Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 30, 2026 · Beat 5 of last 6 quarters
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IDACORP's results underscore the accelerating AI infrastructure buildout in the region, with Micron and Meta ramping up operations and driving significant industrial revenue growth. The company's proactive investment in batteries, gas plants, and transmission lines positions it to serve the growing data center and semiconductor demand, while its take-or-pay contract structure helps mitigate risk. The strong load growth and pipeline suggest continued capital investment and potential upside to the company's growth trajectory.
IDACORP reported Q2 diluted EPS of $1.79, up from $1.76 a year ago, with no additional tax credit amortization recorded in the quarter. Customer growth of 2.3% and the January rate increase drove a $32 million combined benefit to operating income. Industrial revenues rose 17% year-over-year, and a new line item showed $6.5 million of operating income from large contract customers. The company brought 250 MW of battery storage online, completed the Valmy Unit 2 gas conversion, and commissioned a 125 MW third-party solar project. Management also noted strong progress on transmission projects and the 2032 RFP shortlist is expected in Q3.
Management raised the low end of full-year 2026 EPS guidance by $0.05 to $6.30–$6.45, citing strong operational results and lower expected use of additional tax credit amortization (now less than $15 million, down from prior guidance of less than $30 million). They expect continued ramp-up of large contract customer revenues in the second half of 2026, which is helping avoid a general rate case this year. Capital expenditure guidance remains $1.3–$1.5 billion, trending to the high end, and management noted potential upside to the CapEx plan from the 2032 RFP, Micron Fab 2, and annual capital budgeting. They expect to provide updated load forecast and RFP shortlist details in Q3 and November, respectively. The tone was confident, with strong demand and a robust pipeline of multiple gigawatts.
“We have seen a customer count increase of 2.3% since last year's second quarter. With growth across all customer segments.”
on Customer growth
“We are strong advocates that growth has to be sustainable and responsible so that service to our existing customers remains reliable and affordable.”
on Sustainable growth
“We have either issued or we have sold on forwards of about $1 billion already so we have solved for roughly half of our current plan's equity needs.”
on Equity funding
Is the pace of battery storage additions sustainable, and is gas plus battery the sole long-term answer, or are you also looking at SMRs?
Management said batteries are great for summer peaks but not a full capacity resource; they are evaluating a mix of solar, gas, and storage. They like SMR technology but not the current pricing (over $150/MWh), so they are unlikely to be first movers. They are also focused on transmission projects.
On Micron Fab 2, what is the status of negotiations and when might you sign an ESA? Could this be a Q3 update?
Negotiations are active and progressing well, but terms are confidential. Fab 2 is not included in the current CapEx plan or the 8.3% IRP load growth rate. Additional CapEx will be reflected in future updates, and the load forecast will be updated in November.
Regarding the new large customer load line, is there seasonality in usage once online, and does the guidance raise include July data?
Industrial loads are not weather-sensitive; they are driven by equipment installation and operation. The guidance raise is based on Q2 results and assumes normal weather for the rest of the year, though July anecdotal evidence suggests it was warmer.