Itron, Inc. shares surged more than 26% on the day of its second-quarter 2026 earnings release, as the company reported adjusted earnings that exceeded analyst expectations despite a decline in revenue.

$71 million non-GAAP net income

Itron's Q2 2026 adjusted net income of $1.59 per share beat the consensus estimate of $1.30 per share.

Revenue for the quarter fell 7% year over year to $563 million, slightly below the consensus estimate of $564.7 million, according to Zacks. Non-GAAP net income was $71 million ($1.59 per share), down from $75 million in the prior-year period, but well above the consensus adjusted profit estimate of $1.30 per share.

Itron attributed the overall revenue decline to project deployment timing and lower volumes. However, the company's outcomes division posted 13% year-over-year revenue growth, while the networked solutions division saw revenue fall 17%. The resiliency solutions unit generated $16 million in revenue.

Looking ahead, Itron narrowed its full-year 2026 revenue forecast to a range of $2.37 billion to $2.41 billion, from the previous $2.35 billion to $2.45 billion. The company raised its full-year adjusted earnings guidance to $6.30 to $6.50 per share from $5.75 to $6.25.

The environment continues to move toward us.
— Itron management (from earnings call presentation)
Utilities are being asked to manage more complexity, higher reliability expectations, and greater affordability pressure.
— Itron management (from earnings call presentation)

The Motley Fool has positions in and recommends Itron.