Itron (ITRI) Q2 2026: 23.7% EPS Beat on Record Gross Margins
As seen on the 24/7 Wall St. homepage on July 28, 2026.
Itron crushed earnings with a 23.7% EPS beat on record 41.4% gross margins, offsetting a modest revenue miss as the company shifts to higher-margin recurring revenue streams that jumped 21% year-over-year; management raised full-year guidance citing durable demand for grid expansion and resiliency.
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Itron reported Q2 2026 adjusted EPS of $1.59, clearing the $1.29 consensus estimate by nearly 24%. The standout driver was a record 41.4% gross margin, a figure that reflects the company's ongoing push toward higher-margin recurring revenue streams, which grew 21% year-over-year. Revenue came in at $562.9 million, just a hair under the $566.3 million estimate, a modest miss that management appears comfortable trading against the profitability gains it is achieving.
The earnings beat continues a pattern that has become something of a hallmark for Itron. Looking back across the past eight quarters, the company has beaten EPS estimates in every single period, with the gap ranging from a few cents to the standout Q3 2024 beat of $1.84 reported versus $1.13 estimated. Q2 2026's $1.59 print sits comfortably in that range and keeps the streak intact.
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Management responded to the results by raising full-year guidance, pointing to what it described as durable demand for grid expansion and resiliency. Those tailwinds tie directly to the broader buildout of smart-grid infrastructure, where Itron's metering and network technology is positioned. Investors will likely focus on whether the recurring revenue mix can keep gross margins at or above the record level set this quarter.
Mentioned: ITRI