Pitney Bowes (PBI) Q1 2026 earnings summary

Executive summary

• Q1 2026 results showed a 3% year-over-year revenue decline to $477 million, but net income rose 64% to $58 million and GAAP EPS more than doubled to $0.39, with adjusted EPS at $0.47.

• Free cash flow improved to $44 million from a negative $20 million last year, driven by strong working capital management and cost reductions.

• Significant shareholder value was delivered through $186 million in share repurchases and a dividend increase to $0.10 per share.

• Cost-cutting actions reduced SG&A by $33 million and corporate expenses by $10 million year-over-year.

• The company is well-positioned for long-term growth, with a strategic review and ongoing operational improvements.

Financial highlights

• Gross margin for Q1 2026 was 56.4%, slightly down from 57.3% in Q1 2025, while adjusted EBIT margin increased to 27.3% from 24.3% year-over-year.

• SG&A as a percentage of revenue decreased to 27.9% from 33.6% year-over-year.

• Free cash flow for Q1 was $44 million, up $64 million year-over-year.

• Adjusted EBITDA for Q1 2026 was $156 million, up from $148 million.

• Weighted-average diluted shares outstanding decreased to 147.7 million from 184.8 million.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: Revenue $1.8–$1.86 billion, Adjusted EBIT $425–$465 million, Adjusted EPS $1.50–$1.65, and Free cash flow $345–$380 million.

• Growth is expected to return in the third quarter, with optimism for a strong 2026.

• Management remains conservative on cash flow guidance, mindful of potential pull-forward effects.

• Some one-time headwinds are anticipated in SendTech later in the year due to non-core business declines.

• Expect low to mid-single digit revenue decline for 2026 due to ongoing secular decline in mailing.