Shares jumped as much as 20% after record margins, a strong profit beat and higher full-year adjusted EPS guidance outweighed a slight revenue miss tied to project timing.
Itron reported a strong second quarter for 2026, posting adjusted EPS of $1.59, well above the $1.29 consensus estimate, as record margins and operating discipline offset a 7.2% year-over-year revenue decline to $562.9 million that came in just below forecasts. The top-line shortfall was driven largely by project deployment timing in Networked Solutions, while annual recurring revenue rose 21% to $417 million, supporting a more predictable revenue base. Adjusted gross margin expanded 460 basis points to 41.4%, adjusted operating income rose 8% to $89.1 million and adjusted EBITDA increased 8% to $96.8 million. Itron also raised its full-year 2026 adjusted EPS outlook to $6.30 to $6.50 from $5.75 to $6.25, above the $5.96 consensus estimate, helping send the shares up as much as 20% in morning trading.