PG&E holds 2026 and 2027 profit targets as third-quarter core earnings slip to 41 cents a share

PG&E Corporation reaffirmed its profit targets for this year and next, even as third-quarter earnings fell from a year ago on a lower authorized return on equity.

Non-GAAP core earnings came to $928 million, or 41 cents a share, down from $1.14 billion, or 50 cents, a year earlier, according to the earnings release the California utility owner filed with an 8-K. On a GAAP basis, income available for common shareholders was $749 million, or 34 cents a share, compared with $823 million, or 37 cents.

The company blamed the decline mainly on the lower return on equity set by the California Public Utilities Commission for 2026, one-time catch-up effects from a tax methodology change in 2025 and, for GAAP results, higher Wildfire Fund expense. Earnings on a larger rate base and lower operating and maintenance costs partly offset those factors.

Guidance intact

PG&E kept its 2026 non-GAAP core EPS outlook at $1.64 to $1.66 and its 2027 outlook at $1.78 to $1.82. For the first nine months, core EPS was $1.24, up from $1.14.

The company said it is on track to meet a 2% to 4% cut in non-fuel operating and maintenance costs, is carrying out a previously announced $2 billion reduction to its 2027 capital plan, and that a strategic review is advancing with the goal of becoming "a financially strong, investment-grade company."

"While we still believe California needs a durable wildfire liability framework that delivers for customers and investors, safety remains our foundation," CEO Patti Poppe said in the release.

During the quarter, the utility filed a 5,000-mile undergrounding plan with state regulators that it said is designed to cut wildfire risk by 98% on lines moved underground. It also said it has energized 174 megawatts of new data center projects since 2024.

By the numbers

• Q3 core EPS: $0.41, versus $0.50
• Q3 GAAP EPS: $0.34, versus $0.37
• Nine-month core EPS: $1.24, versus $1.14
• 2026 core EPS guidance: $1.64 to $1.66
• 2027 core EPS guidance: $1.78 to $1.82

Sources

1. PG&E Corporation, Form 8-K (Items 2.02, 7.01) with Exhibit 99.1 earnings release dated Oct. 22, 2026, accession 0001004980-26-000056

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