Itron Q2 profit beats despite revenue drop from weaker project deployments

Itron

28/07/2026 13:41

Overview
US energy and water management firm's Q2 revenue fell 7%, slightly missing analyst expectations
Adjusted EPS for Q2 beat analyst expectations
Revenue decline driven by lower Networked Solutions, partly offset by Outcomes growth

Outlook
Itron sees Q3 revenue between $590 mln and $600 mln
Company expects Q3 non-GAAP diluted EPS between $1.50 and $1.60
Itron raises full-year 2026 non-GAAP diluted EPS outlook to $6.30-$6.50

Result Drivers
NETWORKED SOLUTIONS DECLINE - Co said revenue fell mainly due to lower Networked Solutions revenue, citing timing of project deployments and lower volumes
OUTCOMES GROWTH - Outcomes revenue rose 13% due to increased services revenue
RECORD GROSS MARGIN - Co attributed higher gross margin to customer and product mix as well as operational efficiencies

Company press release: ID:nGNX4MBCf

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Miss*
$563 mln
$566.08 mln (10 Analysts)
Q2 Adjusted EPS
Beat
$1.59
$1.29 (10 Analysts)
Q2 EPS
 
$1.19
 
Q2 Net Income
 
$53 mln
 
Q2 Adjusted EBITDA
 
$97 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the electronic equipment & parts peer group is "buy"
Wall Street's median 12-month price target for Itron Inc is $130.00, about 53.3% above its July 27 closing price of $84.78
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads
July 28 - Xylem raises annual profit forecast as AI growth lifts demand for water-treatment equipment
July 28 - Pentair falls as pool equipment destocking hits sales; to buy Taco Group for $1.4 billion
July 28 - CenterPoint Energy beats Q2 profit estimates, boosts 10-year capital investment plan

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)