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PG&E Q3 Earnings Lag Estimates, Revenues Decrease Year Over Year

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Key Takeaways

  • PG&E's Q3 adjusted EPS fell 18% to 41 cents, missing estimates due to lower returns and tax impacts.
  • Revenues declined 1% to $6.19 billion, while lower operating expenses helped operating income rise 3.3%.
  • PG&E's data center pipeline grew to 12,870 MW, and 2026 adjusted EPS guidance remained at $1.64-$1.66.

PG&E Corporation (PCG - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of 41 cents, which missed the Zacks Consensus Estimate of 42 cents by 2.4%. The bottom line also declined 18% from the year-ago quarter’s figure of 50 cents, primarily due to lower authorized returns on equity and unfavorable tax impacts.

The company reported GAAP earnings of 34 cents per share, down 8.1% from 37 cents in the prior-year quarter.

PCG’s Revenue Update

PCG reported third-quarter total revenues of $6.19 billion, down 1% from $6.25 billion registered in the year-ago period. The top line also missed the Zacks Consensus Estimate of $6.59 billion by 6%.

Electric revenues totaled $4.66 billion, down 2% year over year from $4.76 billion. Natural gas revenues increased 2.2% to $1.53 billion from $1.50 billion in the prior-year quarter.

The revenue decline primarily reflected approximately $140 million less in interim rate relief authorized under the 2023 Wildfire Mitigation and Catastrophic Events proceeding and $111 million lower revenues associated with electricity procurement costs.

 

Pacific Gas & Electric Co. Price, Consensus and EPS Surprise

Pacific Gas & Electric Co. Price, Consensus and EPS Surprise

Pacific Gas & Electric Co. price-consensus-eps-surprise-chart | Pacific Gas & Electric Co. Quote

Operational Highlights of PCG

Total operating expenses in the third quarter of 2026 were $4.94 billion, down 2% from $5.04 billion in the prior-year quarter.

The company reported operating income of $1.25 billion compared with $1.21 billion in the year-ago period, reflecting a 3.3% improvement.

Operating and maintenance expenses declined 3.7% to $2.54 billion from $2.64 billion. The cost of electricity decreased 10.9% to $904 million, while natural gas costs declined 16.8% to $109 million.

However, Wildfire Fund expenses increased 64% to $141 million from $86 million. Depreciation, amortization and decommissioning expenses increased 6.5% to $1.21 billion. Interest expenses rose 7.1% to $825 million from $770 million.

PCG’s Data Center Pipeline Expands

PG&E's data center pipeline increased to 12,870 MW in September 2026 from 12,710 MW in June 2026. Projects in the application and preliminary engineering stage increased to 8,350 MW from 8,200 MW.

Final engineering projects remained unchanged at 3,880 MW, while projects with interconnection construction agreements declined to 400 MW from 490 MW. Projects under construction increased to 240 MW from 140 MW.

The utility has energized 174 MW of data center projects since 2024. Management estimates that each gigawatt of additional data center load could reduce customer electric bills by 1% or more over the long term, subject to appropriate pricing and infrastructure costs.

Financial Condition of PCG

As of Sept. 30, 2026, cash and cash equivalents totaled $902 million compared with $713 million as of Dec. 31, 2025.

Cash flow from operating activities amounted to $5.84 billion during the first nine months of 2026, down 13.6% from $6.76 billion in the prior-year period.

Capital expenditures totaled $9.62 billion during the first nine months compared with $8.63 billion in the year-ago period, reflecting an 11.5% increase.

As of Sept. 30, 2026, the company's long-term debt, excluding current maturities, amounted to $61.35 billion compared with $57.39 billion as of Dec. 31, 2025.

PCG’s Guidance

PG&E reaffirmed its 2026 adjusted EPS guidance. The company expects to generate adjusted earnings in the range of $1.64-$1.66 per share. The Zacks Consensus Estimate for 2026 earnings is pegged at $1.65, which is the midpoint of PCG’s guided range.

Management remains focused on reducing non-fuel operating and maintenance expenses by 2-4% and implementing the previously announced $2 billion reduction in its 2027 capital expenditure plan.

PCG's Zacks Rank

The company currently has a Zacks Rank #4 (Sell). 

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

CenterPoint Energy, Inc. (CNP - Free Report) is slated to report third-quarter results on Oct. 27, before market open. The Zacks Consensus Estimate for earnings is pegged at 50 cents per share.

CNP’s long-term (three to five years) earnings growth rate is 7.93%. The Zacks Consensus Estimate for third-quarter sales is pinned at $2.16 billion, indicating year-over-year growth of 8.4%.

CMS Energy Corporation (CMS - Free Report) is slated to report third-quarter results on Oct. 27, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.23 per share, indicating year-over-year growth of 32.3%.

CMS’ long-term earnings growth rate is 7.07%. The Zacks Consensus Estimate for third-quarter sales is pinned at $2.14 billion, indicating year-over-year growth of 5.9%.

Edison International (EIX - Free Report) is slated to report third-quarter results on Oct. 29, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.79 per share, indicating a year-over-year decline of 23.5%.

EIX’s long-term earnings growth rate is 3.86%. The Zacks Consensus Estimate for third-quarter sales is pinned at $5.52 billion, indicating a year-over-year decline of 4%.

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