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.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
FirstEnergy (FE) delivered solid Q1 FY2026 results with revenue up 11.6% YoY to $4.20B and net income rising 12.5% to $405M, though operating cash flow dropped sharply by 76.8% to $148M amid heavy capital investment and increased leverage.
Revenue
$4.2B
+11.61% YoY
EPS (Diluted)
$0.70
+12.90% YoY
Operating Income
$828M
+9.81% YoY
Source: SEC XBRL
Firstenergy (FE) reported Q1 FY2026 revenue of $4.2B, up 11.6% year over year. Operating margin was 19.7%, down 0.3 points from 20.0% a year earlier. Operating cash flow was $148M, down 76.8% year over year. FE's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 1 beat
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.50 | 0.52 | Miss -3.9% |
| Mar 2026This filing | 0.72 | 0.74 | Miss -2.1% |
| Dec 2025 | 0.53 | 0.57 | Miss -6.6% |
| Sep 2025 | 0.83 | 0.80 | Beat +4.3% |
Adjusted (non-GAAP) EPS of $0.72 versus the $0.74 analyst consensus — a -2.1% miss for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.70.
Compiled by AI from this SEC filing
Revenue grew 11.6% YoY from $3.77B to $4.20B, while net income increased 12.5% from $360M to $405M, reflecting solid utility operations and rate base expansion. Basic and diluted EPS both rose 12.9% to $0.70.
Source: 10-Q Income Statement Data
Operating margin edged down modestly from 20.03% to 19.70% YoY, suggesting that while revenues grew, operating costs rose at a slightly faster pace, consistent with ongoing infrastructure investment and inflationary cost pressures typical in regulated utilities.
Source: 10-Q Income Statement & Key Ratios
Operating cash flow fell sharply by 76.8% YoY from $637M to $148M, which may reflect timing of working capital changes, regulatory asset movements, or higher cash taxes and interest payments in the quarter.
Source: 10-Q Cash Flow Statement
Investing cash outflows increased 25.5% YoY to -$1.37B, signaling continued heavy capital expenditure on grid modernization and infrastructure, a hallmark of FE's regulated utility growth strategy. Free cash flow is deeply negative as a result.
Source: 10-Q Cash Flow Statement
Financing cash inflows surged 159.1% YoY to $1.21B, indicating FE raised significant debt or equity capital to fund its investment program, contributing to total liabilities growing 10.0% YoY to $42.81B.
Source: 10-Q Cash Flow & Balance Sheet Data
Compiled by AI from this SEC filing · 3 high, 2 medium, 0 low
Total liabilities rose 10.0% YoY to $42.81B against stockholders' equity of $12.65B, yielding a debt-to-equity ratio of approximately 3.38x. This high leverage increases FE's sensitivity to interest rate changes and could constrain financial flexibility if capital markets tighten.
Source: 10-Q Balance Sheet Data
Cash and equivalents plummeted 60.6% YoY to just $52M, and the current ratio stands at a concerning 0.52x, meaning current liabilities of $5.84B far exceed current assets of $3.05B. Combined with deeply negative free cash flow, this raises near-term liquidity management concerns.
Source: 10-Q Balance Sheet & Cash Flow Data
Operating cash flow dropped 76.8% YoY from $637M to $148M in a single quarter, a dramatic deterioration that may reflect adverse working capital timing, regulatory lag in cost recovery, or higher cash interest and tax payments. Sustained weakness here could pressure dividend coverage.
Source: 10-Q Cash Flow Statement
As a regulated utility, FE's ability to earn adequate returns depends on timely and sufficient rate approvals from state public utility commissions. Delays or unfavorable rate decisions could compress margins and impair the return on its growing capital investment base.
Source: 10-Q Financial Data (Utility Sector Context)
ROA of 0.71% and ROE of 3.20% are modest, reflecting the capital-intensive, regulated nature of the utility business but also indicating limited near-term earnings power relative to the asset base. Continued asset growth without commensurate earnings improvement could further dilute these returns.
Source: 10-Q Key Ratios
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 4.20 $B | 3.77 $B | +11.61% |
Operating Income $M | 828.00 $M | 754.00 $M | +9.81% |
Net Income $M | 405.00 $M | 360.00 $M | +12.50% |
EPS (Basic) $ | 0.70 $ | 0.62 $ | +12.90% |
EPS (Diluted) $ | 0.70 $ | 0.62 $ | +12.90% |
Answers draw on this SEC filing and the data on this page
FirstEnergy reported Q2 2026 earnings attributable to FE of $288 million ($0.50/share), up 7% year-over-year, driven by higher transmission revenues and true-up adjustments, while the company advanced its $36 billion Energize365 (2026-2030) capital investment plan and pursued multiple state rate cases.
FirstEnergy (FE) delivered FY2025 revenue growth of 12.0% to $15.09B, but operating income declined 7.1% to $2.21B as rising costs compressed operating margins, while net income rose modestly 4.3% to $1.02B and operating cash flow surged 28.0% to $3.70B.
Other companies in Electric Utilities