Pitney Bowes Q3 revenue slightly beats estimates, raises 2026 guidance

Overview

• U.S. shipping and mailing solutions firm's Q3 revenue declined 1% yr/yr, slightly beating analyst expectations

• Adjusted EPS for Q3 rose 35% and beat analyst expectations

• Company repurchased 1 mln shares for $17 mln in Q3

Outlook

• Pitney Bowes raises 2026 revenue guidance to $1.83 bln-$1.86 bln from $1.8 bln-$1.86 bln

• Company lifts 2026 adjusted free cash flow outlook to $380 mln-$420 mln from $360 mln-$410 mln

• Pitney Bowes narrows 2026 adjusted EBIT forecast to $450 mln-$470 mln and EPS to $1.58-$1.67

Result Drivers

• MAIL INSTALL BASE - Co said SendTech revenue decline was due to anticipated decreases in mailing install base, partially offset by higher equipment sales

• PRODUCT MIX AND TARIFFS - Co said favorable product mix and lower tariff costs helped maintain gross profit despite lower revenue

• COST REDUCTIONS - Co said improved segment profitability was driven by cost reductions and lower operating expenses

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the office equipment peer group is "buy."

• Wall Street's median 12-month price target for Pitney Bowes Inc. is $18.50, about 6.1% above its October 28 closing price of $17.44

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• Oct 26 - Dorman Products Q3 sales slightly miss estimates on tariff pricing impact

• Oct 28 - O'Reilly Q3 sales beat analyst estimates on professional business growth, tariff refunds

• Oct 26 - Simpson Manufacturing Q3 sales beat estimates, aided by pricing actions

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)