Third Quarter 2026
Filed Oct 27, 2026Itron Announces Third Quarter 2026 Financial Results
Third-quarter revenue returned to growth, adjusted gross margin expanded 350 basis points, GAAP and non-GAAP earnings increased, and adjusted EBITDA reached $115 million. Cash generation declined from the prior-year quarter, while fourth-quarter and full-year outlook was updated.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30, 2026GAAP | $599.3M | – | increased 3% |
| Product revenues, three months ended September 30, 2026GAAP | $489.0M | – | – |
| Service revenues, three months ended September 30, 2026GAAP | $110.3M | – | – |
| Total cost of revenues, three months ended September 30, 2026GAAP | $354.5M | – | – |
| Gross profit, three months ended September 30, 2026GAAP | $244.9M | – | – |
| Gross margin, three months ended September 30, 2026GAAP | 40.9 % | – | – |
| Adjusted gross profit, three months ended September 30, 2026non-GAAP | $247.4M | – | – |
| Adjusted gross margin, three months ended September 30, 2026non-GAAP | 41.3 % | – | increased 350 basis points |
| Total operating expenses, three months ended September 30, 2026GAAP | $149.4M | – | increased $12 million |
| Non-GAAP operating expenses, three months ended September 30, 2026non-GAAP | $140.6M | – | increased $10 million |
| Operating income, three months ended September 30, 2026GAAP | $95.49M | – | $14 million higher |
| Non-GAAP operating income, three months ended September 30, 2026non-GAAP | $106.8M | – | $18 million higher |
| Net income attributable to Itron, Inc., three months ended September 30, 2026GAAP | $71.37M | – | increased $6 million |
| Diluted earnings per share, three months ended September 30, 2026GAAP | $ 1.61 | – | increased $0.20 per share |
| Non-GAAP net income attributable to Itron, Inc., three months ended September 30, 2026non-GAAP | $86.33M | – | – |
| Non-GAAP diluted EPS, three months ended September 30, 2026non-GAAP | $ 1.94 | – | increased $0.40 per share |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $114.5M | – | increased 18% |
| Net cash provided by operating activities, three months ended September 30, 2026GAAP | $102.0M | – | – |
| Free Cash Flow, three months ended September 30, 2026non-GAAP | $95.55M | – | decreased $18 million |
| Annual recurring revenue, third quarter 2026other | $423M | – | increased 25% |
| Total revenues, nine months ended September 30, 2026GAAP | $1.75B | – | – |
| Gross profit, nine months ended September 30, 2026GAAP | $711.8M | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $239.1M | – | – |
| Net income attributable to Itron, Inc., nine months ended September 30, 2026GAAP | $178.1M | – | – |
| Diluted earnings per share, nine months ended September 30, 2026GAAP | $ 3.97 | – | – |
| Non-GAAP operating income, nine months ended September 30, 2026non-GAAP | $280.3M | – | – |
| Non-GAAP net income attributable to Itron, Inc., nine months ended September 30, 2026non-GAAP | $224.8M | – | – |
| Non-GAAP diluted EPS, nine months ended September 30, 2026non-GAAP | $ 5.01 | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $303.3M | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $275.5M | – | – |
| Free Cash Flow, nine months ended September 30, 2026non-GAAP | $256.0M | – | – |
| Total backlog at quarter endother | $4.3B | – | – |
| Bookings during the quarterother | $482M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Device Solutions, total revenues, three months ended September 30, 2026Lower legacy gas product sales. | $101.5M | – | decreased 2%, or 1% in constant currency |
| Networked Solutions, total revenues, three months ended September 30, 2026Timing of project deployments. | $389.5M | – | decreased 1% |
| Outcomes, total revenues, three months ended September 30, 2026Higher services revenue. | $92.24M | – | increased 9% |
| Resiliency Solutions, total revenues, three months ended September 30, 2026Contribution from Resiliency Solutions. | $16.07M | – | – |
| Device Solutions, total revenues, nine months ended September 30, 2026 | $337.3M | – | – |
| Networked Solutions, total revenues, nine months ended September 30, 2026 | $1.08B | – | – |
| Outcomes, total revenues, nine months ended September 30, 2026 | $284.6M | – | – |
| Resiliency Solutions, total revenues, nine months ended September 30, 2026 | $47.92M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fourth Quarter 2026 and Updated Full Year 2026 outlook
- RevenueFourth Quarter 2026: Revenue between $621 and $636 million; Updated Full Year 2026: Revenue between $2.37 and $2.385 billion
- NoteFourth Quarter 2026: Non-GAAP diluted EPS between $1.70 and $1.80
- NoteUpdated Full Year 2026: Non-GAAP diluted EPS between $6.72 and $6.82
Capital returns
- Repurchase of common stock: $ 152,234 (in thousands) for the nine months ended September 30, 2026.
- Issuance of common stock: $ 2,788 (in thousands) for the nine months ended September 30, 2026.
What drove it
- Third-quarter revenue growth was driven primarily by Outcomes growth and the contribution from Resiliency Solutions.
- Adjusted gross margin expansion reflected customer and product mix as well as operational efficiencies.
- GAAP and non-GAAP operating income increased on higher gross profit.
- Operating expenses increased due to the Urbint and Locusview acquisitions.
- Free cash flow declined primarily because of changes in working capital, higher cash tax payments and lower interest income.
Concerns
- Device Solutions revenue decreased 2%, or 1% in constant currency, due to lower legacy gas product sales.
- Networked Solutions revenue decreased 1% due to the timing of project deployments.
- Third-quarter free cash flow was $ 95,545 (in thousands), compared with $ 113,408 (in thousands) in the prior year.
- Nine-month total revenues were $ 1,749,217 (in thousands), compared with $ 1,795,537 (in thousands) in the prior year.
- Nine-month net income attributable to Itron, Inc. was $ 178,100 (in thousands), compared with $ 199,427 (in thousands) in the prior year.
What to watch
- Execution against fourth-quarter revenue guidance between $621 and $636 million and non-GAAP diluted EPS guidance between $1.70 and $1.80.
- Outcomes services revenue and annual recurring revenue, which was $423 million and increased 25%.
- The timing of Networked Solutions project deployments and legacy gas product sales in Device Solutions.
- Free-cash-flow conversion following working-capital changes, higher cash tax payments and lower interest income.
- Backlog conversion from total backlog of $4.3 billion and quarterly bookings of $482 million.
Balance sheet and cash flow
- Cash and cash equivalents: $ 840,323 (in thousands) at September 30, 2026, compared with $ 1,020,397 (in thousands) at December 31, 2025.
- Long-term debt, net: $ 1,577,039 (in thousands) at September 30, 2026, compared with $ 788,805 (in thousands) at December 31, 2025.
- Current portion of debt, net: $ — at September 30, 2026, compared with $ 459,522 (in thousands) at December 31, 2025.
- Business acquisitions, net of cash and cash equivalents acquired: $ 514,888 (in thousands) for the nine months ended September 30, 2026.
- Proceeds from borrowings: $ 805,000 (in thousands) and payments on debt: $ 460,000 (in thousands) for the nine months ended September 30, 2026.
- Acquisitions of property, plant, and equipment: $ 6,408 (in thousands) in the third quarter and $ 19,540 (in thousands) for the nine months ended September 30, 2026.
Analysis
Itron reported third-quarter revenue of $ 599,333 (in thousands), compared with $ 581,625 (in thousands) in the prior-year quarter. The company described this as 3% growth, driven primarily by Outcomes and the contribution from Resiliency Solutions. Outcomes revenue was $ 92,241 (in thousands) and increased 9% on higher services revenue, while Resiliency Solutions contributed $ 16,070 (in thousands). Annual recurring revenue was $423 million and increased 25%.
The revenue mix remained uneven across the established businesses. Device Solutions revenue was $ 101,520 (in thousands) and decreased 2%, or 1% in constant currency, due to lower legacy gas product sales. Networked Solutions revenue was $ 389,502 (in thousands) and decreased 1% because of project-deployment timing. For the first nine months, total revenue was $ 1,749,217 (in thousands), compared with $ 1,795,537 (in thousands), underscoring that the third-quarter return to growth did not offset the year-to-date decline.
Profitability improved materially in the quarter. Adjusted gross margin was 41.3 %, compared with 37.7 %, an increase of 350 basis points attributed to customer and product mix and operational efficiencies. GAAP operating income was $ 95,488 (in thousands), compared with $ 81,783 (in thousands), and non-GAAP operating income was $ 106,794 (in thousands), compared with $ 89,226 (in thousands). GAAP diluted EPS rose to $ 1.61 from $ 1.41, while non-GAAP diluted EPS rose to $ 1.94 from $ 1.54. Operating expenses increased in connection with the Urbint and Locusview acquisitions.
Cash generation was weaker than the prior-year quarter despite higher earnings. Net cash provided by operating activities was $ 101,953 (in thousands), compared with $ 117,829 (in thousands), and free cash flow was $ 95,545 (in thousands), compared with $ 113,408 (in thousands). Itron attributed the free-cash-flow decline to working-capital changes, higher cash tax payments and lower interest income. At September 30, 2026, cash and cash equivalents were $ 840,323 (in thousands), while long-term debt, net was $ 1,577,039 (in thousands). The company also repurchased $ 152,234 (in thousands) of common stock during the first nine months.
The company provided fourth-quarter revenue guidance between $621 and $636 million and non-GAAP diluted EPS guidance between $1.70 and $1.80. Updated full-year revenue guidance is between $2.37 and $2.385 billion, with non-GAAP diluted EPS between $6.72 and $6.82. Total backlog was $4.3 billion at quarter end and quarterly bookings were $482 million, making backlog conversion, Networked Solutions deployment timing and the durability of Outcomes and recurring-revenue growth central operating measures for the next period.
Management, verbatim
Itron delivered a strong third quarter, with revenue returning to growth at the top end of our outlook, record adjusted EBITDA, and earnings well ahead of our expectations — demonstrating the earnings leverage of our stronger operating model.
Tom Deitrich, Itron’s President and CEO
Utilities’ needs for capacity, reliability, resiliency, and affordability continue to drive demand for our technology, while our expanding software and services portfolio is supporting recurring revenue growth.
Tom Deitrich, Itron’s President and CEO
Not in the filing
stated, not guessed- Previous-period outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- Prior-quarter figures and sequential changes were not reported for the presented quarterly metrics.
- GAAP gross-margin and operating-margin guidance were not provided.
- Forward operating-expense and tax-rate guidance were not provided.
- A quarterly dividend was not reported.
- Annual recurring revenue prior-year amount was not reported.
- Prior-year and prior-quarter comparisons were not reported for backlog and bookings.
- Segment revenue percentage changes for the nine months ended September 30, 2026 were not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.