AI Takeaway
Eversource Energy (ES) delivered solid Q1 FY2026 results with revenue up 9.4% YoY to $4.50B and operating income surging 16.2% to $1.08B, driven by stronger operating margins and significantly improved operating cash flow of $1.32B.
Revenue
$4.5B
++9.37% YoY
EPS (Basic)
$1.61
++7.33% YoY
Operating Income
$1.08B
++16.17% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 9.4% YoY to $4.50B in Q1 FY2026 from $4.12B in the prior-year period, reflecting continued rate base expansion and customer demand growth typical of regulated utility operations.
Source: Source: 10-Q Financial Data (Income Statement)
Operating margin improved 140 basis points YoY to 23.9% from 22.5%, as operating income grew at a faster pace (16.2%) than revenue (9.4%), indicating improved cost efficiency and favorable rate structures.
Source: Source: 10-Q Financial Data (Key Ratios)
Operating cash flow surged 27.3% YoY to $1.32B from $1.04B, significantly outpacing revenue growth and signaling improved cash conversion from utility operations.
Source: Source: 10-Q Financial Data (Cash Flow Statement)
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Upgrade to unlockES's current ratio stands at 0.65, well below the 1.0 threshold, meaning current liabilities of $8.21B significantly exceed current assets of $5.34B. Current liabilities surged 26.0% YoY, raising near-term liquidity concerns that may require refinancing or credit facility utilization.
Source: Source: 10-Q Financial Data (Balance Sheet, Key Ratios)
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Upgrade to unlockReported EPS of $1.61 versus the $1.65 analyst consensus — a -2.4% miss for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $4.5B | $4.12B | +9.37% |
Operating Income | $1.08B | $926.39M | +16.17% |
EPS (Basic) | $1.61 | $1.50 | +7.33% |
EPS (Diluted) | $1.61 | $1.50 | +7.33% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $64.71B | $60.19B | +7.50% |
Current Assets | $5.34B | $4.91B | +8.81% |
Current Liabilities | $8.21B | $6.52B | +25.98% |
Stockholders' Equity | $16.53B | $15.34B | +7.75% |
Cash & Equivalents | $270.2M | $111.36M | +142.63% |
Long-Term Debt | $26.86B | $26.25B | +2.33% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.32B | $1.04B | +27.27% |
Investing Cash Flow | $-1.15B | $-999.23M | -15.08% |
Financing Cash Flow | $-82.84M | $31.95M | -359.31% |
D&A | $823.3M | $835M | -1.40% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 23.9% | 22.5% | +1.40% |
Current Ratio | $0.651 | — | — |
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Eversource Energy reported Q1 FY2026 revenue of $4.50B, up 9.4% YoY, with operating income rising 16.2% to $1.08B and EPS growing 7.3% to $1.61. Operating cash flow also jumped 27.3% to $1.32B, signaling strong underlying cash generation from utility operations.
ES's 9.4% revenue increase to $4.50B in Q1 FY2026 was driven by its regulated utility operations, consistent with rate base expansion and higher customer billings. Operating margin also expanded to 23.9% from 22.5%, suggesting favorable rate structures contributed to the improvement.
The most notable risks include a current ratio of just 0.65 (current liabilities of $8.21B far exceed current assets of $5.34B) and a heavy long-term debt load of $26.86B. Additionally, free cash flow of approximately $174M is relatively thin given the company's ongoing capital investment requirements.
ES shows strong earnings growth with operating income up 16.2% and operating cash flow up 27.3%, but its balance sheet carries notable leverage with $26.86B in long-term debt and a current ratio of 0.65. The company's regulated utility model provides revenue stability, but liquidity and debt levels are areas investors should monitor.
ES held $270.2M in cash and equivalents at the end of Q1 FY2026, a 142.6% increase from $111.4M a year ago. However, this cash position is modest relative to current liabilities of $8.21B, underscoring the company's reliance on credit facilities and capital markets for near-term funding needs.