A month has gone by since the last earnings report for Itron (ITRI Quick QuoteITRI - Free Report) . Shares have added about 3.2% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Itron due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Itron, Inc. before we dive into how investors and analysts have reacted as of late.

Itron’s Q1 Earnings Top Estimates

Itron reported non-GAAP earnings per share (EPS) of $1.49 for first-quarter 2026, which beat the Zacks Consensus Estimate by 18.3%. The company reported earnings of $1.52 per share in the prior-year quarter. The year-over-year decline was due to lower interest income, partially offset by higher operating income.

Itron reported quarterly revenues of $587 million, which declined 3% year over year but exceeded the upper end of guidance ($565-$575 million). The top line surpassed the Zacks Consensus Estimate by 2.8%. The revenue decline was largely due to portfolio optimization efforts and the timing of project deployments.

Management stated that first-quarter results exceeded expectations, driven by strong execution and some projects progressing ahead of schedule, which led to a record gross profit. The company highlighted that utility customers remain focused on resiliency and affordability, with a structural, multi-year investment trend toward adding intelligence to the grid, an area well aligned with Itron’s strengths in networks, analytics and operational intelligence.

Product revenues were $477.8 million (81.4% of total revenues), down 8.7% year over year. Service revenues totaled $109.2 million (18.6%), up 30%.

Itron’s bookings were $476 million in the first quarter of 2026, and its backlog amounted to $4.4 billion at the end of the quarter. The first quarter included several key wins, including progress on a strategic grid visibility program with Duquesne Light Company. The engagement underscores rising demand for distributed intelligence and Grid Edge Computing as utilities modernize networks, while highlighting Itron’s ability to deliver an integrated solution combining smart devices, software and communications for next-generation grid operations.

Segments in Detail

Device Solutions (21.2% of total revenues): Revenues fell 1% (9% in constant currency or cc) to $124.4 million primarily due to lower sales of legacy EMEA electricity products and reduced project deployments in North America.

Networked Solutions (59.7%): Revenues dipped 13% (14% in cc) to $350.7 million, primarily due to the timing of project deployments.

Outcomes (16.4%): Revenues rose 22% (or 20% in cc) to $95.9 million, driven by growth in recurring and services revenue.

Resiliency Solutions (2.7%): The company reported revenues of $16 million. Starting with the first-quarter 2026 report, the combined results of Locusview and Urbint will be included in this segment.

Operating Details

Itron’s gross margin for the quarter rose significantly to 40.7%, a 490-basis point (bp) improvement year over year. This increase was attributed to a favorable mix and improved operational efficiencies.

Non-GAAP operating expenses were $154.4 million, up $17 million from the prior year, primarily due to higher sales and increased general and administrative expenses driven by the additions of Urbint and Locusview.

Non-GAAP operating income was $84.5 million compared with $80.3 million in the year-ago quarter. The upside was driven by higher gross profit. Non-GAAP operating margins expanded 120 bps to 14.4%.

Adjusted EBITDA jumped 4.7% year over year to $92 million. Adjusted EBITDA margins gained 120 bps to 15.7%.

Balance Sheet & Cash Flows

As of March 31, 2026, cash and cash equivalents totaled $712.9 million compared with $1.1 billion as of Dec. 31, 2025. The company’s cash balance declined by about $300 million from year-end 2025, primarily due to the January acquisition of Locusview, the February issuance of $805 million in zero-interest convertible senior notes, the March repayment of $460 million in 2021 convertible notes, a $100 million share repurchase and $79 million in free cash flow generated during the first quarter.

As of March 31, 2026, net long-term debt was $1.6 billion compared with $788.8 million as of Dec. 31, 2025.

Itron generated $85.5 million of cash from operations in the reported quarter compared with $72.1 million in the prior-year quarter.

In the first quarter, the free cash flow reached $79 million, up from $67 million in the previous year's quarter. Free cash flow increased mainly due to a reduction in tax payments.

Financial Guidance

For the second quarter, the company expects revenue to range from $560 million to $570 million, with the midpoint implying a 7% year-over-year decline. The anticipated fall reflects a pull-forward of first-half projects into the first quarter, while the broader first-half 2026 outlook remains consistent with the company’s previous guidance in February.

Non-GAAP EPS is projected between $1.25 and $1.35, with the midpoint suggesting an approximately 8% decline year over year after adjusting for tax rate and interest income.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

The consensus estimate has shifted -8.19% due to these changes.

VGM Scores

At this time, Itron has a nice Growth Score of B, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of A on the value side, putting it in the top quintile for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Itron has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.