Entergy Corporation
ETR · NYSE
Next quarter
Reports Nov 4, 2026.
Consensus is $1.65 EPS for Sep 2026 across 5 estimates, ranging $1.50 to $1.79.
ETR Jun 2026
- 9.57%
- +0.22%
- $0.94
- $1.03
- —
- —
Highlights
- Earnings beat: Second-quarter EPS was $1.03, ahead of the $0.94 consensus by 9.57%, versus $1.05 a year ago and $0.83 in the first quarter.
- Utility-led growth: Utility earnings rose to $626 million from $599 million year over year, while Parent & Other losses widened to $143 million from $131 million.
- Regulatory recovery and demand: Utility earnings benefited from rate actions, returns on construction work in progress and higher retail volume; these added $0.18 per share before offsets.
- Industrial load growth: Weather-adjusted retail sales increased 5.7%, led by a 9.9% rise in industrial volume tied to data centers, primary metals and chlor-alkali customers.
- Higher costs and dilution: Utility other O&M reduced EPS by $0.08, depreciation and amortization by $0.04, and interest expense by $0.15; the share effect reduced EPS by $0.05 as diluted shares rose to 466 million from 446 million.
- Cash flow and investment: Operating cash flow rose 50% to $1.89 billion, while construction and capital expenditures increased 38% to $2.78 billion.
- Balance-sheet funding: Entergy completed a $2.175 billion common-stock offering with a forward component; cash was $3.85 billion, total debt was $34.75 billion and net liquidity was $10.03 billion at June 30.
- Guidance unchanged: Entergy affirmed its 2026 adjusted EPS outlook of $4.25 to $4.45.
Analysis
Entergy’s second quarter was a modest earnings-growth quarter that cleared expectations but showed the effect of substantial equity issuance and rising financing costs. EPS of $1.03 exceeded the $0.94 consensus by 9.57%, while net income increased 3.2% year over year to $483 million from $468 million. Revenue rose 5.9% to $3.52 billion and operating income increased 1.5% to $850 million. Sequentially, the result improved materially from first-quarter EPS of $0.83, net income of $391 million and revenue of $3.19 billion, reflecting normal seasonal utility strength.
The print was defined by a stronger regulated utility franchise, accelerating large-customer demand and heavier capital-market requirements. Utility earnings increased 4.5% to $626 million, supported by regulatory actions, CWIP returns and retail sales, although higher O&M, depreciation and interest expense offset much of the benefit at the per-share level. Weather-adjusted retail sales grew 5.7%, with industrial volume up 9.9%, highlighting data-center and industrial load growth. Operating cash flow rose to $1.89 billion from $1.26 billion, but capital expenditures also climbed to $2.78 billion. Entergy maintained its $4.25-$4.45 adjusted EPS guidance despite higher share count and parent interest expense.
Utility earnings drivers
- Utility contribution: Utility earnings increased to $626 million from $599 million, or $1.34 per share in both periods. Regulatory actions, CWIP returns, higher retail sales and other income were the main benefits.
- Revenue less pass-through costs: Rate actions and related operating revenue effects contributed $0.18 to consolidated EPS, including $0.15 from retail electric pricing and $0.07 from returns on CWIP. Higher electric volume and weather contributed $0.04.
- Cost offsets: Higher Utility other O&M reduced EPS by $0.08, primarily from vegetation management, compensation and benefits. Depreciation and amortization reduced EPS by $0.04 and interest expense by $0.11, partly reflecting higher plant and debt balances.
- Parent drag: Parent & Other lost $143 million, or $0.31 per share, versus a $131 million loss, or $0.29 per share, a year earlier. Higher interest expense was the primary driver.
Industrial load growth
- Retail demand: Total retail sales rose 4.1% to 33,725 GWh, or 5.7% after adjusting for weather. Total sales, including wholesale, increased 1.4% to 37,063 GWh.
- Industrial demand: Industrial volume rose 9.9% to 17,164 GWh, driven by higher sales to data centers, primary metals and chlor-alkali customers. Residential volume fell 1.8% reported but increased 2.8% on a weather-adjusted basis.
- Customer base: Electric retail customers increased 1.0% year over year to 3.07 million, with governmental customers up 6.1% and residential customers up 1.1%; industrial customers declined 3.2%.
Regulatory execution
- Rate approvals: The Arkansas commission approved Entergy Arkansas’s Generating Arkansas Jobs Act rider update, while the Texas commission approved Entergy Texas’s distribution cost recovery factor update.
- Formula rate plans: Entergy New Orleans and Entergy Louisiana filed their annual formula rate plans, and both companies filed for extensions of their formula rate plans. Entergy Arkansas also filed its 2025 historical-year formula rate plan netting adjustment.
- Reliability funding: Entergy Texas received an approximately $200 million Texas Energy Fund grant for electric reliability investments, which the company said would strengthen the grid without customer cost.
Cash flow and capital
- Operating cash flow: Consolidated operating cash flow increased to $1.89 billion from $1.26 billion. The improvement reflected advance payments under customer agreements, stronger utility collections and lower fuel and purchased-power payments.
- Capital intensity: Construction and capital expenditures rose to $2.78 billion from $2.01 billion, while year-to-date capital expenditures reached $5.03 billion versus $3.67 billion in the prior-year period.
- Funding the program: Entergy completed a $2.175 billion common-stock offering with a forward component. Diluted average shares increased to 466 million from 446 million, reducing year-over-year EPS by $0.05 despite higher earnings.
- Liquidity: Cash and equivalents were $3.85 billion at June 30 versus $1.18 billion a year earlier, and gross liquidity was $8.20 billion. Net liquidity, including revolver capacity, storm escrows and unsettled equity forwards, was $10.03 billion.
Guidance and returns
- 2026 outlook: Entergy affirmed adjusted EPS guidance of $4.25 to $4.45. Year-to-date adjusted EPS was $1.90 versus $1.87 a year earlier, while reported EPS was $1.87 in both periods.
- Return profile: Last-twelve-month adjusted ROE was 10.5%, down from 11.5% a year earlier. Adjusted net debt to adjusted net capitalization improved to 60% from 62%, while total debt remained 65% of total capitalization.
