Eversource Energy Reports Third Quarter 2026 Results

Eversource’s earnings fell year-over-year, but 2026 guidance is reaffirmed and slightly raised.

What the company is saying

Eversource Energy reports third quarter 2026 GAAP earnings of $346.0 million, or $0.92 per share, down from $367.5 million, or $0.99 per share, in Q3 2025. Non-GAAP adjustments were absent this quarter, while prior-year non-GAAP recurring earnings were $442.5 million, or $1.19 per share. For the first nine months of 2026, GAAP earnings were $1.01 billion ($2.67 per share), compared to $1.27 billion ($3.44 per share) in 2025. The company highlights several one-time charges in 2026: $111.4 million for the Aquarion Water Company sale, $164.0 million for increased offshore wind divestiture payments, and $43.9 million for FERC-mandated ROE refunds. Eversource updates its 2026 non-GAAP recurring earnings guidance to $4.62–$4.70 per share, midpoint $4.66, and reaffirms a 5–7% annual EPS growth target through 2030. CEO Joe Nolan frames the results as disciplined execution and emphasizes regulatory engagement, particularly a constructive PURA decision on storm cost securitization. The tone is measured, with operational and financial objectives for 2026 restated but not quantified.

What the data suggests

The disclosed numbers show a clear year-over-year decline in both GAAP and non-GAAP earnings. GAAP earnings for the first nine months of 2026 were $1.01 billion ($2.67 per share), down from $1.27 billion ($3.44 per share) in 2025. Non-GAAP recurring earnings also fell to $1.33 billion ($3.52 per share) from $1.35 billion ($3.64 per share). Segment results are mixed: transmission and electric distribution both declined modestly, with Q3 2026 transmission earnings at $182.0 million (vs $185.5 million) and electric distribution at $200.9 million (vs $221.6 million). The natural gas segment posted a larger Q3 loss ($43.4 million vs $16.8 million) but improved year-to-date ($281.6 million vs $236.9 million). Water segment earnings dropped due to the Aquarion sale. Major charges—$111.4 million (Aquarion), $164.0 million (offshore wind), and $43.9 million (FERC ROE refund)—weighed on results. The company’s updated 2026 non-GAAP EPS guidance midpoint is $4.66, slightly above prior levels, and it maintains a 5–7% EPS growth target through 2030. The data is detailed and transparent for financials, but operational claims about execution and regulatory wins are not quantified.

Analysis

The announcement is primarily a factual disclosure of quarterly and year-to-date financial results, with detailed GAAP and non-GAAP earnings, segment performance, and explicit one-time charges. Most claims are realised and supported by numerical data, with only a minority of statements being forward-looking (updated 2026 guidance, reaffirmed long-term EPS growth, and qualitative statements about execution and investment). The forward-looking guidance for 2026 is near-term, and the long-term EPS growth target is a reiteration rather than a new claim. There is no evidence of exaggerated tone or narrative inflation; the language is measured and proportionate to the results. While the company references ongoing investment and strategic execution, these are not paired with outsized or unsupported claims of imminent benefit. The only minor inflation comes from generic statements about execution and regulatory progress, which lack quantitative backing but do not materially distort the overall message.

Risk flags

• ●Regulatory risk is significant, as recent FERC decisions reduced allowed ROE for transmission owners, resulting in a $43.9 million charge and ongoing earnings pressure. Future regulatory changes could further impact returns.
• ●Earnings are under pressure from one-time charges and structural factors, including the $111.4 million loss from the Aquarion sale and $164.0 million in increased offshore wind divestiture payments. These items highlight exposure to asset divestitures and contingent liabilities.
• ●Segment performance is uneven, with electric and transmission segments both declining and natural gas showing volatility. This suggests operational challenges in maintaining stable earnings across business lines.
• ●Forward-looking guidance for 2026 and beyond is not backed by detailed operational milestones or quantified investment plans, making the achievability of the 5–7% EPS growth target harder to independently assess.
• ●The company’s narrative emphasizes regulatory engagement and constructive outcomes, but the lack of quantification around recent PURA and other regulatory decisions increases uncertainty about the net financial impact.

Bottom line

Eversource Energy’s Q3 and year-to-date 2026 results show declining earnings across most segments, with major one-time charges further depressing GAAP results. While management points to disciplined execution and regulatory progress, the hard numbers reflect a challenging environment, including lower allowed returns on equity and asset divestiture costs. The updated 2026 non-GAAP EPS guidance midpoint of $4.66 per share is a modest increase, but the long-term 5–7% EPS growth target remains aspirational without detailed supporting evidence. Investors should focus on the company’s ability to stabilize segment performance, manage regulatory headwinds, and deliver on its stated growth trajectory. The most important takeaway is that while guidance is reaffirmed, actual earnings are trending down, and future performance will hinge on both regulatory outcomes and operational execution.

Announcement summary

(NYSE:ES) Eversource Energy reported GAAP earnings of $346.0 million, or $0.92 per share, for the third quarter of 2026. This compares to GAAP earnings of $367.5 million, or $0.99 per share, and non-GAAP recurring earnings of $442.5 million, or $1.19 per share, in the third quarter of 2025. For the first nine months of 2026, GAAP earnings were $1.01 billion, or $2.67 per share, compared to $1.27 billion, or $3.44 per share, for the same period in 2025. Non-GAAP recurring earnings for the first nine months of 2026 were $1.33 billion, or $3.52 per share, versus $1.35 billion, or $3.64 per share, in the first nine months of 2025. GAAP results for the first nine months of 2026 include a non-cash, after-tax charge of $111.4 million, or $0.30 per share, related to the sale of Aquarion Water Company on June 30, 2026; an after-tax charge of $164.0 million, or $0.43 per share, related to increased expected future payments for the offshore wind divestiture as part of the September 30, 2024, sale of South Fork Wind and Revolution Wind; and an after-tax charge of $43.9 million, or $0.12 per share, related to estimated refunds from the March 19, 2026, FERC decision reducing the ROE rate for New England transmission owners from 10.57% to 9.57%. GAAP results for the first nine months of 2025 included an aggregate net after-tax loss of $75.0 million, or $0.20 per share, related to an increase in the offshore wind contingent liability, net of tax benefits from tax losses on the sale of offshore wind projects. Eversource updated its 2026 non-GAAP recurring earnings guidance to a range of $4.62 to $4.70 per share, with a midpoint of $4.66 per share, and reaffirmed its cumulative long-term earnings per share growth rate of 5 to 7 percent through 2030, using the revised 2026 guidance midpoint as the base year. The company expects annual earnings growth toward the upper half of its long-term guidance by 2028. The transmission segment, excluding the FERC ROE refund charge, earned $182.0 million in Q3 2026 and $590.0 million in the first nine months of 2026, compared to $185.5 million and $593.0 million, respectively, in 2025. The electric distribution segment earned $200.9 million in Q3 2026 and $574.1 million in the first nine months of 2026, compared to $221.6 million and $571.6 million, respectively, in 2025. The natural gas distribution segment had a loss of $43.4 million in Q3 2026 and earned $281.6 million in the first nine months of 2026, compared to a loss of $16.8 million and earnings of $236.9 million, respectively, in 2025. The water distribution segment, excluding the Aquarion sale charge, earned $17.9 million in the first nine months of 2026, compared to $36.8 million in the first nine months of 2025. Parent and other companies, excluding offshore wind contingent liability increases, earned $6.5 million in Q3 2026 and had a loss of $137.8 million in the first nine months of 2026, compared to earnings of $33.3 million and a loss of $92.2 million, respectively, in 2025. Eversource has approximately 377 million common shares outstanding and serves more than 4 million electric and natural gas customers in Connecticut, Massachusetts, and New Hampshire. Joe Nolan, Chairman, President and CEO, stated that the company continues to execute on strategic initiatives, deliver safe and reliable energy service, and invest in infrastructure. He highlighted a constructive decision from PURA on deferred storm costs, providing a path to securitization for Connecticut customers. The company will webcast a conference call with senior management on November 5, 2026, at 9 a.m. Eastern Time.

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