Strong Revenue Growth
Revenue increased 11.6% year-over-year to $2.73B in Q1 FY2026 from $2.45B in the prior-year period, reflecting solid top-line momentum likely driven by rate adjustments and utility demand growth.
Source: 10-Q Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
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AI Takeaway
CMS Energy delivered solid Q1 FY2026 revenue growth of 11.6% to $2.73B and net income growth of 11.8% to $340M, though operating margin compressed by ~2.2 percentage points and operating cash flow declined 29.5% year-over-year.
Revenue
$2.73B
+11.57% YoY
EPS (Diluted)
$1.10
+8.91% YoY
Operating Income
$490M
-0.81% YoY
Source: SEC XBRL
Cms Energy (CMS) reported Q1 FY2026 revenue of $2.73B, up 11.6% year over year. Operating margin was 17.9%, down 2.3 points from 20.2% a year earlier. Operating cash flow was $705M, down 29.5% year over year. CMS's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.37 | 0.36 | Beat +1.6% |
| Mar 2026This filing | 1.13 | 1.11 | Beat +1.9% |
| Dec 2025 | 0.94 | 0.95 | Miss -1.2% |
| Sep 2025 | 0.93 | 0.85 | Beat +8.9% |
Adjusted (non-GAAP) EPS of $1.13 versus the $1.11 analyst consensus — a +1.9% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.10.
Compiled by AI from this SEC filing
Revenue increased 11.6% year-over-year to $2.73B in Q1 FY2026 from $2.45B in the prior-year period, reflecting solid top-line momentum likely driven by rate adjustments and utility demand growth.
Source: 10-Q Income Statement
Despite revenue growth, operating income declined slightly by 0.8% to $490M, causing operating margin to compress from approximately 20.2% to 17.9%, suggesting rising operating costs are outpacing revenue gains.
Source: 10-Q Income Statement
Net income grew 11.8% to $340M and basic EPS rose 8.9% to $1.10, demonstrating that bottom-line profitability improved even as operating-level margins faced pressure.
Source: 10-Q Income Statement
Operating cash flow fell 29.5% year-over-year to $705M from $1.0B, while investing outflows increased to -$1.07B, reflecting continued capital-intensive infrastructure investment and working capital changes.
Source: 10-Q Cash Flow Statement
Total assets grew 11.0% to $40.3B, but long-term debt increased 8.1% to $17.5B and current liabilities surged 36.7% to $3.59B, pushing the current ratio below 1.0 at 0.84, indicating tighter near-term liquidity.
Source: 10-Q Balance Sheet
Compiled by AI from this SEC filing · 3 high, 2 medium, 0 low
Current liabilities surged 36.7% year-over-year to $3.59B while current assets grew only 8.7% to $3.03B, resulting in a current ratio of 0.84, below the 1.0 threshold. Cash and equivalents dropped sharply by 62.4% to $175M, raising near-term liquidity concerns.
Source: 10-Q Balance Sheet
Long-term debt stands at $17.46B, representing a significant portion of the $40.3B total asset base, and grew 8.1% year-over-year. In a rising or sustained high interest rate environment, refinancing costs could pressure future earnings and cash flows.
Source: 10-Q Balance Sheet
Operating cash flow declined 29.5% to $705M while capital expenditures (investing outflows) increased to $1.07B, resulting in negative free cash flow of approximately -$368M. This gap may require additional external financing to fund ongoing infrastructure investment.
Source: 10-Q Cash Flow Statement
Operating margin declined approximately 2.2 percentage points to 17.9% despite strong revenue growth, suggesting cost inflation or higher depreciation and amortization (D&A up 6.2% to $412M) are compressing profitability at the operating level.
Source: 10-Q Income Statement
As a regulated utility, CMS Energy's ability to recover costs and earn returns depends on regulatory approvals for rate increases. Delays or unfavorable rate decisions could limit revenue recovery and pressure margins given the company's heavy capital investment program.
Source: 10-Q Balance Sheet & Cash Flow Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 2.73 $B | 2.45 $B | +11.57% |
Operating Income $M | 490.00 $M | 494.00 $M | -0.81% |
Net Income $M | 340.00 $M | 304.00 $M | +11.84% |
EPS (Basic) $ | 1.10 $ | 1.01 $ | +8.91% |
EPS (Diluted) $ | 1.10 $ | 1.01 $ | +8.91% |
Answers draw on this SEC filing and the data on this page
CMS Energy's Q2 FY2026 10-Q shows revenue roughly flat year-over-year at $1.829B (-0.5%), but net income fell sharply to $120M (-40.3%) and diluted EPS dropped to $0.37 (-43.9%), driven by higher operating costs, increased depreciation, and a substantial rise in long-term debt supporting continued capital investment.
CMS Energy delivered strong FY2025 revenue growth of 13.6% to $8.54B, with operating income rising 16.1% to $1.73B, though net income grew more modestly at 6.8% to $1.07B amid a significant ramp-up in capital investment and long-term debt.
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