Key financial results

  • Core earnings per share were $0.41 for the third quarter and $1.24 for the first 9 months of 2026.Our core earnings per share were $0.41 for the third quarter and $1.24 for the first 9 months.
  • Year-to-date O&M savings contributed $0.04 to earnings, keeping the company on pace to meet savings guidance.We also continue to make steady progress on our O&M savings goal with $0.04 year-to-date.
  • Timing and other items reduced earnings by $0.04 year-to-date, primarily reflecting a tax method change benefit realized in the third quarter of last year.Timing and other items reduced earnings by $0.04 year-to-date.
  • Customer capital investment was the primary driver of earnings growth, contributing $0.12 over the first 9 months.

Business segment results

  • Electric transmission: Electric transmission: The system spans 18,000 circuit miles with $13 billion of FERC rate base.
  • Power generation: Power generation: The portfolio includes 7.8 gigawatts of capacity, including hydro and the Diablo Canyon nuclear plant.
  • Gas business: Gas business: The company is on track to achieve a 62% reduction in annual methane emissions compared to the 2015 CPUC-approved baseline.
  • Data centers: Data centers: Since 2024, the company has brought approximately 174 megawatts of data center projects online.Since 2024, we brought approximately 174 megawatts of data center projects online.

Capital allocation

  • The company updated its 2027 capital guidance to $11.4 billion, reflecting a $2 billion reduction announced on September 2.Our updated 2027 capital guidance of $11.4 billion reflects the $2 billion reduction we announced on September 2.
  • Management expects to finance 2027 capital investments using cash from operations and $4 billion to $5 billion of utility debt financing.
  • The company reaffirmed that it does not need new equity through 2030.we already addressed our anticipated equity financing needs through 2030.
  • Regarding the dividend, the company expects the 2027 increase to be consistent with its prior trajectory, with the Board setting the rate in December.
  • Wildfire policy: Comprehensive legislative reform has not yet been enacted, and management views the status quo as unacceptable.comprehensive reform has not yet been enacted, an action is needed to address the tail risk that exists under the current framework.
  • Wildfire safety: The company is in its fourth year without a major wildfire associated with its equipment, and the weather-normalized ignition rate has declined 74% since 2017.we're now in our fourth year without a major wildfire associated with our equipment and our weather-normalized ignition rate has declined 74% since 2017
  • Undergrounding: The company filed a 10-year Electric Undergrounding Plan proposing 5,000 additional miles of undergrounding between 2028 and 2037 at a cost of $16.6 billion.The plan contemplates an investment of $16.6 billion.

Competitive landscape

  • The call did not discuss the competitive landscape.

Macroeconomic environment

  • Management cited high financing costs as a primary reason for the $2 billion reduction to the 2027 capital plan.reflecting current high financing costs, we previously announced a $2 billion reduction to our 2027 capital plan

Growth opportunities and strategies

  • Data centers: The company maintains a pipeline of 1.8 gigawatts of projects expected to be online by 2030.our 1.8 gigawatts of projects that we have previously signaled would online by 2030 remain in that plan.
  • Strategic review: The company is assessing options including corporate ring fencing, sales, and separations to achieve investment-grade credit ratings.A key foundational objective is to achieve investment-grade credit ratings which we view as critical to maximizing the value we can deliver for our customers.

Financial guidance and outlook

  • The company reaffirmed its 2026 core EPS guidance of $1.64 to $1.66.Today, we're reaffirming our 2026 EPS guidance of $1.64 to $1.66
  • The company reaffirmed its 2027 core EPS guidance of $1.78 to $1.82.We're also reaffirming our 2027 core EPS guidance of $1.78 to $1.82
  • Management is not providing guidance beyond 2027 during the strategic review.

Strategic Review

  • The company expects to share the outcome of its strategic review and planned path forward no later than next summer.We expect to share the outcome of our review and our planned path forward with you no later than next summer.
  • Management is moving with a sense of urgency and will communicate developments between quarterly calls if material.We are moving with a sense of urgency. We see real opportunity here.
  • The review aims to unlock value for customers and investors by addressing the wildfire risk discount that currently burdens the company's assets.Today, a discount for wildfire risk burdens all of our assets, including businesses with little or no exposure to that risk.

Q3 2026 results

MetricResultChange
Core EPS (Q3)$0.41Not stated
Core EPS (9 months)$1.24Up from $1.14
2026 Core EPS Guidance$1.64 to $1.66Up 10% from 2025 midpoint
2027 Core EPS Guidance$1.78 to $1.82Up 9% from 2026 midpoint
2027 Capital Plan$11.4 billion$2 billion reduction

How management sounded

Balanced (+15 on our -100 to +100 scale). Management expressed confidence in operational execution and safety improvements but remained cautious due to the lack of wildfire policy reform and the resulting need for a strategic review to address financing costs. Management sounded more upbeat than on 5% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.

Read the analyst Q&A summary and guidance and outlook for this call.

What to watch before the next call

  • The CPUC report on wildfire liability impacts due November 1.
  • Potential legislative hearings or special sessions regarding wildfire liability reform.
  • The outcome of the 2027 general rate case proposed decision.
  • Updates on the strategic review and potential corporate structure changes by next summer.

Earlier calls

  • Q2 2026 (Jul 23, 2026), tone Balanced: PG&E reported Q2 core EPS of $0.40 and reaffirmed full-year guidance of $1.64 to $1.66. The company maintains a $73 billion capital plan through 2030 but warned that inaction on wildfire liability legislation would force a reevaluation of capital allocation priorities.