Itron reported Q4 2025 earnings this morning.
The company reported stronger results than analysts had anticipated.
Starting the shortened trading week on a positive note, Itron (NASDAQ: ITRI) stock is soaring today. The technology company that provides meters and sensors for smart cities reported fourth-quarter 2025 financial results before the bell rang this morning, and investors are clearly impressed.
As of 12:49 p.m. ET, Itron shares are up 8.7%, retreating from an earlier 17% gain.
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Blowing past analysts' expectations that it would report Q4 2025 revenue of $561.5 million and adjusted earnings per share (EPS) of $2.19, Itron posted $572 million in sales and adjusted EPS of $2.46.
Besides the income statement, investors found the company's cash flow to be a source of celebration. In Q4 2025, Itron generated free cash flow of $111.5 million, a 58.9% year-over-year increase.
Lauding the company's performance last quarter, Tom Deitrich, Itron's president and CEO, stated: "We achieved numerous financial records, led by Outcomes growth of 23% which is a record level of revenue for that segment. The modern grid cannot operate without real-time intelligence, and Itron is the intelligence layer of the grid."
Trading at 16.5 times forward earnings, Itron stock is reasonably priced right now. The stock, however, often underperforms the S&P 500, so investors should evaluate Itron carefully before opening a position. Fortunately, those seeking a compelling Internet of Things stock have plenty of other options.
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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Itron. The Motley Fool has a disclosure policy.