10-Q · April 28, 2026
Itron reported Q1 2026 revenue of $586,982,000 and GAAP diluted EPS of $1.18, with gross profit of $236,319,000 (≈40.3% gross margin) and operating income of $67,577,000 (≈11.5% operating margin). Revenue and net income…
Earnings analysis · 10-Q
ITRI earnings analysis
Filed July 28, 2026 · Our reading of the company's report
The latest report
Itron’s Q2 revenue was $562.902 million, down 7% year over year and below the prior quarter’s $587 million, reflecting a 17% Networked Solutions decline tied to customer-deployment timing. Margin performance was notably…
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Itron’s Q2 revenue was $562.902 million, down 7% year over year and below the prior quarter’s $587 million, reflecting a 17% Networked Solutions decline tied to customer-deployment timing. Margin performance was notably strong: GAAP gross margin rose 410 bps year over year to 41.0%, supporting flat operating income despite lower revenue. GAAP diluted EPS fell to $1.19 from $1.47, pressured by a 33% tax rate and lower interest income, while six-month free cash flow improved to $160.460 million. The balance sheet absorbed the $515.055 million Locusview acquisition and $152.234 million in repurchases, reducing cash and increasing debt, but liquidity remains ample.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.19
What stood out
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Gross-margin expansion offset volume pressure
GAAP gross margin expanded 410 bps year over year to 41.0% from 36.9%, and rose 70 bps sequentially from 40.3% in Q1 2026. Product margin increased to 38.1% from 34.8%, while service margin increased to 52.9% from 48.9%.
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Outcomes and recurring revenue accelerated
Outcomes revenue grew 13% to $96.399 million, with adjusted operating income up 31% to $20.542 million. Annual recurring revenue increased to $417 million from $343 million a year earlier.
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Profitability resilient despite lower sales
Despite revenue pressure, adjusted EBITDA increased 8% to $96.837 million from $89.799 million. GAAP operating income was essentially flat at $76.066 million versus $76.413 million, while operating margin improved 90 bps sequentially to 13.5%.
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Operating cash conversion remained strong
Six-month operating cash flow increased to $173.592 million from $168.802 million, and free cash flow increased to $160.460 million from $158.146 million. Capital expenditures were only $13.132 million, equal to 1.1% of six-month revenue.
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Liquidity supports near-term commitments
Liquidity remains substantial, with $745.229 million of cash and $706.885 million available under the revolver at June 30. Management expects liquidity sources to cover operating activities and commitments for at least the next 12 months.
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Near-term backlog and bookings improved
Twelve-month backlog rose to $1.680 billion from $1.544 billion a year ago, even as total backlog declined to $4.410 billion from $4.514 billion. Quarterly bookings improved to $550 million from $476 million in Q1 2026.
What to watch
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Revenue contraction led by deployment timing
Revenue declined 7% year over year to $562.902 million from $606.761 million and fell 4% sequentially from $587 million in Q1 2026. The $69.696 million, or 17%, Networked Solutions decline was attributed primarily to timing of customer deployments.
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EPS declined on taxes and lower other income
GAAP diluted EPS decreased 19% to $1.19 from $1.47 a year ago, although it improved from $1.18 in Q1 2026. Net income attributable to Itron fell 22% to $53.272 million as the effective tax rate increased to 33% from 18%.
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Acquisition and capital returns raised leverage
Cash declined $275.168 million from year-end to $745.229 million following $515.055 million of acquisition spending and $152.234 million of share repurchases. Total debt increased to $1.610 billion from $1.265 billion, including the new $805.000 million 2026 convertible notes.
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No formal risk-factor update; macro exposure persists
No new or revised Item 1A risk factors were presented; the filing instead refers readers to the 2025 Annual Report. Management nevertheless cites potential exposure to tariffs, sanctions, supply disruption and costs, while 26% of Q2 revenue was denominated in non-U.S.-dollar functional currencies.
Management's outlook
The 10-Q contains no explicit quantitative revenue or EPS guidance; management states it expects existing cash, operating cash flow and capital-markets access to fund operations and commitments for at least the next 12 months.
Earlier filings 4
10-K · February 17, 2026
Itron reported flat full-year revenues of $2,367,194,000 in 2025 (down $73,643,000 versus 2024) while materially improving profitability: gross margin expanded to 37.7% from 34.4% and GAAP diluted EPS rose to $6.50 from…
10-Q · July 31, 2025
Itron reported Q2 revenue of $606.8M, roughly flat year-over-year (-$2.3M vs Q2 2024) while gross margin expanded to 36.9% and GAAP diluted EPS rose to $1.47. Operating income improved to $76.4M (12.6% op margin) and…
10-K · February 25, 2025
Itron delivered strong FY2024 operating leverage: revenues rose 12% to $2,440,837,000, gross margin expanded to 34.4% (from 32.8%), and GAAP diluted EPS increased to $5.18 (from $2.11). Growth was led by Networked…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.