AI Takeaway
NEE delivered a strong Q1 FY2026 with net income surging 161.9% YoY to $2.18B, driven by favorable prior-period comparisons, even as operating income dipped slightly and capital investment spending accelerated sharply.
EPS (Basic)
$1.05
++156.10% YoY
Operating Income
$2.21B
-2.13% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Net income jumped 161.9% YoY to $2.18B in Q1 FY2026 versus $833M in Q1 FY2025, with basic EPS rising from $0.41 to $1.05. The dramatic improvement likely reflects non-recurring charges or mark-to-market losses that weighed on the prior-year period.
Source: Source: 10-Q Income Statement Data
Operating income edged down 2.1% YoY to $2.21B from $2.26B, suggesting that while the business remains highly profitable at the operating level, cost pressures or revenue mix shifts are creating modest headwinds to core earnings power.
Source: Source: 10-Q Income Statement Data
Investing cash outflows surged 40.1% YoY to -$10.82B, reflecting NEE's continued heavy investment in renewable energy infrastructure and grid modernization. This capital intensity is being funded primarily through financing activities, which generated $7.68B in Q1 FY2026.
Source: Source: 10-Q Cash Flow Statement Data
2 more insights available
Upgrade to unlockNEE carries $93.95B in long-term debt with a debt-to-equity ratio of 2.80x, making it highly sensitive to interest rate movements. As the company continues to issue new debt to fund capital expenditures, rising or sustained high interest rates could materially increase financing costs and compress earnings. This risk is amplified by the $10.82B in investing outflows in a single quarter.
Source: Source: 10-Q Balance Sheet & Cash Flow Data
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.09 versus the $0.97 analyst consensus — a +12.5% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Income | $2.21B | $2.26B | -2.13% |
Net Income | $2.18B | $833M | +161.94% |
EPS (Basic) | $1.05 | $0.41 | +156.10% |
EPS (Diluted) | $1.04 | $0.40 | +160.00% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $221.42B | $194.26B | +13.98% |
Current Assets | $13.86B | $12.65B | +9.57% |
Total Liabilities | $154.79B | $133.9B | +15.60% |
Current Liabilities | $25.57B | $22.86B | +11.86% |
Stockholders' Equity | $55.22B | $49.81B | +10.86% |
Cash & Equivalents | $2B | $2.42B | -17.40% |
Long-Term Debt | $93.95B | $79.81B | +17.71% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $2.61B | $2.77B | -5.60% |
Investing Cash Flow | $-10.82B | $-7.72B | -40.10% |
Financing Cash Flow | $7.68B | $6.1B | +25.82% |
Dividends Paid | $1.3B | $1.17B | +11.49% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
ROE | 4.0% | — | — |
ROA | 1.0% | — | — |
Current Ratio | $0.542 | — | — |
Debt to Equity | $2.803 | — | — |
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NEE reported net income of $2.18B and basic EPS of $1.05 in Q1 FY2026, representing a 161.9% YoY increase in net income. Whether this beat Wall Street consensus estimates would require comparison to analyst forecasts not included in the filing data, but the headline numbers represent a dramatic improvement over the prior year's $833M net income.
The standout takeaway is the 161.9% surge in net income to $2.18B, contrasting with a modest 2.1% dip in operating income to $2.21B, suggesting non-operating items drove the headline improvement. NEE also accelerated its capital investment program with $10.82B in investing outflows, funded by $7.68B in financing activities and growing long-term debt to $93.95B.
Based on the financial data, key risks include NEE's high leverage with $93.95B in long-term debt and a 2.80x debt-to-equity ratio, a current ratio of only 0.54x indicating structural working capital deficit, and deeply negative free cash flow as $10.82B in quarterly capital expenditures far exceed $2.61B in operating cash flow. These risks make NEE sensitive to interest rate movements and capital market conditions.
NEE invested $10.82B in capital expenditures in Q1 FY2026, a 40.1% increase over the prior year, funded primarily through $7.68B in financing cash flows including new debt issuance. Long-term debt grew 17.7% YoY to $93.95B, and operating cash flow of $2.61B covered only a fraction of the investment outflows, resulting in deeply negative free cash flow.
NEE's balance sheet shows total assets of $221.42B growing 14.0% YoY and stockholders' equity of $55.22B up 10.9%, reflecting ongoing asset accumulation. However, the current ratio of 0.54x and debt-to-equity of 2.80x highlight significant leverage and near-term liquidity reliance on capital markets, which is typical for large regulated utilities but warrants attention in a rising interest rate environment.