Itron grows Q3 revenue 3% as recurring revenue jumps 25% and EPS climbs

Itron returned to revenue growth in the third quarter of 2026 and lifted earnings well ahead of a year ago, as the utility technology company posted record adjusted EBITDA and a 25% jump in annual recurring revenue.

Revenue rose 3% to $599 million from $582 million, according to the earnings release attached to its 8-K on Tuesday. Non-GAAP diluted earnings came to $1.94 per share, up from $1.54, while GAAP net income rose to $71 million, or $1.61 per share, from $66 million, or $1.41.

CEO Tom Deitrich said revenue landed "at the top end of our outlook" and that earnings were "well ahead of our expectations," pointing to the earnings leverage of what he called a stronger operating model.

Mix and margins

Growth came from Itron's Outcomes segment, where revenue rose 9% on higher services revenue, plus a contribution from the newer Resiliency Solutions segment, which brought in $16 million. Device Solutions revenue fell 2% on lower legacy gas product sales, and Networked Solutions slipped 1% on project timing.

Adjusted gross margin widened 350 basis points to 41.3%, which the company attributed to customer and product mix and operational efficiencies. Adjusted EBITDA rose 18% to $115 million.

Operating expenses rose with the Urbint and Locusview acquisitions. Free cash flow fell to $96 million from $113 million.

Outlook

For the fourth quarter, Itron expects revenue of $621 million to $636 million and non-GAAP EPS of $1.70 to $1.80. Its updated full-year 2026 outlook calls for revenue of $2.37 billion to $2.385 billion and non-GAAP EPS of $6.72 to $6.82.

By the numbers

• Q3 revenue: $599 million, up 3%
• Annual recurring revenue: $423 million, up 25%
• Non-GAAP EPS: $1.94 vs. $1.54
• Adjusted EBITDA: $115 million, up 18%
• 2026 non-GAAP EPS outlook: $6.72 to $6.82

Sources

1. ITRON, INC., Form 8-K with third quarter 2026 earnings release, filed Oct. 27, 2026 (accession 0001171843-26-006839)

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