PBI

A month has gone by since the last earnings report for Pitney Bowes (PBI). Shares have lost about 4.8% 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 Pitney Bowes due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Pitney Bowes reported second-quarter 2026 adjusted earnings of 43 cents per share, up 59.3% year over year. The figure beat the Zacks Consensus Estimate by 26.47%. Revenues fell 2.3% year over year to $451 million but surpassed the consensus mark by 3.37%.The earnings upside reflected lower operating expenses and stronger SendTech profitability, partly aided by a tariff refund. Presort Services remained pressured, with total mail volume down 3% year over year to 3.3 billion pieces. SendTech Solutions revenues declined 1% year over year to $309 million. Continued erosion in the mailing installed base weighed on sales, but strong sales execution and growth in services revenues partly offset the decline.Operating expenses fell $14 million from the year-ago quarter’s reported figure. Adjusted segment EBITDA rose 17% year over year to $133 million, while adjusted segment EBIT advanced 21% year over year to $123 million. The segment also received a $5 million tariff refund, supporting the sharp improvement in profitability. Presort Services revenues decreased 5% year over year to $143 million. The decline reflected broader market contraction and previously disclosed client losses from the first half of 2025, although the rate of revenue decline continued to moderate.Adjusted segment EBITDA dropped 36% to $29 million, while adjusted segment EBIT fell 44% to $20 million. Lower volumes reduced operating leverage, and higher fuel and transportation costs added pressure to margins. Gross profit declined to $251 million from $260 million, while gross margin narrowed to 55.7% from 56.3%. The contraction reflected lower revenues and weaker operating leverage in Presort Services.Selling, general and administrative expenses fell to $129 million from $171 million. SG&A expenses represented 28.4% of revenues, down from 37% a year ago. Research and development expenses decreased to $3 million from $4 million.Adjusted EBIT increased 13% to $116 million, and the adjusted EBIT margin expanded to 25.7% from 22.1%. Cash from operating activities increased 37% year over year to $153 million. Adjusted free cash flow climbed 39% to $148 million, benefiting from stronger operating performance and working-capital execution.The company reduced debt by $201 million from the end of the first quarter through July 29. This included $104 million during the second quarter and another $97 million in July.As of July 29, the revolving credit facility had no outstanding balance. Pitney Bowes also pushed its next debt maturity to March 2029, reducing near-term refinancing risk.The company repurchased 4.5 million shares for $53 million during the second quarter. The board also approved a quarterly dividend of 10 cents per share. The dividend is payable Sept. 8, 2026, to shareholders of record as of Aug. 10. Pitney Bowes raised its 2026 adjusted EBIT guidance to $445-$475 million from $425-$465 million. Adjusted earnings guidance increased to $1.55-$1.70 per share from the prior range of $1.50-$1.65.Adjusted free cash flow is now projected between $360 million and $410 million, up from $345-$380 million. Revenue guidance was reaffirmed at $1.80-$1.86 billion, indicating that the improved profit outlook is centered on execution and cost control rather than higher sales expectations.The revised guidance builds on the outlook issued after the first quarter, when management had already highlighted improving SendTech profitability and stronger cash generation. Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions. At this time, Pitney Bowes has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a grade of A on the value side, putting it in the top quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Pitney Bowes has a Zacks Rank #1 (Strong 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 Pitney Bowes Inc. (PBI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, July 30, 2026 at 8:00 a.m. ET Director of Investor Relations - Alex Brown Chief Executive Officer - Kurt Wolf Operator: Good day, and welcome to the Pitney Bowes Second Quarter 2026 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Mr. Alex Brown, Director of Investor Relations. Please go ahead. Alex Brown: Good morning, and thank you for joining us. Included in today's presentation are forward-looking statements about our future business and financial performance. Forward-looking statements involve risks and uncertainties that could cause actual results to be materially different from our projections. More information about these items can be found in our earnings press release, our Form 10-K and other reports filed with the SEC that are located on our website at www.pb.com and clicking on Investor Relations. Please keep in mind that we do not undertake any obligation to update forward-looking statements as a result of new information or developments. Also included in today's presentation are non-GAAP measures, specifically EBIT, EBITDA, EPS and free cash flow are all on an adjusted basis. You can find a reconciliation for these items to the appropriate GAAP measures in the tables attached to our press release. We've also provided a slide presentation and spreadsheet with historical segment information on our website. With that, I'd like to turn the call over to Kurt. Kurt Wolf: Good morning, and thank you for joining us today. Second quarter results built on first quarter momentum and give us confidence to raise our adjusted EBIT, EPS and free cash flow guidance. I will now cover a few key highlights from the quarter. Presort continues to win new business and maintains a robust sales pipeline. That said, higher transportation costs materially impacted Presort's second quarter profitability. Moving to SendTech, continued operational improvements led to higher margins despite increased spending on future growth. At Pitney Bowes Bank, Steve and his team have made significant progress on building out our infrastructure, which will support future growth. Also, the bank is now originating loans through 3 pilot programs, which leverage and enhance existing client relationships. Moving to capital allocation, we reduced debt by more than $200 million over the past 4 months and pushed out our nearest maturity to March of 2029. Having reduced debt by approximately $55 million year-to-date, we are once again in a solid position to allocate capital opportunistically. Additionally, last month, we initiated the second phase of our strategic review. Given the nature of the review, we will not be commenting on potential outcomes or time line on this call. The highlights I just covered reflect the momentum we continue to build toward achieving profitable organic growth in the coming years. Finally, I would like to thank my leadership team and our more than 6,000 team members for their hard work and dedication, which drove our strong second quarter results. And with that, we will open the call for questions. Operator: [Operator Instructions] Our first question will come from the line of Aaron Kimson with Citizens. Aaron Kimson: Can you provide some color on the 3 new products Steve and the team are piloting at the bank as well as the decision to start breaking the bank out separately in next year's financials? Kurt Wolf: Yes. Aaron, thanks for the question. Yes. So -- as we've talked about, it's really important to us that we take advantage of the opportunities that we have at the bank to leverage existing strengths in the company. And there are now 3 pilots that we are -- that Steve and his team are focused on. The first is extending credit, asset-based lending to certain Presort customers. These are large customers with strong financial health. So we believe there's a low level of risk associated with that. So that's one thing that's up and running that we're evaluating. A second pertains to our shipping software business. With the post office, they -- unlike the private companies, they don't offer terms of credit to shipping software customers. The one advantage we have vis-a-vis our competitors is that we can offer credit through our bank. So it gives us a real advantage, not just in terms of getting access to attractive loans, but it also is a competitive advantage in trying to go out and win shipping software customers. And then the third one, which is the most recent that we've initiated, ties to the logistics space. And here, we have relationships with a lot of 3PLs. So what we're looking at is, as you know, throughout the logistics supply chain, you have merchants getting products to 3PLs that are using shipping services, transportation companies, and there's a lag effect in terms of payment on all of that. So one of the things that we're exploring is the opportunity not just to work with 3PLs to extend short-term credit to deal with that, but we're also working to try to work back from the 3PLs into the merchant space to extend credit to those merchants. And one of the really attractive parts of that is with the 3PLs, we can get information on the actual assets sitting in their facilities so we have some level of understanding of the credit or the underlying assets that would be essentially held against those loans. So again, all 3 of these are in the pilot stage. We expect to pilot more initiatives, all focused on leveraging our existing relationships. We don't expect all of these to work, but we're taking a very slow approach to each of them. We want to make sure that we don't mis -- repeat the mistakes of the past and move too quickly. And as I'm sure everybody listening to this call appreciates, lending in the banking industry, there's a lot of problems the company can get into due to the levels of leverage. So we're being very cautious as we explore these, which is why we continue to expect the bank to shrink despite the fact that we're running 3 pilots that we hope we can extend more broadly within the company. Aaron Kimson: Super detailed. And then secondly, can you help us think about the price and quantity function for the mail exchange program in Presort? Does it make sense to potentially ship volume out of that program given the higher transit costs you're seeing? My understanding is that space is more and more about price than anything else, including delivery time. Paul Evans: Yes. So this is Paul. So on that question, Mail exchange is actually an advantage we have. We have a national network. And so as we look at when we want to sort of maximize the 5-digit discount, what we can do is move it to another location. We can overcome the fuel cost even at these elevated levels and still drive a benefit for our shareholders. So we're not at a point where it doesn't work. Kurt Wolf: Yes. And Aaron, I would just add to that, we're very long-term focused across all businesses. But within Presort, we see a tremendous opportunity to continue to win customers. And Mail Exchange creates value for our customers. As Paul mentioned, by moving mail amongst our facilities, we can get to a 5-digit sort faster than competitors. Oftentimes, what you'll see competitors do is sit on mail in order to get it to that 5-digit sort. So it almost seems counterintuitive. But by moving and transporting mail across our facilities, we can get that 5-digit sort, which we pass that discount along to our customers, we're able to get mail to the end user -- the end recipient of that mail faster than our competitors. So unfortunately, it does create an additional cost for us, but it creates value for our customers. We have a lower overall cost structure. It is hitting us right now, but we're investing in the future of the business. We want to get to growth. And at some point, transportation costs will decline, but we don't want to be shortsighted and overreact to short-term movement in transportation costs. Operator: One moment for our next question and that will come from the line of Jasper Bibb with Truist Securities. Jeffrey Harlib: It was a really nice quarter for SendTech margins. I guess could you just talk a little bit more about the drivers there? It seems like still pretty healthy margin expansion on a year-over-year basis, even if you back out the tariff refund and some of the cost cutting. Paul Evans: Yes. I mean, long term, the margins in the mid-30s. Obviously, last year, it was depressed because we were a taker of the tariff. This year, we got a refund of the tariff, so that elevated our margins. So sorry about that. So for what you're doing, I'd say mid-30s is where we see the long run for that. Jasper Bibb: That makes sense. And then the SendTech revenue declines narrowed again. You also had bookings up year-over-year. I know you don't guide at the segment level, but what does this, I guess, tell us about what SendTech might look like in the second half? And I'm also curious, do you think SendTech revenue would maybe degrowing in the second half, if not for the impact of some of those noncore customer exits you've talked about in the past couple of quarters? Kurt Wolf: Yes. So I'll take that. Just to start with the end of the question with respect to the noncore customers, we want to be very clear and transparent about that. So there are certain customer contracts that we're losing. These contracts used to be a part of the GEC business. So they're essentially not -- that's why we refer to them as noncore SendTech. And those will have a material impact on revenue as we've expressed. In terms of the second half, I wish I could say that we're going to get to growth excluding those, but there's a couple of factors working against us. The reality is that we do continue to lose mailing meters. We're making efforts to stem that and reduce the rate at which we lose those, and I'm confident we can make that happen. And then a second piece as well is with the bank, I touched a bit on this in our letter, for the good -- for the long-term health of the business, we're actually actively shrinking the size of the bank balance sheet by getting out of low-value assets. And this gets again to the risk of banks with leverage. We could go out and buy hundreds of millions or billions of loans and borrow CDs, generate net interest margin, which should -- also comes through the revenue line and getting growth, but that's a really unattractive way to grow. So we're actively shrinking our least attractive assets to create a healthier balance sheet that as we get to a point where we have these pilot programs, we're originating loans, which are incredibly important in the financial services space, originated loans are way more attractive, better risk-adjusted returns. So we're -- so that's going to create a headwind as well going forward. It's been a headwind all year, but it's, again, the right thing to do for the business long term. We do think shipping software, we see opportunity for growth there or continued growth. But right now, that's not enough to offset the 2 of them. I think we'll get to revenue growth in SendTech as we get to growth at the bank, assuming we don't break that out, which we've discussed doing and then also as we get shipping software growing. And then finally, we did address Mailstream on Demand, which is a small product that's growing, and we're investing and trying to accelerate that growth. So that's something that could also start to push growth in the space. But again, that's -- to be quite honest, it's a small business. It's going to take time for that to get big enough to really impact revenue growth. So I don't -- as much as I hate to say it, I don't see growth in the second half in core SendTech. Operator: One moment for our next question. And that will come from the line of Alex Lakritz with Goldman Sachs. Keen Fai Tong: This is George Tong at Goldman. So a quick question following up on the SendTech piece. Can you talk about how quickly the shipping software is growing and how you see the industry level volume declines comparing to that? So in other words, where do you think that crossover happens? It sounds like it's not going to happen in the second half, but is this a 2027 story? Is it likely going to happen beyond next year? Kurt Wolf: Yes, George, I would say it's more of a 2027 story or even further out. I know everybody is looking for revenue growth at the company, but we have a long history of chasing revenue. It turns out not to be profitable, and we do a lot of ready fire aim. We're now working off the measure twice, cut once approach, which I think is going to be much more successful for the long term and investing for shareholders in the long term. So with respect to shipping, the shipping space, part of what we're working on now is rationalizing and consolidating our offerings. We have a reasonably sized shipping software business, but we have it spread across, I believe, 5 different software offerings, multiple physical offerings. And then in addition to that, we have analytics, which I guess would be another offering, tracking another offering. So we just have a lot of offerings. And at our size, trying to invest in all of those just leads to spreading your investments too thin, and we're not picking winners. So one of the things we're really focused on now is figuring out where do we have our best competitive advantage, where will investment get the best return on assets and where will investment get the -- where will it create the greatest long-term revenue growth opportunity. So again, right now, to answer your initial question, it's close to breakeven, I think maybe a little above. But again, part of that is due to the fact that we're starting to rationalize the shipping software space. And I think as we get through the process, we expect to get the growth as we're focusing more resources on our best product offerings and service offerings in the space. Keen Fai Tong: That makes sense. And then turning to Presort. Revenue growth there turned positive in June, and you're continuing to target positive volume growth in the third quarter. To what extent would you say the improvement there is being driven by company-specific share gains compared to underlying market trends? And how sustainable would you say that these share gains are as you look into 2027? Paul Evans: I'll start. I think it's an effort from Debbie and her team. I mean we've invested in our sales force. We see a growth in their pipeline, which is always a positive step. We need to see that pipeline turn into backlog, that backlog turn into revenue and that revenue turn into cash. And so there's positive signs there, but I'd say that the efforts are really ours first. And if the industry itself, I don't think we're really benefiting from that. Kurt, anything you want to add to that? Kurt Wolf: Yes. No, I would add that over the -- again, we lost a lot of business in the first half of last year. Since that time, we've had very few losses and we've had a lot of wins. So just based on that, we have every reason to believe that we're winning market share and have been over the last year. It's a slowly declining industry, but fortunately, our aggregate share across marketing mail and first-class mail leaves us with a lot of room to continue to gain share. As we've said a million times, we have the low-cost structure in the industry. We have the highest service levels. I think our Net Promoter Scores are over 90, which is ridiculously high. So we're very well positioned to gain share. And everything we're seeing internally suggests that we are taking share right now. Operator: And our next question will come from the line of Justin Dopierala with Domo Capital. Justin Dopierala: I was -- you guys were talking about mail exchange earlier and the higher freight costs you're experiencing there. But as investors think about how the majority of your business deals with freight costs, doesn't the USPS reimburse most of these? Kurt Wolf: They do, but it's on a lag effect. So any increase in transportation costs will show up in their next calculation of costs, which would ultimately flow through to any sort of rate increase, but that wouldn't happen until likely July of next year. Justin Dopierala: Got it. But it would be something that investors should look forward to going forward? Kurt Wolf: Correct. Yes. Justin Dopierala: Okay. And then I was wondering if you could reconcile the headwinds you're expecting in the second half of this year here with the increasing guidance that you gave. Kurt Wolf: Yes, absolutely. So let me just make a few points. First, I want to highlight that under my leadership, we've always been very transparent about the challenges we face. As an investor, I always was frustrated to hear the good news and never the bad. So we're trying to be incredibly clear about the challenges we face. And then second of all, I think that the leadership team here as well as the 6,000 employees here have shown an incredible ability to mitigate and reduce the impact of any headwinds we face. And I think our 2025 -- 2025 results reflect that. And finally, what I'd highlight is we're confident enough in our ability to continue to execute that we did raise a lot of our -- we've raised adjusted EBIT, adjusted EPS, adjusted free cash flow. And that really reflects the fact that some of these headwinds we did expect. And obviously, we didn't expect the transportation costs, but other components of it we knew were coming. But we have an incredibly dedicated team that's working incredibly hard and execution is outpacing. So despite the headwinds we faced, execution has been even better than the unexpected headwinds. Justin Dopierala: Got it. And lastly, how should investors think about both the sales and distribution of shares by Hestia? Kurt Wolf: Yes, happy to answer that. And I'll start by saying I believe this to be true. I think I'm the largest individual shareholder of Pitney Bowes. And these are shares that I bought with my own money. This is my investment in capital. This doesn't come from salary or bonuses from the company. And I think I personally own tens of millions of dollars worth of our stock. And the reason I do that is I believe we can create a lot more value at the company. With respect to Hestia itself and the shares and distributions, I'd just highlight that it's a deep value investment firm. And since taking our position, the stock has gone from $3 a share to above $18. We've been holding Pitney Bowes shares for years. But there's an agreement and a partnership agreement that addresses as I manage the fund, the manner in which I'll manage that. So I can still look at something, think it's an incredible investment, but it may not meet the criteria to be an investment at Hestia Capital. So shares by Hestia Capital don't reflect my view. They're more reflective of the agreement between me and my LPs. And then I would highlight as well, as far as the distributions go, that's one way that I think the last distribution was 1.5 million shares. I took personally over 1 million of those shares. And that's based on my conviction in the company. I'd say that investors can expect future distribution, at least one future distribution, which almost entirely will go to me. And once again, this just reflects the fact that I personally have tremendous optimism as the CEO of the company and the future of the company, and I want to have exposure to it myself. And I think when it's all said and done, my personal exposure to Pitney Bowes conceivably could be higher at the end of that than it was 6 months ago. So I understand there is some concern that the investment firm I manage is selling or distributing shares, but I just, again, highlight that as the CEO of the company as an individual, I'm increasing my exposure to the company. And hopefully, that's reassuring to shareholders. Operator: And our next question will come from the line of Anthony Lebiedzinski with Sidoti. Anthony Lebiedzinski: Certainly nice to see the better-than-expected results, especially at SendTech. So Kurt, one of the things that you pointed out in your shareholder letter is that you're improving your sales execution. Maybe if you could share with us some examples of what you're doing differently now to improve that? And how do you see that going forward as far as your ability to improve SendTech? Kurt Wolf: Yes. So I can give quite a few. There are quite a few. I'll just limit to a couple. One is, historically, we had very poor sales support. So our salespeople were spending 50% plus of their time servicing customers as opposed to going out and hunting. So Todd has done a tremendous job of building out sales support so that the salespeople have more time to actively sell. And just as an aside, this is something I think is really important to note that it hasn't come up in any of the Q&A. But as we continue to forecast, we are investing in growth. And when I say investing, I don't mean CapEx, I mean OpEx. So our improved results reflect an increased expense level on trying to grow and hopefully growing the business. So it just speaks even more to the efficiencies and performance of the team and delivering for shareholders. So that's one example. Another is that we've had very little to no integration between enterprise sales. So the example I gave before of offering bank credit to SendTech customers would be one example of crossover sale. But more important, another example would be between Presort and SendTech. There's a lot of opportunities there. We can have customers that could be tied to both. Our Mailstream on Demand is considered a part of SendTech, but it involves Presort quite a bit, and there was very little coordination. We're now coordinating more there. And yet -- and again, I could go on for a while, but one last example is we have a new business group that's sort of going out to untouched land within SendTech or places that we don't have -- an example would be we have a government group because we have a lot of government business, but we have a group specifically targeting sort of areas that we historically have not competed. And there, Todd has done a lot to bring to overhaul the sales team itself to get the right talent for that type of sales. And it's shown up in the results. It's part of the reason that our sales figures have improved is that group historically has significantly underperformed budget and targets, and now they're at and above budgets pretty regularly. So it's been a big change. And again, it's -- what's great about that is that's areas that we typically did not necessarily have a presence. So it's sort of opening new addressable market for us. So that would just be 3 examples I'd point to. Anthony Lebiedzinski: That's very helpful color. And then just switching to Presort. Just wondering if you could share maybe more details about the impact of higher fuel costs that you had in the second quarter. And as far as your implied guidance for the second half, we obviously saw a big spike in fuel costs, and there was some easing and then here as of last week or 2, we've seen an uptick again in fuel costs as well. So maybe if you could comment on that? And what actions are you taking to help to mitigate these costs? And lastly -- yes. Paul Evans: Yes. So Q2, I think, is around $6 million, the impact to us of elevated fuel costs. We rely on rolling stock. So we're not unlike a lot of companies out there that are facing the challenges with the conflict with Iran. But I think second half of the year, we're going to keep -- we expect elevated fuel costs. I mean we're doing things -- I don't want to go deep into our playbook on how to mitigate that, how to reduce the impact. Obviously, the other part of it is there has been a change in with the administration on CDL drivers. And so there's been a loss of those in the system. And so we were impacted by that, not unlike a lot of others who rely on rolling stock. So again, we expect elevated costs there. The other side of it is we see a healthy growth in our pipeline. Our sales force is doing a great job. And so we continue to see -- we expect further increases in our volumes. And again, Debbie's team is doing a great job in running the business efficiently. So we have this headwind of fuel costs. We have this headwind of the loss of CDL drivers. But all that being said, as Kurt mentioned before, despite all that, we still raised our EPS, EBIT and free cash flow guidance on an adjusted basis. Operator: [Operator Instructions] Our next question will come from the line of Kartik Mehta with Northcoast Research. Kurt Wolf: Good morning, Kartik. Operator: If you're on mute, please unmute your line. Your line is open. Kurt Wolf: Kartik, are you there? Kartik Mehta: Yes. Can you hear me? Kurt Wolf: Now we can. Kartik, we can't hear you. Well if you can hear us, Kartik, we'll have a follow-up call. We can talk to you then. I don't want to make everybody wait here. So I hope you don't mind. We'll -- I think is that our last question, I believe so. Okay. Operator: Yes. I do believe that is our last question. I'm showing no further questions in the queue. I would now like to turn the call back over to Mr. Kurt Wolf for any closing remarks. Kurt Wolf: Yes. Thank you, operator. Yes, I'd just like to close by acknowledging the recent passage of George Harvey for everybody's knowledge. He led the company from 1983 to 1997, which was a period of tremendous value creation for shareholders. And I think what really stood out about Mr. Harvey was he did this by really focusing on culture and sometimes people take it as cliche, but I think it's a very apt business saying, and that is that culture eats strategy for breakfast. And as an ex-consultant, it's been inside numerous companies, I've seen it firsthand. And one thing that has really stood out to me at Pitney Bowes is the strength of the culture here. And I think that Mr. Harvey really built a lot of the culture that's leading to the success we have today. So I guess I'd just like to thank him for his contributions. And again, just highlight for all shareholders listening right now that I can't emphasize enough the winning culture that we have here at Pitney Bowes, particularly as it pertains to the level of focus on team, the willingness to sacrifice on behalf of the company is something that's truly extraordinary. It's one of the reasons I'm so invested in the company is I do believe the culture plays a huge role. And I think every shareholder listening right now should feel encouraged by the 6,000-plus employees at this company and their dedication and hard work on your behalf and the behalf of the company. So a tip of the hat to Mr. Harvey. And with that, I appreciate everybody for tuning in. Thank you all. Operator: This concludes today's program. Thank you all for participating. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Pitney Bowes. The Motley Fool has a disclosure policy. Pitney Bowes (PBI) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Pitney Bowes Inc. recently reported second-quarter 2026 results showing revenue of US$451.5 million and net income of US$49.91 million, alongside reaffirmed full-year revenue guidance of US$1.80 billion to US$1.86 billion and Board approval of a US$0.10 per-share quarterly dividend. The company paired higher earnings and improved SendTech margins with continued share repurchases and the appointment of capital-markets veteran La Vonda Williams to its Board and Strategic Review Committee, underscoring its focus on operational refinement and capital allocation. We’ll now examine how Pitney Bowes’ raised 2026 earnings guidance and operational gains may reshape its existing investment narrative. Invest in the nuclear renaissance through our list of 88 elite nuclear energy infrastructure plays powering the global AI revolution. To own Pitney Bowes, you need to believe the company can keep improving profitability and cash generation even as physical mail steadily shrinks. Right now, the key near term catalyst is whether margin gains and higher earnings guidance can offset pressure in Presort from rising transportation costs, while the biggest risk remains a high debt load in a structurally challenged mail market. The latest quarter improves the earnings side of that equation but does not remove the leverage risk. The most relevant recent move is the completion of a large share repurchase tranche, with about 32.6% of shares bought back since early 2025. That kind of reduction in share count can amplify the impact of improved earnings guidance and cost efficiencies, making each share more exposed to both the upside of better execution and the downside if mail volumes, Presort margins or debt servicing costs worsen. Yet investors should also weigh how Pitney Bowes’ high fixed costs in Presort could turn even modest volume or pricing pressure into a much larger hit to EBIT and cash flow... Read the full narrative on Pitney Bowes (it's free!) Pitney Bowes' narrative projects $1.8 billion revenue and $282.5 million earnings by 2029. Uncover how Pitney Bowes' forecasts yield a $17.14 fair value, in line with its current price. The most optimistic analysts were already assuming roughly flat revenue near US$1.9 billion and higher margins, but your view on Presort volume risk could lead you to a very different conclusion. Explore 4 other fair value estimates on Pitney Bowes - why the stock might be worth over 2x more than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Pitney Bowes research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision. Our free Pitney Bowes research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Pitney Bowes' overall financial health at a glance. Early movers are already taking notice. See the stocks they're targeting before they've flown the coop: Capitalize on the AI infrastructure supercycle with our selection of the 57 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 29 best rare earth metal stocks of the very few that mine this essential strategic resource. We've uncovered the 9 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PBI. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Pitney Bowes Inc.? Here are five stocks we like better. Pitney Bowes raised its full-year guidance for adjusted EBIT, adjusted EPS and adjusted free cash flow after extending its first-quarter momentum into Q2. Presort continued winning customers and gaining share, but elevated fuel and transportation costs reduced profitability by approximately $6 million in the quarter. SendTech margins improved, though revenue growth is not expected in the second half and may remain a 2027-or-later opportunity. The company reduced debt by more than $200 million over four months, extended its nearest maturity to March 2029 and began the second phase of its strategic review. Pitney Bowes Bank also launched three cautious lending pilots while continuing to shrink lower-value assets. Pitney Bowes Stock is a Rebound Play Pitney Bowes (NYSE:PBI) said its second-quarter performance extended momentum from the first quarter, prompting the company to raise its full-year adjusted EBIT, adjusted earnings per share and adjusted free-cash-flow guidance. Chief Executive Officer Kurt Wolf said the company’s Presort business continued to add customers and maintain a strong sales pipeline, while SendTech improved margins despite increased spending intended to support future growth. He also pointed to progress at Pitney Bowes Bank, debt reduction and the launch of the second phase of the company’s strategic review. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Pitney Bowes (NYSE: PBI) is Surging, Is it Too Risky? “The highlights I just covered reflect the momentum we continue to build toward achieving profitable organic growth in the coming years,” Wolf said. Presort continued to win business and has experienced relatively few customer losses since the first half of the prior year, according to Wolf. He said the company believes it has been gaining share in a slowly declining mail market, citing its cost structure, service levels and a Net Promoter Score above 90. → Microsoft Just Flipped the AI Spending Narrative Overnight However, higher transportation costs materially affected Presort profitability during the second quarter. Paul Evans, executive vice president, chief financial officer and treasurer, said elevated fuel costs had an approximately $6 million impact in the quarter. He said the company expects fuel costs to remain elevated during the second half and also cited a reduced supply of commercial driver’s license holders as a headwind. Wolf said higher transportation expenses are expected to be reflected in the U.S. Postal Service’s future cost calculations, though any related rate increase would likely not occur until July of next year. → Carrier Earnings Could Send the Stock to a New All-Time High Management defended its Mail Exchange program, which moves mail among Pitney Bowes facilities to achieve five-digit mail sorting discounts. Evans said the company can still overcome elevated fuel costs and derive a benefit through its national network. Wolf said the program helps customers receive mail faster than they might through competitors that hold mail longer to achieve sorting thresholds. “We don’t want to be shortsighted and overreact to short-term movement in transportation costs,” Wolf said. SendTech posted improved margins in the quarter, although Evans said the result was aided by a tariff refund. He said the segment’s long-term margin level is expected to be in the mid-30% range. Wolf said SendTech continues to face revenue headwinds from the loss of mailing meters, the exit of certain non-core customer contracts formerly associated with its GEC business, and efforts to shrink the bank balance sheet by reducing lower-value assets. The company is intentionally reducing less attractive bank assets rather than pursuing loan growth that management believes could generate weaker risk-adjusted returns. Wolf said that strategy will continue to pressure revenue even as the bank begins originating loans through pilot programs. Shipping software, Mailstream On Demand and eventual growth at the bank could support future SendTech expansion, but Wolf said he does not expect core SendTech revenue growth in the second half. He characterized broader growth in the business as more likely a 2027 or later opportunity. Management is also consolidating its shipping-software portfolio, which Wolf said currently spans several software, physical, analytics and tracking offerings. The company is seeking to focus investment on products and services where it has the strongest competitive advantage and potential return on assets. Pitney Bowes Bank is piloting three lending initiatives designed to build on existing customer relationships. Wolf said the first program provides asset-based lending to certain financially strong Presort customers. A second pilot would offer credit to shipping-software customers using U.S. Postal Service services. Wolf said private carriers may offer credit terms, while the Postal Service does not, creating an opportunity for Pitney Bowes to use its bank as a competitive advantage in customer acquisition. The third pilot is focused on logistics and third-party logistics providers, or 3PLs. The company is evaluating short-term credit for 3PLs and potentially merchants that move products through their facilities. Wolf said Pitney Bowes may have visibility into assets held at 3PL facilities that could support the lending process. Wolf emphasized that all three programs remain in pilot stages and that management is taking a cautious approach. Despite the pilots, the company expects the bank to continue shrinking as it reduces lower-value assets. Pitney Bowes said it reduced debt by more than $200 million over the past four months and extended its nearest maturity to March 2029. Wolf said year-to-date debt reduction was approximately $55 million, positioning the company to allocate capital opportunistically. The company also initiated the second phase of its strategic review last month. Wolf said management would not comment on potential outcomes or timing because of the nature of the review. During the call, Wolf also addressed Hestia Capital’s share distributions and sales. He said he personally owns tens of millions of dollars of Pitney Bowes shares and took more than 1 million of the 1.5 million shares in Hestia’s most recent distribution. Wolf said he expects at least one additional distribution, which he said would largely go to him personally. In closing, Wolf acknowledged the death of former company leader George Harvey, who led Pitney Bowes from 1983 through 1997. Wolf credited Harvey with helping build the company culture that he said continues to support its performance. Pitney Bowes Inc (NYSE: PBI) is an American technology company that specializes in shipping, mailing, and e-commerce solutions. Founded in 1920 by Walter Bowes and Arthur Pitney, the company pioneered postage meter technology and has since evolved to offer a broad portfolio of hardware, software, and services designed to streamline physical and digital communications. Headquartered in Stamford, Connecticut, Pitney Bowes leverages a century of expertise to serve enterprises, small businesses, and government agencies around the globe. The company's core offerings span mailing and shipping equipment, including postage meters, folder inserters, and address verification systems, alongside integrated software platforms for customer information management, data analytics, and location intelligence. 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 "Pitney Bowes Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Revenue: Second quarter results built on first quarter momentum. Adjusted EBIT, EPS, and Free Cash Flow Guidance: Raised guidance for adjusted EBIT, EPS, and free cash flow. Presort Profitability: Higher transportation costs materially impacted Presort's second quarter profitability. SendTech Margins: Continued operational improvements led to higher margins despite increased spending on future growth. Debt Reduction: Reduced debt by more than $200 million over the past 4 months and pushed out nearest maturity to March 2029; reduced debt by approximately $55 million year-to-date. Warning! GuruFocus has detected 5 Warning Sign with PBI. Is PBI fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Pitney Bowes Inc (NYSE:PBI) raised its adjusted EBIT, EPS, and free cash flow guidance for the full year, reflecting confidence in execution. SendTech margins improved significantly year-over-year due to operational improvements and a tariff refund, with long-term margins expected in the mid-30s. Presort is winning new business and gaining market share, supported by a robust sales pipeline and a low-cost structure with high service levels. The company reduced debt by over $200 million in the past four months and pushed its nearest maturity to March 2029, strengthening its balance sheet. Pitney Bowes Bank launched three pilot loan programs leveraging existing customer relationships, with potential for future growth in financial services. Higher transportation costs, including elevated fuel prices, materially impacted Presort's profitability in the second quarter. SendTech revenue is not expected to return to growth in the second half of 2026 due to ongoing mailing meter losses and active shrinking of the bank's balance sheet. The company faces headwinds from the loss of noncore customer contracts in SendTech, which will materially impact revenue. Shipping software growth is insufficient to offset declines in other SendTech segments, with a return to growth not expected until 2027 or later. Presort's mail exchange program incurs additional costs from moving mail across facilities, though it creates customer value, and transportation cost reimbursements from USPS are delayed. Here are the key highlights from the Pitney Bowes Inc (NYSE:PBI) Q2 2026 earnings call, presented as Q&A summaries. Q: Can you provide some color on the 3 new products the bank is piloting and the decision to break the bank out separately in next year's financials?A: Kurt Wolf (CEO) detailed three pilot programs at Pitney Bowes Bank. The first is extending asset-based lending to Presort customers. The second involves offering credit to shipping software customers, a competitive advantage since the USPS does not offer terms. The third, most recent pilot, ties to the logistics space, extending short-term credit to 3PLs and their merchant clients. The bank is being broken out separately to provide transparency as it builds its infrastructure, though the company is being cautious to avoid past mistakes and expects the bank to shrink in the near term. Q: Can you talk about how quickly the shipping software is growing and when you see the crossover to overall SendTech revenue growth happening?A: Kurt Wolf (CEO) stated that shipping software growth is close to breakeven, partly due to a current effort to rationalize and consolidate its five different software offerings. He does not see overall SendTech revenue growth in the second half of 2026, describing it as more of a 2027 story or further out. The company is prioritizing a "measure twice, cut once" approach over chasing unprofitable revenue. Q: It was a really nice quarter for SendTech margins. Can you talk about the drivers there?A: Paul Evans (CFO) explained that the strong SendTech margins were partly elevated by a tariff refund. He clarified that the long-term, normalized margin for the segment is in the mid-30% range, which is the level to expect when backing out the one-time refund. Q: How should investors think about the sales and distribution of shares by Hestia?A: Kurt Wolf (CEO) addressed this directly, stating he is the largest individual shareholder, having bought shares with his own money. He explained that Hestia Capital's share distributions are a function of its partnership agreement and do not reflect his personal view. He personally took over 1 million shares from the last distribution and expects to increase his personal exposure to the company, expressing strong conviction in its future. Q: Can you reconcile the headwinds you're expecting in the second half with the increased guidance?A: Kurt Wolf (CEO) explained that while the company is transparent about challenges like higher transportation costs, the leadership team has shown an incredible ability to mitigate headwinds. The raised guidance for adjusted EBIT, EPS, and free cash flow reflects that execution has outpaced the unexpected challenges. Q: To what extent is the improvement in Presort being driven by share gains vs. market trends?A: Paul Evans (CFO) and Kurt Wolf (CEO) attributed the improvement primarily to company-specific efforts, including a stronger sales force and a robust pipeline. Kurt Wolf added that after losing business in the first half of 2025, the company has had very few losses and many wins, indicating they are taking market share in a slowly declining industry. Q: Can you share some examples of how you are improving sales execution?A: Kurt Wolf (CEO) provided several examples. First, the company has built out sales support so salespeople spend less time servicing customers and more time hunting. Second, there is now better integration between enterprise sales, such as cross-selling between Presort and SendTech. Third, a new business group is successfully targeting government and other areas where the company previously had no presence. Q: Can you provide more details on the impact of higher fuel costs in Presort and what actions you are taking?A: Paul Evans (CFO) quantified the Q2 impact of elevated fuel costs at approximately $6 million. He noted that the company expects elevated costs in the second half due to the conflict with Iran and a loss of CDL drivers. Despite these headwinds, the company raised its overall guidance due to healthy volume growth and efficient operations. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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. Management raised adjusted EBIT, EPS, and free cash flow guidance based on strong first-half execution that outperformed unexpected macro headwinds. Presort profitability was materially impacted by higher transportation costs, though the segment continues to win market share through its national Mail Exchange network. SendTech margins reached the mid-30s, supported by a tariff refund and operational improvements, despite increased spending on future growth initiatives. The company is intentionally shrinking the Pitney Bowes Bank balance sheet by exiting low-value assets to reduce leverage risk and prepare for higher-margin originated lending. A strategic pivot in sales execution involves shifting salespeople from customer service tasks to active 'hunting' by building out dedicated support infrastructure. Management initiated the second phase of a strategic review but declined to comment on potential outcomes or timelines to maintain the integrity of the process. Guidance assumes elevated fuel and transportation costs will persist through the second half of 2026, with potential reimbursement from USPS not expected until July 2027. SendTech revenue is expected to remain under pressure in the second half due to the exit of noncore contracts and a continued decline in the mailing meter base. Management is rationalizing the shipping software portfolio from five different offerings to focus resources on products with the best competitive advantages. Revenue growth in SendTech is viewed as a 2027 story, dependent on the scaling of shipping software and the transition of bank pilots to broader implementation. The bank is moving toward a 'measure twice, cut once' approach, prioritizing originated loans over buying existing loan portfolios to ensure better risk-adjusted returns. Higher transportation costs in Q2 resulted in a $6 million impact, driven by fuel prices and a systemic shortage of CDL drivers. Debt was reduced by more than $200 million over the last four months, successfully pushing the nearest maturity out to March 2029. The CEO addressed Hestia Capital's share distributions, clarifying they are driven by fund partnership agreements rather than a change in his personal conviction. SendTech margins were temporarily elevated in the quarter due to a one-time tariff refund, with mid-30% margins cited as the sustainable long-term target. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is testing three pilots: asset-based lending for Presort customers, credit terms for shipping software users, and short-term credit for 3PL merchants. The shipping software credit pilot is a specific competitive advantage, as the USPS does not offer credit terms while Pitney Bowes can via its bank. The 3PL pilot leverages visibility into physical assets held in facilities to better understand and mitigate credit risk. Management believes they are gaining share in a declining industry due to a low-cost structure and high service levels (Net Promoter Scores over 90). The Mail Exchange program allows the company to move mail between facilities to achieve 5-digit sort discounts faster than competitors who 'sit on mail'. Improvements are driven by overhauling the sales team talent and creating a new group to target previously untouched addressable markets like government business. Management is increasing OpEx to invest in growth, which is being offset by efficiencies elsewhere in the business.

Pitney Bowes Inc. PBI used its second-quarter 2026 earnings call to highlight execution improvements, debt reduction and a more disciplined approach to growth. Management raised adjusted EBIT, adjusted EPS and adjusted free cash flow guidance while emphasizing operational changes across its businesses. The discussion centered on improving profitability, expanding targeted growth initiatives and managing ongoing pressures from transportation costs and legacy business declines. Analysts focused on segment trends, banking strategy and the path toward revenue growth. CEO Kurt Wolf said second-quarter results reflected continued momentum and gave management confidence to raise key profitability and cash flow targets. He highlighted stronger execution across the company while acknowledging ongoing operational challenges. Pitney Bowes reported adjusted EPS of 43 cents on revenues of $451.5 million, beating the Zacks Consensus Estimate of 34 cents and $436.8 million, respectively. Revenues declined 2.25% year over year. Pitney Bowes Inc. price-consensus-eps-surprise-chart | Pitney Bowes Inc. Quote Management emphasized that improved results came alongside continued investment in growth efforts. Wolf noted that operating improvements and stronger execution allowed the company to absorb several headwinds during the quarter. Pitney Bowes reduced debt by more than $200 million over four months and extended its nearest debt maturity to March 2029. The company also reported no outstanding balance on its revolving credit facility as of July 29, 2026. CFO Paul Evans said capital allocation flexibility improved as debt reduction progressed. The company also repurchased 4.5 million shares for $53 million during the quarter at an average price of $11.75 per share. Management said the stronger balance sheet positions Pitney Bowes to allocate capital opportunistically while maintaining focus on long-term business improvements. PBI’s SendTech Solutions segment delivered revenues of $308.9 million, down 1% year over year, while adjusted segment EBIT increased to $122.7 million from $101.3 million. Management attributed margin improvement to cost reductions and a tariff refund. Wolf said SendTech continues to face pressure from mailing meter declines and certain noncore customer exits. He added that shipping software growth initiatives remain a longer-term opportunity as the company consolidates offerings and focuses investment on stronger areas. Presort Services revenues declined 5% year over year to $142.6 million, while adjusted segment EBIT fell to $20 million. Higher fuel and transportation costs affected profitability, with management citing approximately $6 million of second-quarter impact from elevated fuel expenses. Pitney Bowes Bank remained a key strategic focus as management discussed three pilot lending programs. Wolf said initiatives include asset-based lending for Presort customers, credit offerings tied to shipping software customers and logistics-related financing opportunities. Management said the banking initiatives are being approached cautiously, with a focus on using existing customer relationships and improving risk-adjusted returns. Wolf noted the company continues to shrink lower-value assets while evaluating new opportunities. A Citizens JMP Securities analyst asked about the bank pilots and future financial reporting changes. Wolf explained that the programs are still early-stage and that Pitney Bowes intends to expand only after careful evaluation. PBI raised its full-year adjusted EBIT guidance to $445 million to $475 million, adjusted EPS guidance to $1.55 to $1.70 and adjusted free cash flow guidance to $360 million to $410 million. Revenue guidance remained unchanged at $1.8 billion to $1.86 billion. Wolf said the company increased guidance despite transportation pressures and other known challenges because execution has exceeded expectations. Management also maintained a focus on profitable growth rather than pursuing revenue expansion without attractive returns. Analysts questioned how the company could raise guidance while discussing several headwinds. Wolf pointed to operational discipline and the team’s ability to offset challenges as reasons for maintaining a stronger outlook. Pitney Bowes entered the second half of 2026 focused on improving efficiency, strengthening the balance sheet and building targeted growth opportunities. Management highlighted sales improvements, business coordination and disciplined investment priorities. The company’s leadership continued to emphasize measured execution rather than rapid expansion. The call reflected a strategy centered on improving profitability while developing future growth channels. PBI carries a Zacks Rank #3 (Hold). The Zacks Rank focuses on earnings estimate revisions and helps indicate a stock’s potential performance over the next one to three months. The rank can change as analysts update earnings expectations following quarterly results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The stock has a Value Score of A, Growth Score of A, Momentum Score of D and a VGM Score of A. Zacks Style Scores evaluate value, growth and momentum characteristics, with higher scores representing stronger attributes within each category. 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 Pitney Bowes Inc. (PBI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Pitney Bowes PBI reported second-quarter 2026 adjusted earnings of 43 cents per share, up 59.3% year over year. The figure beat the Zacks Consensus Estimate by 26.47%. Revenues fell 2.3% year over year to $451 million but surpassed the consensus mark by 3.37%.The earnings upside reflected lower operating expenses and stronger SendTech profitability, partly aided by a tariff refund. Presort Services remained pressured, with total mail volume down 3% year over year to 3.3 billion pieces. Pitney Bowes Inc. price-consensus-eps-surprise-chart | Pitney Bowes Inc. Quote SendTech Solutions revenues declined 1% year over year to $309 million. Continued erosion in the mailing installed base weighed on sales, but strong sales execution and growth in services revenues partly offset the decline.Operating expenses fell $14 million from the year-ago quarter’s reported figure. Adjusted segment EBITDA rose 17% year over year to $133 million, while adjusted segment EBIT advanced 21% year over year to $123 million. The segment also received a $5 million tariff refund, supporting the sharp improvement in profitability. Presort Services revenues decreased 5% year over year to $143 million. The decline reflected broader market contraction and previously disclosed client losses from the first half of 2025, although the rate of revenue decline continued to moderate.Adjusted segment EBITDA dropped 36% to $29 million, while adjusted segment EBIT fell 44% to $20 million. Lower volumes reduced operating leverage, and higher fuel and transportation costs added pressure to margins. Gross profit declined to $251 million from $260 million, while gross margin narrowed to 55.7% from 56.3%. The contraction reflected lower revenues and weaker operating leverage in Presort Services.Selling, general and administrative expenses fell to $129 million from $171 million. SG&A expenses represented 28.4% of revenues, down from 37% a year ago. Research and development expenses decreased to $3 million from $4 million.Adjusted EBIT increased 13% to $116 million, and the adjusted EBIT margin expanded to 25.7% from 22.1%. Cash from operating activities increased 37% year over year to $153 million. Adjusted free cash flow climbed 39% to $148 million, benefiting from stronger operating performance and working-capital execution.The company reduced debt by $201 million from the end of the first quarter through July 29. This included $104 million during the second quarter and another $97 million in July.As of July 29, the revolving credit facility had no outstanding balance. Pitney Bowes also pushed its next debt maturity to March 2029, reducing near-term refinancing risk.The company repurchased 4.5 million shares for $53 million during the second quarter. The board also approved a quarterly dividend of 10 cents per share. The dividend is payable Sept. 8, 2026, to shareholders of record as of Aug. 10. Pitney Bowes raised its 2026 adjusted EBIT guidance to $445-$475 million from $425-$465 million. Adjusted earnings guidance increased to $1.55-$1.70 per share from the prior range of $1.50-$1.65.Adjusted free cash flow is now projected between $360 million and $410 million, up from $345-$380 million. Revenue guidance was reaffirmed at $1.80-$1.86 billion, indicating that the improved profit outlook is centered on execution and cost control rather than higher sales expectations.The revised guidance builds on the outlook issued after the first quarter, when management had already highlighted improving SendTech profitability and stronger cash generation. Currently, Pitney Bowes carries a Zacks Rank #3 (Hold). Shopify SHOP, Sandisk SNDK and HubSpot HUBS are some better-ranked stocks in the broader Zacks Computer and Technology sector. Each of the three stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Shopify, Sandisk and HubSpot are expected to report their quarterly results on Aug. 5. Shares of Sandisk have jumped 327.9%, while Shopify and HubSpot have dropped 19.8% and 37.5%, year to date, respectively. 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 Pitney Bowes Inc. (PBI) : Free Stock Analysis Report Sandisk Corporation (SNDK) : Free Stock Analysis Report HubSpot, Inc. (HUBS) : Free Stock Analysis Report Shopify Inc. (SHOP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Discloses Strong Q2 Results with Meaningful Growth in Adj. EBIT, Adj. EPS, and Adj. Free Cash Flow Raises Full Year Guidance for Adj. EBIT, Adj. EPS, and Adj. Free Cash Flow Reduced Debt by More than $200 Million Since Q1 SHELTON, Conn., July 29, 2026--(BUSINESS WIRE)--Pitney Bowes Inc. (NYSE: PBI) ("Pitney Bowes" or the "Company"), a technology-driven company that provides digital shipping solutions, mailing innovation, and financial services to clients around the world, today disclosed its financial results for the second quarter of 2026. In conjunction with this announcement, CEO Kurt Wolf has released a letter to shareholders to provide his commentary on the quarter and updates on strategic initiatives. To read and/or download a copy of this quarter’s CEO letter, please click here. Financial Highlights:The following table summarizes the Company’s financial highlights for the second quarter 2026: Update on Capital Allocation The Company reduced debt by $201 million from the end of Q1 2026 through July 29, 2026, including $104 million in the second quarter and $97 million in July. As of July 29, 2026, the Company had no outstanding balance on its revolving credit facility and its next debt maturity isn’t until March 2029. The Company repurchased 4.5 million shares for $53 million in the second quarter at an average per share price of $11.75. The Board approved a $0.10 per share quarterly regular dividend, which is payable on September 8, 2026, to shareholders of record as of August 10, 2026. Business Segment Reporting SendTech SolutionsSendTech Solutions offers physical and digital shipping and mailing technology solutions, financing, services, supplies and other applications for small and medium businesses, retail, enterprise, and government clients around the world to help simplify and save on the sending, tracking and receiving of letters, parcels and flats. SendTech revenue declined slightly, as continued erosion in the mailing install base was partially offset by strong sales execution and growth in services revenue. Adjusted Segment EBITDA and EBIT improved as a result of cost reductions, with operating expenses declining $14 million versus prior year, and a $5 million tariff refund received in the quarter. Presort ServicesPresort Services provides sortation services that enable clients to qualify for USPS workshare discounts in First Class Mail, Marketing Mail, Marketing Mail Flats and Bound Printed Matter. Presort revenue decline continued to moderate in the second quarter. Total volume sorted in the quarter was 3.3 billion pieces of mail, a 3% reduction year-over-year driven by market decline and previously communicated client losses from the first half of 2025. Adjusted Segment EBITDA and EBIT declined due to the decrease in revenue with margins contracting from reduced operating leverage from lower volumes as well as higher fuel and transportation costs. 2026 Full-Year Outlook Pitney Bowes raised its guidance for Adjusted EBIT, Adjusted EPS, and Adjusted Free Cash Flow and reaffirmed its guidance for Revenue. Updated guidance for Revenue, Adjusted EBIT, Adjusted EPS and Adjusted Free Cash Flow in 2026 is as follows: Q2 2026 Earnings Conference Call Management will discuss the Company’s results in a webcast tomorrow, July 30, 2026, at 8:00 a.m. ET. Instructions for accessing the earnings results call are available on the Investor Relations page of the Company’s website at www.pitneybowes.com. ***As a reminder, to read and/or download a copy of this quarter’s CEO letter, please click here*** About Pitney Bowes Pitney Bowes (NYSE: PBI) is a technology-driven company that provides digital shipping solutions, mailing innovation, and financial services to clients around the world – including more than 90 percent of the Fortune 500. Small businesses to large enterprises, and government entities rely on Pitney Bowes to reduce the complexity of sending mail and parcels. For the latest news, corporate announcements, and financial results, visit www.pitneybowes.com/us/newsroom. For additional information, visit Pitney Bowes at www.pitneybowes.com. Adjusted Segment EBIT Adjusted Segment EBIT is the primary measure of profitability and operational performance at the segment level. Adjusted Segment EBIT includes segment revenues and related costs and expenses attributable to the segment, but excludes interest, taxes, general corporate expenses, restructuring charges, and other items not allocated to a business segment. Effective January 1, 2026, Adjusted Segment EBIT also excludes pension expense related to U.S. and Canada pension plans that we have taken steps to terminate. We also report Adjusted Segment EBITDA as an additional useful measure of segment profitability and operational performance, which is calculated as Adjusted Segment EBIT plus depreciation and amortization expense of the segment. Use of Non-GAAP Measures Pitney Bowes’ financial results are reported in accordance with generally accepted accounting principles (GAAP). Pitney Bowes also discloses certain non-GAAP measures, such as adjusted earnings before interest and taxes (Adjusted EBIT), adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA), adjusted earnings per share (Adjusted EPS) and adjusted free cash flow. Adjusted EBIT, Adjusted EBITDA and Adjusted EPS exclude the impact of restructuring charges, foreign currency gains and losses on intercompany loans, certain costs associated with the Ecommerce Restructuring, gains and losses on debt redemptions and other unusual items that we believe are not indicative of our core business operations. For the 2026 periods, these measures also exclude pension expense related to the U.S. and Canada pension plans that we have taken steps to terminate. Effective Q2 2026, the Company has renamed "Free Cash Flow" to "Adjusted Free Cash Flow". This is a change in title only. There is no change in definition nor calculation methodology, and all prior-period amounts remain unchanged. Adjusted free cash flow adjusts cash flow from operations calculated in accordance with GAAP for capital expenditures, restructuring payments and other special items. Management believes adjusted free cash flow provides better insight into the amount of cash available for other discretionary uses. Reconciliations of non-GAAP measures to comparable GAAP measures can be found in the attached financial schedules and at the Company's website at: https://www.investorrelations.pitneybowes.com. We do not provide a reconciliation of forward-looking non-GAAP measures to the most comparable GAAP measures because items necessary for such reconciliation are not available on a reasonable basis without unreasonable efforts. Forward-Looking Statements This document contains "forward-looking statements" about the Company’s expected or potential future business and financial performance, including, but not limited to, statements about future revenue and profitability, earnings guidance, future events or conditions, capital allocation strategy, expected cost savings and efficiency improvements, and strategic initiatives and priorities. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from those projected. Factors which could cause future performance to differ materially from expectations include, without limitation, changes in postal regulations or the operations and financial health of posts in the U.S. or other major markets or changes to the broader postal or shipping markets; accelerated or sudden declines in physical mail volumes or shipping volumes; the loss of some of our larger clients; changes in trade policies, tariffs and regulations; periods of difficult economic conditions, the impacts of inflation and rising prices, higher interest rates and a slow-down in economic activity, including a global recession, or a prolonged U.S. government shutdown, to the Company and our clients; changes in labor and transportation availability and costs; and other factors as more fully outlined in the Company's Annual Report on Form 10-K/A for the year ended December 31, 2025 and subsequent reports filed with the Securities and Exchange Commission. Pitney Bowes assumes no obligation to update any forward-looking statements contained in this document as a result of new information, events, or developments, except as required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260729409863/en/ Contacts For Investors: Alex [email protected]