Itron: 2Q EPS Beat on Record Margins, Encouraging Order Activity; FY26 EPS Guidance Raised

Research evidence excerpt

Itron: 2Q EPS Beat on Record Margins, Encouraging Order Activity; FY26 EPS Guidance Raised

J P M O R G A N North America Equity Research

28 July 2026

Itron Overweight

ITRI, ITRI US

2Q EPS Beat on Record Margins, Encouraging Order Price (27 Jul 26):$84.78

Activity; FY26 EPS Guidance Raised ▲Price Target (Dec-27):$117.00 Prior (Dec-26):$112.00

ITRI delivered 2Q PF EPS well above expectations owing to record PF gross

margin, aided by mix of Outcomes and Resiliency Solutions revenue, despite total Clean Energy, Power Infrastructure,

and Sustainable Investingrevenue slightly below consensus owing to timing of Networked Solutions

shipments. Book:bill of 1.0x was slightly stronger than 2Q24 and 2Q25, and Mark Strouse, CFA AC

reportedly aligned with internal expectations. Management raised full-year EPS (1-212) 622-8244

mark.w.strouse@jpmorgan.com

guidance and narrowed the revenue range, signaling confidence in a strong back-

half of the year. With this note, we are introducing FY28 estimates and establishing Michael G Fairbanks

(1-212) 622-4908

a YE27 price target of $117, from a prior YE26 target of $112. We maintain our michael.fairbanks@jpmchase.com

Overweight rating.

Anna Zhu

(1-212) 622-0012

• Record margin; EPS guidance raised. 2Q Adjusted EPS was ~23% ahead of anna.zhu@jpmorgan.comJ.P. Morgan Securities LLC

street expectations on a ~1% revenue miss that was driven by timing of

Networked Solutions deliveries. Gross margin reached a record 41.0%, up

410bp y/y and up 890bp from three years ago, we believe reflecting the Key Changes (FYE Dec)

structural shift towards higher margin businesses. ARR grew ~21% y/y, further Prev Cur Δ

evidencing the mix shift towards recurring revenue. 2Q bookings of $550mm Adj. EPS - 26E ($) 6.07 6.44 6.1%