Itron Raises Full-Year EPS Guidance to $6.72–$6.82 After Third-Quarter Revenue Growth
Key Facts
Itron raised its fiscal 2026 non-GAAP diluted earnings per share guidance to a range of $6.72–$6.82, alongside annual revenue guidance of $2.37 billion to $2.385 billion. The company reported on October 27 results for the third quarter ended September 30, 2026. Quarterly revenue was $599.33 million, above analyst consensus of $595.51 million, according to Investing.com, citing Reuters. Non-GAAP earnings per share were $1.94, compared with an estimate of $1.56. CEO Tom Deitrich said revenue had returned to growth at the high end of the company’s expectations and earnings came in well above its forecast.
The new guidance includes a range for annual revenue as well as a higher range for annual earnings per share; these represent two different ways to track the company’s performance through year-end. In the second quarter, revenue was $563 million, down 7% year over year, while annual recurring revenue rose 21% to $417 million. This comparison provides context for assessing the return to revenue growth that Deitrich cited in the third quarter. The company had raised its annual earnings outlook in July despite weak sales and mixed revenue growth. Its current full-year guidance sets revenue at $2.37 billion to $2.385 billion and earnings per share at $6.72 to $6.82.
The backlog stood at $4.3 billion at quarter-end, while new orders during the quarter totaled $482 million, according to an Itron statement. These figures put the volume of accumulated business and incoming orders during the period in the context of the annual and fourth-quarter outlook. The company said revenue had returned to growth at the high end of its expectations and described earnings as well above its estimates. It also reported record adjusted EBITDA, without giving a figure for the metric in the quote. Backlog and new orders remain indicators of the volume of business recorded at the end of the quarter and during it, respectively.
Free cash flow did not keep pace with improved earnings; it was $96 million in the third quarter, compared with $113 million in the same period a year earlier. The company attributed the decline to changes in working capital, higher cash taxes and lower interest income. This places the fall in free cash flow alongside earnings per share and revenue exceeding analyst estimates. Itron shares closed at $87.73 on October 26, according to EL7 data. After the results were announced, the stock fell 0.72% to $87.10 in premarket trading on October 27, according to Investing.com.
Itron set fourth-quarter revenue guidance at $621 million to $636 million and non-GAAP diluted earnings per share at $1.70 to $1.80. The outlook is the next step within the annual range the company raised for earnings per share and set for revenue. Comparing the expected quarterly revenue range with estimated annual revenue offers a way to track whether the company will continue the return to growth described by its CEO. Free cash flow also remains a focus after falling below its year-earlier level. The fourth-quarter guidance follows results for the quarter ended September 30, while the statement did not specify another date in the information provided.