Itron (NASDAQ:ITRI) Shares Gap Up After Earnings Beat

Itron, Inc. (NASDAQ:ITRI) shares gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $84.78, but opened at $91.75. Itron shares last traded at $104.4390, with a volume of 654,388 shares changing hands.

The scientific and technical instruments company reported $1.59 EPS for the quarter, beating analysts’ consensus estimates of $1.29 by $0.30. Itron had a net margin of 12.31% and a return on equity of 19.54%. During the same period in the prior year, the firm posted $1.62 EPS. The business’s revenue was down 7.2% on a year-over-year basis. Itron has set its Q3 2026 guidance at 1.500-1.600 EPS and its FY 2026 guidance at 6.300-6.500 EPS.

Key Stories Impacting Itron

Here are the key news stories impacting Itron this week:

• Positive Sentiment: Non-GAAP diluted EPS was $1.59, exceeding analysts’ consensus estimate of $1.29 by $0.30. Adjusted EBITDA rose 8% to $97 million, and adjusted gross margin reached a record 41.4%, up 460 basis points year over year. Itron Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Itron raised its full-year 2026 non-GAAP EPS outlook to $6.30-$6.50, above the roughly $5.98 analyst consensus, signaling confidence in improving operating performance and demand across utility and infrastructure markets. Full-year revenue guidance is $2.37-$2.41 billion.
• Positive Sentiment: Annual recurring revenue increased 21% to $417 million, while Outcomes revenue grew 13%. The company also reported $550 million in quarterly bookings and a substantial $4.4 billion backlog, supporting longer-term visibility.
• Neutral Sentiment: Third-quarter guidance calls for non-GAAP EPS of $1.50-$1.60, broadly around consensus of $1.55, but revenue of $590-$600 million is below the $607.4 million estimate. This suggests earnings may remain resilient even as project timing weighs on sales.
• Negative Sentiment: Second-quarter revenue fell 7% to $563 million, primarily because Networked Solutions revenue declined 17% amid lower volumes and project-deployment timing. Device Solutions revenue also edged lower.
• Negative Sentiment: GAAP net income attributable to Itron dropped to $53 million from $68 million, and GAAP diluted EPS declined to $1.19 from $1.47. Non-GAAP EPS also slipped slightly from $1.62 a year earlier, while free cash flow decreased to $81 million from $91 million.

Analysts Set New Price Targets

A number of analysts have issued reports on the company. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Itron in a report on Friday, May 8th. Stephens reiterated an “overweight” rating and issued a $130.00 price objective on shares of Itron in a report on Wednesday, May 20th. Raymond James Financial initiated coverage on Itron in a research report on Tuesday, April 21st. They set an “underperform” rating on the stock. Roth Capital restated a “buy” rating and set a $136.00 target price on shares of Itron in a research note on Wednesday, April 29th. Finally, TD Cowen dropped their price target on shares of Itron from $145.00 to $130.00 and set a “buy” rating on the stock in a research note on Wednesday, April 29th. Eight research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $131.22.

Insider Buying and Selling

In other Itron news, SVP Donald L. Reeves III sold 319 shares of the business’s stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $84.37, for a total transaction of $26,914.03. Following the transaction, the senior vice president owned 29,100 shares in the company, valued at approximately $2,455,167. The trade was a 1.08% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP John F. Marcolini sold 322 shares of the company’s stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $84.37, for a total value of $27,167.14. Following the transaction, the senior vice president directly owned 24,689 shares in the company, valued at $2,083,010.93. This represents a 1.29% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 3,946 shares of company stock valued at $324,420 over the last three months. 1.77% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Itron

Large investors have recently made changes to their positions in the stock. Private Trust Co. NA boosted its holdings in Itron by 112.4% during the fourth quarter. Private Trust Co. NA now owns 274 shares of the scientific and technical instruments company’s stock worth $25,000 after buying an additional 145 shares in the last quarter. Employees Retirement System of Texas purchased a new position in Itron in the third quarter valued at about $32,000. Northwestern Mutual Wealth Management Co. lifted its position in shares of Itron by 29.5% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 443 shares of the scientific and technical instruments company’s stock valued at $41,000 after acquiring an additional 101 shares during the period. Advisory Services Network LLC acquired a new stake in shares of Itron during the 3rd quarter valued at approximately $49,000. Finally, EverSource Wealth Advisors LLC boosted its stake in shares of Itron by 25.3% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 401 shares of the scientific and technical instruments company’s stock worth $53,000 after acquiring an additional 81 shares in the last quarter. Hedge funds and other institutional investors own 96.19% of the company’s stock.

Itron Trading Up 21.6%

The firm has a market cap of $4.57 billion, a price-to-earnings ratio of 16.51, a PEG ratio of 0.74 and a beta of 1.32. The business has a fifty day moving average of $83.04 and a two-hundred day moving average of $89.73. The company has a debt-to-equity ratio of 0.97, a quick ratio of 2.24 and a current ratio of 2.66.

About Itron

Itron, Inc (NASDAQ: ITRI) is a global technology company that develops innovative solutions to measure, manage and analyze the use of energy and water. Its comprehensive portfolio includes smart meters, data collection devices, communication networks and advanced software applications designed to optimize utility operations and foster sustainable resource management. The company’s offerings enable utilities and cities to accurately monitor consumption patterns, streamline billing processes and improve grid reliability.

Itron’s product lineup spans a range of hardware and software solutions, from residential and commercial smart meters to meter data management systems (MDMS), networked communication platforms and analytics tools.