Pitney Bowes Raises 2026 Revenue Floor After Presort Rebound

The Tip Desk · November 8, 2026 · 4 min read

Adjusted free cash flow reached $147 million in the third quarter, and the company lifted the low end of 2026 revenue guidance to $1,830 million.

Pitney Bowes Inc. (PBI), a technology-driven provider of digital shipping, mailing and financial services, raised the low end of its 2026 revenue outlook to $1,830 million from $1,800 million after Presort Services returned to year-over-year growth and the company posted a large increase in adjusted free cash flow.

Revenue was $456 million in the third quarter, down 1% from $460 million a year earlier. Adjusted EBIT rose to $114 million from $107 million, up 6%. Adjusted EPS was $0.42, up 35% from $0.31. Cash from operations was $151 million, up 126% from $67 million. Adjusted free cash flow was $147 million, up 144% from $60 million.

The company said it is raising the low end of 2026 revenue guidance and effectively establishing a higher midpoint, keeping the high end at $1,860 million. It also raised 2026 adjusted free cash flow guidance to a $380 million to $420 million range from $360 million to $410 million. Adjusted EBIT guidance was narrowed to $450 million to $470 million from $445 million to $475 million, and adjusted EPS guidance was narrowed to $1.58 to $1.67 from $1.55 to $1.70, with midpoints maintained. The company said year-to-date adjusted free cash flow reflects increased prepayments from new customers after the exit of a significant mail sortation competitor.

Presort Services revenue was $151 million, up 1% from $149 million a year earlier, after a 5% decline in the second quarter. Total volume sorted was 3.4 billion pieces of mail, up 4% year-over-year. The company said the return to growth was driven by increased volume from new client wins. Adjusted Segment EBITDA was $41 million, down 2% from $42 million, and Adjusted Segment EBIT was $32 million, down 2% from $33 million. The company attributed the modest profit declines to lower revenue per piece and higher transportation costs, which increased $6 million year-over-year on elevated fuel prices and freight inflation. Results also included a non-recurring $7 million benefit allocation from Corporate expenses reflecting better-than-anticipated medical claims at Presort year-to-date.

Chief Executive Officer Kurt Wolf said the company added more than 30 new clients, representing an estimated two billion pieces of annual volume, after PCI’s exit from the market. He said the exit of another presort company provides further evidence that industry pricing is too low, and that the company has begun a significant sortation equipment refresh and is upgrading price management processes.

SendTech Solutions revenue was $305 million, down 2% from $311 million a year earlier, a wider decline than the 1% drop in the second quarter. The company said the decline reflected anticipated decreases in the mailing install base at this point in the cycle, partially offset by higher equipment sales. Gross profit was flat year-over-year despite lower revenue, supported by favorable product mix and lower tariff costs. Adjusted Segment EBITDA was $124 million, up 11% from $112 million, and Adjusted Segment EBIT was $115 million, up 14% from $101 million. Operating expenses declined $13 million versus the prior year. Results also included a $3 million benefit allocation from Corporate expenses reflecting better-than-anticipated medical claims at SendTech year-to-date.

Wolf said a non-core contract previously part of the exited Global eCommerce segment, now in SendTech, is winding down and is expected to conclude during the next month. He said the contract will weigh on 2027 revenue. The company remains on track to begin reporting PB Bank as an independent segment in 2027. The Board’s Strategic Review Committee continues to consider the existing value creation plan against potential strategic alternatives.

The company reduced debt by $148 million in the third quarter, including $46 million through a tender offer of notes due in 2037 and 2043 at a discount to par. Year-to-date, debt has been reduced by $108 million. It also repriced its $585 million Term Loan B due 2032, reducing the interest margin by 75 basis points. The company repurchased approximately 1.0 million shares for $17 million in the third quarter at an average price of $16.84, after repurchasing 4.5 million shares for $53 million in the second quarter at an average price of $11.75. It also repurchased another 0.6 million shares for $11 million from the start of the fourth quarter through October 23, 2026. The board approved a $0.10 per share quarterly regular dividend, payable December 8, 2026.