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 (Basic)
$1.10
++8.91% YoY
Operating Income
$490M
-0.81% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q 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: 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: 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: Source: 10-Q Income Statement
2 more insights available
Upgrade to unlockCurrent 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: Source: 10-Q Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.13 versus the $1.11 analyst consensus — a +1.9% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $2.73B | $2.45B | +11.57% |
Operating Income | $490M | $494M | -0.81% |
Net Income | $340M | $304M | +11.84% |
EPS (Basic) | $1.10 | $1.01 | +8.91% |
EPS (Diluted) | $1.10 | $1.01 | +8.91% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $40.28B | $36.3B | +10.99% |
Current Assets | $3.02B | $2.78B | +8.73% |
Current Liabilities | $3.59B | $2.63B | +36.73% |
Stockholders' Equity | $9.47B | $8.34B | +13.57% |
Cash & Equivalents | $175M | $465M | -62.37% |
Long-Term Debt | $17.46B | $16.15B | +8.10% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $705M | $1B | -29.50% |
Investing Cash Flow | $-1.07B | $-918M | -16.88% |
Financing Cash Flow | $16M | $266M | -93.98% |
D&A | $412M | $388M | +6.19% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 17.9% | 20.2% | -2.24% |
Net Margin | 12.5% | — | — |
ROE | 3.6% | — | — |
ROA | 0.8% | — | — |
Current Ratio | $0.842 | — | — |
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CMS Energy reported Q1 FY2026 revenue of $2.73B, up 11.6% year-over-year, and net income of $340M, up 11.8%. Basic EPS came in at $1.10 compared to $1.01 in the prior-year period, representing 8.9% growth.
CMS Energy's operating margin fell from approximately 20.2% to 17.9% in Q1 FY2026, even as revenue grew 11.6%, because operating income declined slightly by 0.8% to $490M. This suggests operating costs, including D&A which rose 6.2% to $412M, grew faster than revenues.
CMS Energy's operating cash flow dropped 29.5% year-over-year to $705M from $1.0B, while investing outflows increased to -$1.07B, resulting in negative free cash flow of approximately -$368M. Cash and equivalents also fell sharply by 62.4% to just $175M, tightening the company's liquidity position.
CMS Energy's balance sheet shows some areas of concern: the current ratio fell to 0.84 (below 1.0) as current liabilities surged 36.7% to $3.59B, and long-term debt grew 8.1% to $17.46B. Total assets expanded 11.0% to $40.3B and stockholders' equity grew 13.6% to $9.47B, but the high leverage and tightening liquidity warrant monitoring.
The key risks evident from Q1 FY2026 data include near-term liquidity pressure (current ratio of 0.84 and cash down 62.4% to $175M), a heavy long-term debt load of $17.46B, and negative free cash flow of approximately -$368M due to capital-intensive infrastructure investment. Additionally, operating margin compression of ~2.2 percentage points suggests rising costs could continue to pressure profitability.