A month has gone by since the last earnings report for FirstEnergy (FE Quick QuoteFE - Free Report) . Shares have lost about 4.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is FirstEnergy due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for FirstEnergy Corporation before we dive into how investors and analysts have reacted as of late.

FirstEnergy Q2 Earnings Beat Estimates on Strong Transmission Growth

FirstEnergy reported second-quarter 2026 adjusted earnings of 50 cents per share, which beat the Zacks Consensus Estimate of 49 cents by 2.04%. In the year-ago quarter, the company reported earnings of 52 cents per share. 

FE’s reported GAAP earnings of 50 cents per share in the second quarter of 2026 compared with 46 cents in the year-ago quarter. 

Core earnings in the Distribution segment declined 6 cents in the second quarter of 2026 due to higher maintenance expenses, while the Stand-Alone Transmission segment benefited from an 11% increase in transmission rate base, boosting earnings by 4 cents.

Total Revenues of FE

Operating revenues of $3.68 billion beat the Zacks Consensus Estimate of $3.56 billion by 3.43%. The top line increased 8.82% from $3.38 billion recorded in the year-ago quarter.

FE's Revenue Mix Supports Growth

Distribution: Revenues from this segment totaled $1.71 billion, up 2.3% from the prior-year quarter’s level. Electric revenues increased $44 million, while other revenues declined $5 million.

Integrated: Revenues from this segment amounted to $1.43 billion, up 13.7% from the prior-year quarter. The increase was driven by a $130 million rise in revenues from contracts with customers and a $43 million increase in other revenues unrelated to contracts with customers.

Stand-Alone Transmission: Revenues from this segment amounted to $544 million, up 19.30% from the prior-year quarter’s level, driven by rate base growth, the recovery of transmission operating costs and annual formula-rate true-ups.

FE's Costs Rise With the Investment Cycle

Total operating expenses were $3 billion, up 9.77% from the year-ago quarter's level of $2.73 billion. Purchased-power costs rose to $1.16 billion from $953 million, while other operating expenses increased to $1.17 billion from $995 million.

Operating income nevertheless increased 4.8% to $677 million as revenue growth exceeded the rise in operating costs. 

Interest expense climbed to $337 million from $299 million due to new long-term debt and convertible note issuances, net of repayments.

FirstEnergy's Demand Pipeline Expands

Total contracted and pipeline data center demand reached 24.8 gigawatts (GW), up about 30% from the first quarter. West Virginia demand increased 137% to 4.3 GW, supporting the company's evaluation of additional generation, transmission and distribution investments.

FE expects another 1.5 GW of demand to be contracted shortly. Management is also advancing the proposed 1.2-GW Maidsville Energy Center and 70 megawatts of solar generation in West Virginia.

FE's Capital Spending Strengthens Rate Base

FirstEnergy deployed $2.9 billion of capital through the first half of 2026, up 19% year over year. Total transmission rate base grew 14%, including increases of 22% in Integrated and 11% in Stand-Alone Transmission.

As of June 30, 2026, cash and cash equivalents were $63 million compared with $57 million as of Dec. 31, 2025. 

As of June 30, 2026, long-term debt increased to $27.1 billion from $25.51 billion at year-end 2025. Short-term borrowings also climbed to $1.38 billion from $325 million.

FE and its subsidiaries maintain investment-grade ratings across all three major credit rating agencies.

FE’s 2026 Guidance

FirstEnergy reaffirmed its 2026 core earnings guidance of $2.62 to $2.82 per share. 

The Zacks Consensus Estimate for 2026 is currently pegged at $2.73 per share.

FirstEnergy remains on track to invest $6 billion in 2026 under its Energize365 program. The company also maintained its $36 billion capital plan for 2026-2030 and continues to expect core earnings growth near the top end of its 6-8% target range through 2030.

 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a flat trend in estimates revision.

VGM Scores

At this time, FirstEnergy has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

FirstEnergy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

FirstEnergy belongs to the Zacks Utility - Electric Power industry. Another stock from the same industry, PG&E (PCG Quick QuotePCG - Free Report) , has gained 2.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

PG&E reported revenues of $5.9 billion in the last reported quarter, representing a year-over-year change of +0.1%. EPS of $0.40 for the same period compares with $0.31 a year ago.

For the current quarter, PG&E is expected to post earnings of $0.46 per share, indicating a change of -8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for PG&E. Also, the stock has a VGM Score of B.