Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 31, 2026 · Beat 7 of last 7 quarters
Dominion Energy, Inc. reported Q2 FY2026 revenue of $4.48B, a beat of 10.8% against consensus, and EPS of $0.79, a beat of 16.0%.
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Dominion's disclosure of over 53 gigawatts of data center capacity in contracting, including roughly 12 gigawatts under electric service agreements, reinforces Virginia's position as the world's leading data center market and signals durable large-load demand for the AI infrastructure buildout. The company's transmission investment and large load framework, which requires data center customers to fund the infrastructure for their growth, could shape how other utilities structure cost allocation for AI-driven load growth. The CVOW schedule adjustment and cost increase to $11.65 billion, alongside new natural gas combined cycle permits for nearly 5 gigawatts, illustrate the multi-source generation buildout needed to serve accelerating demand.
Dominion reported second quarter operating earnings of $0.79 per share, including $0.03 of RNG 45Z credits, with GAAP results of $0.37 per share. The company said it has completed its common equity program for 2026 and that full year 2025 and Q2 LTM FFO to debt metrics are both above 15%. Data center capacity in various stages of contracting now exceeds 53 gigawatts, including approximately 12 gigawatts contracted under electric service agreements, up over 5 gigawatts since year-end. CVOW is 81% complete with 31 turbines installed and the 32nd in progress, and management adjusted the final turbine installation timeline by six months while raising the project cost estimate to $11.65 billion. The company received a final order in its 2025 rider filing proceeding on July 29 approving 100% of its revenue requests, and South Carolina settlement agreements in DESC's electric rate case were unanimously approved in June with rates effective in July.
Management reaffirmed all financial guidance provided on the fourth quarter call, including operating earnings, credit, dividend and long-term growth guidance, and said the strong first half positions the company well for the full year. The final CVOW turbine installation is being pushed out by six months to reflect added weather and vessel maintenance contingency, longer loadout times at Portsmouth Marine Terminal and longer jacking durations at certain locations, with the project cost estimate rising approximately 2% to $11.65 billion. On the NextEra Energy combination, management said regulatory applications are filed with the Virginia SCC, North Carolina Utilities Commission, South Carolina PSC, FERC and NRC, with Virginia evidentiary hearings beginning November 17 and a South Carolina hearing date of December 8 and final order by January 29, 2027. Management highlighted that approximately half of CVOW project investment adjusted for network upgrade costs should be in service by year-end and that the third and final offshore substation is expected to be energized by year-end. On generation, the company recently filed air permits for two new natural gas-fired combined cycle plants at Canadys Station in South Carolina and Mount Storm in West Virginia, representing nearly 5 gigawatts of new capacity, and management said the Mount Storm project is not incremental to the current capital plan. Management also said it expects to ramp up battery development following Virginia legislation that calls for an acceleration and an increase in the battery storage target, with a technical conference this fall and an IRP to incorporate updated views.
“We now have over 53 gigawatts of data center capacity in various stages of contracting, including approximately 12 gigawatts of capacity contracted under electric service agreements.”
on Data center demand
“We expect the third and final offshore substation to be energized by year-end, which is especially meaningful because it will signify that approximately half of project investment adjusted for network upgrade costs has achieved in-service status.”
on CVOW derisking
“As a result, we're increasing our project cost estimate by approximately 2% to $11.65 billion, which continues to include $123 million of unused contingency.”
on CVOW cost update
How would you frame the risk of further slippage on the offshore wind timeline, and what informs confidence that year-end 2027 is the right date?
Bob Blue said he is confident in the updated timeline, noting CVOW is different from a traditional power plant because more than 450 megawatts are already on the grid and every major component has been proven in service. He said the schedule is based on actual experience, including the fastest reload at Portsmouth to date, and that the project is substantially derisked with roughly half of investment adjusted for network upgrade costs expected in service by year-end.
Following a report of a grid disruption where data centers shifted to backup power, do you see a need to incrementally strengthen the system with transmission or storage?
Bob Blue said planners and system operators handled the event well in coordination with PJM, and that Dominion has been investing heavily in transmission and has more experience operating with large loads than anyone. Ed Baine said a transmission line fault occurred, that data centers typically ride through such momentary events but did not in this case, and that Dominion will continue collaborating with customers on mitigation opportunities without significant new investments.
Is the proposed Mount Storm combined cycle plant incremental to the base capital plan, and what other opportunities do you see in West Virginia?
Steven Ridge said Mount Storm is not incremental to the current capital plan, as the company had already outlined an acceleration of capital toward the back end of the plan driven by natural gas investments, with the most recent IRP continuing into the early 2030s. Bob Blue said West Virginia is not new for Dominion, which has operated Mount Storm for decades, and that the site offers available property and gas access to support the regulated build program.