Fact Summary
Itron is a smart grid metering and communications infrastructure company serving electric, gas, and water utilities. In Q2 2026 (reported 2026-07-28), revenue declined 7% year-over-year to $563 million, while adjusted gross margin reached a record 41.4% and non-GAAP diluted EPS was $1.59. Annual recurring revenue (ARR) was $417 million, up 21% year-over-year, and backlog remained at approximately $4.4 billion. As of 2026-08-07, the closing price was $103.75 (+0.90% day-over-day, volume 371,225 shares). A cybersecurity incident that occurred on 2026-04-13 was confirmed, per 8-K and 8-K/A filings, to have had no material impact on customer-facing functions.
Price-Change Context Note
Trading volume on the day of the 2026-07-28 earnings release was 6,632,258 shares, roughly 6.2x the trailing 22-trading-day average of 1,072,828 shares. Reports indicate the stock rose 19-26% day-over-day (figures vary by source) on the back of the Q2 2026 results announced the same day. As of the 2026-07-15 FINRA settlement date, short interest stood at 6,124,005 shares (13.99% of shares outstanding).
Business Overview
Itron, headquartered in Liberty Lake, Washington, is a metering and communications infrastructure company serving electric, gas, and water utilities, organized into four segments: Device Solutions, Networked Solutions, Outcomes, and Resiliency Solutions (SEC EDGAR CIK 0000780571).
| Segment | Description | Q2 2026 Revenue Change (YoY) |
|---|---|---|
| Device Solutions | Standard gas, electric, and water metering hardware | -1% |
| Networked Solutions | Smart meters, communication modules, network infrastructure, headend software | -17% |
| Outcomes | Value-added software and analytics (AI/ML, statistical modeling) | +13% |
| Resiliency Solutions | New segment in 2026 (integrating the Urbint and Locusview acquisitions), software and services | $16 million (new segment) |
Q2 2026 Earnings Highlights
5-Year Financial Trend (2021-2025, Annual)
H1 2026 Results Comparison (2026 vs 2025, Cumulative)
| Item | H1 2025 Cumulative | H1 2026 Cumulative | Change |
|---|---|---|---|
| Revenue | $1,213,912 thousand | $1,149,884 thousand | -5.27% |
| Operating Income | $152,626 thousand | $143,643 thousand | -5.88% |
| Net Income | $133,814 thousand | $106,731 thousand | -20.24% |
| Operating Margin | 12.57% | 12.49% | -0.08pp |
| Net Margin | 11.02% | 9.28% | -1.74pp |
Valuation (Factual Multiples)
Peer Comparison
Itron also ranked #1 in North American networked endpoint (communication module) market share at 64% (Landis+Gyr 25%, Sensus 8%). Landis+Gyr was found to be undergoing restructuring, including the sale of its EMEA business unit.
Ownership & Flows
| Filer | Shares Held | Ownership % | As of | Filing Date |
|---|---|---|---|---|
| Vanguard Portfolio Management LLC | 3,534,821 shares | 7.97% | 2026-03-31 | 2026-04-29 |
| Vanguard Capital Management LLC | 2,362,484 shares | 5.33% | 2026-03-31 | 2026-04-30 |
| BlackRock, Inc. | 6,915,998 shares | 15.2% | 2025-03-31 | 2025-04-29 |
No new open-market transactions (acquisitions or dispositions) by officers or directors were identified in SEC EDGAR Form 4 filings during the review period (2026-07-09 to 2026-08-09). The most recent prior filing (2026-07-02) reflected quarterly compensation-related stock grants to seven directors.
Governance & Capital Structure
| Committee | Chair | Members |
|---|---|---|
| Audit/Finance | Timothy M. Leyden | Sheri L. Savage, Jerome J. Lande, Sanjay Mirchandani |
| Compensation | Frank M. Jaehnert | Jerome J. Lande, Santiago Perez |
| Nominating and Corporate Governance | Santiago Perez | Scott D. Drury, Frank M. Jaehnert |
In February 2025, two directors notified the company they would not stand for re-election (explicitly stated not to stem from any disagreement with management), and in August of the same year two new directors (Sheri Savage, Scott Drury) were appointed, keeping the board at nine members (per 8-K Item 5.02 filings).
Macro Environment
| Factor | Current Value (As of) | Transmission Channel to Itron |
|---|---|---|
| U.S. 10-Year Treasury Yield | 4.65-4.74% (2026-08-03 to 08-07) | Found to raise funding costs for utility customers' capital expenditures |
| AI Data Center Power Demand | ~$876 million in daily investment (industry figure) | Cited by Itron management on the 2026-07-28 earnings call as a driver of expanded grid investment |
| Federal Grid Grants (IIJA/GRIP) | Up to $1.9 billion in new Round 3 solicitations vs. $9.1 billion in previously approved disbursements tracked as pending | Source of uncertainty in utility customers' capital planning |
| Semiconductor/Memory Component Prices | Industry lead times and prices observed rising (as of March 2026) | Cost pressure on metering hardware, offset by 41.4% adjusted gross margin in Q2 2026 |
Risk Factors
- Revenue volatility — FY2025 annual revenue -3.02% YoY, H1 2026 revenue -5.27% YoY, Q2 2026 Networked Solutions segment revenue -17% (affected by project deployment timing and volume)
- Financial structure — debt-to-equity ratio (total liabilities/total equity) surged from 97.10% at end-2023 to 143.55% at end-2024, remaining at 145.73% at H1 2026 end (specific cause not confirmed)
- Cybersecurity — an unauthorized third-party system access incident occurred on 2026-04-13; per the 8-K/A (2026-05-01) filing, no further unauthorized activity has been observed
- Competitive intensity — the gap between Itron (35%) and Landis+Gyr (32%) in North American smart electric meter installed-base market share is not large
- Supply chain/costs — rising semiconductor and memory component prices observed industry-wide (as of March 2026), offset by a 41.4% adjusted gross margin in Q2 2026
- Policy uncertainty — new federal grid grant solicitations coexist with pending disbursement of previously approved funds
Recent News Timeline
| Date | Description |
|---|---|
| 2026-02-17 | Q4 and full-year 2025 results announced (annual revenue $2.37 billion, -3% YoY) |
| 2026-04-13 | Cybersecurity incident occurred (unauthorized third-party system access) |
| 2026-04-24 | 8-K filed regarding cybersecurity incident |
| 2026-04-28 | Q1 2026 results announced (revenue $587 million, -3% YoY) |
| 2026-05-01 | Follow-up 8-K/A filed on cybersecurity incident (no further unauthorized activity observed) |
| 2026-06-25 | Call for nominations opened for the 8th Annual Itron Innovator Award |
| 2026-07-23 | Announced participation in Oppenheimer investor conference (8/11) |
| 2026-07-28 | Q2 2026 results announced (revenue $563 million, adjusted gross margin 41.4% record high) |
Theme Relevance
Fact Highlights
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Generated by FomoLog Agent · Data sources: Korea Exchange · NASDAQ · DART · SEC EDGAR