tapebrief
PCG · Q1 2026

PCG · Q2 2026 Earnings

Neutral

PG&E Corporation

Reported July 23, 2026

30-second summary

PG&E delivered Q2 FY2026 non-GAAP core EPS of $0.40 (vs $0.31 in Q2 FY2025, +29% YoY) on revenue of $5.902B, essentially flat YoY vs $5.898B in Q2 FY2025. 1H FY2026 non-GAAP core EPS came in at $0.83 (vs $0.64 in 1H FY2025, +30% YoY), and management reaffirmed FY26 non-GAAP core EPS at $1.64–$1.66 and the 2–4% non-fuel O&M cost-reduction target. The disclosed data-center pipeline stepped up to "over 12 gigawatts" — a broader framing than Q1's 4.6 GW final-engineering figure (definitional scope has broadened, so the comparison is directional, not apples-to-apples). Consensus benchmarks in this brief are sourced from tradefeeds; treat the beat/miss framing as directional pending better sourcing.

Headline numbers

EPS

Q2 FY2026

$0.40

-11.1% vs est.

Revenue

Q2 FY2026

$5.90B

+0.1% YoY

-4.5% vs est.

Operating margin

Q2 FY2026

21.4%

Key financials

Q2 FY2026
MetricQ2 FY2026Q2 FY2025YoYQ1 FY2026QoQ
Revenue$5.90B$5.90B+0.1%$6.88B-14.2%
EPS$0.40$0.31+29.0%$0.43-7.0%
Operating margin21.4%18.6%+282bps21.4%+3bps

Guidance

Full-year FY2026 guidance reaffirmed at $1.64–$1.66 non-GAAP EPS and 2–4% O&M cost reduction target; Q2 revenue missed consensus while non-GAAP EPS beat.

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

MetricPeriodPrior guideActualΔResult
RevenueQ2 FY2026—$5.902B-4.5% below consensus estimate of $6.18BMissed
Non-GAAP EPSQ2 FY2026—$0.40+11% above consensus estimate of $0.36Missed

Reaffirmed unchanged this quarter: Non-GAAP Core EPS ($1.64–$1.66), Non-fuel Operating and Maintenance Cost Reduction (2–4%)

Segment KPIs

Q2 FY2026
SegmentQ2 FY2026Q2 FY2025YoY
Electric$4.388B$4.414B-0.6%
Natural Gas$1.514B—+2.0%

Other KPIs

Q2 FY2026
SegmentQ2 FY2026Q2 FY2025YoY
Operating Income$1,263 million$1,096 million—
Operating and Maintenance Costs$2,536 million——
Wildfire Fund Expense$126 million——
Miles of Underground Powerlines Constructed (YTD)37 miles——
Miles of Strengthened/Covered Powerlines (YTD)100 miles——
New Electric Customers Connected3,930——
New Electric Vehicle Charging Ports2,460——
Data Center Pipeline12+ gigawatts10 gigawatts—

Management tone

Transcript prepared remarks and Q&A not available for this print; tone analysis is derived from press-release language only.

The headline language is "on track to deliver solid financial results in 2026," and Poppe's quoted commentary emphasizes "meaningful progress" and advocacy for "a durable solution" on California wildfire liability reform. The press release does not include a "solidly on track" modifier this quarter. Two consecutive reaffirmations of FY26 EPS without any high-end telegraph, paired with 1H non-GAAP EPS running at the low-end run-rate ($0.83, or ~50.3% of the $1.65 midpoint), is the observable pattern. What that suggests: management is defending the range rather than pushing it, consistent with banking H1 outperformance against later-year headwinds.

The data-center headline expanded from 4.6 GW (Q1, final-engineering) to "over 12 gigawatts" (Q2, unspecified stage). This is either a scope-broadening (adding earlier-stage projects, which weakens comparability) or a genuine pipeline surge (which would be a strong bull signal). Without the transcript, both readings remain open — but the move off the "final-engineering" framing that had been the tighter, more defensible disclosure is itself worth noting.

Answers to last quarter's watch list

SB 254 Phase 2 legislative substance — Not addressed in the press release beyond Poppe's general statement about being "encouraged by the engagement around California wildfire liability reform." No draft-bill language, procedural update, or reiteration of the "minimum outcome" floor.
Continue monitoring
Moody's rating action timing — Not disclosed on this print.
Continue monitoring
Data-center pipeline conversion above 4.6 GW — Pipeline disclosed at "over 12 GW," but the definitional framing has shifted from Q1's "final-engineering" to an unspecified stage. Directionally positive at the headline; substantively unclear until the transcript clarifies stage composition.
Continue monitoring
Undergrounding pace — YTD figure of 37 miles disclosed against the >1,900-mile target by end of 2027. Without a Q1-reported YTD figure in the trusted prior data, quarter-over-quarter cadence cannot be verified here.
Continue monitoring
FY2026 EPS guidance range tightening at Q2 FY2026 — No tightening, no high-end bias. Range reaffirmed at $1.64–$1.66 with "on track to deliver solid financial results" language. 1H non-GAAP EPS of $0.83 tracks the low-end run-rate. Status: Resolved — reaffirmed without upward bias.
Kincade/Dixie cost recovery procedural movement — Not disclosed in the press release. Q2 non-core wildfire-related costs (post-tax) were $4M (Kincade $2M, Dixie $4M pre-tax).
Continue monitoring

What to watch into next quarter

Data-center pipeline stage disclosure — the shift from "4.6 GW in final engineering" (Q1) to "over 12 GW pipeline" (Q2, stage unspecified) needs stage-level reconciliation. Watch for restoration of the final-engineering MW figure at Q3 and whether it grew, held, or shrank from 4.6 GW.

Undergrounding pace in Q3 — YTD 37 miles vs the >1,900-mile target by end of 2027 implies a required run-rate well above current pace. Watch the Q3 YTD cumulative figure for evidence of acceleration.

FY26 EPS at Q3 print — two consecutive reaffirmations without a high-end telegraph, with 1H at $0.83, set Q3 as the deciding print. A tightened range biased toward the midpoint would confirm H1 outperformance is capped by later-year headwinds; a bias toward $1.66 would restore the bullish setup.

SB 254 Phase 2 legislative concrete milestones — Poppe's "encouraged by the engagement" language is the only reference. Watch for any draft bill language on inverse condemnation, claims framework, or fund replenishment.

Electric revenue trajectory — Q2 Electric was -0.6% YoY vs 1H Electric of +9.4% YoY ($9.355B vs $8.549B), implying Q1 carried the growth. Watch whether Q3 restores mid-single-digit YoY Electric growth, which is required to support the load-growth-driven affordability narrative.

Consensus reconciliation — the $6.18B revenue and $0.36 EPS consensus (tradefeeds) that anchor the beat/miss framing warrant cross-check against a second consensus source before drawing directional conclusions.

Sources

  1. PG&E Corporation Q2 2026 Press Release, filed with SEC: https://www.sec.gov/Archives/edgar/data/1004980/000100498026000047/pge-q22026pressrelease.htm
  2. Consensus estimates: tradefeeds (as of 2026-07-23) — single source; not independently verified.

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