AI Takeaway
ETR posted Q1 FY2026 revenue of $3.19B (+12.0% YoY) but saw operating income fall 18.3% to $572M, compressing operating margin by ~660 bps to 18.0%, even as operating cash flow surged 54.6% to $829M.
Revenue
$3.19B
++11.97% YoY
EPS (Basic)
$0.84
0.00% YoY
Operating Income
$572.22M
-18.27% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
ETR's Q1 FY2026 revenue rose 12.0% YoY to $3.19B from $2.85B, suggesting stronger electricity demand or rate base expansion across its regulated utility service territories.
Source: 10-Q Financial Data, Income Statement
Operating income declined 18.3% YoY to $572M from $700M, indicating that cost growth — likely from higher operating expenses, fuel costs, or depreciation — outpaced revenue gains and significantly pressured profitability.
Source: 10-Q Financial Data, Income Statement
Operating margin contracted sharply from approximately 24.6% in Q1 FY2025 to approximately 18.0% in Q1 FY2026, a decline of roughly 660 basis points, signaling meaningful cost headwinds in the quarter.
Source: 10-Q Financial Data, Key Ratios
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Upgrade to unlockOperating income fell 18.3% despite a 12.0% revenue increase, implying cost growth is outpacing revenue. If cost pressures — such as fuel, labor, or maintenance — persist, ETR's profitability could continue to erode even in a growing revenue environment.
Source: 10-Q Financial Data, Income Statement & Key Ratios
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Upgrade to unlockReported EPS of $0.86 versus the $0.87 analyst consensus — a -0.7% miss for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $3.19B | $2.85B | +11.97% |
Operating Income | $572.22M | $700.1M | -18.27% |
EPS (Basic) | $0.84 | $0.84 | 0.00% |
EPS (Diluted) | $0.83 | $0.82 | +1.22% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $75.8B | $66.62B | +13.79% |
Current Assets | $7.81B | $5.11B | +52.77% |
Current Liabilities | $8.16B | $6.2B | +31.61% |
Stockholders' Equity | $17.35B | $15.19B | +14.23% |
Cash & Equivalents | $3.57B | $1.51B | +135.96% |
Long-Term Debt | $32.68B | $29.59B | +10.41% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $828.96M | $536.19M | +54.60% |
Investing Cash Flow | $-2.42B | $-1.71B | -41.60% |
Financing Cash Flow | $3.24B | $1.83B | +76.98% |
D&A | $598.95M | $568.87M | +5.29% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 18.0% | 24.6% | -6.64% |
Current Ratio | $0.957 | — | — |
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ETR's revenue grew 12.0% YoY to $3.19B in Q1 FY2026, up from $2.85B in Q1 FY2025. This growth likely reflects higher electricity demand and rate base expansion across ETR's regulated utility service territories.
ETR's operating income declined 18.3% YoY to $572M even as revenue rose 12.0%, because operating costs grew faster than revenues, compressing the operating margin from ~24.6% to ~18.0%. This ~660 basis point margin contraction suggests significant cost headwinds, potentially from higher fuel, labor, or depreciation expenses.
The key takeaways are: revenue grew solidly at 12% to $3.19B, but operating profitability fell sharply with operating income down 18.3% and operating margin contracting ~660 bps to 18%; on the positive side, operating cash flow surged 54.6% to $829M and cash on hand more than doubled to $3.57B, reflecting improved liquidity.
ETR carries $32.68B in long-term debt against $17.35B in stockholders' equity (debt-to-equity ~1.88x), which is elevated but typical for capital-intensive regulated utilities. Its current ratio of 0.96 is slightly below 1.0, and while free cash flow is deeply negative due to heavy capital investment (-$2.42B investing outflows), the company bolstered its cash position to $3.57B through $3.24B in financing inflows.
ETR's basic EPS was flat at $0.84 in Q1 FY2026 versus Q1 FY2025, while diluted EPS improved modestly by 1.2% to $0.83 from $0.82. The near-flat EPS despite a significant decline in operating income suggests that below-the-line items or changes in share count partially offset the operating profit headwinds.