AI Takeaway
PEG delivered strong Q1 FY2026 results with revenue surging 19.4% year-over-year to $3.85B and net income rising 25.8% to $741M, driven by robust operating performance and expanding margins.
Revenue
$3.85B
++19.43% YoY
EPS (Basic)
$1.48
++25.42% YoY
Operating Income
$1.07B
++34.88% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue increased 19.4% year-over-year from $3.22B to $3.85B in Q1 FY2026, reflecting solid demand across PEG's utility operations and favorable rate conditions.
Source: Source: 10-Q Income Statement, Q1 FY2026
Operating margin expanded approximately 320 basis points year-over-year from 24.7% to 27.9%, indicating improved cost efficiency and operating leverage within the business.
Source: Source: 10-Q Income Statement, Q1 FY2026
Operating cash flow grew 21.2% year-over-year to $1.27B, outpacing revenue growth and demonstrating strong cash conversion from earnings, which supports ongoing capital investment programs.
Source: Source: 10-Q Cash Flow Statement, Q1 FY2026
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Upgrade to unlockPEG carries $23.09B in long-term debt, representing a substantial leverage position relative to its asset base of $57.95B. Rising interest rates could increase refinancing costs and pressure future earnings. Sustained capital investment needs may require additional debt issuance.
Source: Source: 10-Q Balance Sheet, Q1 FY2026
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Upgrade to unlockReported EPS of $1.55 versus the $1.45 analyst consensus — a +6.9% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $3.85B | $3.22B | +19.43% |
Operating Income | $1.07B | $797M | +34.88% |
Net Income | $741M | $589M | +25.81% |
EPS (Basic) | $1.48 | $1.18 | +25.42% |
EPS (Diluted) | $1.48 | $1.18 | +25.42% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $57.95B | $55.58B | +4.26% |
Current Assets | $4.41B | $4.8B | -8.13% |
Current Liabilities | $4.55B | $5.82B | -21.81% |
Cash & Equivalents | $404M | $894M | -54.81% |
Long-Term Debt | $23.09B | $23B | +0.40% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.27B | $1.05B | +21.16% |
Investing Cash Flow | $-736M | $-618M | -19.09% |
Financing Cash Flow | $-263M | $345M | -176.23% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 27.9% | 24.7% | +3.20% |
Net Margin | 19.3% | — | — |
ROA | 1.3% | — | — |
Current Ratio | $0.969 | — | — |
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PEG delivered strong Q1 FY2026 results with revenue of $3.85B, up 19.4% year-over-year, and net income of $741M, up 25.8%. EPS came in at $1.48 versus $1.18 in the prior-year period, reflecting solid operational performance and margin expansion.
PEG's revenue grew 19.4% year-over-year to $3.85B in Q1 FY2026, driven by strong utility demand and favorable operating conditions. Operating income grew even faster at 34.9%, suggesting improved cost efficiency alongside top-line growth.
PEG has a solid earnings profile with a net margin of 19.3% and operating cash flow of $1.27B, but carries $23.09B in long-term debt and a current ratio of 0.97, indicating modest near-term liquidity tightness. Cash and equivalents declined 54.8% year-over-year to $404M, which is a metric worth watching.
Key risks for PEG include its high long-term debt of $23.09B, regulatory rate risk inherent to its utility business model, and a current ratio below 1.0 that signals current liabilities slightly exceed current assets. Capital expenditure intensity, with investing outflows of $736M in the quarter, also represents an ongoing financial commitment.
Yes, PEG's operating cash flow grew 21.2% year-over-year to $1.27B in Q1 FY2026, outpacing revenue growth of 19.4%. However, investing cash outflows also increased to -$736M, reflecting continued infrastructure investment, resulting in estimated free cash flow of approximately $535M for the quarter.