AI Takeaway
In Q2 FY2026, PG&E Corporation reported essentially flat revenue of $5.902B but increased operating income 15.2% to $1.263B and income available for common shareholders 41% to $733M, while wildfire-cost recovery, regulatory outcomes, and rising leverage remained material considerations. Source: 10-Q Item 2 MD&A, pp.12-13.
Revenue
$5.9B
++0.07% YoY
EPS (Basic)
$0.33
++37.50% YoY
Operating Income
$1.26B
++15.24% YoY
Filed · Source: SEC EDGAR 10-Q filing
PG&E (PCG) reported Q2 FY2026 revenue of $5.9B, up 0.1% year over year. Diluted EPS was $0.33.
Utility operating revenues increased by $4M year over year to $5.902B in Q2 FY2026, while operating income rose $160M, or 15%, to $1.262B. The revenue change included $201M of higher electricity-cost recovery revenues, which are passed through to customers and do not affect net income, partly offset by about $180M less interim rate relief from the 2023 WMCE proceeding.
Source: Source: 10-Q Item 2 MD&A, pp.13-14
Utility operating and maintenance expense decreased $317M, or 11%, year over year in Q2 FY2026, to $2.537B. This reduction was a principal contributor to the $160M increase in Utility operating income.
Source: Source: 10-Q Item 2 MD&A, p.13
Utility income available for common stock increased $219M, or 36%, to $827M in Q2 FY2026, while PG&E Corporation's consolidated income available for common shareholders increased $212M, or 41%, to $733M. The parent-company result remains reduced by interest expense on PG&E Corporation long-term debt.
Source: Source: 10-Q Item 2 MD&A, pp.12-13
For the six months ended June 30, 2026, Utility operating revenues rose $902M, or 8%, to $12.783B. Management attributed approximately $620M of the increase to revenue authorized in the 2023 WMCE final decision, incremental to prior interim-rate-relief revenue, plus $363M of higher electricity-cost recovery revenue.
Source: Source: 10-Q Item 2 MD&A, p.13
As of June 30, 2026, the Utility had recorded regulatory-recovery receivables of $638M related to the 2021 Dixie fire and $61M related to the 2022 Mosquito fire. Management states that recovery depends on regulatory prudency determinations and the availability of the Wildfire Fund or Continuation Account; it also recognized $78M of accelerated Wildfire Fund asset amortization in Q2 FY2026.
Source: Source: 10-Q Item 2 MD&A, pp.9-10
PG&E states that its equipment could still be involved in future wildfires despite mitigation measures, and that damages may be substantial and outside its control after an ignition. The company could face claims, fines, penalties, and enforcement actions, while insurance, the Wildfire Fund, the Continuation Account, and regulatory recovery may not fully cover liabilities; recorded Dixie fire liabilities already exceed potentially recoverable insurance amounts.
Source: Source: 10-Q Forward-Looking Statements and Item 2 MD&A, pp.6-10
The Utility's revenue requirement and ability to recover operating, capital, wildfire, and compliance costs depend heavily on CPUC and FERC proceedings. Management notes that intervenor positions, customer-rate impacts, political conditions, and regulatory interpretations can affect outcomes, and that unrecovered memorandum or balancing-account amounts increase financing costs.
Source: Source: 10-Q Item 2 MD&A, pp.10-11
The Wildfire Fund or Continuation Account may be unavailable or insufficient if claims by PG&E or other participating California utilities deplete available funds. Amounts above $1.0B in a coverage year may be eligible for reimbursement, but PG&E may need to repay amounts if it cannot demonstrate to the CPUC that wildfire costs were just and reasonable.
Source: Source: 10-Q Item 2 MD&A, p.10
PG&E identifies substantial indebtedness and related operating restrictions as risks, particularly if the Utility draws on its DOE loan facility. Elevated interest rates or capital-market volatility could make debt or equity financing more expensive or unavailable on acceptable terms, potentially pressuring financial results and customer affordability.
Source: Source: 10-Q Forward-Looking Statements, pp.7-8
Severe weather, climate change, natural disasters, and aging infrastructure can cause outages, system damage, replacement-power needs, third-party liabilities, and regulatory penalties. PG&E also warns that the effectiveness of system hardening, undergrounding, vegetation management, and other wildfire-mitigation initiatives is uncertain.
Source: Source: 10-Q Forward-Looking Statements and Item 2 MD&A, pp.7-10
Reported EPS of $0.40 versus the $0.36 analyst consensus — a +10.0% beat for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $5.9B | $5.9B | +0.07% |
Operating Income | $1.26B | $1.1B | +15.24% |
EPS (Basic) | $0.33 | $0.24 | +37.50% |
EPS (Diluted) | $0.33 | $0.24 | +37.50% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $145.08B | $136.38B | +6.37% |
Current Assets | $15.4B | $15.16B | +1.60% |
Current Liabilities | $12.67B | $16.18B | -21.74% |
Stockholders' Equity | $33.9B | $31.19B | +8.71% |
Cash & Equivalents | $972M | $494M | +96.76% |
Long-Term Debt | $61.77B | $54B | +14.38% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $3.34B | $3.9B | -14.57% |
Investing Cash FlowYTD | $-6.16B | $-6.27B | +1.74% |
Financing Cash FlowYTD | $3.07B | $1.86B | +64.72% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 21.4% | 18.6% | +2.82% |
Current Ratio | $1.216 | — | — |
Expected release date, analyst estimates & what to watch
PG&E Corporation delivered strong Q1 2026 results with revenue rising 15.0% YoY to $6.88B and EPS jumping 39.3% to $0.39, driven by higher operating income, though long-term debt expanded 14.2% to $60.1B and cash declined sharply.
PG&E (PCG) delivered steady FY2025 growth with revenue rising 2.1% to $24.9B and operating income up 6.5% to $4.7B, though the company carries a heavy debt load of $57.4B and a current ratio below 1.0, reflecting the capital-intensive nature of its regulated utility operations.
Other companies in Multi-Utilities
PG&E Corporation reported revenue of $5.902B in Q2 FY2026, up 0.1% year over year. At the Utility, a $201M increase in electricity-cost recovery revenue was mostly offset by approximately $180M less interim relief from the 2023 WMCE proceeding. Source: 10-Q Item 2 MD&A, pp.13-14.
Operating income increased 15.2% to $1.263B and basic and diluted EPS each rose 37.5% to $0.33, despite revenue being nearly unchanged at $5.902B. Utility operating and maintenance expense declined $317M, or 11%, helping support the earnings improvement. Source: 10-Q Income Statement (XBRL); 10-Q Item 2 MD&A, p.13.
The provided filing data does not include Wall Street consensus estimates, so whether PG&E beat or missed estimates cannot be determined from this report. The filing reports Q2 FY2026 basic and diluted EPS of $0.33, versus $0.24 in the prior-year period. Source: 10-Q Income Statement (XBRL).
PG&E said future wildfire liabilities could exceed insurance and available recovery mechanisms, and that wildfire mitigation reduces but does not eliminate ignition risk. As of June 30, 2026, it had recorded $638M of regulatory-recovery receivables for the 2021 Dixie fire and $61M for the 2022 Mosquito fire. Source: 10-Q Item 2 MD&A, pp.9-10.
PG&E reported a current ratio of 1.22x, with $15.404B of current assets and $12.667B of current liabilities, indicating current assets exceeded short-term obligations. However, long-term debt increased 14.4% year over year to $61.768B, or about 1.82x stockholders' equity, and the company identifies substantial indebtedness as a material risk. Source: 10-Q Balance Sheet (XBRL); 10-Q Forward-Looking Statements, p.8.