Itron Reports Q4 Earnings with Revenue Decline but Net Income Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 03 2026
0mins
Source: NASDAQ.COM
Itron Inc's stock surged by 10.69% as it crossed above the 5-day SMA, reflecting positive investor sentiment following its recent earnings report.
Itron reported its fourth-quarter financial results, revealing a revenue decline of 7% year-over-year to $572 million, but net income grew by 76% to $102 million, driven by successful portfolio optimization. The company also generated free cash flow of $112 million, a 42% increase, and announced the acquisition of Urbint and Locusview for $525 million to enhance its AI-driven software solutions.
The strong performance in net income and cash flow, despite revenue challenges, indicates Itron's effective cost management and operational efficiency, which could bolster investor confidence moving forward.
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Analyst Views on ITRI
Wall Street analysts forecast ITRI stock price to rise
4 Analyst Rating
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 81.850
Low
125.00
Averages
134.50
High
145.00
Current: 81.850
Low
125.00
Averages
134.50
High
145.00
About ITRI
Itron, Inc. provides energy, water, smart city, Industrial Internet of Things (IIoT) and intelligent infrastructure services. The Company's Device Solutions segment primarily includes hardware products used for measurement, control, or sensing that can have communications capability embedded for use with its broader Itron systems, which is hardware-based products. Its Networked Solutions segment primarily includes a combination of communicating devices (smart meters, modules, endpoints, and sensors), network infrastructure, network design services, and associated head-end management and application software designed and sold as a complete solution for acquiring and transporting application-specific data. Its Outcomes segment includes its value-added, enhanced software and services, in which it enables grid edge intelligence and manage, organize, analyze, and interpret raw, anonymized data using artificial intelligence, machine learning, statistical modeling, and other analytics.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Itron Partners with Thane Municipal Corporation for Smart Water Management
- Significant Project Impact: Itron's collaboration with Thane Municipal Corporation has successfully completed a smart water management project that enhances water resource management through advanced digital technology, significantly improving distribution efficiency and service reliability for residents.
- Data Management System Upgrade: The project utilizes Itron's Temetra meter data management solution combined with high-performance multi-jet turbine water meters, enabling Thane to securely and accurately collect and store meter data, thereby reducing billing errors and enhancing customer service.
- Infrastructure Integration: CS TECH Ai's expertise in large-scale urban deployments ensured smooth execution and on-time delivery of the smart metering system, setting a new benchmark for water management in Thane and promoting sustainability.
- Deepening Strategic Collaboration: Atul Kulkarni, Executive Engineer at TMC, emphasized that the project reflects a commitment to leveraging proven technology for improved water management, with Itron and CS TECH Ai's partnership providing robust support for sustainable urban water resource utilization.
See More
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- Itron's Weak Growth: Itron (ITRI) reported a mere 1.4% annual revenue growth over the last two years, falling short of industrial sector standards, with projected sales growth of only 2.4% over the next 12 months reflecting weak demand, while a 6.5% return on capital indicates management's struggles in identifying profitable growth opportunities.
- Tenet Healthcare's Strong Performance: Tenet Healthcare (THC) has achieved a 16.8% annual earnings per share growth through share buybacks, outpacing revenue growth, and has increased its free cash flow margin by 12.7 percentage points over the past five years, enhancing its capacity for growth initiatives and share repurchases.
- Industry-Leading Capital Returns: Tenet Healthcare boasts a 22.5% return on capital, showcasing management's skill in identifying high-return investments, with returns continuing to grow as the company capitalizes on improving market opportunities.
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Itron Q1 Earnings Beat Expectations Despite Initial Sell-Off
- Earnings Beat: Itron reported Q1 non-GAAP EPS of $1.49, exceeding Wall Street's estimate by $0.25, while sales of approximately $587 million, though down 3% year-over-year, still surpassed analyst expectations by $14.9 million, demonstrating resilience in challenging conditions.
- Sales Dynamics: Despite a 13% year-over-year decline in networked solutions sales, outcomes revenue rose 22% compared to the prior year, effectively mitigating the overall sales drop, indicating growth potential in specific areas.
- Market Reaction: Itron's stock initially fell 9.7% during the day but closed up 0.1%, reflecting a gradual recognition of the company's performance by investors, even as the broader market struggled with the S&P 500 down 0.5%.
- Cautious Guidance: Itron's guidance for sales between $560 million and $570 million falls short of the $607 million analyst estimate, with adjusted EPS projected between $1.25 and $1.35, suggesting potential valuation pressures ahead for the stock.
See More
Itron Q1 Earnings Beat Expectations Despite Guidance Shortfall
- Earnings Beat: Itron reported adjusted earnings per share of $1.49 for Q1, exceeding Wall Street's expectations by $0.25, demonstrating the company's resilience in profitability despite a 3% year-over-year sales decline.
- Sales Performance: The company achieved approximately $587 million in sales for the first quarter, surpassing analyst expectations by $14.9 million, with outcomes revenue increasing by 22% year-over-year, which helped mitigate the overall sales drop despite a 13% decline in networked solutions sales.
- Guidance Shortfall: Itron's sales guidance for the current quarter is projected between $560 million and $570 million, significantly below the analyst consensus of $607 million, raising concerns about the company's future growth and potentially putting pressure on its stock valuation.
- Stock Volatility: Itron's stock experienced a significant drop of 9.7% during the trading day but managed to close up 0.1%, reflecting a complex market reaction to the company's performance, as investors showed some confidence despite the weaker guidance.
See More
Itron Reports Strong Q1 2026 Earnings Exceeding Expectations
- Strong Performance: Itron's Q1 revenue reached $587 million, with adjusted EBITDA of $92 million and non-GAAP EPS of $1.49, all exceeding market expectations, reflecting robust execution and enhancing investor confidence.
- Bookings and Backlog: The total bookings for Q1 amounted to $476 million, bringing the total backlog to $4.4 billion, indicating stable market demand, particularly with the growing share of Outcomes and Resiliency Solutions, which is expected to drive future revenue growth.
- Margin Improvement: The gross margin for Q1 improved by 450 basis points year-over-year to 40.7%, primarily due to a favorable product mix and operational efficiencies, which will support the company's future profitability.
- Outlook: Management anticipates Q2 revenue to be between $560 million and $570 million, and despite market volatility, they maintain an optimistic view on project deployments in the second half of the year, emphasizing sustained demand and a stable customer base.
See More
Itron's Q2 Outlook Falls Short of Expectations
- Strong Earnings Beat: Itron reported adjusted EPS of $1.49 for Q1 2026, exceeding the consensus estimate of $1.24, while GAAP EPS of $1.18 also surpassed the $1.10 expectation, indicating robust operational execution.
- Revenue Decline: The company's revenue of $587 million for the quarter, although beating the $572 million consensus, represented a 3% year-over-year decline, highlighting challenges in the market environment that could impact future growth.
- Dismal Future Guidance: Itron's revenue guidance for the ongoing quarter is projected between $560 million and $570 million, falling short of the $607 million consensus, with adjusted EPS expectations of $1.25 to $1.35 also below the $1.46 estimate, raising concerns about its future performance.
- Security Incident Impact: Following an unauthorized access incident, Itron has taken corrective actions and reported no further unauthorized activity, yet this event may affect investor confidence, despite the company asserting it will not have a material impact on operations.
See More
Itron Partners with Thane Municipal Corporation for Smart Water Management
- Significant Project Impact: Itron's collaboration with Thane Municipal Corporation has successfully completed a smart water management project that enhances water resource management through advanced digital technology, significantly improving distribution efficiency and service reliability for residents.
- Data Management System Upgrade: The project utilizes Itron's Temetra meter data management solution combined with high-performance multi-jet turbine water meters, enabling Thane to securely and accurately collect and store meter data, thereby reducing billing errors and enhancing customer service.
- Infrastructure Integration: CS TECH Ai's expertise in large-scale urban deployments ensured smooth execution and on-time delivery of the smart metering system, setting a new benchmark for water management in Thane and promoting sustainability.
- Deepening Strategic Collaboration: Atul Kulkarni, Executive Engineer at TMC, emphasized that the project reflects a commitment to leveraging proven technology for improved water management, with Itron and CS TECH Ai's partnership providing robust support for sustainable urban water resource utilization.
See More
Profitable Companies May Not Last
- Warner Music Group Struggles: Warner Music Group (WMG) has seen only 8.7% annual revenue growth over the past five years, lagging behind its consumer discretionary peers, indicating a lack of competitive strength, and is expected to face deteriorating cash conversion capabilities, leading to declining investment value.
- Itron's Weak Growth: Itron (ITRI) reported a mere 1.4% annual revenue growth over the last two years, falling short of industrial sector standards, with projected sales growth of only 2.4% over the next 12 months reflecting weak demand, while a 6.5% return on capital indicates management's struggles in identifying profitable growth opportunities.
- Tenet Healthcare's Strong Performance: Tenet Healthcare (THC) has achieved a 16.8% annual earnings per share growth through share buybacks, outpacing revenue growth, and has increased its free cash flow margin by 12.7 percentage points over the past five years, enhancing its capacity for growth initiatives and share repurchases.
- Industry-Leading Capital Returns: Tenet Healthcare boasts a 22.5% return on capital, showcasing management's skill in identifying high-return investments, with returns continuing to grow as the company capitalizes on improving market opportunities.
See More
Itron Q1 Earnings Beat Expectations Despite Initial Sell-Off
- Earnings Beat: Itron reported Q1 non-GAAP EPS of $1.49, exceeding Wall Street's estimate by $0.25, while sales of approximately $587 million, though down 3% year-over-year, still surpassed analyst expectations by $14.9 million, demonstrating resilience in challenging conditions.
- Sales Dynamics: Despite a 13% year-over-year decline in networked solutions sales, outcomes revenue rose 22% compared to the prior year, effectively mitigating the overall sales drop, indicating growth potential in specific areas.
- Market Reaction: Itron's stock initially fell 9.7% during the day but closed up 0.1%, reflecting a gradual recognition of the company's performance by investors, even as the broader market struggled with the S&P 500 down 0.5%.
- Cautious Guidance: Itron's guidance for sales between $560 million and $570 million falls short of the $607 million analyst estimate, with adjusted EPS projected between $1.25 and $1.35, suggesting potential valuation pressures ahead for the stock.
See More
Itron Q1 Earnings Beat Expectations Despite Guidance Shortfall
- Earnings Beat: Itron reported adjusted earnings per share of $1.49 for Q1, exceeding Wall Street's expectations by $0.25, demonstrating the company's resilience in profitability despite a 3% year-over-year sales decline.
- Sales Performance: The company achieved approximately $587 million in sales for the first quarter, surpassing analyst expectations by $14.9 million, with outcomes revenue increasing by 22% year-over-year, which helped mitigate the overall sales drop despite a 13% decline in networked solutions sales.
- Guidance Shortfall: Itron's sales guidance for the current quarter is projected between $560 million and $570 million, significantly below the analyst consensus of $607 million, raising concerns about the company's future growth and potentially putting pressure on its stock valuation.
- Stock Volatility: Itron's stock experienced a significant drop of 9.7% during the trading day but managed to close up 0.1%, reflecting a complex market reaction to the company's performance, as investors showed some confidence despite the weaker guidance.
See More
Itron Reports Strong Q1 2026 Earnings Exceeding Expectations
- Strong Performance: Itron's Q1 revenue reached $587 million, with adjusted EBITDA of $92 million and non-GAAP EPS of $1.49, all exceeding market expectations, reflecting robust execution and enhancing investor confidence.
- Bookings and Backlog: The total bookings for Q1 amounted to $476 million, bringing the total backlog to $4.4 billion, indicating stable market demand, particularly with the growing share of Outcomes and Resiliency Solutions, which is expected to drive future revenue growth.
- Margin Improvement: The gross margin for Q1 improved by 450 basis points year-over-year to 40.7%, primarily due to a favorable product mix and operational efficiencies, which will support the company's future profitability.
- Outlook: Management anticipates Q2 revenue to be between $560 million and $570 million, and despite market volatility, they maintain an optimistic view on project deployments in the second half of the year, emphasizing sustained demand and a stable customer base.
See More
Itron's Q2 Outlook Falls Short of Expectations
- Strong Earnings Beat: Itron reported adjusted EPS of $1.49 for Q1 2026, exceeding the consensus estimate of $1.24, while GAAP EPS of $1.18 also surpassed the $1.10 expectation, indicating robust operational execution.
- Revenue Decline: The company's revenue of $587 million for the quarter, although beating the $572 million consensus, represented a 3% year-over-year decline, highlighting challenges in the market environment that could impact future growth.
- Dismal Future Guidance: Itron's revenue guidance for the ongoing quarter is projected between $560 million and $570 million, falling short of the $607 million consensus, with adjusted EPS expectations of $1.25 to $1.35 also below the $1.46 estimate, raising concerns about its future performance.
- Security Incident Impact: Following an unauthorized access incident, Itron has taken corrective actions and reported no further unauthorized activity, yet this event may affect investor confidence, despite the company asserting it will not have a material impact on operations.
See More
