tapebrief
ED · Q4 2025

ED · Q1 2026 Earnings

Neutral

Consolidated Edison

Reported May 7, 2026

30-second summary

30-second take: Con Edison delivered Q1 2026 GAAP EPS of $2.55 and adjusted EPS of $2.18 on net income of $924M, and reaffirmed FY2026 adjusted EPS guidance of $6.00–$6.20. The Q1 print banks ~36% of the $6.10 midpoint, leaving a $3.82–$4.02 nine-month requirement that the rate-base machine should clear comfortably. The substantive watch-list items — a CECONY rate case filing, the financing plan for the $37.7B 2026–2030 capex envelope, and a refreshed electrification demand figure — were not addressed on the print.

Headline numbers

EPS

Q1 FY2026

$2.18

Key financials

Q1 FY2026
MetricQ1 FY2026YoYQ4 FY2025QoQ
EPS$2.18—$0.89+144.9%

Guidance

Con Edison reaffirmed FY2026 adjusted EPS guidance of $6.00–$6.20, maintaining confidence in full-year delivery despite Q1 results.

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Reaffirmed unchanged this quarter: Adjusted EPS (non-GAAP) ($6.00 to $6.20)

Other KPIs

Q1 FY2026
SegmentQ1 FY2026
CECONY Electric Rate BaseHigher in Q1 2026
CECONY Gas Rate BaseHigher in Q1 2026
O&R Electric Base Rate Increase$5 million net income impact
O&R Gas Base Rate Increase$3 million net income impact
2026 Full-Year Adjusted EPS Guidance$6.00 to $6.20

Management tone

Narrative arc: Q2 reaffirmation → Q3 low-end raise → Q4 landed at top + dollarized $37.7B envelope → Q1 confidence in execution.

The release shifts framing from Q4's "managing costs while making the critical investments required for the clean energy transition" to "operational excellence" as the explanation for reaffirmation. The cost-discipline note that appeared with the FY2026 guide and capex acceleration has receded; in its place is a more declarative posture on electrification, with the release describing the pace as "unprecedented" and committing to "investing proactively to meet this growth — building new substations, maintaining robust design standards." That language is consistent with the Q4 capex dollarization and reads as management defending the buildout's scale rather than re-litigating its affordability.

What's notably absent: any mention of the CECONY rate case filing path, any equity-issuance or financing commentary tied to the $37.7B envelope, and any refresh of the >25%-above-traditional-capacity electrification demand figure. With only a press release to read, the silence on financing is the most consequential gap.

Answers to last quarter's watch list

Q1 2026 trajectory toward $6.00–$6.20 — Q1 adjusted EPS of $2.18 lands at 35.7% of the $6.10 midpoint, leaving $3.92 needed across Q2–Q4. For a non-seasonal utility this is a clean tracking print; the company reaffirmed the range on this basis. Status: Resolved positively
CECONY rate case filing — Not addressed on the print. The release credits "higher" electric and gas rate base for Q1 earnings but provides no filing-timeline disclosure. The $6.6B 2026 capex slate still rests on regulatory recovery the company hasn't yet formally pursued in a new filing. Status: Continue monitoring
Financing plan for the $37.7B 2026–2030 capex envelope — Not addressed. No equity issuance commentary, no debt mix update, no incremental disclosure on funding structure. This is the largest unaddressed item on the print and arguably the most important question for FY2027+ EPS accretion. Status: Continue monitoring
Bridge between FY2026 guide ($6.10 midpoint, +7%) and the 6–7% five-year CAGR — Not clarified. The reaffirmation language doesn't disambiguate whether 7% is the run rate or the ceiling. Status: Not resolved
Quantified electrification demand refresh — The release calls electrification "unprecedented" in pace but doesn't provide an updated capacity-above-traditional figure to replace the >25% datapoint from the 2024 strategy deck. Qualitative escalation without numbers. Status: Not resolved

What to watch into next quarter

Q2 2026 adjusted EPS tracking — Q2 typically runs lighter than Q1 for ED; watch whether the 6M cumulative print stays on a path to $6.10. A Q2 adjusted print below ~$0.65 would put the low end of the guide at risk.

CECONY rate case filing announcement — the natural next regulatory step given the dollarized $6.6B 2026 capex slate; absence into Q3 would raise questions about recovery timing on the accelerated buildout.

Equity issuance and financing-plan disclosure — the $37.7B 2026–2030 envelope requires explicit funding structure; watch the Q2 release or any interim 8-K for ATM updates, block financings, or debt mix commentary.

GAAP-to-adjusted EPS reconciliation detail — the $0.37 Q1 gap is wider than recent quarters and deserves attention in the next disclosure for what's driving it (HLBV, mark-to-market on investments, or one-time items).

Electrification demand quantification — a refreshed capacity figure replacing the >25% legacy datapoint would validate the substation buildout's scale; continued qualitative-only framing would be a tell that the underlying demand signal hasn't accelerated as the release language implies.

Sources

  1. Consolidated Edison Q1 2026 press release (Exhibit 99.1), filed May 2026 — https://www.sec.gov/Archives/edgar/data/1047862/000104786226000092/ed-20260331xexx991.htm
  2. Consolidated Edison Q4 2025 / FY2025 press release (Exhibit 99.1) — FY2026 guidance baseline and capex envelope.
  3. Consolidated Edison Q3 2025 and Q2 2025 press releases — prior-quarter guidance trajectory context.

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