GET DAILY SIGNALSItron (ITRI) Delivers +3% Revenue Growth and Raises Full-Year EPS Outlook
Key Takeaways
- Total revenue rose 3% year over year to $599.3 million, landing at the top end of management's outlook and slightly above analyst consensus of roughly $596 million.
- Non-GAAP diluted earnings per share (EPS) reached $1.94, up from $1.54 a year ago and well ahead of consensus estimates near $1.56.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) hit a quarterly record of $115 million, or about 19% of revenue.
- Annual recurring revenue (ARR) climbed roughly 25% to $423 million, while total backlog stood at $4.3 billion.
- Itron raised its full-year 2026 non-GAAP EPS outlook to a range of $6.72 to $6.82.
- For more details on this ticker's Major News, Today's Price Move, Price Targets, and Forecast, explore the dedicated pages.
- Discover additional market ideas by exploring Trending AI Robots.
Why This Quarter Matters
Itron, a provider of smart grid, metering, and utility-focused software and services, has been shifting its business toward higher-margin recurring revenue even as hardware segments faced some pressure. The third quarter of 2026 showed a return to year-over-year revenue growth after recent softness, helped by the Outcomes segment and the new Resiliency Solutions segment. In my view, the report stands out more for margin execution than headline growth: adjusted gross margin expanded to 41.3%, and management showed the earnings leverage of its improved operating model. With utilities investing in grid modernization and distributed intelligence, Itron's ability to turn modest revenue gains into record profitability and a raised full-year EPS outlook makes this quarter an important signal for the company's path forward. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Breaking Down the Reported Results
For the three months ended September 30, 2026, Itron reported total revenue of $599.3 million, up 3% from $581.6 million in the prior-year quarter. GAAP net income rose to $71 million, or $1.61 per diluted share, compared with $66 million, or $1.41 per share, a year earlier.
On a non-GAAP basis, diluted EPS was $1.94, up from $1.54 a year ago and roughly 24% above consensus estimates near $1.56. Non-GAAP operating income increased 20% to $107 million, while adjusted EBITDA reached a record $115 million. Adjusted gross margin expanded 350 basis points to 41.3%.
By segment, Device Solutions revenue was $102 million and Networked Solutions revenue was $390 million, each down about 1% on a constant-currency basis. Outcomes revenue grew 9% to $92 million, and Resiliency Solutions contributed $16 million. Annual recurring revenue rose approximately 25% to $423 million, and quarterly bookings of $482 million were up 27% year over year. Free cash flow was $96 million, down from $113 million a year earlier due to higher working capital, tax payments, and lower interest income.
For the fourth quarter, Itron guided revenue of $621 million to $636 million and non-GAAP diluted EPS of $1.70 to $1.80. The company narrowed full-year revenue guidance to $2.37 billion to $2.385 billion and raised full-year non-GAAP EPS guidance to $6.72 to $6.82.
Market Reaction and Investor Sentiment
Itron's results were generally well received, with the earnings beat driven by stronger-than-expected profitability rather than dramatic top-line growth. The non-GAAP EPS of $1.94 came in well above consensus, while adjusted EBITDA also exceeded expectations, reinforcing the narrative of margin discipline and operating leverage. Sentiment was tempered somewhat by fourth-quarter revenue guidance, whose midpoint sat slightly below analyst consensus, and by lower free cash flow compared with the prior-year period. Still, the raised full-year EPS outlook and record adjusted EBITDA signaled confidence to investors, positioning the quarter as one where quality of earnings and recurring revenue momentum outweighed modest revenue growth.
Forward Outlook and Key Factors to Monitor
Looking ahead, investors should track several themes tied to Itron's shift toward software and recurring revenue. The company guided to fourth-quarter revenue of $621 million to $636 million, implying roughly 10% growth at the midpoint, and raised its full-year non-GAAP EPS target. Whether Itron can sustain that margin expansion while revenue re-accelerates will be a central question.
Annual recurring revenue growth — which accelerated to about 25% — and the scaling of Grid Edge Intelligence, including more than 19.4 million distributed intelligence-enabled endpoints shipped, are important indicators of the company's transition toward higher-quality, more predictable income.
Investors should also monitor bookings and backlog, which totaled $4.3 billion, as well as supply-chain costs for memory and selected components, which management noted are rising. The integration of the Resiliency Solutions segment, formed from the Urbint and Locusview acquisitions, will be another area to watch as Itron expands its portfolio of asset-lifecycle and safety applications for utilities. From what I see, these elements will shape how the story develops in the quarters ahead.
Integrating Tickeron AI Tools Into My Analysis
I regularly turn to Tickeron’s AI Screener when evaluating companies like this one. It lets me quickly filter stocks and ETFs by technical patterns, fundamentals, and AI-driven signals, which helps me spot broader trends across the utility sector without getting stuck on a single ticker. The tool has become a practical part of my routine for confirming ideas and identifying comparable opportunities.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for ITRI turns positive, indicating new upward trend
ITRI saw its Momentum Indicator move above the 0 level on October 22, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 88 similar instances where the indicator turned positive. In 62 of the 88 cases, the stock moved higher in the following days. The odds of a move higher are at 70%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where ITRI's RSI Oscillator exited the oversold zone, 22 of 33 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 67%.
The Moving Average Convergence Divergence (MACD) for ITRI just turned positive on October 21, 2026. Looking at past instances where ITRI's MACD turned positive, the stock continued to rise in 30 of 43 cases over the following month. The odds of a continued upward trend are 70%.
Following a +4.20% 3-day Advance, the price is estimated to grow further. Considering data from situations where ITRI advanced for three days, in 178 of 266 cases, the price rose further within the following month. The odds of a continued upward trend are 67%.
ITRI may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ITRI declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 67%.
The Aroon Indicator for ITRI entered a downward trend on October 26, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 52 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 53 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.377) is normal, around the industry mean (1.496). P/E Ratio (14.429) is within average values for comparable stocks, (6.275). Projected Growth (PEG Ratio) (0.684) is also within normal values, averaging (5.470). Dividend Yield (0.000) settles around the average of (0.011) among similar stocks. P/S Ratio (1.829) is also within normal values, averaging (32.028).
The Tickeron Price Growth Rating for this company is 59 (best 1 - 100 worst), indicating steady price growth. ITRI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 83 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 88 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ITRI’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock worse than average.
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a manufacturer of measuring equipment for electricity, gas and water
Industry ElectronicEquipmentInstruments
Advertisement