ITRI

Looking back on inspection instruments stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Itron (NASDAQ:ITRI) and its peers. Measurement and inspection instrument companies may enjoy more steady demand because products such as water meters are non-discretionary and mandated for replacement at predictable intervals. In the last decade, digitization and data collection have driven innovation in the space, leading to incremental sales. But like the broader industrials sector, measurement and inspection instrument companies are at the whim of economic cycles. Interest rates, for example, can greatly impact civil, commercial, and residential construction projects that drive demand. The 5 inspection instruments stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.6% while next quarter’s revenue guidance was 2.5% above. While some inspection instruments stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.3% since the latest earnings results. Founded by a small group of engineers who wanted to build a more efficient way to read utility meters, Itron (NASDAQ:ITRI) offers energy and water management products for the utility industry, municipalities, and industrial customers. Itron reported revenues of $562.9 million, down 7.2% year on year. This print fell short of analysts’ expectations by 0.5%, but it was still a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations. "Itron delivered record gross margin, earnings well ahead of our expectations, and strong free cash flow in the second quarter, with revenue in line with our outlook — clear evidence of the structurally better earnings power this team has built," said Tom Deitrich, Itron's President and CEO. Itron delivered the weakest performance against analyst estimates, weakest guidance update, and slowest revenue growth in the group. Interestingly, the stock is up 14.5% since reporting and currently trades at $97.04. Is now the time to buy Itron? Access our full analysis of the earnings results here, it’s free. Spun off from Hewlett-Packard in 2014, Keysight (NYSE:KEYS) offers electronic measurement products for use in various sectors. Keysight reported revenues of $1.85 billion, up 36.5% year on year, outperforming analysts’ expectations by 5.8%. The business had a stunning quarter with EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates. Keysight pulled off the biggest analyst estimate beat and highest guidance raise of the whole group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 5.4% since reporting. It currently trades at $322.63. Is now the time to buy Keysight? Access our full analysis of the earnings results here, it’s free. The developer of the world’s first frost-proof water meter in 1905, Badger Meter (NYSE:BMI) provides water control and measure equipment to various industries. Badger Meter reported revenues of $222.3 million, down 6.6% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted EPS in line with analysts’ estimates. As expected, the stock is down 8.5% since the results and currently trades at $133.46. Read our full analysis of Badger Meter’s results here. Once known as JDS Uniphase before its 2015 rebranding, Viavi Solutions (NASDAQ:VIAV) provides testing, monitoring and assurance solutions for telecommunications, cloud, enterprise, military, and other critical networks and infrastructure. Viavi Solutions reported revenues of $443.1 million, up 52.5% year on year. This number beat analysts’ expectations by 2.4%. It was an exceptional quarter as it also put up a beat of analysts’ EPS estimates. Viavi Solutions pulled off the fastest revenue growth among its peers. The stock is down 6.6% since reporting and currently trades at $36.35. Read our full, actionable report on Viavi Solutions here, it’s free. Playing a role in mapping the ocean floor as we know it today, Teledyne (NYSE:TDY) offers digital imaging and instrumentation products for various industries. Teledyne reported revenues of $1.66 billion, up 9.8% year on year. This result surpassed analysts’ expectations by 5.3%. Overall, it was a very strong quarter as it also recorded full-year EPS guidance beating analysts’ expectations and a beat of analysts’ EPS estimates. The stock is down 5.3% since reporting and currently trades at $613.17. Read our full, actionable report on Teledyne here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

It has been about a month since the last earnings report for Itron (ITRI). Shares have lost about 3.4% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Itron due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Itron reported non-GAAP earnings per share (EPS) of $1.59 for second-quarter 2026, which beat the Zacks Consensus Estimate by 22.3%. The company reported earnings of $1.62 per share in the prior-year quarter. The decline was primarily caused by lower interest income and a higher effective tax rate, which was moderated by growing non-GAAP operating income. Itron generated second-quarter revenue of $563 million, down 7% year over year. The decline was largely attributable to weakness in the Networked Solutions segment, where revenue fell 17% because of project deployment timing and lower shipment volumes. This slowdown appears to be timing-related rather than demand-driven, as utilities continue investing heavily in grid modernization. Although headline revenue fell short of expectations, the underlying demand environment remains healthy, supported by increasing investments in grid resilience, electrification and infrastructure modernization. The most encouraging takeaway was management's decision to raise its earnings guidance for 2026. Itron now forecasts non-GAAP EPS between $6.3 and $6.5, up from the prior view of $5.75-$6.25. The higher earnings outlook reflects continued strength in margin expansion, operational execution, demand from utility customers and integration of recent acquisitions. The company reaffirmed its full-year revenue outlook, narrowing the range to $2.37-$2.41 billion, with midpoint growth of 1% year over year. Revenue is expected to be back-end loaded, with second-half revenue projected to grow about 8% year over year and sequentially, consistent with prior expectations. Product revenues were $453.5 million (80.6% of total revenues), down 12.3% year over year. Service revenues totaled $109.4 million (19.4%), up 22.2%. At quarter-end, total backlog was $4.4 billion, only slightly below last year's $4.5 billion. Quarterly bookings totaled $550 million, demonstrating continued customer demand despite quarterly revenue fluctuations. Device Solutions (19.8% of total revenues): Revenue declined 1% (3% in constant currency or cc) to $111.4 million primarily due to lower legacy electricity product sales. Networked Solutions (60.3%): Revenues dipped 17% to $339.2 million, primarily due to the timing of project deployments. Outcomes (17.1%): Revenues rose 13% to $96.4 million, driven by growth in recurring and services revenue. Resiliency Solutions (2.8%): Sales, bolstered by the Urbint and Locusview acquisitions, contributed $16 million, with integration progressing according to plan. Adjusted gross margin expanded to 41.4%, representing an impressive 460 basis-point improvement over the prior-year period. The margin expansion was driven by improved customer mix, higher-margin product mix, operational efficiencies and better execution across manufacturing and supply chains. Non-GAAP operating expenses were $144 million, up from $141.4 million a year ago, reflecting the impact of the Urbint and Locusview acquisitions. Non-GAAP operating income rose to $89 million from $82.2 million a year ago, as stronger gross profit more than offset higher operating expenses. As of June 30, 2026, cash and cash equivalents totaled $745.2 million compared with $1.1 billion as of March 31, 2026. Accounts receivable were $351.1 million. As of June 30, net long-term debt was $1.6 billion, the same as of March 31. Second-quarter operating cash flow reached $88 million compared with $97 million last year. Free cash flow totaled $81 million, down from $91 million. The decline mainly reflected higher tax payments and lower interest income. These were partially offset by favorable working-capital timing. During the quarter, Itron repurchased $52 million of its shares through open-market buybacks under its existing share repurchase program. For the third quarter of 2026, it expects revenues to be between $590 million and $600 million, up 2% year over year at the midpoint. Non-GAAP EPS is anticipated to be in the range of $1.5-$1.6, with about a 1% rise at the midpoint from last year. Since the earnings release, investors have witnessed a upward trend in fresh estimates. At this time, Itron has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Itron has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Itron, Inc. (ITRI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record gross margins of 41.4% despite lower year-over-year revenue, demonstrating a structural shift in earnings power driven by favorable mix and operational efficiencies. Performance was characterized by strong execution through deployment timing variations, with management emphasizing that the operating model is now more resilient to quarterly fluctuations. Utility demand is increasingly driven by the need to manage grid complexity, including industrial load growth, AI-driven power demand, and distributed energy resource integration. Observed a strategic shift in how utilities modernize, moving from 'big bang' replacements to continuous, focused programs that build capability while reducing risk. The mid-market utility segment is showing increased adoption of Platform-as-a-Service offerings, expanding Itron's reach beyond large investor-owned utilities. Supply chain conditions remain steady across labor and materials, though management is proactively managing specific pockets of tightness in memory pricing. Integration of the Resiliency Solutions segment (Urbint and Locusview) is proceeding as planned, deepening the company's intelligence layer for complex networks. Full-year 2026 earnings guidance was revised upward based on strong operating execution, even as revenue guidance was narrowed to reflect back-end loaded deployment timing. Second-half revenue growth is expected to accelerate to approximately 8% year-over-year, primarily driven by an uptick in Networked Solutions deployments. Management anticipates a significant gas distribution refresh cycle over the next 3 to 5 years, driven by aging assets and new safety-focused sensing technologies. The pipeline of opportunities remains at record levels, with bookings timing dependent on regulatory approval processes rather than underlying demand. Future margin trends are expected to remain near 40%, with slight quarterly variations depending on the specific mix of hardware, software, and services. Annual Recurring Revenue (ARR) grew 21% year-over-year to $417 million, signaling a successful transition toward higher-value, software-led offerings. The new Resiliency Solutions segment contributed $16 million in revenue during the second quarter, maintaining high adjusted gross margins of 75%. Lower interest income and a higher effective tax rate acted as headwinds to year-over-year EPS comparisons, despite improved operating income. Share repurchase activity continued with $52 million spent to buy back 644,000 shares during the second quarter. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Growth will be driven by Networked Solutions deployments already under contract, specifically focusing on grid expansion, resiliency, and efficiency projects. Management noted that the substantial majority of second-half revenue is underpinned by existing contracts, reducing reliance on new near-term bookings. Management refuted the narrative that distribution capital is being 'crowded out' by generation and transmission investment, noting that distribution CapEx continues to grow. Argued that increased generation and AI-driven load eventually land on distribution systems, necessitating grid edge intelligence to manage capacity and defer expensive upgrades. The regulatory environment remains constructive with rate cases being approved at returns in the 9% to 10% range. Utilities are successfully articulating the benefits of grid intelligence to regulators, particularly regarding affordability and reliability. Cross-selling activity has begun, particularly involving AI integration for digital construction management and automated compliance data. Full integration of Locusview's ERP and systems is expected to be completed by early January 2027.

Itron Inc. ITRI reported non-GAAP earnings per share (EPS) of $1.59 for second-quarter 2026, which beat the Zacks Consensus Estimate by 22.3%. The company reported earnings of $1.62 per share in the prior-year quarter. The decline was primarily caused by lower interest income and a higher effective tax rate, which was moderated by growing non-GAAP operating income. Itron generated second-quarter revenue of $563 million, down 7% year over year. The decline was largely attributable to weakness in the Networked Solutions segment, where revenue fell 17% because of project deployment timing and lower shipment volumes. This slowdown appears to be timing-related rather than demand-driven, as utilities continue investing heavily in grid modernization. Although headline revenue fell short of expectations, the underlying demand environment remains healthy, supported by increasing investments in grid resilience, electrification and infrastructure modernization. The most encouraging takeaway was management's decision to raise its earnings guidance for 2026. Itron now forecasts non-GAAP EPS between $6.3 and $6.5, up from the prior view of $5.75-$6.25. The higher earnings outlook reflects continued strength in margin expansion, operational execution, demand from utility customers and integration of recent acquisitions. The company reaffirmed its full-year revenue outlook, narrowing the range to $2.37-$2.41 billion, with midpoint growth of 1% year over year. Revenue is expected to be back-end loaded, with second-half revenue projected to grow about 8% year over year and sequentially, consistent with prior expectations. Itron, Inc. price-consensus-eps-surprise-chart | Itron, Inc. Quote Product revenues were $453.5 million (80.6% of total revenues), down 12.3% year over year. Service revenues totaled $109.4 million (19.4%), up 22.2%. At quarter-end, total backlog was $4.4 billion, only slightly below last year's $4.5 billion. Quarterly bookings totaled $550 million, demonstrating continued customer demand despite quarterly revenue fluctuations. In response to a sizable backlog, expanded bottom line expectation, and continued investment in grid modernization and infrastructure resilience, ITRI’s shares soared 26.2% in trading and closed the session at $107.02 on July 28, 2026.  The stock has gained 23.7% in the past month against the Zacks Electronics-Testing Equipment industry’s fall of 0.3%. Image Source: Zacks Investment Research Device Solutions (19.8% of total revenues): Revenue declined 1% (3% in constant currency or cc) to $111.4 primarily due to lower legacy electricity product sales. Our estimate was $113.1 million. Networked Solutions (60.3%): Revenues dipped 17% to $339.2 million, primarily due to the timing of project deployments. Outcomes (17.1%): Revenues rose 13% to $96.4 million, driven by growth in recurring and services revenue. Resiliency Solutions (2.8%): Sales, bolstered by the Urbint and Locusview acquisitions, contributed $16 million, with integration progressing according to plan. We estimate the metric at $19 million. Adjusted gross margin expanded to 41.4%, representing an impressive 460 basis-point improvement over the prior-year period. The margin expansion was driven by improved customer mix, higher-margin product mix, operational efficiencies and better execution across manufacturing and supply chains. Non-GAAP operating expenses were $144 million, up from $141.4 million a year ago, reflecting the impact of the Urbint and Locusview acquisitions. Non-GAAP operating income rose to $89 million from $82.2 million a year ago, as stronger gross profit more than offset higher operating expenses. As of June 30, 2026, cash and cash equivalents totaled $745.2 million compared with $1.1 billion as of March 31, 2026. Accounts receivable were $351.1 million. As of June 30, net long-term debt was $1.6 billion, the same as of March 31. Second-quarter operating cash flow reached $88 million compared with $97 million last year. Free cash flow totaled $81 million, down from $91 million. The decline mainly reflected higher tax payments and lower interest income. These were partially offset by favorable working-capital timing. During the quarter, Itron repurchased $52 million of its shares through open-market buybacks under its existing share repurchase program. For the third quarter of 2026, ITRI expects revenues to be between $590 million and $600 million, up 2% year over year at the midpoint. Non-GAAP EPS is anticipated to be in the range of $1.5-$1.6, with about a 1% rise at the midpoint from last year. Currently, Itron carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here. International Business Machines Corporation IBM reported relatively modest second-quarter 2026 results with adjusted earnings of $2.93 per share, up 5% year over year and in line with the Zacks Consensus Estimate. Revenues rose 1.1% to $17.16 billion but missed the consensus mark of $17.32 billion by 0.9%. The top-line miss reflected delayed large, capital-expenditure-sensitive software transactions and weaker IBM Z revenues. Cadence Design Systems CDNS delivered strong second-quarter 2026 results, driven by broad-based demand for its AI-oriented portfolio amid robust design activity and new system architectures across hyperscaler infrastructure and physical AI. Non-GAAP earnings per share (EPS) of $2.11 beat the Zacks Consensus Estimate by 2.9%, increased 27.9% year over year and topped management’s guided range of $2.02 to $2.08. Revenues of $1.584 billion beat the Zacks Consensus Estimate by 0.5% and increased 24.2% year over year. The figure was within the management’s guided range of $1.555-$1.595 billion. Progress Software Corporation PRGS reported second-quarter fiscal 2026 results wherein revenues came in at $253 million, up 7% year over year and 6% on a constant currency (cc) basis. ARR of $868 million inched up 2% year over year on a cc basis. PRGS reported a 16% year-over-year increase in non-GAAP earnings per share, which stood at $1.62. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Itron, Inc. (ITRI) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report Progress Software Corporation (PRGS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Itron Inc. (NASDAQ:ITRI) saw its share price climb by 26.23 percent on Tuesday to end at $107.02 apiece, after beating its own earnings expectations, thanks to the strong demand for its services. In an updated report on the same day, the technology company said that it ended the second quarter of the year with a non-GAAP diluted earnings per share of $1.59, lower by $0.03 versus the same period last year, but exceeded its earlier expectations of $1.25 to $1.35. Total revenues also finished at $563 million, a decrease of 7 percent from the $606.76 million in the same period last year, but fell within the company’s earlier guidance of $560 million to $570 million. For illustration purposes only. Photo by Jimmy Liao on Pexels However, attributable net income finished at $53.27 million, lower by 22 percent than the $68.3 million in the same period a year earlier. “Itron delivered record gross margin, earnings well ahead of our expectations, and strong free cash flow in the second quarter, with revenue in line with our outlook—clear evidence of the structurally better earnings power this team has built,” said Itron Inc. (NASDAQ:ITRI) President and CEO Tom Deitrich. “The demand environment remains constructive, supported by durable needs across grid expansion, resiliency, and affordability — and by the industry's intensifying focus on time-to-power,” he added. The company is expecting the third quarter of the year to be better than last year. It also raised its growth outlook for the full-year 2026 period. For the three months ending September, revenues are targeted to improve by 1.37 percent to 3 percent year-on-year to a range of $590 million to $600 million, versus $582 million posted in the same period last year. Non-GAAP diluted EPS is also projected at $1.50 to $1.60, or an expected 2.6 percent dip to up to 3.9 percent growth from the $1.54 in the same quarter a year ago. For full-year 2026, Itron Inc. (NASDAQ:ITRI) raised its revenue outlook to a range of $2.37 billion to $2.41 billion, or an implied flat growth to a 1.7 percent uptick from the $2.37 billion posted in 2025. However, the new figures are higher than its earlier expectations of $2.35 billion to $2.45 billion. Non-GAAP diluted EPS is also expected at $6.30 to $6.50, or an implied 3 percent dip to flat growth from the $6.50 registered year-on-year. Institutional conviction strengthened for the company in the first quarter of the year, even as hedge fund participation declined sharply from the previous quarter. Data from Insider Monkey showed that during the period, 38 hedge funds held positions in Itron Inc. (NASDAQ:ITRI), lower than the 46 in the previous quarter. However, institutional conviction strengthened further, with their combined holdings increasing to $538 million from $456 million previously, signaling that existing investors expanded their positions and remained confident about the long-term growth prospects of the company. While we acknowledge the risk and potential of ITRI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ITRI and that has 10,000% upside potential, check out our report about the cheapest AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. Disclosure: None.

Itron (ITRI) came out with quarterly earnings of $1.59 per share, beating the Zacks Consensus Estimate of $1.3 per share. This compares to earnings of $1.62 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +22.31%. A quarter ago, it was expected that this energy and water meter company would post earnings of $1.26 per share when it actually produced earnings of $1.49, delivering a surprise of +18.25%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Itron, which belongs to the Zacks Electronics - Testing Equipment industry, posted revenues of $562.9 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.32%. This compares to year-ago revenues of $606.76 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Itron shares have lost about 8.7% since the beginning of the year versus the S&P 500's gain of 8.3%. While Itron has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Itron was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.52 on $600.44 million in revenues for the coming quarter and $6.01 on $2.38 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Testing Equipment is currently in the top 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Fortive (FTV), has yet to report results for the quarter ended June 2026. The results are expected to be released on July 29. This industrial conglomerate is expected to post quarterly earnings of $0.71 per share in its upcoming report, which represents a year-over-year change of +22.4%. The consensus EPS estimate for the quarter has been revised 0.3% higher over the last 30 days to the current level. Fortive's revenues are expected to be $1.06 billion, up 3.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Itron, Inc. (ITRI) : Free Stock Analysis Report Fortive Corporation (FTV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Itron, Inc. (NASDAQ:ITRI) reported second-quarter 2026 results with lower revenue but record gross margins, higher adjusted EBITDA, and increased its full-year earnings outlook, reflecting continued operational improvements despite softer project timing. Itron raised its full-year 2026 non-GAAP EPS guidance while reaffirming a constructive demand outlook for utility infrastructure. Second-quarter revenue declined 7% year over year to $563 million, primarily due to lower Networked Solutions revenue. Itron (NASDAQ:ITRI) delivered record adjusted gross margin of 41.4% and increased adjusted EBITDA by 8% despite lower sales. Annual recurring revenue grew 21% to $417 million, highlighting continued expansion of recurring software and services. The company expects full-year revenue of $2.37 billion to $2.41 billion and non-GAAP diluted EPS of $6.30 to $6.50. Itron reported second-quarter revenue of $563 million, down 7% from the prior year as lower Networked Solutions revenue, driven by project deployment timing and lower volumes, outweighed continued growth in its Outcomes business. While revenue declined, profitability improved. Adjusted gross margin reached a record 41.4%, up 460 basis points year over year, supported by favorable customer and product mix as well as operational efficiencies. Adjusted EBITDA increased 8% to $97 million, while non-GAAP operating income rose to $89 million. Annual recurring revenue increased 21% to $417 million, reflecting continued growth in software and service-related revenue streams. Outcomes revenue also rose 13%, while Resiliency Solutions contributed $16 million as integration activities continued following recent acquisitions. GAAP net income declined to $53 million, or $1.19 per diluted share, from $68 million, or $1.47 per diluted share, primarily due to lower interest income and a higher effective tax rate. Non-GAAP diluted EPS slipped modestly to $1.59 from $1.62. Based on its second-quarter performance, Itron raised its full-year 2026 non-GAAP EPS guidance to between $6.30 and $6.50 while maintaining expected revenue of $2.37 billion to $2.41 billion. Although headline revenue declined, the results suggest Itron continues to improve profitability through operational execution and a more favorable business mix. The combination of record gross margins, higher adjusted EBITDA, and strong recurring revenue growth indicates the company’s earnings are becoming less dependent on quarterly fluctuations in project timing. Continued expansion of recurring revenue may also provide greater visibility into future financial performance. Management’s decision to raise earnings guidance despite unchanged revenue expectations suggests confidence that margin improvements and operating efficiencies will continue through the remainder of 2026. The company also pointed to sustained demand for grid modernization, resiliency, and utility infrastructure as supportive long-term industry trends. Investors will likely monitor whether delayed Networked Solutions projects convert into revenue during the second half of the year, continued growth in annual recurring revenue, and progress integrating the Urbint, Locusview, and Resiliency Solutions businesses. Execution against the updated earnings outlook and bookings activity will also remain key indicators of future performance. Itron stock price

For the quarter ended June 2026, Itron (ITRI) reported revenue of $562.9 million, down 7.2% over the same period last year. EPS came in at $1.59, compared to $1.62 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $564.72 million, representing a surprise of -0.32%. The company delivered an EPS surprise of +22.31%, with the consensus EPS estimate being $1.30. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Itron performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenue- Resiliency Solutions: $15.82 million compared to the $17.52 million average estimate based on four analysts. Revenue- Device Solutions: $111.45 million versus the four-analyst average estimate of $110.39 million. The reported number represents a year-over-year change of -1.2%. Revenue- Outcomes: $96.4 million versus $94.33 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +13.3% change. Revenue- Networked Solutions: $339.24 million versus the four-analyst average estimate of $342.94 million. The reported number represents a year-over-year change of -17%. Revenue- Product revenues- Networked Solutions: $309.2 million compared to the $316.42 million average estimate based on three analysts. The reported number represents a change of -18.5% year over year. Revenue- Product revenues- Device Solutions: $110.94 million versus the three-analyst average estimate of $108.93 million. The reported number represents a year-over-year change of -0.9%. Revenue- Product revenues: $453.46 million versus the three-analyst average estimate of $462.38 million. The reported number represents a year-over-year change of -12.3%. Revenue- Service revenues- Networked Solutions: $30.04 million compared to the $28.37 million average estimate based on three analysts. The reported number represents a change of +2% year over year. Product Revenue- Resiliency Solutions: $0.44 million versus $1.05 million estimated by two analysts on average. Revenue- Service revenues- Outcomes: $63.52 million compared to the $63.6 million average estimate based on two analysts. The reported number represents a change of +7.1% year over year. Revenue- Service revenues: $109.44 million versus the two-analyst average estimate of $111.16 million. The reported number represents a year-over-year change of +22.2%. Revenue- Product revenues- Outcomes: $32.88 million compared to the $28.73 million average estimate based on two analysts. The reported number represents a change of +27.6% year over year. View all Key Company Metrics for Itron here>>> Shares of Itron have returned +1.3% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Itron, Inc. (ITRI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Resource management provider Itron (NASDAQ:ITRI) fell short of the market’s revenue expectations in Q2 CY2026, with sales falling 7.2% year on year to $562.9 million. Next quarter’s revenue guidance of $595 million underwhelmed, coming in 1.4% below analysts’ estimates. Its non-GAAP profit of $1.59 per share was 23.7% above analysts’ consensus estimates. Is now the time to buy Itron? Find out in our full research report. Revenue: $562.9 million vs analyst estimates of $565.9 million (7.2% year-on-year decline, 0.5% miss) Adjusted EPS: $1.59 vs analyst estimates of $1.29 (23.7% beat) Adjusted EBITDA: $96.84 million vs analyst estimates of $81.92 million (17.2% margin, 18.2% beat) Revenue Guidance for the full year is $2.39 billion at the midpoint, roughly in line with what analysts were expecting Adjusted EPS guidance for the full year is $6.40 at the midpoint, beating analyst estimates by 7.1% Operating Margin: 13.5%, in line with the same quarter last year Free Cash Flow Margin: 14.5%, similar to the same quarter last year Market Capitalization: $3.76 billion "Itron delivered record gross margin, earnings well ahead of our expectations, and strong free cash flow in the second quarter, with revenue in line with our outlook — clear evidence of the structurally better earnings power this team has built," said Tom Deitrich, Itron's President and CEO. Founded by a small group of engineers who wanted to build a more efficient way to read utility meters, Itron (NASDAQ:ITRI) offers energy and water management products for the utility industry, municipalities, and industrial customers. Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, Itron grew its sales at a sluggish 2.1% compounded annual growth rate. This was below our standards and is a poor baseline for our analysis. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Itron’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 1% annually. We can better understand the company’s revenue dynamics by analyzing its most important segments, Product and Service, which are 19.7% and 54.9% of revenue. Over the last two years, Itron’s Product revenue (measurement and control equipment) averaged 14.9% year-on-year declines. On the other hand, its Service revenue ( project management, installation, consulting) averaged 49.3% growth. This quarter, Itron missed Wall Street’s estimates and reported a rather uninspiring 7.2% year-on-year revenue decline, generating $562.9 million of revenue. Company management is currently guiding for a 2.3% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 6% over the next 12 months. While this projection suggests its newer products and services will catalyze better top-line performance, it is still below the sector average. ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention. AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice. Itron was profitable over the last five years but held back by its large cost base. Its average operating margin of 6.8% was weak for an industrials business. This result is surprising given its high gross margin as a starting point. On the plus side, Itron’s operating margin rose by 20.1 percentage points over the last five years, as its sales growth gave it operating leverage. This quarter, Itron generated an operating margin profit margin of 13.5%, in line with the same quarter last year. This indicates the company’s cost structure has recently been stable. Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth — for example, a company could inflate its sales through excessive spending on advertising and promotions. Itron’s EPS grew at 28% compounded annual growth rate over the last five years, higher than its 2.1% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. We can take a deeper look into Itron’s earnings quality to better understand the drivers of its performance. As we mentioned earlier, Itron’s operating margin was flat this quarter but expanded by 20.1 percentage points over the last five years. On top of that, its share count shrank by 1.2%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For Itron, its two-year annual EPS growth of 23.3% was lower than its five-year trend. We still think its growth was good and hope it can accelerate in the future. In Q2, Itron reported adjusted EPS of $1.59, down from $1.62 in the same quarter last year. Despite falling year on year, this print easily cleared analysts’ estimates. Over the next 12 months, Wall Street expects Itron’s full-year EPS to shrink by 12.9% from $7.08 to $6.17. We were impressed by how significantly Itron blew past analysts’ EBITDA expectations this quarter. We were also glad its full-year EPS guidance trumped Wall Street’s estimates. On the other hand, its revenue guidance for next quarter slightly missed and its revenue fell slightly short of Wall Street’s estimates. Overall, we think this was still a solid quarter with some key areas of upside. The stock traded up 4.2% to $88.36 immediately after reporting. Itron may have had a good quarter, but does that mean you should invest right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.

Interested in Itron, Inc.? Here are five stocks we like better. Itron reported $563 million in Q2 2026 revenue, while adjusted EBITDA rose 8% to $97 million and non-GAAP EPS reached $1.59. Record adjusted gross margin of 41.4% reflected favorable business mix, operational efficiencies and cost discipline. Networked Solutions revenue fell 17% because of project-deployment timing, but Outcomes revenue increased 13% and annual recurring revenue grew 21% year over year. Bookings totaled $550 million, with backlog holding at $4.4 billion and the pipeline expanding. Itron raised its full-year non-GAAP EPS outlook to $6.30–$6.50, up 7% at the midpoint from its February forecast, while maintaining a 2026 revenue outlook of $2.37–$2.41 billion. Third-quarter revenue is expected to reach $590–$600 million. 3 Inexpensive Mid Cap Tech Stocks With Good Growth Prospects Itron (NASDAQ:ITRI) reported second-quarter 2026 revenue of $563 million, with record gross margin and earnings that exceeded the company’s expectations despite lower year-over-year revenue tied to the timing of Networked Solutions project deployments. Chief Executive Officer Tom Deitrich said the quarter demonstrated the company’s improved operating model, citing stronger mix, execution and operational-efficiency measures. Itron reported annual recurring revenue of $417 million, adjusted EBITDA of $97 million, non-GAAP earnings per share of $1.59 and free cash flow of $81 million. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit Don't Be Fooled By Badger Meter's Rise, There's More To Go “The operating model we have built now delivers structurally better earnings power,” Deitrich said. He added that deployment timing can shift between quarters because a meaningful portion of Itron’s business involves large, multiyear utility programs, but said the company believes its margin and efficiency improvements are durable. Second-quarter revenue was within the company’s prior outlook range, though it declined from the prior-year period because of Networked Solutions deployment timing. The decline was partly offset by growth in the Outcomes segment. → This Tiny AI Supplier Could Be More Important Than the Chipmakers GAAP gross margin was 41%, up 410 basis points from a year earlier. Adjusted gross margin reached a quarterly record of 41.4%, an increase of 460 basis points year over year. Joan Hooper, Itron’s senior vice president and chief financial officer, attributed the improvement to favorable mix, operational efficiencies and cost discipline. GAAP net income was $53 million, or $1.19 per diluted share, compared with $68 million, or $1.47 per share, a year earlier. Hooper said the decline reflected lower interest income and a higher effective tax rate. Non-GAAP operating income rose 8% to $89 million, while adjusted EBITDA also increased 8% to $97 million. Non-GAAP net income was $71 million, or $1.59 per diluted share, compared with $1.62 per share in the prior-year quarter. Device Solutions revenue was $111 million, down 3% on a constant-currency basis, with adjusted gross margin of 34.8%. Networked Solutions revenue was $339 million, down 17% because of deployment timing, with adjusted gross margin of 42.8%. Outcomes revenue was $96 million, up 13% on higher services revenue, with adjusted gross margin of 38.8%. Resiliency Solutions, which includes the Urbint and Locusview acquisitions, contributed about $16 million of revenue, with adjusted gross margin of 75%. → 2 Stocks Built to Thrive If Inflation Refuses to Fade Free cash flow totaled $81 million, compared with $91 million a year ago. The company said higher tax payments and lower interest income were partly offset by working-capital timing. Second-quarter bookings were $550 million, in line with Itron’s expectations, and total backlog stood at $4.4 billion at quarter-end. Deitrich said large project bookings can be uneven because customer decisions are often linked to regulatory approval processes, but he characterized the pipeline as continuing to expand heading into the second half of 2026, 2027 and beyond. During the quarter, Itron cited platform-as-a-service programs with 1789 LUX Partners and several municipalities, an expanded relationship with the Los Angeles Department of Water and Power, and Sacramento Municipal Utility District’s plans to expand its Riva deployment. Deitrich said these wins illustrate growing adoption among municipal and public-power customers in addition to investor-owned utilities. The company’s annual recurring revenue increased about 21% year over year, while Deitrich said Outcomes continued to generate strong year-over-year growth. In response to a question, management said the number of licensed applications had approached 28 million, up more than 50% year over year. Deitrich said utilities are facing reliability, resiliency and affordability pressures alongside changing electricity-demand patterns, including industrial load growth and AI-driven power demand. He said those conditions are supporting demand for grid-edge intelligence, non-wires alternatives, time-to-power solutions and other tools designed to improve the use of existing distribution infrastructure. Itron projected third-quarter revenue of $590 million to $600 million, representing 2% year-over-year growth at the midpoint and 6% sequential growth. It expects third-quarter non-GAAP earnings per share of $1.50 to $1.60, up 1% year over year at the midpoint. For the full year, the company narrowed its revenue outlook to $2.37 billion to $2.41 billion, similar to the range first provided in February. At the midpoint, the outlook represents 1% growth from 2025. Hooper said the forecast implies nearly 8% year-over-year and sequential growth in the second half, reflecting a more back-end-loaded revenue profile in 2026. Itron raised its full-year non-GAAP EPS outlook to $6.30 to $6.50, which Hooper said represents a 7% increase at the midpoint from its February outlook. While the expected figure remains below 2025 on an as-reported basis, she said the midpoint would be about 7% above 2025 when normalized for tax rate and interest-income differences. Management expects full-year gross margin to be close to 40%, although margins may decline modestly from first-half levels as mix changes. The company said supply conditions remain stable overall, though it is proactively managing areas of tightness, including memory pricing. At quarter-end, Itron had total debt of $1.6 billion, net leverage of 2.3 times and liquidity of $1.5 billion, including $745 million in cash and equivalents and $707 million available under its revolving credit facility. During the quarter, the company repurchased $52 million of shares, or approximately 644,000 shares, under its authorization. On the recent Urbint and Locusview acquisitions, Hooper said integration is tracking to plan. Itron continues to expect Resiliency Solutions revenue of $65 million to $70 million for 2026 and gross margin of about 70%. Deitrich said cross-selling activity has begun, though he did not identify specific cross-selling wins during the call. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Itron Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Revenue: $563 million for the second quarter. Annual Recurring Revenue: $417 million. Adjusted EBITDA: $97 million. Non-GAAP Earnings Per Share: $1.59. Free Cash Flow: $81 million. Gross Margin: 41%, a record high, with a 410 basis point increase year-over-year. GAAP Net Income: $53 million or $1.19 per diluted share. Adjusted Gross Margin: 41.4%, a 460 basis point increase year-over-year. Non-GAAP Operating Income: $89 million. Device Solutions Revenue: $111 million with an adjusted gross margin of 34.8%. Network Solutions Revenue: $339 million with an adjusted gross margin of 42.8%. Outcomes Revenue: $96 million with an adjusted gross margin of 38.8%. Resiliency Solutions Revenue: $16 million with an adjusted gross margin of 75%. Total Debt: $1.6 billion. Liquidity Position: $1.5 billion, including $745 million in cash and equivalents. Share Repurchase: $52 million or 644,000 shares repurchased. Third Quarter Revenue Outlook: $590 million to $600 million. Full Year Revenue Outlook: $2.37 billion to $2.41 billion. Full Year Non-GAAP EPS Outlook: $6.30 to $6.50 per share. Warning! GuruFocus has detected 10 Warning Signs with CMS. Is ITRI fairly valued? Test your thesis with our free DCF calculator. Release Date: July 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Itron Inc (NASDAQ:ITRI) delivered a high-quality second quarter with record gross margin and strong free cash flow. The company reported annual recurring revenue growth of approximately 21% year-over-year, indicating strong adoption of higher-value offerings. Itron Inc (NASDAQ:ITRI) has a robust backlog of $4.4 billion, reflecting a healthy pipeline and strong demand for its solutions. The company is seeing increased demand for its platform in the mid-market utility segment, expanding its market reach. Itron Inc (NASDAQ:ITRI) has successfully integrated its Resiliency Solutions segment, enhancing its ability to solve mission-critical problems for utilities. Second quarter revenue was down from last year due to the timing of project deployments in Network Solutions. GAAP net income decreased compared to the prior year, impacted by lower interest income and a higher effective tax rate. Free cash flow decreased year-over-year, primarily due to higher tax payments and lower interest income. Device Solutions revenue decreased by 3% on a constant currency basis due to lower electricity product sales. The company faces challenges with regulatory processes that can cause uneven project-based bookings quarter-to-quarter. Q: Can you explain the sequential step-up in revenue expected for the second half of the year and its implications for margin trends? A: Joan Hooper, CFO, explained that the sequential revenue increase is primarily driven by network solutions and increased deployments. While margins for the year are expected to be close to 40%, they might slightly decrease due to mix, but overall, they remain strong. Q: What are the main drivers behind the expected inflection in network revenues? A: CEO Thomas Deitrich highlighted that the growth is driven by grid expansion, investment in resiliency, and grid efficiency improvements. These factors are contributing to both immediate revenue growth and long-term pipeline expansion. Q: How do you view the demand environment, particularly regarding large utility projects and regulatory approvals? A: Deitrich noted that the demand environment is positive, with a growing pipeline and strong win rates. While regulatory approvals can cause timing variability, the underlying demand for utility solutions remains robust, driven by durable macro trends. Q: Can you discuss the impact of distribution CapEx and how utilities are using grid edge intelligence? A: Deitrich provided examples where grid edge intelligence helps defer or avoid CapEx, such as managing EV charging to prevent transformer upsizing. He emphasized that distribution CapEx continues to grow, driven by the need for improved grid efficiency and reliability. Q: How are recent acquisitions, Urbint and Locusview, performing, and what is their impact on cross-selling opportunities? A: Joan Hooper stated that the integration is on track, with revenue and margin targets being met. Deitrich added that cross-selling activities have begun, with new functionalities like AI integration in digital construction management showing promise. For the complete transcript of the earnings call, please refer to the full earnings call transcript.