ED · Q2 2026 Earnings

Neutral

Consolidated Edison

Reported August 6, 2026

30-second summary

30-second take: Con Edison delivered Q2 FY2026 adjusted EPS of $0.83 against consensus of $0.77 (+7.8%), on net income of $308M, and reaffirmed FY2026 adjusted EPS guidance of $6.00–$6.20 for the second consecutive quarter. Rate-base recovery did the work — higher CECONY electric and gas rate bases contributed $0.13 combined, with lower electric O&M adding another $0.02. The Q2 print clears the "below $0.65 puts the low end at risk" bar we flagged last quarter with room to spare; the substantive gaps — CECONY rate case filing, financing plan for the $37.7B envelope — remain unaddressed on the print.

Headline numbers

EPS

Q2 FY2026

$0.83

+7.8% vs est.

Key financials

Q2 FY2026

Metric	Q2 FY2026	Q2 FY2025	YoY	Q1 FY2026	QoQ
EPS	$0.83	$0.67	+23.9%	$2.18	-61.9%

Guidance

Con Edison reaffirmed full-year FY2026 adjusted EPS guidance at $6.00–$6.20 while delivering a 7.8% Q2 beat on earnings.

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

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Adjusted EPS (non-GAAP)	Q2 FY2026	—	$0.83	+$0.06 above consensus estimate	Beat

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

Other KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Electric Rate Base Growth (CECONY)	Higher rate base contributing $0.07 per share	$15 million higher (Q2 2025 vs Q2 2024)	—
Gas Rate Base Growth (CECONY)	Higher rate base contributing $0.06 per share	$13 million higher (6M 2025 vs 6M 2024)	—
Planned Substations by 2035	28 new substations	—	—
Service Reliability	Nation-leading electric service reliability	—	—
Electric Operations and Maintenance	Lower expenses contributing $0.02 per share	—	—

Management tone

Narrative arc: Q3 FY2025 low-end raise → Q4 FY2025 landed at top + dollarized $37.7B envelope → Q1 FY2026 "unprecedented pace" of electrification → Q2 FY2026 nation-leading reliability + 2035 substation slate.

The framing has shifted materially from Q1 FY2026's electrification-growth emphasis to Q2 FY2026's execution-and-reliability posture. Q1 FY2026's release leaned on "unprecedented" electrification pace as the demand justification for the capex envelope; this quarter's release pivots to "nation-leading electric service reliability" and a longer-dated "28 new substations by 2035" build-out. The demand narrative has receded and the operational-excellence narrative has stepped forward — consistent with a beat quarter driven by rate-base recovery and O&M discipline rather than by any new demand signal.

The 2035 substation figure is worth flagging. Q3 FY2025 formalized 14 substations by 2030; this quarter references 28 by 2035. Doubling the count over an extra five years could mean the same annual pace stretched out, or a genuine acceleration — the release language doesn't disambiguate. The horizon extension itself is the tell: management is now anchoring to a decade-out figure rather than the 2030 marker that defined the $37.7B envelope, which pushes some of the visibility (and accountability) further out.

What remains absent, as in Q1 FY2026: no CECONY rate case filing announcement, no equity-issuance or financing commentary, and no refreshed electrification demand quantification. Two consecutive prints without any of these disclosures is starting to look deliberate rather than coincidental.

Answers to last quarter's watch list

Q2 FY2026 adjusted EPS tracking — Q2 FY2026 adjusted EPS of $0.83 came in well above the $0.65 threshold that would have put the low end of the guide at risk. 6M cumulative adjusted EPS of $3.00 (49.2% of the $6.10 midpoint) is a clean setup for the summer-weighted Q3 FY2026. Status: Resolved positively

CECONY rate case filing announcement — Not addressed on the print. The $6.6B FY2026 capex slate continues to rest on regulatory recovery the company hasn't yet formally re-filed for. Absence now extends into Q3 FY2026 territory. Status: Continue monitoring

Equity issuance and financing-plan disclosure — Not addressed. Two consecutive prints without any funding-structure commentary on the $37.7B FY2026–FY2030 envelope. This remains the largest unaddressed item and the most consequential silence. Status: Continue monitoring

GAAP-to-adjusted EPS reconciliation detail — Now disclosed. The Q1 FY2026 GAAP-vs-adjusted gap was driven by the gain on sale of Con Edison's equity interest in MVP ($189M pre-tax / $134M after-tax / $0.37 per share after-tax), recognized in the six-month period and excluded from adjusted earnings. Q2 FY2026 shows no such gap (GAAP $0.83 = adjusted $0.83), consistent with the MVP gain being a Q1 FY2026-specific event. Status: Resolved

Electrification demand quantification — Not resolved. Release language pivots away from "unprecedented" electrification pace toward reliability framing; no refreshed capacity figure. The de-emphasis is itself a signal — either the >25% figure is stale and management doesn't want to update it, or the buildout is now being justified on reliability grounds rather than demand grounds. Status: Not resolved

What to watch into next quarter

Q3 FY2026 adjusted EPS and FY guide movement — with 6M at $3.00, a Q3 FY2026 print above ~$1.85 would put FY tracking above the $6.10 midpoint and create pressure for a low-end raise (mirroring the Q3 FY2025 pattern). Watch whether management follows the same low-end-raise playbook or holds the range unchanged for a third consecutive quarter.

CECONY rate case filing — third consecutive quarter of absence would begin to raise questions about the timeline for regulatory recovery of the accelerated capex slate; watch for any 8-K or interim filing announcement between now and the Q3 FY2026 print.

Equity issuance and financing-plan disclosure — the $37.7B envelope requires funding structure clarity; watch for ATM updates, debt issuances, or explicit funding-mix commentary. Silence into Q3 FY2026 would extend the disclosure gap to nearly a full year post-envelope announcement.

Substation slate reconciliation (14 by 2030 vs. 28 by 2035) — watch whether Q3 FY2026 disclosure clarifies whether the 2035 figure represents an upsize, an extension of the same pace, or a re-scoping. This has direct implications for the multi-year capex trajectory.

Electrification demand signal — three consecutive prints without a refreshed capacity figure would confirm the demand-narrative de-emphasis; a return to quantified language in Q3 FY2026 would reverse that read.

Sources

Consolidated Edison Q2 FY2026 press release (Exhibit 99.1), filed August 6, 2026 — https://www.sec.gov/Archives/edgar/data/1047862/000104786226000143/ed-20260630xexx991.htm

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