PEG Q2 Earnings Outpace Expectations, Revenues Decrease Y/Y

• Adjusted EPS of $0.86 exceeded the Zacks Consensus Estimate by 7.5% and increased 11.7% year-over-year, while operating income dropped 43.6% to $461 million
• Electric sales rose 2% to 9,629 million kWh driven by residential growth, but total gas sales plummeted 23% to 541 million therms with non-firm commercial sales down 45%
• PSE&G segment revenues grew 5.2% to $2.14 billion on infrastructure investments, while PSEG Power revenues fell 42% to $534 million despite higher operating earnings from improved pricing and nuclear generation

Summary: PSEG Q2 2026 Earnings Report

Key Financial Results:

Public Service Enterprise Group (PEG) reported Q2 2026 adjusted earnings per share of $0.86, beating consensus estimates by 7.5% and representing an 11.7% year-over-year increase. However, operating revenues declined 8.9% to $2.55 billion from $2.81 billion in Q2 2025, missing the consensus estimate of $2.70 billion by 5.4%. Operating income fell significantly by 43.6% to $461 million from $817 million in the prior-year period.

Operational Performance:

Electric sales volume increased 2% to 9,629 million kWh, with residential sales up 3% and commercial/industrial sales up 1%. Gas sales showed weakness, declining 23% to 541 million therms, with non-firm commercial and industrial sales plummeting 45%. Operating expenses rose 5.3% to $2.09 billion.

Segment Results:

PSE&G (regulated utility) revenues grew 5.2% to $2.14 billion, with net income increasing to $342 million from $332 million. PSEG Power & Other saw revenues drop 42% to $534 million but operating earnings improved to $83 million from $52 million, benefiting from higher realized prices and increased nuclear generation.

Financial Position & Outlook:

Long-term debt increased to $23.59 billion from $22.55 billion at year-end 2025. Operating cash flow improved to $1.82 billion in H1 2026 from $1.53 billion in H1 2025. Management issued 2026 adjusted earnings guidance of $4.28-$4.40 per share.

PSEG maintains a Zacks Rank #3 (Hold).