PG&E Corporation Reports First Quarter 2026 Results; On Track to Deliver Solid 2026; Bundled Residential Electric Rates Now Down 23% since 2024 for Most Vulnerable Customers
Rhea-AI Summary
PG&E Corporation (NYSE: PCG) reported first quarter 2026 GAAP earnings of $0.39 per share and non-GAAP core earnings of $0.43 per share. The company reaffirmed full-year 2026 non-GAAP core EPS guidance of $1.64–$1.66 and said bundled residential rates for CARE customers are down 23% since January 2024. Other highlights include NRC license renewal for Diablo Canyon, eight RNG facilities connected, 31 miles of undergrounding completed, and ~4.6 GW of data center load in final engineering.
AI-generated analysis. Not financial advice.
Positive
- GAAP EPS rose to $0.39 in Q1 2026 from $0.28 in Q1 2025 (+39%)
- Non-GAAP core EPS increased to $0.43 from $0.33 in Q1 2025 (+30%)
- Full-year 2026 non-GAAP core EPS guidance reaffirmed at $1.64–$1.66
- Residential bundled rates for CARE customers reduced by 23% since Jan 2024
- NRC license renewal granted for Diablo Canyon allowing extended operations
Negative
- Increased wildfire-related claims and Wildfire Fund expense reduced GAAP upside
- Lower return on equity in effect for 2026 compared with 2025
- Non-core items totaled $100 million after tax in Q1 2026
News Market Reaction – PCG
On the day this news was published, PCG declined 0.30%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
PCG was down 0.59% with major regulated electric peers also negative (e.g., ED -0.74%, WEC -1.00%, ETR -1.71%). Scanner data, however, did not flag a coordinated sector momentum move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jul 31 | Q2 2025 earnings | Positive | +0.0% | GAAP and core EPS in line to higher with 2025 guidance reaffirmed. |
| Apr 24 | Q1 2025 earnings | Negative | -0.9% | GAAP and core EPS down versus prior year despite reaffirmed guidance. |
| Feb 13 | FY 2024 results | Positive | -1.1% | Strong EPS growth, O&M cuts, DOE loan guarantee, and raised 2025 guidance. |
| Nov 07 | Q3 2024 earnings | Positive | +0.5% | Higher GAAP and core EPS with strengthened 2024 guidance and larger capex plan. |
| Jul 25 | Q2 2024 earnings | Positive | -1.3% | Strong EPS growth and guidance update alongside progress on undergrounding. |
Earnings releases have generally been positive but often met with flat to modestly negative price reactions, suggesting restrained responses even to guidance increases.
Over the past several earnings cycles, PG&E has consistently highlighted GAAP and non-GAAP core EPS growth, while reaffirming or raising guidance. Prior updates referenced a fully funded $63 billion multi‑year capital plan, O&M cost reductions, and significant wildfire risk mitigation and undergrounding progress. Recent results also emphasized strong operating cash flow and a DOE $15 billion loan guarantee. Today’s first‑quarter 2026 report extends this pattern with higher GAAP and core EPS year over year and reaffirmed 2026 core EPS guidance.
Historical Comparison
Across the last five earnings-related releases, PCG’s average next-day move was about -0.54%, indicating typically muted or slightly negative reactions to fundamentally constructive updates.
Earnings releases have shown steady EPS growth, repeated guidance reaffirmations or increases, and ongoing investment in a large multi-year grid and wildfire-hardening capital program.
Market Pulse Summary
This announcement highlights solid first‑quarter 2026 progress, with GAAP EPS at $0.39, non‑GAAP core EPS at $0.43, and full‑year 2026 core EPS guidance reaffirmed at $1.64–$1.66. The company also advanced wildfire mitigation through undergrounding and grid hardening, and lowered residential bundled rates for vulnerable customers. In assessing the update, investors may focus on ongoing wildfire liabilities, execution on cost reduction targets, and regulatory decisions affecting returns and long‑term capital investment recovery.
Key Terms
GAAP financial
non-GAAP core earnings financial
renewable natural gas (RNG) technical
U.S. Nuclear Regulatory Commission (NRC) regulatory
allowance for funds used during construction financial
AI-generated analysis. Not financial advice.
- GAAP earnings were
$0.39 $0.28 - Non-GAAP core earnings were
$0.43 $0.33 - Full year 2026 non-GAAP core EPS guidance reaffirmed at
$1.64 $1.66 - On track to meet 2
-4% non-fuel operating and maintenance (O&M) cost reduction target.
Operational progress during the first quarter of 2026 continued to focus on delivering safe, reliable, affordable, and clean energy to customers. Pacific Gas and Electric Company (PG&E or the Utility):
- Lowered residential bundled electric rates for the fifth time – reducing these rates
23% for PG&E's most vulnerable customers served under the CARE program, and13% for other customers – since January 2024. - Received approval from the
U.S. Nuclear Regulatory Commission (NRC) on Diablo Canyon Power Plant's license renewal for extended operations on April 2, 2026. In 2025, the NRC found the nuclear plant to be safe and environmentally sound to operate for another 20 years. Diablo Canyon provides safe, reliable, affordable and clean electricity to about four million Californians and makes up nearly20% ofCalifornia's clean energy. - Connected its eighth renewable natural gas (RNG) facility, enabling more
California -produced RNG to help reduce greenhouse gas emissions. PG&E plans to connect an additional five RNG facilities by the end of 2027. Since 2021, PG&E has transported approximately 7.25 billion cubic feet of RNG through its natural gas pipeline system – enough energy to fuel more than 190,000 homes. - Completed 31 miles of undergrounded powerlines and installed 44 miles of strengthened poles and covered powerlines in high fire-risk areas. By the end of 2027, PG&E plans to complete more than 1,900 total miles of undergrounding and more than 2,000 miles of strengthened poles and covered powerlines, along with other wildfire safety system upgrades.
- Connected over 3,100 electric customers and over 1,500 new electric vehicle charging ports to the Utility's grid.
- Advanced customer data center projects in PG&E's service area, with approximately 4.6 gigawatts (GW) now in final engineering. Every 1 GW of new data center load could help customers save
1% or more on their monthly electric bill, under the right conditions.
"Our PG&E team continues our progress in delivering safe, reliable, affordable and clean energy to our customers. We've lowered residential bundled electric rates, which are down
2026 Guidance
PG&E Corporation is reaffirming its full year 2026 non-GAAP core earnings guidance range of
PG&E Corporation uses "non-GAAP core earnings," which is a non-GAAP financial measure that excludes non-core items, in order to provide a measure that allows investors to compare the underlying financial performance of the business from one period to another, exclusive of non-core items. See the accompanying tables for a reconciliation of consolidated income available for common shareholders to non-GAAP core earnings (including non-GAAP core EPS).
Financial Results
PG&E Corporation recorded first quarter 2026 income available for common shareholders of
GAAP earnings were primarily driven by customer capital investment due to the earnings impact of higher rate base, the 2023 Wildfire Mitigation and Catastrophic Events (WMCE) final decision, and net O&M savings, partially offset by a lower return on equity in effect during 2026 as compared to 2025, increased wildfire-related claims, net of recoveries, and Wildfire Fund expense.
Non-GAAP Core Earnings
PG&E Corporation's non-GAAP core earnings were
Non-GAAP core earnings were driven by similar factors to our GAAP earnings.
Non-core items, which management does not consider representative of ongoing earnings, totaled
Supplemental Financial Information
In addition to the financial information accompanying this release, presentation slides have been furnished to the Securities and Exchange Commission (SEC) and are available on PG&E Corporation's website at: http://investor.pgecorp.com/financials/quarterly-earnings-reports/default.aspx.
Earnings Conference Call
PG&E Corporation will hold a conference call on April 23, 2026, at 11:00 a.m. Eastern Time (8:00 a.m. Pacific Time) to discuss its first quarter 2026 results. The public can access the conference call through a simultaneous webcast. The link is provided below and will also be available from the PG&E Corporation website.
What: First Quarter 2026 Earnings Call
When: Thursday, April 23, 2026 at 11:00 a.m. Eastern Time
Where: http://investor.pgecorp.com/news-events/events-and-presentations/default.aspx
A replay of the conference call will be archived at
http://investor.pgecorp.com/news-events/events-and-presentations/default.aspx
Alternatively, a toll-free replay of the conference call may be accessed shortly after the live call through April 30, 2026, by dialing (800) 770-2030. The confirmation code 92587 will be required to access the replay.
Public Dissemination of Certain Information
PG&E Corporation and the Utility routinely provide links to the Utility's principal regulatory proceedings with the California Public Utilities Commission and the Federal Energy Regulatory Commission at http://investor.pgecorp.com, under the "Regulatory Filings" tab, so that such filings are available to investors upon filing with the relevant agency. PG&E Corporation and the Utility also routinely post, or provide direct links to, presentations, documents, and other information that may be of interest to investors at http://investor.pgecorp.com, under the "Wildfire & Safety" and "News & Events" pages, respectively, in order to publicly disseminate such information. It is possible that any of these filings or information included therein could be deemed to be material information.
About PG&E Corporation
PG&E Corporation (NYSE: PCG) is a holding company headquartered in
Forward-Looking Statements
This news release contains forward-looking statements that are not historical facts, including statements about the beliefs, expectations, guidance, estimates, future plans, and strategies of PG&E Corporation and the Utility, including regarding earnings, customer bills, operating and maintenance costs, system hardening, and load growth. These statements are based on current expectations and assumptions, which management believes are reasonable, and on information currently available to management, but are necessarily subject to various risks and uncertainties. In addition to the risk that these assumptions prove to be inaccurate, factors that could cause actual results to differ materially from those contemplated by such forward-looking statements include factors disclosed in PG&E Corporation's and the Utility's joint Annual Report on Form 10-K for the year ended December 31, 2025, their most recent Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 (Form 10-Q), and other reports filed with or furnished to the SEC, which are available on PG&E Corporation's website at www.pgecorp.com and on the SEC's website at www.sec.gov. PG&E Corporation and the Utility undertake no obligation to publicly update or revise any forward-looking statements, whether due to new information, future events or otherwise, except to the extent required by law.
[1] PG&E Corporation is unable to provide GAAP guidance or present a quantitative reconciliation of forward-looking non-GAAP core earnings, non-GAAP core EPS, or non-GAAP core EPS growth without unreasonable effort because specific line items, which may be significant, are not estimable. For instance, amortization of the Wildfire Fund contribution asset, the impacts of regulatory decisions, special tax items, and wildfire-related costs, net of recoveries, are difficult to predict due to various factors outside of management's control.
PG&E CORPORATION | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||
(in millions, except per share amounts) | ||||||
(Unaudited) | ||||||
Three Months Ended March 31, | ||||||
2026 | 2025 | |||||
Operating Revenues | ||||||
Electric | $ 4,967 | $ 4,135 | ||||
Natural gas | 1,914 | 1,848 | ||||
Total operating revenues | 6,881 | 5,983 | ||||
Operating Expenses | ||||||
Cost of electricity | 561 | 399 | ||||
Cost of natural gas | 470 | 496 | ||||
Operating and maintenance | 3,112 | 2,646 | ||||
Wildfire-related claims, net of recoveries | — | 49 | ||||
Wildfire Fund expense | 102 | 76 | ||||
Depreciation, amortization, and decommissioning | 1,166 | 1,097 | ||||
Total operating expenses | 5,411 | 4,763 | ||||
Operating Income | 1,470 | 1,220 | ||||
Interest income | 122 | 117 | ||||
Interest expense | (803) | (734) | ||||
Other income, net | 116 | 70 | ||||
Income Before Income Taxes | 905 | 673 | ||||
Income tax provision | 20 | 39 | ||||
Net Income | 885 | 634 | ||||
Preferred stock dividend requirement | 27 | 27 | ||||
Income Available for Common Shareholders | $ 858 | $ 607 | ||||
Weighted Average Common Shares Outstanding, Basic | 2,199 | 2,195 | ||||
Weighted Average Common Shares Outstanding, Diluted | 2,281 | 2,200 | ||||
Net Income Per Common Share, Basic | $ 0.39 | $ 0.28 | ||||
Net Income Per Common Share, Diluted | $ 0.39 | $ 0.28 | ||||
Reconciliation of PG&E Corporation's Consolidated Earnings Available for Common Shareholders in Accordance with Generally Accepted Accounting Principles (GAAP) to Non-GAAP Core Earnings | ||||||||||||||
First Quarter, 2026 vs. 2025 | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
Earnings | Earnings per | |||||||||||||
(in millions, except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||||
PG&E Corporation's GAAP earnings/EPS, basic | $ 858 | $ 607 | ||||||||||||
Mandatory convertible preferred stock dividends | 24 | — | — | — | ||||||||||
PG&E Corporation's GAAP earnings/EPS, diluted (1) | $ 882 | $ 607 | ||||||||||||
Non-core items: (2) | ||||||||||||||
Amortization of Wildfire Fund contribution (3) | 74 | 55 | 0.03 | 0.03 | ||||||||||
Bankruptcy and legal costs (4) | — | 5 | — | — | ||||||||||
Investigation remedies (5) | 13 | 19 | 0.01 | 0.01 | ||||||||||
Prior period net regulatory impact (6) | 15 | (6) | 0.01 | — | ||||||||||
SB 901 securitization (7) | (5) | 7 | — | — | ||||||||||
Wildfire-related costs, net of recoveries (8) | 3 | 40 | — | 0.02 | ||||||||||
PG&E Corporation's non-GAAP core earnings/EPS (9) | $ 982 | $ 728 | ||||||||||||
All amounts presented in the table above and footnotes below are tax adjusted at PG&E Corporation's statutory tax rate of | |
(1) | For more information regarding the calculation of GAAP earnings and EPS, see Note 7 of the Notes to the Condensed Consolidated Financial Statements in the Form 10-Q. |
(2) | "Non-core items" include items that management does not consider representative of ongoing earnings and affect comparability of financial results between periods, consisting of the items listed in the table above. See Non-GAAP Financial Measures below. |
(3) | The Utility recorded costs of |
(4) | Related to costs to resolve proof of claims filed in PG&E Corporation's and the Utility's Chapter 11 filing. |
(5) | Includes costs associated with the decision different for the order instituting investigation ("OII") related to the 2017 Northern California Wildfires and 2018 Camp Fire ("Wildfires OII"), the system enhancements related to the locate and mark OII, restoration and rebuilding costs for the town of Paradise, and the settlement agreement resolving the Safety and Enforcement Division's investigation into the 2020 Zogg fire, as shown below. |
(in millions) | Three Months Ended |
Wildfires OII disallowance and system enhancements | $ 8 |
Locate and mark OII system enhancements | 2 |
Paradise restoration and rebuild | (1) |
2020 Zogg fire settlement | 6 |
Investigation remedies | $ 14 |
Tax impacts | (1) |
Investigation remedies (post-tax) | $ 13 |
(6) | The Utility recorded costs of |
(7) | The Utility recorded benefits of |
(8) | Includes costs to resolve third-party claims, net of recoveries, for the 2019 Kincade fire and 2021 Dixie fire, inclusive of outside counsel fees, as shown below. |
(in millions) | Three Months Ended |
2019 Kincade fire | $ 1 |
2021 Dixie fire | 3 |
Wildfire-related costs, net of recoveries | $ 4 |
Tax impacts | (1) |
Wildfire-related costs, net of recoveries (post-tax) | $ 3 |
(9) | "Non-GAAP core earnings" and "Non-GAAP core EPS" are non-GAAP financial measures. See Non-GAAP Financial Measures below. |
Undefined, capitalized terms have the meanings set forth in the Form 10-Q. | |
Non-GAAP Financial Measures PG&E Corporation and Pacific Gas and Electric Company |
Non-GAAP Core Earnings and Non-GAAP Core EPS
"Non-GAAP core earnings" and "Non-GAAP core EPS," also referred to as "non-GAAP core earnings per share," are non-GAAP financial measures. Non-GAAP core earnings is calculated as income available for common shareholders, diluted, less non-core items. "Non-core items" include items that management does not consider representative of ongoing earnings and affect comparability of financial results between periods, consisting of the items listed above. Non-GAAP core EPS is calculated as non-GAAP core earnings divided by common shares outstanding on a diluted basis.
PG&E Corporation discloses historical financial results and provides guidance based on "non-GAAP core earnings" and "non-GAAP core EPS" in order to provide measures that allow investors to compare the underlying financial performance of the business from one period to another, exclusive of non-core items. PG&E Corporation and the Utility use non-GAAP core earnings and non-GAAP core EPS to understand and compare operating results across reporting periods for various purposes including internal budgeting and forecasting, short- and long-term operating planning, and employee incentive compensation. PG&E Corporation and the Utility believe that non-GAAP core earnings and non-GAAP core EPS provide additional insight into the underlying trends of the business, allowing for a better comparison against historical results and expectations for future performance.
Non-GAAP core earnings and non-GAAP core EPS are not substitutes or alternatives for GAAP measures such as consolidated income available for common shareholders and may not be comparable to similarly titled measures used by other companies.
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SOURCE PG&E Corporation