EarningsQ3 2026 Earnings Report
MX:ITRI Q3 2026 EPS Results
Actual EPS$36.63
Consensus EPS$29.38
Beat/MissBeat by +$7.25
One Year Ago EPS$29.08
MX:ITRI Q3 2026 Revenue Results
Actual Revenue$11.32B
Expected Revenue$11.24B
Beat/MissBeat by +$72.30M
YoY Revenue Growth+3.04%
Earnings Announcement Details
QuarterQ3 2026
Date10/27/2026
TimeBefore Open
Conference CallTuesday, October 27, 2026
MX:ITRI Upcoming Earnings
Itron's next earnings date is estimated for March 1, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:ITRI Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. Itron reported revenue growth, record adjusted EBITDA, significant operating-income and EPS growth, accelerating recurring revenue, strong bookings and backlog, margin expansion across major segments, improved full-year EPS guidance, and broad customer adoption. The main negatives were lower free cash flow, 1% declines in Device Solutions and Network Solutions revenue, rising component costs, higher expected fourth-quarter OpEx, inflation affecting utility budgets, and the fact that the sizable gas opportunity has not yet meaningfully appeared in bookings or the P&L.Company Guidance
Strong Third-Quarter Financial Performance
Itron reported third-quarter revenue of $599 million, at the top end of its outlook range and up 3% year over year. Adjusted EBITDA was $115 million, or 19.2% of revenue, setting a new quarterly record, while non-GAAP earnings per share was $1.94, ahead of expectations.
Improved Profitability and Operating Leverage
Non-GAAP operating income increased 20% year over year on 3% revenue growth. Adjusted gross margin increased 350 basis points year over year to 41.3%, while GAAP gross margin increased 23 basis points to 41% due to favorable mix, operational efficiencies, and continued cost discipline.
Annual Recurring Revenue Growth Accelerated
Annual recurring revenue was $423 million, with applications software, analytics, and services driving approximately 25% year-over-year growth, accelerating from 21% growth in the prior quarter.
Strong Free Cash Flow and Net Income
Third-quarter free cash flow was $96 million. GAAP net income increased to $71 million, or $1.61 per diluted share, from $66 million, or $1.41 per share, in the prior year. Non-GAAP net income increased to $86 million, or $1.94 per diluted share, from $72 million, or $1.54 per share.
Growing Grid Edge Intelligence Installed Base
Itron has shipped more than 19.4 million distributed-intelligence-enabled endpoints, expanding its installed base and supporting the conversion of endpoints into platforms and recurring revenue.
Durable Utility Modernization Demand
Management said utilities continue to face load growth, aging infrastructure, reliability, resiliency, and affordability requirements. The company sees expanding opportunities in non-wires alternatives, time-to-power, reliability solutions, gas distribution, and technology that improves the performance of existing infrastructure.
Bookings and Backlog Growth
Third-quarter bookings were $482 million, up 2027% year over year and in line with expectations. October bookings provided a strong start to the fourth quarter, and total backlog was $4.3 billion at quarter end. Outcomes and Resiliency Solutions, the company's most software- and services-intensive segments, represented more than 25% of total backlog.
Broad Customer Wins Across Utility Applications
Pepco Holdings selected Itron to expand its distributed energy resource program. Itron also continued its Open Way Forward program with a large Western U.S. utility, added Resiliency Solutions customers across worker safety, damage prevention, and digital construction management, expanded a worker safety deployment into a five-year enterprise agreement, and broadened damage-prevention adoption across multiple operating companies, asset types, and states.
Device Solutions Margin Expansion
Device Solutions revenue was $102 million. Adjusted gross margin increased 450 basis points year over year to 35%, and operating margin increased 440 basis points to 28%, due to favorable mix and operational efficiencies.
Network Solutions Margin Expansion
Network Solutions revenue was $390 million. Adjusted gross margin was approximately 42% and operating margin was 34%, with both increasing 250 basis points year over year due to operational efficiencies and favorable mix.
Outcomes and Resiliency Solutions Contributions
Outcomes revenue increased 9% year over year to $92 million, driven by higher services, with adjusted gross margin of 40%, up 110 basis points due to operational efficiencies. Resiliency Solutions contributed $16 million of revenue, with adjusted gross margin of 74% and operating margin of 26%.
Raised Full-Year Earnings Outlook
Itron narrowed its full-year revenue outlook to $2.37 billion to $2.385 billion and raised its full-year non-GAAP EPS outlook to $6.72 to $6.82 per diluted share. Fourth-quarter revenue is expected to be $621 million to $636 million, with the midpoint up 10% year over year and 5% sequentially; fourth-quarter non-GAAP EPS is expected to be $1.70 to $1.80.
Solid Liquidity and Leverage Position
At the end of the third quarter, total debt was $1.6 billion and net leverage was 1.9 times. Liquidity was approximately $1.6 billion, consisting of $840 million of cash and equivalents and $722 million available under the revolving credit facility.
Supply Chain Stability and Cost Management
The company said its supply chain remained steady across labor and most materials. Although memory and selected component costs were rising, Itron said it had kept pace with them, supported by materials buffering, supply-base diversification, pricing mechanisms, and productivity actions.
Gas Distribution Opportunity
Management expects the number of gas endpoints awarded over the next 2 to 3 years to be multiples higher than the normal gas run rate. The expected rollout period is approximately 3 to 5 years, supported by battery replacement needs and opportunities to upgrade metrology and integrated safety capabilities.
Open Way Forward Supports Customer Modernization
Itron's Open Way Forward program enables utilities to maintain existing assets while adding new functionality through forward and backward compatibility. Management described this as a strong moat and said it can create a smoother, less-lumpy bookings profile while allowing customers to transition at a pace that is affordable to them.
Progress on Government Grid Programs
Management said GRIP programs were replaced with SPARC programs, which are largely moving forward. Some funding is in future years and has not yet been spent, but management said it appears on track to carry forward and that the churn seen 18 to 24 months ago is largely behind the company.
Expansion of AI and Machine Learning Applications
Itron uses AI-based weather and asset-deployment models for storm response, AI in its worker safety module for real-time hazard identification, AI in digital construction management to populate construction and compliance data, machine learning and AI in forecasting, and AI-based anomaly detection at the grid edge for wildfire-related indicators.
Expanded Wildfire and Grid Safety Collaboration
Itron announced an expanded collaboration with PG&E to deploy thousands of grid-edge endpoints in high-risk areas. Using distributed intelligence and advanced waveform analytics, the devices are intended to detect, classify, and pinpoint fault indicators such as downed live conductors.
Potential Expansion Toward the Center of the Grid
Management said Itron is integrating edge data with data from higher levels of the grid and expects to move toward substation-level applications. Transmission-level applications remain ahead, but management said there may be an opportunity there in the future.
MX:ITRI Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed