Itron Bets Big on AI with Strategic Acquisition

Infrastructure technology firm Itron is making a decisive strategic pivot, placing a substantial wager on artificial intelligence to drive its future growth. The company’s recent high-profile acquisition signals a major commitment to expanding its footprint in the smart utility sector, though investors are questioning whether this expensive foray into AI will deliver the anticipated returns.

Upcoming Quarterly Report to Gauge Strategy Success

All investor attention is focused on October 30, when Itron is scheduled to release its third-quarter 2025 financial results. The company faces significant scrutiny following its second-quarter performance, where it surpassed earnings expectations with $1.62 per share against projections of $1.33, but fell slightly short on revenue, reporting $606.76 million.

This quarterly disclosure will provide critical insight into whether Itron’s recent strategic shifts are yielding tangible benefits and if the newly acquired AI capabilities are already generating positive momentum. Market experts are anticipating clear guidance on revenue trajectory and the profitability outlook for the company’s expanding business segments.

Strategic Move: Acquiring Urbint for AI Capabilities

On October 6, 2025, Itron announced its strategic move to acquire Urbint, an artificial intelligence software specialist, for $325 million. The transaction, funded entirely from Itron’s existing cash reserves, is expected to finalize during the fourth quarter. This acquisition delivers crucial AI expertise specifically tailored for utility providers, with Urbint’s technology focused on managing aging infrastructure, enhancing worker safety protocols, and mitigating risks associated with extreme weather events.

Should investors sell immediately? Or is it worth buying Itron?

This strategic positioning comes at an opportune moment as the intelligent grid infrastructure market experiences robust growth. Through this acquisition, Itron establishes itself as a comprehensive provider of AI-powered solutions for energy and water utility companies.

Analyst Sentiment Remains Positive Despite Stock Weakness

Market observers maintain a generally favorable outlook on Itron despite recent share price softness. On October 9, Weiss Ratings reaffirmed its “Buy” recommendation, while Stephens & Co. maintained its “Equal-Weight” stance but established a price target of $130. The consensus among analysts suggests price targets ranging between $136 and $144, with some projections reaching as high as $155.

The stock’s recent modest pullback—currently trading approximately 9% below its yearly peak—may present a potential entry opportunity for investors. Technical indicators support this perspective, with an RSI reading of 27.5 signaling the stock is technically in oversold territory.

The critical question remains whether Itron’s aggressive AI strategy can meet elevated market expectations. The answer will depend heavily on the upcoming quarterly results and the seamless integration of Urbint’s operations into Itron’s existing business framework.