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Why Is CMS Energy (CMS) Down 6.9% Since Last Earnings Report?
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A month has gone by since the last earnings report for CMS Energy (CMS - Free Report) . Shares have lost about 6.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is CMS Energy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
CMS Energy Q2 Earnings Match Estimates, Revenues Decrease Y/Y
CMS Energy Corporation reported second-quarter 2026 adjusted earnings per share (EPS) of 37 cents per share, which came in line with the Zacks Consensus Estimate. However, the bottom line declined 47.9% from 71 cents in the year-ago quarter.
CMS' Revenues
Operating revenues totaled $1.83 billion, which missed the Zacks Consensus Estimate of $1.91 billion by 4.25%. The top line also fell 0.5% from $1.84 billion in the prior-year quarter.
Gas utility revenues and NorthStar Clean Energy revenues improved, while electric utility revenues decreased.
Operational Performance of CMS
CMS' operating expenses amounted to $1.57 billion, up 2.9% from the year-ago quarter’s figure.
Operating income was $264 million, lower than the year-ago quarter’s figure of $317 million.
Interest on long-term debt rose to $211 million.
Financial Condition of CMS
CMS Energy had cash and cash equivalents of $241 million as of June 30, 2026 compared with $509 million as of Dec. 31, 2025.
As of June 30, 2026, total debt and financial leases (excluding securitization debt) were $18.78 billion compared with $18.31 billion as of Dec. 31, 2025.
The net cash flow from operating activities was $1.33 billion during the first six months of 2026 compared with $1.41 billion in the prior-year period.
CMS' 2026 Guidance
CMS Energy reaffirmed its 2026 adjusted earnings guidance of $3.83-$3.90 per share. The Zacks Consensus Estimate for 2026 earnings is currently pegged at $3.87, higher than the midpoint of the company’s guided range.
The company introduced 2027 adjusted earnings guidance of $4.08-$4.17 per share. The Zacks Consensus Estimate for 2027 earnings is currently pegged at $4.16, which is at the high end of the company’s guided range.
CMS also reaffirmed its long-term adjusted EPS growth in the band of 6-8%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
VGM Scores
At this time, CMS Energy has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Interestingly, CMS Energy has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
View the Zacks #1 Rank List
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Why Is CMS Energy (CMS) Down 6.9% Since Last Earnings Report?
A month has gone by since the last earnings report for CMS Energy (CMS - Free Report) . Shares have lost about 6.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is CMS Energy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
CMS Energy Q2 Earnings Match Estimates, Revenues Decrease Y/Y
CMS Energy Corporation reported second-quarter 2026 adjusted earnings per share (EPS) of 37 cents per share, which came in line with the Zacks Consensus Estimate. However, the bottom line declined 47.9% from 71 cents in the year-ago quarter.
CMS' Revenues
Operating revenues totaled $1.83 billion, which missed the Zacks Consensus Estimate of $1.91 billion by 4.25%. The top line also fell 0.5% from $1.84 billion in the prior-year quarter.
Gas utility revenues and NorthStar Clean Energy revenues improved, while electric utility revenues decreased.
Operational Performance of CMS
CMS' operating expenses amounted to $1.57 billion, up 2.9% from the year-ago quarter’s figure.
Operating income was $264 million, lower than the year-ago quarter’s figure of $317 million.
Interest on long-term debt rose to $211 million.
Financial Condition of CMS
CMS Energy had cash and cash equivalents of $241 million as of June 30, 2026 compared with $509 million as of Dec. 31, 2025.
As of June 30, 2026, total debt and financial leases (excluding securitization debt) were $18.78 billion compared with $18.31 billion as of Dec. 31, 2025.
The net cash flow from operating activities was $1.33 billion during the first six months of 2026 compared with $1.41 billion in the prior-year period.
CMS' 2026 Guidance
CMS Energy reaffirmed its 2026 adjusted earnings guidance of $3.83-$3.90 per share. The Zacks Consensus Estimate for 2026 earnings is currently pegged at $3.87, higher than the midpoint of the company’s guided range.
The company introduced 2027 adjusted earnings guidance of $4.08-$4.17 per share. The Zacks Consensus Estimate for 2027 earnings is currently pegged at $4.16, which is at the high end of the company’s guided range.
CMS also reaffirmed its long-term adjusted EPS growth in the band of 6-8%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
VGM Scores
At this time, CMS Energy has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Interestingly, CMS Energy has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.