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
PEG's Q2 FY2026 results reflected margin compression as operating expenses grew faster than revenue. Operation and maintenance costs increased 6.1% while energy costs rose 4.8%, more than offsetting a modest revenue decline and causing operating income to drop over 40%. While operating cash flow improved, net income fell sharply, and long-term debt rose 4.2% to $23.6 billion, adding financial risk amid sweeping regulatory changes in New Jersey. The regulated utility PSE&G delivered a solid performance, but the Power & Other segment swung to a loss, underscoring the challenges in the competitive generation business. The quarter also saw the enactment of key state legislation that will reshape the energy landscape, introducing both opportunities and uncertainties.
Revenue
$2.55B
-8.95% YoY
EPS (Diluted)
$0.67
-42.74% YoY
Operating Income
$461M
-43.57% YoY
Source: SEC XBRL
PEG reported Q2 FY2026 revenue of $2.55B, down 8.9% year over year. Operating margin was 18.1%, down 11.0 points from 29.1% a year earlier. PEG's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 0.86 | 0.81 | Beat +6.5% |
| Mar 2026 | 1.55 | 1.45 | Beat +6.9% |
| Dec 2025 | 0.72 | 0.72 | Beat +0.3% |
| Sep 2025 | 1.13 | 1.03 | Beat +10.1% |
Adjusted (non-GAAP) EPS of $0.86 versus the $0.81 analyst consensus — a +6.5% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.67.
2 reported segments · SEC XBRL
Segment revenue totals $2.85B; with -$117M of reconciling items (corporate, unallocated and eliminations) it ties to the $2.73B of consolidated revenue on the income statement. The profit column adds up to the consolidated figure as well.
Profit above is reported as net income, the measure PEG itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from this SEC filing
Consolidated revenue decreased 8.9% compared to Q2 2025, while total operating expenses rose 5.3%, driven by higher operation and maintenance and energy costs. This led to a 43.6% drop in operating income.
Source: 10-Q Income Statement (XBRL)
The regulated utility PSE&G delivered top-line growth, but the PSEG Power & Other segment swung to a net loss, highlighting the challenges in the competitive generation market.
Source: 10-Q Segment Disclosures (XBRL)
Year-to-date operating cash flow increased 19.3% to $1.82 billion, supported by lower income tax payments and changes in working capital.
Source: 10-Q Condensed Consolidated Statements of Cash Flows
Long-term debt increased to $22.74 billion, up 4.2% from year-end 2025, while the current ratio remained below 1, reflecting typical utility financing but also potential liquidity tightness.
Source: 10-Q Condensed Consolidated Balance Sheets
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
New legislation requiring membership in an RTO effective January 1, 2027, could lead to the loss of a 50-basis-point ROE adder for PSE&G, reducing annual net income and cash inflows by approximately $40 million.
Source: 10-Q Item 5 Other Information
FERC proceedings continue over a dispute about methodology to calculate and assign transmission project costs, with an order directing PJM to recalculate assignments back to 2015, potentially shifting significant costs to PSE&G customers.
Source: 10-Q Item 5 Other Information
FERC issued a show cause order requiring PJM to justify its tariff provisions for large customer interconnection, creating uncertainty around future transmission service and cost allocation for data centers and other large loads.
Source: 10-Q Item 5 Other Information
PJM proposed a Reliability Backstop Procurement framework to address a 6.8 GW resource shortfall for the 2028/2029 delivery year, which could impose costs on load-serving entities and their customers.
Source: 10-Q Item 5 Other Information
The NJ BPU extended the second triennium of energy efficiency programs by one year with a revised framework that adjusts budgets, ROE, and cost recovery methods, creating uncertainty for utility investments and returns until the third triennium framework is finalized.
Source: 10-Q Item 5 Other Information
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 2.55 $B | 2.81 $B | -8.95% |
Operating Income $M | 461.00 $M | 817.00 $M | -43.57% |
Net Income $M | 334.00 $M | 585.00 $M | -42.91% |
EPS (Basic) $ | 0.67 $ | 1.17 $ | -42.74% |
EPS (Diluted) $ | 0.67 $ | 1.17 $ | -42.74% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
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.
PEG delivered strong FY2025 results with revenue surging 18.3% to $12.17B and net income rising 19.1% to $2.11B, driven by robust operating cash flow growth of 54.6% to $3.30B.
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