10-Q · May 5, 2026
Public Service Enterprise Group (PEG) reported robust Q1 2026 results, with EPS of $1.55, exceeding estimates of $1.44, and revenue of $3.85 billion, surpassing expectations of $3.34 billion. The company's performance…
Earnings analysis · 10-Q
PEG earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
PSEG's second-quarter revenue declined 9% year over year to $2.554 billion and GAAP diluted EPS decreased to $0.67 from $1.17, primarily reflecting adverse commodity mark-to-market results at PSEG Power. The regulated…
Read full summary
PSEG's second-quarter revenue declined 9% year over year to $2.554 billion and GAAP diluted EPS decreased to $0.67 from $1.17, primarily reflecting adverse commodity mark-to-market results at PSEG Power. The regulated PSE&G segment remained constructive, with revenue up $106 million to $2.137 billion and six-month PSE&G operating cash flow up $212 million to $1.166 billion. Management continues to emphasize a $22.5 billion-$25.5 billion regulated investment plan, but regulatory outcomes—including a potential $40 million annual impact from loss of the voluntary-RTO ROE adder—are a notable offset.
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.
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
- $0.67
What stood out
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Regulated utility revenue grew 5%
PSE&G operating revenue rose $106 million year over year to $2.137 billion. Delivery revenue increased $40 million, including $10 million from higher transmission revenue tied primarily to rate-base investment.
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Capacity and realized power revenue improved
PSEG Power & Other capacity revenue increased $51 million in the quarter, primarily from higher capacity prices, while higher realized prices and volumes added $37 million to generation revenue.
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Operating cash flow strengthened
Six-month operating cash flow increased $294 million year over year. PSE&G operating cash flow rose to $1.166 billion from $954 million, supported by lower net regulatory deferrals, lower receivables/unbilled revenue, and higher earnings.
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Large regulated investment runway
PSEG expects $22.5 billion-$25.5 billion of regulated investment during 2026-2030, supporting expected 6.0%-7.5% regulated rate-base CAGR through 2030. The broader total capital program is $24 billion-$28 billion.
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Nuclear fleet delivered high availability
Nuclear operations remained strong in the first half: units generated approximately 15.8 TWh with a 93.7% capacity factor. Management expects its 2026 nuclear portfolio position to realize value above the PTC eligibility level.
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Liquidity remains substantial
Liquidity was $3.210 billion at June 30, 2026, against total committed facilities of $3.825 billion. PSEG also prepaid its $500 million variable-rate term loan in June 2026.
What to watch
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MTM swing drove revenue and EPS decline
Quarterly operating revenue declined $251 million, or 9%, to $2.554 billion, and diluted GAAP EPS fell to $0.67 from $1.17. The principal driver was a $450 million year-over-year adverse swing in PSEG Power generation mark-to-market results.
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Mandatory RTO rule may reduce ROE earnings
New Jersey legislation requires transmission owners to join an FERC-approved RTO effective January 1, 2027. PSEG says this could eliminate PSE&G's 50-basis-point voluntary-RTO ROE adder and reduce annual net income and cash inflows by approximately $40 million.
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PJM capacity-market reform remains uncertain
PJM proposed a Reliability Backstop Procurement to address a 6.8 GW shortfall for 2028/2029, seeking 15-year commitments from new generation resources. The eventual cost allocation to load-serving entities and customers, and the outcome of the FERC proceeding, remain uncertain.
Management's outlook
The 10-Q contains no explicit numerical EPS or revenue guidance. Management reiterated a 2026-2030 regulated capital-investment range of $22.5 billion-$25.5 billion and expected regulated rate-base CAGR of 6.0%-7.5% from year-end 2025 through year-end 2030.
Earlier filings 4
10-K · February 26, 2026
PSEG’s 2025 10-K emphasizes a regulated-growth strategy centered on PSE&G’s transmission & distribution investments and PSEG Power’s nuclear generation. Management highlights regulatory support (a $17.8 billion rate…
10-Q · November 3, 2025
PSEG reported a strong quarter with consolidated operating revenues of $3,226 million (Q3 2025) up $584 million versus Q3 2024 ($2,642 million) and diluted EPS of $1.24 (Q3 2025) versus $1.04 a year ago. Operating…
10-Q · July 30, 2024
PSEG reported consolidated operating revenues of $2,423 million for the quarter (essentially flat vs $2,421 million in Q2 2023) but saw operating income fall to $582 million from $794 million and net income decline to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.