PG&E posts 33% EPS gain, reaffirms 2026 guidance amid wildfire reform push

PG&E Corp. reported second-quarter GAAP earnings of 33 cents a share, up from 24 cents a year earlier, as cost savings and customer capital investment offset a lower authorized return on equity.

"Our PG&E team continues to make meaningful progress delivering safe, affordable, reliable, and clean energy to our customers," Chief Executive Officer Patti Poppe said. "We're encouraged by the engagement around California wildfire liability reform and are advocating for a durable solution that delivers for customers and investors."

Non-GAAP core earnings, which exclude wildfire fund amortization and other non-core items, rose to 40 cents a share from 31 cents, beating the company's implied quarterly run rate of 41 cents based on full-year guidance of $1.64 to $1.66. Revenue was essentially flat at $5.9 billion. Operating and maintenance costs fell 11 percent to $2.54 billion, reflecting the company's push to cut non-fuel O&M by 2 percent to 4 percent.

The Oakland-based utility is betting on data center load growth as a key earnings driver, with a pipeline exceeding 12 gigawatts. Every 1 GW of new data center demand could reduce customer bills by 1 percent or more, the company said. PG&E also completed $2.2 billion in utility bond issuance in June, bringing year-to-date debt financings to $4.4 billion.

The guidance reaffirmation signals management expects steady earnings growth from rate base expansion and cost controls. Investors will watch California's wildfire liability reform proceedings, which Poppe called critical to PG&E's capital plans and path to investment-grade credit ratings.

This article is for informational purposes only and does not constitute investment advice.