew its holdings in Itron by 25.3% during the second quarter. EverSource Wealth Advisors LLC now owns 401 shares of the scientific and technical instruments company’s stock valued at $53,000 after purchasing an additional 81 shares during the period. Finally, UMB Bank n.a. increased its stake in Itron by 271.6% in the fourth quarter. UMB Bank n.a. now owns 732 shares of the scientific and technical instruments company’s stock valued at $68,000 after purchasing an additional 535 shares in the last quarter. Institutional investors own 96.19% of the company’s stock.

About Itron

Itron, Inc (NASDAQ: ITRI) is a global technology company that develops innovative solutions to measure, manage and analyze the use of energy and water. Its comprehensive portfolio includes smart meters, data collection devices, communication networks and advanced software applications designed to optimize utility operations and foster sustainable resource management. The company’s offerings enable utilities and cities to accurately monitor consumption patterns, streamline billing processes and improve grid reliability.

Itron’s product lineup spans a range of hardware and software solutions, from residential and commercial smart meters to meter data management systems (MDMS), networked communication platforms and analytics tools.