Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 23, 2026 · Beat 3 of last 7 quarters
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PG&E's growing data center pipeline (12+ GW) and focus on rate-reducing load underscore the increasing demand for grid capacity to support AI infrastructure. The company's ability to interconnect large loads while lowering rates for existing customers is critical to sustaining the buildout in California. Progress on wildfire liability reform and investment-grade credit will be key to financing the $73B capital plan needed to support this growth.
PG&E reported Q2 core EPS of $0.40 and H1 core EPS of $0.83, up $0.19 year-over-year, driven by customer capital investment and O&M savings. The data center pipeline grew to over 12 GW, with refined project categorization requiring signed work performance agreements for final engineering. The company completed $2.2B of utility debt issuance in June, covering annual financing needs. Management reaffirmed all financial guidance and highlighted continued progress on wildfire mitigation, with zero public safety incidents from asset failures and a fourth year of no major fires linked to PG&E equipment.
Management reaffirmed full-year 2026 core EPS guidance of $1.64–$1.66 (10% growth at midpoint), 9%+ annual EPS growth from 2027–2030, and the $73B capital plan through 2030 with no equity needs. They emphasized the path to flat customer bill growth of 0%–3% annually, supported by rate-reducing data center load. On wildfire liability, they stressed the need for a durable, financeable legislative framework, warning that if the outcome is insufficient, they would reevaluate capital allocation priorities. They also noted progress toward investment grade, with S&P upgrading to one notch below investment grade, and reiterated plans to reach a 20% dividend payout by 2028.
“There is no case for no action. In other words, if the legislature does not act or if they act and do not actually solve the problem. And we will look at, obviously, the problem, then we are going to have to take action, and we have been very clear about that.”
on Wildfire liability reform
“We are in pursuit of the first completely predictive electric grid. No more waiting to see what breaks. Continuous monitoring is enabling our next level of extraordinary operational performance at PG and E.”
on Continuous monitoring
“We have started to get some interest on some of the larger projects. Until now, we have had a lot of you know, as I affectionately called them Goldilocks projects, lots of smaller, expansion of existing facilities, facilities that are concentrated in the Bay Area and so constrained in geography and size and scope.”
on Data center pipeline
What are you looking for from legislation, and how quickly can you pivot capital if the outcome is not adequate?
Patty Poppe reiterated the need for a durable, financeable, predictable, and affordable framework. She said if the legislature does not act or does not solve the problem, PG&E will take action and reallocate capital, but declined to detail specifics. Carolyn Burke noted that the GRC filing is conservative and that FERC represents $20B of the $73B plan, not all CPUC capital.
How do you think about the potential of the cluster study load to move through the pipeline versus prior studies?
Patty Poppe explained that projects must be rate-reducing and that pricing is key. She noted that final engineering now requires a signed work performance agreement with a ~10% fee, increasing confidence. She reaffirmed the planning assumption of 1.8 GW online by 2030, though some projects could accelerate.
How sustainable are the 2%–4% O&M savings, and where is the upside?
Carolyn Burke said the O&M savings target does not keep her up at night, citing room to improve the capital-to-expense ratio from 1.0 toward peers' 2.0+. She highlighted strategic sourcing and AI as key areas for further savings.