AI Takeaway
AES delivered a strong Q1 FY2026 with revenue rising 8.7% to $3.18B and net income surging nearly 10x year-over-year to $487M, driven by significantly improved gross margins and more than doubled operating cash flow.
Revenue
$3.18B
++8.68% YoY
EPS (Basic)
$0.68
++871.43% YoY
Gross Margin
20.1%
++5.05% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
AES grew total revenue by 8.7% year-over-year to $3.18B in Q1 FY2026, up from $2.93B in the prior-year period, suggesting stronger energy generation volumes and/or improved pricing across its portfolio.
Source: Source: 10-Q Income Statement, Q1 FY2026
Gross profit jumped 45.1% to $640M while gross margin expanded approximately 505 basis points to 20.1%, as cost of revenue grew only 2.2% despite the 8.7% revenue increase, indicating meaningful operating leverage.
Source: Source: 10-Q Income Statement, Q1 FY2026
Net income reached $487M compared to just $46M in Q1 FY2025, a 958.7% increase, with basic and diluted EPS both rising to $0.68 from $0.07, reflecting both improved operations and potentially favorable non-operating items.
Source: Source: 10-Q Income Statement, Q1 FY2026
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Upgrade to unlockAES's current ratio stands at 0.73, meaning current liabilities of $8.37B significantly exceed current assets of $6.11B. While current liabilities declined 10.4% year-over-year, the company may face near-term liquidity challenges if cash flows deteriorate or refinancing conditions tighten.
Source: Source: 10-Q Balance Sheet, Q1 FY2026
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Upgrade to unlockReported EPS of $0.67 versus the $0.37 analyst consensus — a +80.3% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $3.18B | $2.93B | +8.68% |
Cost of Revenue | $2.54B | $2.48B | +2.21% |
Gross Profit | $640M | $441M | +45.12% |
Net Income | $487M | $46M | +958.70% |
EPS (Basic) | $0.68 | $0.07 | +871.43% |
EPS (Diluted) | $0.68 | $0.07 | +871.43% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $52.82B | $48.62B | +8.65% |
Current Assets | $6.11B | $7.88B | -22.44% |
Current Liabilities | $8.37B | $9.34B | -10.38% |
Stockholders' Equity | $4.42B | $3.47B | +27.45% |
Cash & Equivalents | $1.6B | $1.75B | -8.73% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.2B | $545M | +120.37% |
Investing Cash Flow | $-1.8B | $-1.28B | -40.33% |
Financing Cash Flow | $756M | $1.32B | -42.60% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 20.1% | 15.1% | +5.05% |
Net Margin | 15.3% | — | — |
ROE | 11.0% | — | — |
ROA | 0.9% | — | — |
Current Ratio | $0.73 | — | — |
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AES reported net income of $487M in Q1 FY2026, compared to just $46M in Q1 FY2025 — a nearly 10-fold increase. Basic and diluted EPS both came in at $0.68, up from $0.07 a year ago.
AES grew revenue 8.7% year-over-year to $3.18B in Q1 FY2026, while keeping cost of revenue growth to just 2.2%, resulting in gross profit surging 45.1% to $640M. This suggests stronger energy generation volumes and significant operating leverage across its portfolio.
AES faces notable liquidity risk with a current ratio of only 0.73, meaning short-term liabilities of $8.37B exceed current assets of $6.11B. The company also has heavy capital investment needs, with investing cash outflows of -$1.80B in just one quarter, requiring continued access to debt and equity markets.
Yes — AES's operating cash flow more than doubled to $1.20B in Q1 FY2026 from $545M in the prior-year period. However, the company is investing heavily, with -$1.80B in investing cash outflows, reflecting its ongoing buildout of energy infrastructure.
AES's financial position shows improving profitability with a 20.1% gross margin and 15.3% net margin, but the balance sheet reflects a highly leveraged, capital-intensive structure with total assets of $52.82B against only $4.42B in stockholders' equity and a below-1.0 current ratio of 0.73.