10-Q · May 7, 2026
Eversource Energy reported Q1 2026 results with revenues of $4.5 billion and diluted EPS of $1.61, marking a 9.4% increase in revenue and an increase of 7.4% in EPS from Q1 2025. The company's strong performance is…
Earnings analysis · 10-Q
ES earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
Eversource delivered 2.3% year-over-year Q2 revenue growth to $2.903B, but GAAP EPS fell from $0.96 to $0.14 and operating margin declined from 23.4% to 18.6%, driven chiefly by Aquarion-sale and Revolution Wind…
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Eversource delivered 2.3% year-over-year Q2 revenue growth to $2.903B, but GAAP EPS fell from $0.96 to $0.14 and operating margin declined from 23.4% to 18.6%, driven chiefly by Aquarion-sale and Revolution Wind charges. Underlying non-GAAP EPS was $0.87, and management maintained its $4.57-$4.72 2026 non-GAAP EPS range. Liquidity improved substantially following the Aquarion divestiture, but the FERC ROE refund range of up to $968.4M and $409.2M offshore-wind liability remain significant overhangs.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.14
What stood out
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Revenue rose modestly; gross margin fell YoY
Q2 operating revenue rose $65.1M, or 2.3%, year over year to $2.903B, but declined 35.5% sequentially from Q1 revenue of $4.504B. The calculated gross margin was 67.6%, versus 71.2% in Q2 2025 and 66.3% in Q1 2026.
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GAAP EPS and operating margin contracted sharply
GAAP diluted EPS fell to $0.14 from $0.96 a year earlier and $1.61 in Q1, while operating margin contracted to 18.6% from 23.4% in Q2 2025 and 23.9% in Q1. The quarter included $0.73 per share of after-tax charges: $0.30 from Aquarion and $0.43 from offshore wind; non-GAAP EPS was $0.87.
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All core utility segments posted revenue growth
Core operating revenue expanded across the three remaining principal utility segments: Natural Gas Distribution increased $67.9M to $528.7M, Electric Distribution rose $17.1M to $2.184B, and Electric Transmission increased $12.3M to $581.0M.
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Aquarion proceeds materially strengthened liquidity
The June 30 Aquarion sale generated approximately $1.7B of adjusted net equity proceeds targeted for parent-debt reduction. It lifted cash and equivalents to $1.819B from $135.4M at year-end, while notes payable fell to $393.7M from $1.525B.
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Operating cash flow exceeded capital spending
Six-month operating cash flow increased $316.9M year over year to $2.415B. Cash capex was $2.023B, producing approximately $391.3M of operating cash flow less capex, while capex represented 83.8% of operating cash flow.
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Large transmission investment pipeline remains
Management's capital outlook includes a preliminary ISO-NE-selected project with Eversource's estimated share of cost at approximately $700M and anticipated 2032 in-service, plus the Greater Cambridge project with a total estimated cost of $1.84B and initial in-service targeted for June 2029.
What to watch
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FERC ROE ruling creates large refund exposure
FERC's March decision lowered the transmission base ROE to 9.57% from 10.57%. Eversource recorded a $62.0M pre-tax refund liability, but estimates a reasonably possible pre-tax refund range of $62.0M-$968.4M; management estimates the ROE reduction lowers annual after-tax earnings by approximately $70M using 2025 rate base.
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Offshore-wind liability remains material
Revolution Wind cost revisions caused a $194.0M pre-tax Q2 charge, and the offshore-wind contingent liability remained $409.2M at June 30, 2026. The company states additional cost overruns, construction delays, or a reduction from the assumed 40% federal investment-tax-credit level could create material further losses.
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Connecticut storm-cost recovery remains uncertain
PURA approved $869.4M of CL&P storm costs versus the $974.2M requested, postponed review of $63.3M, and denied recovery of carrying costs incurred before its July 29 decision. Management will record the decision's impact in Q3 2026 and is evaluating potential legal action.
Management's outlook
Management reaffirmed 2026 non-GAAP recurring EPS guidance of $4.57-$4.72, including the prospective FERC transmission-ROE reduction and the absence of Aquarion earnings in 2H26. It also reaffirmed 5%-7% cumulative long-term EPS growth through 2030 from the $4.65 2026 midpoint, expecting growth toward the upper half of that range by 2028.
Earlier filings 4
10-Q · November 6, 2025
Eversource Energy reported a strong performance in Q3 2025, achieving net income of $367.5 million, up from a loss of $118.1 million in Q3 2024. Revenues increased to $3.22 billion from $3.06 billion in the prior year,…
10-Q · August 4, 2025
Eversource Energy's Q2 earnings demonstrate strong growth, with net income rising to $352.7 million, or $0.96 per share, a slight increase from $335.3 million (or $0.95 per share) a year prior. Operating revenues also…
10-Q · May 5, 2025
Eversource Energy reported strong Q1 2025 results with revenues of $4.12 billion, up 23.6% YoY, driven by higher sales volumes and favorable rate increases. However, EPS came in at $1.50, slightly below the consensus of…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.