Pitney Bowes Reports $456 Million in Revenue, Raises 2026 Forecast Floor
Key Facts
Pitney Bowes reported revenue of $456 million in the third quarter of 2026, above the consensus estimate of $452.68 million, despite a 1% decline from $460 million a year earlier. Adjusted earnings per share were $0.42, beating analysts’ estimate of $0.36 by $0.06. Adjusted earnings per share rose 35% from the third quarter of 2025, when the company reported $0.31 a share. Net income under U.S. generally accepted accounting principles was $53 million, compared with $52 million a year earlier. Adjusted earnings before interest and taxes rose to $114 million from $107 million, an increase of 6%, while earnings per share under the same accounting standards were $0.37, compared with $0.30.
Revenue was above the $451 million reported in the second quarter of 2026, which was down 2% year over year. In that quarter, adjusted earnings per share were $0.43, up 59% from $0.27 a year earlier, leaving a mixed picture in the third quarter: revenue improved from the previous quarter while adjusted earnings per share edged lower. The company raised the floor of its fiscal 2026 revenue forecast to $1.83 billion, leaving the ceiling at $1.86 billion; the previous range began at $1.80 billion. It forecast adjusted earnings per share of $1.58 to $1.67. Both ends of that range are below analysts’ consensus of $1.68, while the revenue range brackets the consensus estimate of $1.85 billion.
Pitney Bowes raised its full-year adjusted free cash flow forecast to $380–420 million, from a previous range of $360 to $410 million. It also narrowed its adjusted earnings before interest and taxes forecast to $450–470 million, keeping the midpoint of the previous range. In the third quarter, cash generated from operations was $151 million, up from $67 million in the same period of 2025. Adjusted free cash flow reached $147 million, compared with $60 million a year earlier. The company said year-to-date adjusted free cash flow benefited from increased advance payments from new clients after a major competitor exited the mail-sorting business.
At the segment level, Presort Services returned to year-over-year growth, with revenue of $151 million versus $149 million, an increase of 1%. The segment’s mail volume rose 4% to 3.4 billion pieces, with higher volumes from new clients. But the segment’s adjusted earnings before interest, taxes, depreciation and amortization fell to $41 million from $42 million. The company attributed the pressure to a $6 million year-over-year increase in transportation costs, driven by higher fuel prices and shipping cost inflation. Revenue and volume growth therefore coincided with a decline in the segment’s adjusted earnings.
In the Sending Technology Solutions segment, revenue fell 2% to $305 million from $311 million, as the installed base of mailing equipment declined. Despite that, the segment’s adjusted earnings before interest, taxes, depreciation and amortization rose 11% to $124 million, compared with $112 million a year earlier. The company attributed the segment’s earnings improvement to cost reductions and product mix. The two segments followed different paths in the quarter: sorting activity and volume grew as transportation costs weighed on its earnings, while revenue in Sending Technology Solutions declined alongside an increase in adjusted earnings. These figures alone did not point to growth in total revenue, which remained below its year-earlier level.
The company reduced debt by $148 million during the quarter, including $46 million through a bond tender offer. It also repriced a $585 million second-lien term loan, cutting the interest margin by 75 basis points. This followed the company’s second-quarter results, when it reported reducing debt by $201 million from the end of the first quarter through July 29, including $104 million in the second quarter and $97 million in July. In that update, it said there was no outstanding balance on its revolving credit facility and that its next debt maturity was in March 2029. The board approved a quarterly cash dividend of $0.10 per share, payable to shareholders of record on November 16, with payment scheduled for December 8, 2026.
Pitney Bowes shares, trading under the ticker PBI, closed at $17.44 on October 28, 2026, according to Investing.com data. The shares had fallen 0.510% over three months but gained 55.580% over 12 months. That price movement provides context for the stock as the results were released, without changing the contrast between the third-quarter beat and an annual adjusted earnings forecast below analyst consensus. The updated annual figures focus on a higher floor for revenue and adjusted free cash flow, alongside narrower ranges for adjusted earnings before interest and taxes and earnings per share. The next cash dividend is scheduled for December 8, 2026, for eligible shareholders of record on November 16.