second-quarter 2026
Filed Aug 3, 2026Duke Energy reports second-quarter 2026 financial results
Adjusted EPS increased to $1.43 from $1.25, supported by infrastructure-investment recovery, while Duke Energy reaffirmed its 2026 adjusted EPS guidance of $6.55 to $6.80. Regulatory-settlement charges, higher depreciation, higher interest expense and a higher effective tax rate tempered reported performance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| EPS, as reportedGAAP | $1.38 | – | – |
| EPS, adjustednon-GAAP | $1.43 | – | – |
| Regulatory Settlements, after-tax amountother | $39 million | – | – |
| Total adjustments to reported EPSnon-GAAP | $0.05 | – | – |
| Electric Utilities and Infrastructure segment incomeGAAP | $1,271 million | – | – |
| Electric Utilities and Infrastructure adjusted segment incomenon-GAAP | $1,310 million | – | an increase of $0.15 per share |
| Gas Utilities and Infrastructure segment incomeGAAP | $10 million | – | – |
| Gas Utilities and Infrastructure adjusted segment incomenon-GAAP | $10 million | – | – |
| Other segment lossGAAP | $204 million | – | an increase of $0.03 per share |
| Other adjusted segment lossnon-GAAP | $204 million | – | an increase of $0.03 per share |
| Consolidated reported effective tax rateGAAP | 12.3% | – | – |
| Consolidated adjusted effective tax ratenon-GAAP | 12.6% | – | – |
2026 outlook
- Noteadjusted EPS of $6.55 to $6.80
- Notelong-term adjusted EPS growth rate of 5% to 7% through 2030 off the 2025 midpoint of $6.30
- Noteconfidence to earn in the top half of the range beginning in 2028
What drove it
- Higher second-quarter 2026 adjusted results were driven by recovery of infrastructure investments to reliably serve customers in growing jurisdictions.
- Electric Utilities and Infrastructure benefited from recovery of infrastructure investments to reliably serve customers in growing jurisdictions.
- Gas Utilities and Infrastructure results reflected recovery of infrastructure investments to reliably serve customers in growing jurisdictions.
- Other benefited from higher returns on investments and lower interest expense.
- Constructive regulatory outcomes support critical investments to maintain reliability and deliver customer value.
- Generation build supports growth in jurisdictions and fuels vibrant economies.
Concerns
- Second-quarter 2026 reported results included charges related to regulatory settlements.
- Higher depreciation on a growing asset base and interest expense partially offset Electric Utilities and Infrastructure results.
- Gas Utilities and Infrastructure was offset by lower earnings from the sale of Piedmont's Tennessee business.
- The reported effective tax rate increased primarily due to a decrease in the amortization of excess deferred taxes.
- The adjusted effective tax rate increased primarily due to a decrease in the amortization of excess deferred taxes.
What to watch
- Delivery of 2026 adjusted EPS within the reaffirmed $6.55 to $6.80 guidance range.
- Progress toward earning in the top half of the adjusted EPS guidance range beginning in 2028.
- Recovery of infrastructure investments and the effect of higher depreciation on the growing asset base.
- Further regulatory outcomes and the impact of regulatory settlements.
- Interest expense and returns on investments.
Analysis
Duke Energy reported second-quarter 2026 GAAP EPS of $1.38 and adjusted EPS of $1.43, compared with reported and adjusted EPS of $1.25 in the second quarter of 2025. The adjusted result was driven by recovery of infrastructure investments to reliably serve customers in growing jurisdictions. The difference between reported and adjusted EPS was a $0.05 adjustment related to regulatory settlements, with an after-tax amount of $39 million.
Electric Utilities and Infrastructure was the primary earnings contributor. GAAP segment income was $1,271 million, compared with $1,194 million in the second quarter of 2025, while adjusted segment income was $1,310 million, compared with $1,194 million. Management identified infrastructure-investment recovery as the central driver, partially offset by higher depreciation on a growing asset base and interest expense. Gas Utilities and Infrastructure reported and adjusted segment income of $10 million, compared with $6 million, as infrastructure-investment recovery was offset by lower earnings from the sale of Piedmont's Tennessee business.
Other reported and adjusted a segment loss of $204 million, compared with a segment loss of $228 million. Duke Energy attributed the improvement to higher returns on investments and lower interest expense. The consolidated reported effective tax rate rose to 12.3% from 10.6%, and the adjusted effective tax rate rose to 12.6% from 10.6%, with both increases primarily attributed to a decrease in the amortization of excess deferred taxes.
Management reaffirmed 2026 adjusted EPS guidance of $6.55 to $6.80 and its long-term adjusted EPS growth rate of 5% to 7% through 2030 off the 2025 midpoint of $6.30. It also stated confidence to earn in the top half of the range beginning in 2028. The filing does not provide GAAP EPS guidance because management does not forecast reported GAAP EPS and related long-term growth rates, citing the inability to project special items such as legal settlements, regulatory orders or asset impairments.
Management, verbatim
We had a strong first half of the year, achieving constructive regulatory outcomes, advancing strategic priorities and maintaining excellence in our operational and financial performance.
Harry Sideris, Duke Energy president and chief executive officer
Looking ahead, we are well-positioned to deliver on our commitments in 2026 and seize the growth opportunities in some of the most economically attractive states in the country.
Harry Sideris, Duke Energy president and chief executive officer
Not in the filing
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AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.