Itron Q3 2026: EPS Beats Expectations as Recurring Revenue Surges
As seen on the 24/7 Wall St. homepage on October 27, 2026.
Itron's software pivot is now doing the heavy lifting: annual recurring revenue rose 25% to $423 million, the engine behind a quarter where earnings beat expectations despite minimal revenue growth. Management lifted full-year non-GAAP EPS guidance to $6.72 to $6.82.
Continue ReadingShow less
Itron posted adjusted non-GAAP diluted EPS of $1.94 for the third quarter of 2026, beating the consensus estimate. Revenue grew 3% year over year, a modest top-line gain that understates how much the business's profit engine has changed.
Adjusted gross margin expanded 350 basis points to 41.3%, driven by a more favorable product and customer mix along with operational efficiencies. That expansion lifted adjusted EBITDA, which is what turned a quiet revenue quarter into a decisive earnings beat.
Annual recurring revenue rose 25% to $423 million, reflecting how far Itron has moved toward software and services from its traditional hardware roots. The newly formed Resiliency Solutions segment, assembled through the Urbint and Locusview acquisitions, carries an adjusted gross margin of 74.4% and shows what high-margin growth looks like at scale.
Sponsored
Twelve Tabs, One Thesis
Your Research Resets Every Morning
The quote page in one tab. Filings in another. A chart you rebuilt from scratch, a transcript you never went back and found, a screener whose settings you will redo next week. Nothing you built yesterday is still there.
AlphaSpace replaces all of it with one screen you arrange yourself. Earnings calendar, estimate versus actual, the call transcript, live news, your own charts, every panel wired to whatever ticker you click. Close the browser and it is all still sitting there tomorrow.
See What a Built View Looks Like →
(Sponsor)
Management raised full-year non-GAAP diluted EPS guidance to a range of $6.72 to $6.82 and projected higher Q4 2026 revenue. CEO Tom Deitrich described the quarter as demonstrating "the earnings leverage of our stronger operating model," pointing to record adjusted EBITDA and earnings that came in well ahead of the company's own expectations.
One area worth watching is the balance sheet: long-term debt rose to $1.577 billion to fund the acquisitions powering the new Resiliency Solutions segment, while free cash flow declined year over year. Total backlog provides visibility into future revenue even as investors weigh the cost of building out the software platform.
Mentioned: ITRI