Pacific Gas & Electric Co. (PCG) Earnings

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Dec 2026upcoming

Next quarter

Expected to report Feb 11, 2027 — estimated from last year’s reporting date.

Consensus is $0.40 EPS for Dec 2026 across 4 estimates, ranging $0.39 to $0.41.

PCG Sep 2026

Reported Oct 22, 2026 · before the open

: 2.38%

: $0.42
: $0.41
: —
: —

Highlights

Core EPS: Third-quarter non-GAAP core EPS was $0.41, 2.4% below the $0.42 consensus and down from $0.50 a year earlier; nine-month core EPS rose to $1.24 from $1.14.
GAAP results: Diluted EPS was $0.34 versus $0.37 a year earlier, while income available to common shareholders fell to $749 million from $823 million.
Guidance: PG&E reaffirmed 2026 core EPS guidance of $1.64–$1.66 and 2027 guidance of $1.78–$1.82; it is no longer providing guidance beyond 2027 during its strategic review.
Wildfire framework: California’s legislative session ended without additional liability reform, leaving the company focused on a strategic review intended to support investment-grade credit ratings and reduce financing costs.
Capital plan: PG&E reiterated its $2 billion reduction to 2027 planned capital spending, from $13.4 billion to $11.4 billion, while keeping 2027 rate-base guidance unchanged.
Undergrounding: The utility proposed a 5,000-mile undergrounding program for 2028–2037, with an estimated $16.6 billion investment and $117 billion in long-term customer benefits; regulatory approval is pending.
Operating execution: Year-to-date core EPS benefited by $0.12 from customer capital investment and $0.04 from O&M savings; the company remains on track for its 2%–4% annual non-fuel O&M reduction target.
Data-center load: PG&E has energized 174 megawatts of data-center projects since 2024 and said its 1.8-gigawatt pipeline expected online by 2030 remains in the plan.

Analysis

PG&E’s third quarter was a modest core-earnings miss, with the bigger story being the strategic and capital response to California wildfire-liability risk. Core EPS of $0.41 missed the $0.42 consensus and declined from $0.50 a year ago. GAAP diluted EPS was $0.34, down from $0.37, as lower CPUC return on equity, the absence of last year’s tax-method catch-up benefit, and higher Wildfire Fund expense outweighed earnings from higher rate base and O&M savings. Revenue was $6.19 billion, down 1% from $6.25 billion a year ago but above Q2’s $5.90 billion; GAAP EPS compared with $0.33 in Q2. Nine-month core EPS nevertheless grew to $1.24 from $1.14, keeping the company on track for its reaffirmed 2026 guidance of $1.64–$1.66.

The most consequential development remains the lack of wildfire-policy reform: the legislative session ended without new measures, while Fitch moved its outlook to negative. PG&E is advancing a strategic review, with investment-grade credit as its stated objective and a direction expected by next summer. It also reaffirmed the $2 billion cut to 2027 capital spending, now $11.4 billion, and withdrew longer-term capex forecasts. Operationally, the proposed 5,000-mile undergrounding plan and ongoing cost savings demonstrate continued investment priorities, but both execution and financing remain tied to regulatory outcomes.

Earnings and guidance

Core performance: Third-quarter core earnings were $928 million, or $0.41 per diluted share, versus $1.142 billion, or $0.50, in Q3 2025. The $0.41 result missed the supplied $0.42 consensus by 2.4%.
GAAP comparison: Income available to common shareholders was $749 million, down from $823 million a year earlier; GAAP diluted EPS was $0.34 versus $0.37. The prior-year quarter included a tax-method change catch-up benefit, while current-period results also absorbed a lower CPUC ROE and higher Wildfire Fund expense.
Year-to-date trend: Nine-month core EPS advanced 9% to $1.24 from $1.14, while GAAP EPS increased to $1.06 from $0.89. Management attributed the core growth principally to customer capital investment, which contributed $0.12 per share, and O&M savings, which contributed $0.04.
Outlook: 2026 core EPS guidance remains $1.64–$1.66, described as 10% growth at the midpoint from 2025; 2027 guidance remains $1.78–$1.82, or 9% midpoint growth. PG&E is not extending guidance beyond 2027 during the strategic review.

Wildfire policy and review

Reform remains unresolved: California’s 2025–2026 legislative session ended without additional changes to the wildfire-liability framework. Management said policy reform is its preferred route to address tail risk and lower the cost of capital.
Strategic alternatives: The review is assessing regulatory, financial, operational, and structural options, including ring-fencing, sales, or separations. PG&E said it aims to communicate a definitive direction no later than summer 2027 and has already addressed anticipated equity-financing needs through 2030 under its plan.
Credit pressure: Fitch revised its outlook on PG&E to negative. Management said sub-investment-grade borrowing has added an estimated $4 billion of interest costs over the life of debt issued since 2017; its stated long-term objective is investment-grade status and mid-teens FFO-to-debt metrics.
Customer and project implications: Management linked the current financing burden to the $2 billion 2027 capital-plan reduction and said some customer projects may be delayed. It characterized reform as important to affordable access to capital.

Capital allocation

2027 spending reset: Planned capital expenditures are $11.4 billion, down from $13.4 billion, while 2027 rate-base guidance is unchanged because many deferred projects were not expected to enter service by 2027. PG&E forecast $12.4 billion of capital expenditures in 2026.
Funding plan: The company expects to finance 2027 utility investment with operating cash flow and $4 billion–$5 billion of utility debt, including roughly $1 billion of maturities. It reiterated that it does not expect equity issuances through 2030.
Undergrounding proposal: The 10-year plan filed with regulators proposes 5,000 miles of undergrounding from 2028 to 2037, with $16.6 billion of capital investment. PG&E estimates $117 billion in long-term customer benefits and $6 billion in avoided future vegetation-management, operations, and maintenance costs; approvals from OEIS and the CPUC remain necessary.
Regulatory recovery: A proposed decision in the 2027 general rate case would authorize $456 million of interim rate recovery beginning January 2027. Separately, a proposed decision would allow about $1.8 billion of requested 2020–2022 wildfire-mitigation costs while disallowing about $477 million, including approximately $291 million of capital expenditures.

Costs and load growth

O&M discipline: Third-quarter O&M expense was $2.54 billion, down about 4% year over year. The decline included lower previously deferred expenses, partly offset by higher costs associated with extended Diablo Canyon operations. PG&E remains on track for its 2%–4% annual non-fuel O&M reduction goal.
Data-center demand: The utility has energized 174 megawatts of data-center projects since 2024. Management said 1.8 gigawatts of projects previously expected online by 2030 remain in its plan, emphasizing pricing and customer financial commitments to protect affordability.
Safety and reliability: PG&E said it is in its fourth year without a major wildfire associated with its equipment and that its weather-normalized ignition rate has fallen 74% since 2017. Its undergrounding proposal targets reductions of 98% in wildfire risk and 90% in outages on lines moved underground.

Pacific Gas & Electric Co.

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