Itron launched IEE Cloud AI, an AI-enabled upgrade to its meter-data management software, on Sept. 16. Q2 2026 annual recurring revenue rose 21% to $417 million and adjusted gross margin rose 460 basis points to 41.4%, while total revenue fell 7% to $563 million.
The platform adds real-time data validation and automated, agent-assisted workflows with human oversight; utilities can use it through cloud partners or as a managed service. The article says the managed option could create recurring software revenue. Itron raised its full-year non-GAAP EPS guidance to $6.30–$6.50 after reporting the quarter.
Revenue pressure came mainly from Networked Solutions, down 17% amid project timing and lower hardware volumes; Outcomes revenue rose 13%. Backlog was $4.4 billion versus $4.5 billion a year earlier despite $550 million in new bookings. GAAP EPS fell to $1.19 from $1.47, and free cash flow declined to $81 million from $91 million. The article says utility adoption and backlog growth will test whether software gains can offset hardware weakness.
