PG&E (NYSE:PCG) reported second-quarter earnings that exceeded Wall Street expectations on Thursday, although revenue came in below analyst forecasts. Investors responded positively, with the utility company’s shares edging higher in premarket trading.
The results reflected continued operational improvements and ongoing infrastructure investment, while the company maintained its full-year earnings outlook.
Earnings outperform despite revenue miss
PG&E posted adjusted earnings of $0.40 per share for the second quarter, beating analysts’ consensus estimate of $0.36.
Revenue totalled $5.9 billion, falling short of the $6.12 billion expected by the market, although it remained in line with the level reported during the same period last year.
GAAP earnings increased to $0.33 per share from $0.24 per share a year earlier, while adjusted earnings rose from $0.31 per share to $0.40 per share.
Company reaffirms full-year guidance
PG&E reaffirmed its adjusted earnings guidance for fiscal 2026 of between $1.64 and $1.66 per share.
The midpoint of $1.65 matches current Wall Street expectations, signalling confidence in the company’s outlook despite the quarterly revenue shortfall.
Management said higher customer capital investment, supported by an expanding rate base, and lower operating and maintenance costs contributed to stronger earnings, partially offset by a lower return on equity approved by the California Public Utilities Commission (CPUC).
Infrastructure investment remains a priority
Chief Executive Officer Patti Poppe said, “Our PG&E team continues to make meaningful progress delivering safe, affordable, reliable, and clean energy to our customers. We’re encouraged by the engagement around California wildfire liability reform and are advocating for a durable solution that delivers for customers and investors.”
The company remains on track to achieve its target of reducing non-fuel operating and maintenance costs by between 2% and 4% this year.
During the quarter, PG&E completed $2.2 billion in utility bond issuances, bringing total utility debt financing to $4.4 billion so far this year.
The utility also expanded its wildfire mitigation efforts by opening a new Continuous Monitoring Center for its electric network and installing 37 miles of underground power lines in areas considered to be at high wildfire risk.
PG&E stock price
