Third Quarter 2026
Filed Oct 22, 2026PG&E Corporation Reports Third Quarter 2026 Results; On Track to Deliver Solid 2026; Reaffirms 2026 and 2027 Guidance
Third-quarter GAAP income available for common shareholders, GAAP EPS, non-GAAP core earnings, and non-GAAP core EPS were below the respective 2025 amounts, while the company reaffirmed its full-year 2026 and 2027 non-GAAP core EPS guidance and cited net O&M savings and customer capital investment as offsets.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total operating revenues, three months ended September 30, 2026GAAP | $6.19B | – | – |
| Electric operating revenues, three months ended September 30, 2026GAAP | $4.66B | – | – |
| Natural gas operating revenues, three months ended September 30, 2026GAAP | $1.53B | – | – |
| Cost of electricity, three months ended September 30, 2026GAAP | $904M | – | – |
| Cost of natural gas, three months ended September 30, 2026GAAP | $109M | – | – |
| Operating and maintenance, three months ended September 30, 2026GAAP | $2.54B | – | – |
| SB 901 securitization inception charge, three months ended September 30, 2026GAAP | $36M | – | – |
| Wildfire-related claims, net of recoveries, three months ended September 30, 2026GAAP | — | – | – |
| Wildfire Fund expense, three months ended September 30, 2026GAAP | $141M | – | – |
| Depreciation, amortization, and decommissioning, three months ended September 30, 2026GAAP | $1.21B | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | $4.94B | – | – |
| Operating income, three months ended September 30, 2026GAAP | $1.25B | – | – |
| Interest income, three months ended September 30, 2026GAAP | $104M | – | – |
| Interest expense, three months ended September 30, 2026GAAP | −$825M | – | – |
| Other income, net, three months ended September 30, 2026GAAP | $153M | – | – |
| Income before income taxes, three months ended September 30, 2026GAAP | $681M | – | – |
| Income tax benefit, three months ended September 30, 2026GAAP | −$95M | – | – |
| Net income, three months ended September 30, 2026GAAP | $776M | – | – |
| Income available for common shareholders, three months ended September 30, 2026GAAP | $749M | – | – |
| Net income per common share, basic, three months ended September 30, 2026GAAP | $0.34 per share | – | – |
| Net income per common share, diluted, three months ended September 30, 2026GAAP | $0.34 per share | – | – |
| Weighted average common shares outstanding, basic, three months ended September 30, 2026GAAP | 2.20B | – | – |
| Weighted average common shares outstanding, diluted, three months ended September 30, 2026GAAP | 2.29B | – | – |
| Non-GAAP core earnings, three months ended September 30, 2026non-GAAP | $928M | – | – |
| Non-GAAP core EPS, three months ended September 30, 2026non-GAAP | $0.41 per share | – | – |
| Non-core items, after tax, three months ended September 30, 2026non-GAAP | $156M | – | – |
| Non-core items, after tax per share, three months ended September 30, 2026non-GAAP | $0.07 per share | – | – |
| Total operating revenues, nine months ended September 30, 2026GAAP | $18.97B | – | – |
| Electric operating revenues, nine months ended September 30, 2026GAAP | $14.02B | – | – |
| Natural gas operating revenues, nine months ended September 30, 2026GAAP | $4.96B | – | – |
| Total operating expenses, nine months ended September 30, 2026GAAP | $14.99B | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $3.98B | – | – |
| Interest expense, nine months ended September 30, 2026GAAP | −$2.42B | – | – |
| Net income, nine months ended September 30, 2026GAAP | $2.42B | – | – |
| Income available for common shareholders, nine months ended September 30, 2026GAAP | $2.34B | – | – |
| Net income per common share, diluted, nine months ended September 30, 2026GAAP | $1.06 per share | – | – |
| Non-GAAP core earnings, nine months ended September 30, 2026non-GAAP | $2.83B | – | – |
| Non-GAAP core EPS, nine months ended September 30, 2026non-GAAP | $1.24 per share | – | – |
| Statutory tax rate for 2026 and 2025other | 27.98% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Electric operating revenues, three months ended September 30, 2026No segment revenue driver was reported. | $4.66B | – | – |
| Natural gas operating revenues, three months ended September 30, 2026No segment revenue driver was reported. | $1.53B | – | – |
| Electric operating revenues, nine months ended September 30, 2026No segment revenue driver was reported. | $14.02B | – | – |
| Natural gas operating revenues, nine months ended September 30, 2026No segment revenue driver was reported. | $4.96B | – | – |
Full year 2026 and 2027 outlook
- NoteFull year 2026 non-GAAP core EPS: $1.64 to $1.66 per share
- NoteFull year 2027 non-GAAP core EPS: $1.78 to $1.82 per share
- Note2-4% non-fuel operating and maintenance (O&M) cost reduction target
- NotePreviously announced $2 billion reduction to 2027 capital plan
What drove it
- The company cited increased customer capital investment due to earnings on higher rate base and net O&M savings as partial offsets to lower GAAP earnings.
- Factors expected to drive non-GAAP core earnings in 2026 and 2027 include return on customer capital investment; unrecoverable net interest expense; allowance for funds used during construction; incentive revenues; tax benefits; and cost savings, net of below-the-line costs.
- The Utility filed a 5,000-mile undergrounding plan designed to reduce wildfire risk by 98% and outages by 90% on lines moved underground.
- The Utility energized 174 megawatts of new data center projects since 2024.
Concerns
- GAAP earnings declined primarily because of lower CPUC return on equity in effect during 2026, one-time catch-up impacts of the tax methodology change implemented in 2025, and increased Wildfire Fund expense.
- Third-quarter Wildfire Fund expense was $141 million, compared with $86 million for the third quarter of 2025.
- Third-quarter non-GAAP core earnings were $928 million and non-GAAP core EPS were $0.41 per share, compared with $1,142 million and $0.50 per share for the third quarter of 2025.
- The company stated that California needs a durable wildfire liability framework that delivers for customers and investors.
What to watch
- Execution against the 2-4% non-fuel O&M cost reduction target.
- Delivery of the previously announced $2 billion reduction to the 2027 capital plan.
- Progress of the strategic review toward becoming a financially strong, investment-grade company.
- Customer capital investment, rate-base earnings, and unrecoverable net interest expense.
- Regulatory outcomes and wildfire-related costs, including the Wildfire Fund expense.
Analysis
PG&E reported third-quarter 2026 GAAP income available for common shareholders of $749 million, or $0.34 per diluted share, compared with $823 million, or $0.37 per diluted share, in the third quarter of 2025. Non-GAAP core earnings were $928 million, or $0.41 per share, compared with $1,142 million, or $0.50 per share. The company attributed the GAAP earnings decrease primarily to lower CPUC return on equity in effect during 2026, the one-time catch-up impacts of the tax methodology change implemented in 2025, and increased Wildfire Fund expense.
Third-quarter total operating revenues were $6,188 million, compared with $6,250 million. Electric operating revenues were $4,660 million versus $4,755 million, while natural gas operating revenues were $1,528 million versus $1,495 million. Operating income was $1,249 million, compared with $1,209 million, as total operating expenses were $4,939 million versus $5,041 million. Interest expense was $(825) million, compared with $(770) million, and Wildfire Fund expense was $141 million, compared with $86 million.
For the first nine months, total operating revenues were $18,971 million, compared with $18,131 million, and operating income was $3,982 million, compared with $3,525 million. GAAP income available for common shareholders was $2,340 million, or $1.06 per diluted share, compared with $1,951 million, or $0.89 per diluted share. Nine-month non-GAAP core earnings were $2,831 million, or $1.24 per share, compared with $2,520 million, or $1.14 per share.
The company reaffirmed full-year 2026 non-GAAP core EPS guidance of $1.64 to $1.66 per share and full-year 2027 guidance of $1.78 to $1.82 per share. It remains on track to meet its 2-4% non-fuel O&M cost reduction target and is implementing the previously announced $2 billion reduction to its 2027 capital plan. Management identified customer capital investment, net O&M savings, and return on customer capital investment as important earnings supports, while unrecoverable net interest expense and wildfire-related matters remain key items for investors to monitor.
Operationally, the Utility filed a 5,000-mile undergrounding plan, connected over 4,240 electric customers and 3,000 EV charging ports, and energized 174 megawatts of new data center projects since 2024. The company is also advancing its strategic review with the stated goal of becoming a financially strong, investment-grade company.
Management, verbatim
Our PG&E team continues to make meaningful progress delivering safe, affordable, reliable, and clean energy to our customers. While we still believe California needs a durable wildfire liability framework that delivers for customers and investors, safety remains our foundation as we strengthen and build resilient energy infrastructure to support our state’s growth,
Patti Poppe, PG&E Corporation CEO
Not in the filing
stated, not guessed- Gross margin was not reported.
- Prior-quarter metrics were not reported.
- Cash and cash equivalents were not reported.
- Debt was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Share repurchases were not reported.
- Common dividends were not reported.
- Capital return activity was not reported.
- Revenue guidance was not reported.
- Gross margin guidance was not reported.
- Operating expense guidance other than the 2-4% non-fuel O&M cost reduction target was not reported.
- Tax-rate guidance was not reported.
- Previous-release outlook was not provided, so actual performance versus prior guidance cannot be assessed.
AlphAI 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.