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
NiSource's second quarter of fiscal 2026 was defined by a steep drop in earnings as rising operating expenses and one-time workforce costs overwhelmed modest revenue gains. Management attributed the pressure to higher outside services, labor, and depreciation, while a lockout at the NIPSCO utility added $30.5 million in continuity expenses. The company continues to advance its data center strategy and navigate the extended operation of the R.M. Schahfer coal plant under emergency orders, creating regulatory and cost-recovery uncertainty. Lower natural gas costs provided some offset, but the quarter underscores the tension between infrastructure investment returns and cost control.
Revenue
$1.29B
+3.45% YoY
EPS (Diluted)
$0.09
-59.09% YoY
Operating Income
$228.1M
-13.24% YoY
Source: SEC XBRL
Nisource (NI) reported Q2 FY2026 revenue of $1.29B, up 3.4% year over year. Operating margin was 17.7%, down 3.4 points from 21.1% a year earlier. NI's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 1 beat
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Mar 2026 | 1.06 | 1.08 | Miss -2.3% |
| Dec 2025 | 0.51 | 0.52 | Miss -1.3% |
| Sep 2025 | 0.19 | 0.20 | Miss -6.8% |
| Jun 2025 | 0.22 | 0.21 | Beat +3.0% |
3 reported segments · SEC XBRL
Segment revenue totals $1.29B, which is the $1.29B of consolidated revenue on the income statement.
Compiled by AI from 10-Q Item 2 of this filing
A lockout of United Steelworkers employees at NIPSCO from April 2 to late April/early May 2026 resulted in $30.5 million of incremental workplace continuity expenses, including external labor and services.
Source: 10-Q Item 2 MD&A
GenCo is advancing construction of a combined-cycle gas facility and a battery storage installation to serve the ADS contract, with site work expected to begin in Q3 2026. NiSource is also negotiating additional data center deals using a pool resource asset model.
Source: 10-Q Item 2 MD&A
The company launched a multi-year program to accelerate efficiencies, recording $2.5 million in separation costs at Columbia Operations and $2.9 million at NIPSCO during the quarter, with further reorganizations expected.
Source: 10-Q Item 2 MD&A
NIPSCO continues to operate the Schahfer coal plant under 90‑day emergency orders from the Department of Energy, now extended through September 19, 2026, to address regional grid emergencies, with associated cost recovery filings before FERC and state regulators.
Source: 10-Q Item 2 MD&A
Higher operation and maintenance expense, increased depreciation, and higher interest expense were the primary drivers of the net income decline, partially offset by higher revenues from capital investments.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 2 of this filing · 2 high, 2 medium, 1 low
Reliance on successive 90‑day emergency orders to keep the R.M. Schahfer plant online creates uncertainty around cost recovery, operational planning, and compliance with environmental rules. Failure to recover costs or a sudden plant closure could materially impact financial results.
Source: 10-Q Item 2 MD&A
The estimated $9.25‑$9.75 billion cost of dedicated assets for existing data center customers, along with potential new contracts, exposes the company to construction, financing, and counterparty risks. Delays or cost overruns could strain liquidity and credit metrics.
Source: 10-Q Item 2 MD&A
The recent lockout and ratification of new USW contracts highlight potential labor unrest. Future negotiations or disputes could disrupt operations and lead to additional continuity costs similar to the $30.5 million incurred in Q2.
Source: 10-Q Item 2 MD&A
Elevated outside services, labor, and materials costs, partly driven by inflation and tariffs, are pressuring margins. Without timely rate relief or productivity gains, these cost increases could persistently erode earnings.
Source: 10-Q Item 2 MD&A
Warmer‑than‑normal weather reduced heating demand during the quarter, and while weather normalization mechanisms exist, the lag in recovery or extreme deviations could cause short‑term revenue shortfalls.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.29 $B | 1.25 $B | +3.45% |
Operating Income $M | 228.10 $M | 262.90 $M | -13.24% |
Net Income $M | 45.50 $M | 102.20 $M | -55.48% |
EPS (Basic) $ | 0.10 $ | 0.22 $ | -54.55% |
EPS (Diluted) $ | 0.09 $ | 0.22 $ | -59.09% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
NI delivered solid Q1 2026 results with revenue growing 8.0% YoY to $2.32B and operating income rising 7.9% to $819.2M, though operating cash flow declined sharply by 35.6% to $442.3M and cash balances fell 72.3% to $71.9M, signaling potential working capital pressures.
NI (National Instruments) delivered strong FY2025 results with revenue surging 23.5% to $6.52B, operating income rising 26.1% to $1.84B, and operating cash flow jumping 32.6% to $2.36B, reflecting robust business momentum.
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