Con Edison Reports 2026 Third Quarter Earnings

Con Edison posts strong Q3 and nine-month earnings growth, raises climate resilience investment plans.

What the company is saying

Consolidated Edison, Inc. (NYSE:ED) is highlighting robust financial performance for Q3 and the first nine months of 2026, with both GAAP and adjusted earnings up year-over-year. CEO Tim Cawley frames the company as a stable, long-term investment, emphasizing consistent performance, financial strength, and a focus on reliability and climate resilience. The company discloses a planned $797 million investment in climate resilience from 2026 through 2030, positioning this as a response to extreme weather and evolving energy needs. CFO Kirk Andrews notes that a new investment plan for the Steam business has been agreed with regulators and stakeholders and is awaiting approval. The company narrows its 2026 adjusted EPS guidance to $6.05–$6.15 per share, slightly tightening the prior range. Management attributes earnings growth to higher electric and gas rate bases at CECONY and O&R, as well as specific one-time items like the sale of the MVP equity interest.

What the data suggests

The numbers show clear year-over-year improvement: Q3 2026 net income rose to $766 million ($2.07 per share) from $688 million ($1.91 per share) in Q3 2025. Adjusted Q3 earnings were $766 million ($2.07 per share), up from $686 million ($1.90 per share) last year. For the first nine months, net income increased to $1,998 million ($5.44 per share) from $1,726 million ($4.84 per share), and adjusted earnings reached $1,864 million ($5.08 per share) versus $1,718 million ($4.82 per share) in 2025. The main drivers were higher electric and gas rate bases at CECONY and O&R, with CECONY's higher electric rate base alone contributing $62 million ($0.17 per share) in Q3 and $99 million ($0.27 per share) year-to-date. The company excludes the $0.37 per share after-tax gain on the MVP sale and other one-time items from adjusted results. The 2026 adjusted EPS guidance of $6.05–$6.15 is slightly narrowed from the previous $6.00–$6.20 range, signaling confidence but not a major upward revision. The planned $797 million climate resilience investment is a forward-looking commitment, not yet realized in results.

Analysis

The announcement is primarily focused on realised, measurable financial results, with detailed disclosure of both GAAP and non-GAAP net income and earnings per share for the quarter and year-to-date. The majority of key claims are supported by hard numerical data, showing clear year-over-year improvement in profitability. While there are some forward-looking statements (notably the planned $797 million climate resilience investment and 2026 EPS guidance), these are proportionate and do not dominate the narrative. The capital outlay for climate resilience is disclosed as a multi-year plan, but there is no attempt to overstate its immediate impact or link it to current earnings. Qualitative statements about 'durability' and 'long-term investment' are typical CEO commentary and do not inflate the signal given the strong underlying results. There is no evidence of narrative inflation or overstatement relative to the disclosed facts.

Risk flags

• ●Regulatory approval risk is present for the Steam business investment plan, which is agreed but not yet approved. Delays or changes in regulatory stance could impact capital allocation and future earnings.
• ●The $797 million climate resilience investment, while necessary for long-term reliability, represents a significant capital outlay over four years. If cost overruns or regulatory changes occur, returns could be pressured or delayed.
• ●Adjusted earnings exclude several one-time items, including the gain on the MVP sale and transaction costs. If similar adjustments recur or if future gains are not realized, comparability and predictability of earnings could be affected.
• ●The company operates in a heavily regulated environment, and future changes to rate plans or regulatory frameworks could impact allowed returns and profitability, as noted in the risk disclosures.
• ●Extreme weather events and infrastructure demands in the New York region pose ongoing operational risks, potentially requiring further unplanned capital investment or affecting service reliability.

Bottom line

Con Edison delivered solid Q3 and year-to-date earnings growth, driven by higher regulated rate bases and disciplined cost management. The company is signaling confidence by tightening its 2026 adjusted EPS guidance, though the range is not materially higher than before. The planned $797 million climate resilience investment is a long-term capital commitment, not an immediate earnings driver, and will require careful execution and regulatory coordination. Investors should watch for regulatory approval of the Steam business plan and updates on the pace and impact of climate resilience spending. The most important takeaway is that Con Edison continues to deliver steady, regulated earnings growth, but faces ongoing regulatory and capital allocation risks as it invests for future reliability.

Announcement summary

(NYSE:ED) Consolidated Edison, Inc. reported 2026 third quarter net income of $766 million or $2.07 per share, compared with $688 million or $1.91 per share in the 2025 third quarter. Adjusted earnings (non-GAAP) for the 2026 third quarter were $766 million or $2.07 per share, versus $686 million or $1.90 per share in the 2025 period. For the first nine months of 2026, net income was $1,998 million or $5.44 per share, compared with $1,726 million or $4.84 per share in the first nine months of 2025. Adjusted earnings for the first nine months of 2026 were $1,864 million or $5.08 per share, compared with $1,718 million or $4.82 per share in the 2025 period. Adjusted earnings and adjusted earnings per share in the 2026 period exclude transaction costs associated with the strategic alternatives review of Con Edison's equity interests in Mountain Valley Pipeline, LLC (MVP) and Honeoye Storage Corporation, the gain on the sale of Con Edison's equity interest in MVP, and the effects of hypothetical liquidation at book value (HLBV) accounting for tax equity investments. Adjusted earnings and adjusted earnings per share in the 2025 period exclude accretion of the basis difference of Con Edison's equity interest in MVP and adjustments related to the sale of all stock of Con Edison Clean Energy Businesses, Inc. in 2023. Tim Cawley, Chairman and CEO, stated that Con Edison is a durable, long-term investment supported by consistent performance and financial strength, and highlighted the company's focus on reliability and climate resilience. The company plans to invest approximately $797 million in climate resilience from 2026 through 2030. Kirk Andrews, Senior Vice President and CFO, noted that Con Edison has reached agreement with its regulator and stakeholders on a new investment plan for its Steam business, which is awaiting approval. For the year 2026, Con Edison expects its adjusted earnings per share (non-GAAP) to be in the range of $6.05 to $6.15 per share, compared to the previous forecast range of $6.00 to $6.20 per share. Adjusted earnings per share exclude the gain on the sale of Con Edison's equity interest in MVP ($(0.37) per share after-tax), accretion of the basis difference of Con Edison's equity interest in MVP ($(0.01) per share after-tax), transaction costs associated with the strategic alternatives review of Con Edison's equity interests in MVP and Honeoye, and the effects of HLBV accounting for tax equity investments. For the three months ended September 30, 2026, higher electric rate base at CECONY contributed $62 million or $0.17 per share, and for the nine months ended September 30, 2026, higher electric rate base contributed $99 million or $0.27 per share. For the nine months ended September 30, 2026, higher gas rate base contributed $29 million or $0.08 per share. For the three months ended September 30, 2026, total reported net income (GAAP basis) was $78 million or $0.16 per share, and total adjusted (non-GAAP basis) net income was $80 million or $0.17 per share. For the nine months ended September 30, 2026, total reported net income (GAAP basis) was $272 million or $0.60 per share. The company is filing its 2026 Third Quarter Form 10-Q with the Securities and Exchange Commission. A third quarter 2026 earnings release presentation will be available at www.conedison.com. Consolidated Edison, Inc. provides energy-related products and services through subsidiaries including Consolidated Edison Company of New York, Inc. (CECONY), Orange and Rockland Utilities, Inc. (O&R), and Con Edison Transmission, Inc. CECONY provides electric, gas, and steam services in New York City, Westchester County, and parts of Queens and Manhattan. O&R serves customers in a 1,300-square-mile area in southeastern New York State and northern New Jersey. Con Edison Transmission develops and owns interests in electric transmission projects.

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