PG&E earnings fell in the third quarter of 2026, but the company reaffirmed its full-year 2026 and 2027 non-GAAP core earnings guidance on October 22. Quarterly core earnings per share declined to $0.41 from $0.50 a year earlier, while management said it remained on track to meet its 2–4% non-fuel operating and maintenance cost-reduction target.
Key Takeaways
- PG&E maintained core EPS guidance of $1.64–$1.66 for 2026 and $1.78–$1.82 for 2027.
- Third-quarter income available for common shareholders fell to $749 million from $823 million.
- The company is implementing a previously announced $2 billion reduction to its 2027 capital plan.
Table of Contents
- PG&E earnings outlook holds despite weaker quarter
- Lower returns and tax comparison weigh on quarterly profit
- Cost savings and capital changes remain in progress
- Conclusion
PG&E earnings outlook holds despite weaker quarter
PG&E’s third-quarter 2026 results announcement left both annual core earnings forecasts unchanged. Management expects returns on customer capital investment, cost savings and other earnings factors to support results, alongside costs including unrecoverable net interest expense.
The guidance uses non-GAAP core EPS rather than reported GAAP earnings. PG&E excludes items it considers unrepresentative of ongoing performance and said it could not provide a forward-looking GAAP reconciliation without unreasonable effort because certain potentially significant costs are difficult to estimate.
The weaker third quarter contrasts with higher earnings over the first nine months of 2026. Both reported and core EPS remained above their year-earlier levels for that longer period.
| Item | Details |
|---|---|
| Nine-month GAAP EPS | $1.06 in 2026 versus $0.89 in 2025. |
| Nine-month non-GAAP core EPS | $1.24 in 2026 versus $1.14 in 2025. |
| Nine-month operating revenue | $18.971 billion in 2026 versus $18.131 billion in 2025. |
Lower returns and tax comparison weigh on quarterly profit
Third-quarter income available for common shareholders was $749 million, or $0.34 per diluted share, compared with $823 million, or $0.37 per diluted share, in 2025. Non-GAAP core earnings declined to $928 million from $1.142 billion.
PG&E attributed the GAAP earnings decline primarily to a lower California Public Utilities Commission return on equity in effect during 2026, the comparison with one-time tax-methodology catch-up effects in 2025, and increased Wildfire Fund expense. Earnings on a higher rate base and net operating and maintenance savings partly offset those pressures.
The company said similar factors affected core earnings, except for Wildfire Fund expense. Quarterly revenue fell 1.0% to $6.188 billion from $6.250 billion.
PG&E shares were down 0.68% at $13.08 in pre-market trading on October 22. That was an early trading snapshot, not a closing price.
Cost savings and capital changes remain in progress
Management said the 2–4% non-fuel operating and maintenance cost-reduction target remained on track. That target is a planned reduction, not a statement that the full savings have already been achieved.
PG&E is also implementing its previously announced $2 billion reduction to the 2027 capital plan. Its strategic review is advancing with the stated goal of becoming a financially strong, investment-grade company; the announcement did not present a completed outcome.
Conclusion
PG&E maintained its annual core earnings outlook despite the quarterly decline. The next scheduled discussion is its October 22 earnings call at 11 a.m. Eastern Time, with cost savings, capital spending and the strategic review among the issues in focus.
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