Pseg Announces Third Quarter 2026 Results

PSEG’s GAAP earnings fell sharply, but non-GAAP results and guidance remain steady.

What the company is saying

Public Service Enterprise Group (NYSE:PEG) reports third quarter 2026 net income of $376 million ($0.76 per share), down from $622 million ($1.24 per share) in 2025. Non-GAAP Operating Earnings for the quarter were $574 million ($1.15 per share), a slight increase from $565 million ($1.13 per share) last year. For the nine months ended September 30, 2026, net income was $1,451 million ($2.91 per share) versus $1,796 million ($3.59 per share) in 2025, while non-GAAP Operating Earnings rose to $1,777 million ($3.56 per share) from $1,667 million ($3.33 per share). CEO Ralph LaRossa frames the narrative as operationally and financially solid, emphasizing storm response, infrastructure investment, and carbon-free nuclear generation. The company reaffirms its 2026 non-GAAP Operating Earnings guidance of $4.28 to $4.40 per share and highlights a five-year capital investment plan of $24 billion to $28 billion, stating it can be funded without new equity or asset sales. Segment commentary attributes PSE&G’s results to energy efficiency, transmission investment, and customer growth, offset by higher depreciation, interest, and tax timing, while PSEG Power & Other results reflect lower O&M costs, higher realized prices, and increased nuclear output, but are impacted by mark-to-market and trust losses.

What the data suggests

GAAP net income declined significantly year-over-year: third quarter 2026 net income was $376 million ($0.76 per share) versus $622 million ($1.24 per share) in 2025, and year-to-date net income was $1,451 million ($2.91 per share) versus $1,796 million ($3.59 per share) in 2025. Non-GAAP Operating Earnings showed modest growth, with third quarter 2026 at $574 million ($1.15 per share) compared to $565 million ($1.13 per share) last year, and nine months at $1,777 million ($3.56 per share) versus $1,667 million ($3.33 per share) in 2025. PSE&G segment earnings were stable, with $506 million in Q3 2026 versus $515 million in Q3 2025, and $1,425 million year-to-date versus $1,393 million. PSEG Power & Other swung from a $107 million profit in Q3 2025 to a $130 million loss in Q3 2026, with non-GAAP Operating Earnings for this segment at $68 million (up from $50 million). The company supplied 8.2 TWh of nuclear energy at a 95.5% capacity factor in the quarter. The $24–28 billion capex plan is large, but its benefits are projected over several years. Management’s explanations for results—such as storm impacts, customer growth, and cost drivers—are not quantified in detail. The data is robust for headline financials but lacks granularity on operational drivers.

Analysis

The announcement presents a positive tone, highlighting operational achievements and reaffirming earnings guidance. However, while non-GAAP Operating Earnings show modest year-over-year growth, GAAP net income has declined significantly both for the quarter and year-to-date. The company discloses a large five-year capital investment plan ($24–28 billion), but the benefits of this outlay are projected over a long-term horizon (through 2030), with no immediate earnings uplift tied directly to these investments. Forward-looking statements about 6–8% annual earnings growth and funding the capex plan without new equity are aspirational and not yet realised. The narrative emphasizes reliability, customer affordability, and infrastructure investment, but does not provide granular evidence for these qualitative claims. Overall, the gap between the upbeat narrative and the mixed financial reality (declining GAAP earnings, long-dated capex benefits) results in a moderate level of hype.

Risk flags

• ●GAAP net income is declining both quarter-over-quarter and year-to-date, which could signal underlying profitability pressures despite stable non-GAAP results. This divergence raises questions about the sustainability of headline earnings.
• ●The five-year capital investment plan of $24–28 billion is highly capital intensive and will require disciplined execution to avoid cost overruns or regulatory setbacks. Management claims it can be funded without new equity or asset sales, but this depends on continued cash flow and stable credit markets.
• ●Segment results show volatility, with PSEG Power & Other swinging from profit to loss on a GAAP basis, partly due to mark-to-market and trust-related losses. These items are excluded from non-GAAP earnings but can still impact cash flow and financial flexibility.
• ●Management’s qualitative explanations for drivers of results—such as customer growth, storm response, and cost changes—are not supported by detailed, quantified disclosures, limiting transparency into the operational levers behind performance.
• ●Long-term earnings growth targets (6–8% CAGR through 2030) are aspirational and depend on successful execution of large-scale investments, regulatory approval, and stable market conditions. Any deviation could undermine the projected trajectory.

Bottom line

PSEG’s latest results show a sharp drop in GAAP net income, with third quarter earnings down 40% year-over-year and year-to-date net income also lower. Non-GAAP Operating Earnings are steady to slightly up, and the company maintains its 2026 guidance, suggesting management confidence in near-term performance. The $24–28 billion capital plan is ambitious and will shape the company’s financial profile for years, but the benefits are long-dated and execution risks are significant. Segment volatility, especially in PSEG Power & Other, and the lack of detailed operational metrics temper the upbeat narrative. Investors should focus on whether future updates show a reversal in GAAP profitability trends and provide more granular evidence of operational improvements. The most important takeaway is the widening gap between GAAP and non-GAAP results amid a major capex cycle.

Announcement summary

(NYSE:PEG) Public Service Enterprise Group (PSEG) reported third quarter 2026 net income of $376 million, or $0.76 per share, compared to $622 million, or $1.24 per share, in the third quarter of 2025. Non-GAAP Operating Earnings for the third quarter 2026 were $574 million, or $1.15 per share, versus $565 million, or $1.13 per share, in the prior year period. For the nine months ended September 30, 2026, net income was $1,451 million, or $2.91 per share, compared to $1,796 million, or $3.59 per share, for the same period in 2025. Non-GAAP Operating Earnings for the nine months were $1,777 million, or $3.56 per share, up from $1,667 million, or $3.33 per share, in 2025. PSEG reaffirmed its 2026 non-GAAP Operating Earnings guidance of $4.28 to $4.40 per share. Average diluted shares outstanding were 499 million for both the third quarter and nine months ended September 30, 2026. PSE&G segment net income/non-GAAP Operating Earnings for the third quarter 2026 were $506 million, compared to $515 million in 2025; year-to-date, PSE&G contributed $1,425 million in 2026 versus $1,393 million in 2025. PSEG Power & Other reported a net loss of $130 million for the third quarter 2026, compared to net income of $107 million in 2025; year-to-date, this segment had net income of $26 million in 2026 versus $403 million in 2025. PSEG Power & Other non-GAAP Operating Earnings were $68 million for the third quarter 2026 and $352 million year-to-date, compared to $50 million and $274 million, respectively, in 2025. PSEG supplied 8.2 TWh of carbon-free baseload energy from its nuclear fleet in the third quarter, operating at a 95.5% capacity factor. Salem unit #1 completed a 491-day breaker-to-breaker run before entering fall refueling, matching Salem unit #2's earlier performance. The company is executing a five-year capital investment plan totaling $24 billion to $28 billion, which management states can be funded without issuing new equity or selling assets. PSE&G's quarterly results were driven by ongoing investments in Energy Efficiency and Transmission, and a gradual increase in electric and gas customers, offset by higher depreciation, interest costs, and tax timing. PSEG Power & Other results reflected lower O&M costs due to the absence of the Hope Creek refueling outage, higher realized prices, increased nuclear generation, and higher taxes. Losses associated with Mark-to-Market accounting and the Nuclear Decommissioning Trust impacted PSEG Power & Other's net loss but are excluded from non-GAAP Operating Earnings. Ralph LaRossa, chair, president and CEO, stated that PSEG's operational and financial results align with expectations and highlighted the company's storm response and infrastructure investments. The company aims to grow non-GAAP Operating Earnings by a compound annual rate of 6% to 8% through 2030 while maintaining customer affordability and a solid financial position. PSEG will host a conference call to review its third quarter 2026 results and earnings guidance.

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