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PEG Q3 Earnings Miss Expectations, Revenues Decrease Y/Y

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Key Takeaways

  • PEG's Q3 adjusted EPS of $1.15 missed estimates by 5%, while revenues fell 6.4% to $3.02 billion.
  • Electric and gas sales rose 1% and 6%, respectively, while nuclear generation increased to 8,172 GWh.
  • PEG reaffirmed its 2026 adjusted EPS guidance of $4.28-$4.40 despite a 27.3% drop in operating income.

Public Service Enterprise Group Incorporated (PEG - Free Report) , or PSEG, reported third-quarter 2026 adjusted earnings of $1.15 per share, which missed the Zacks Consensus Estimate of $1.21 by 5%. Earnings increased 1.8% from the prior-year figure of $1.13. 

The company reported GAAP earnings per share (EPS) of 76 cents compared with $1.24 in the corresponding period of 2025.

PEG’s Total Revenues

Operating revenues totaled $3.02 billion, which lagged the Zacks Consensus Estimate of $3.30 billion by 8.5%. The top line also declined 6.4% from the year-ago figure of $3.23 billion.

PEG’s Sales Volumes Show Mixed Trends

Electric sales increased 1% year over year to 11,898 million kilowatt-hours (kWh). Residential sales rose 2% to 4,623 million kWh, while commercial and industrial sales remained flat at 7,203 million kWh. Sales in other categories declined 14% to 72 million kWh.

Total gas sales increased 6% to 427 million therms. Firm gas sales declined 1% to 194 million therms, with residential volumes remaining flat at 89 million therms. Non-firm commercial and industrial sales increased 11% to 233 million therms.

PEG's Nuclear Operations and Storm Response

PSEG's nuclear facilities generated 8,172 gigawatt-hours of electricity during the third quarter, up from 7,903 gigawatt-hours in the prior-year period. New Jersey nuclear generation increased to 5,407 gigawatt-hours, while Pennsylvania generation reached 2,765 gigawatt-hours.

The company also managed severe storms during July and September. PSE&G restored service to nearly all affected New Jersey customers within 24 hours, highlighting the utility's investments in grid resilience and reliability.

Highlights of PEG’s Earnings Release

Operating income totaled $622 million compared with $855 million in the year-ago period, reflecting a decline of 27.3%.

Total operating expenses were $2.40 billion, up 1.1% from the year-ago figure of $2.37 billion.

Interest expenses amounted to $280 million, increasing 10.7% year over year from $253 million.

Segmental Performance of PEG

PSE&G revenues declined 0.4% to $2.53 billion from $2.54 billion in the prior-year period. The regulated utility generated net income and non-GAAP operating earnings of $506 million, down from $515 million. Results benefited from ongoing investments in energy efficiency and transmission, along with gradual customer growth.

PSEG Power & Other revenues declined 29% to $532 million from $749 million a year earlier. Despite the revenue decrease, non-GAAP operating earnings increased to $68 million from $50 million. The improvement reflected higher realized prices, increased nuclear generation and lower operating and maintenance costs due to the absence of the prior-year Hope Creek refueling outage.

Financial Update of PEG

Long-term debt, including the current portion, stood at $24.56 billion as of Sept. 30, 2026 compared with $22.55 billion as of Dec. 31, 2025.

Net cash flow from operating activities was $2.54 billion during the first nine months of 2026 compared with $2.58 billion during the corresponding period of 2025.

PEG’s 2026 Guidance

PEG reaffirmed its 2026 adjusted earnings guidance of $4.28-$4.40 per share. The Zacks Consensus Estimate for earnings is currently pegged at $4.38, which is at the higher end of the company’s guided range.

PEG’s Zacks Rank

PEG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

CMS Energy Corporation (CMS - Free Report) reported third-quarter 2026 adjusted earnings of $1.44 per share, which surpassed the Zacks Consensus Estimate of $1.34 by 7.5%. The bottom line increased 54.8% from 93 cents in the year-ago quarter.

Operating revenues totaled $2.183 billion, which beat the Zacks Consensus Estimate of $2.178 billion by 0.2%. The top line also rose 8% from $2.02 billion in the prior-year quarter.

CenterPoint Energy, Inc. (CNP - Free Report) reported third-quarter 2026 adjusted earnings of 53 cents per share, which outpaced the Zacks Consensus Estimate of 50 cents by 6%. The bottom line also increased 6% from the year-ago quarter’s figure of 50 cents.

CNP generated revenues of $2.19 billion, which beat the Zacks Consensus Estimate by 1.9%. The top line also came in 10.2% higher than the year-ago quarter’s reported figure of $1.99 billion.

PG&E Corporation (PCG - Free Report) reported third-quarter 2026 adjusted 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.

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%.

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