$EIX · EDISON INTERNATIONAL
Edison International filed its Q3 2026 10-Q, reporting operating revenue of $4.886B (down 15.0% YoY) and diluted EPS of $1.87 (down from $2.16). For the nine months, net income available to common shareholders fell to $1.789B from $2.611B, largely because the prior-year period benefited from $1.01B in wildfire-related recoveries. Interest expense rose sharply to $1.583B for the nine months, reflecting higher rates and increased debt to fund SCE's capital program.
- Q3 2026 operating revenue fell 15.0% YoY to $4.886B from $5.750B.
- Q3 diluted EPS dropped to $1.87 vs $2.16 in the prior-year quarter.
- Nine-month net income available to common shareholders declined 31.5% to $1.789B from $2.611B.
- Nine-month operating income fell 27.5% to $3.146B, driven by absence of $1.01B in wildfire recoveries recorded in 2025.
- Interest expense surged 22.4% to $1.583B for the nine months, reflecting higher debt costs.
Extended-hours trading shows EIX at $59.21, down 0.29% from the regular close of $59.38. The modest after-hours dip suggests the sharp YoY earnings decline was largely anticipated, though the 15% revenue drop and interest-expense headwinds may weigh on sentiment.
The 31.5% nine-month earnings decline and 15% revenue drop expose how heavily EIX's results depend on wildfire-cost recoveries that are inherently unpredictable and politically sensitive.
California investor-owned utilities continue to face a challenging operating environment with wildfire risk, rising capital costs, and regulatory constraints on cost recovery. EIX's results mirror PG&E's ongoing wildfire-related financial pressures, though SCE's balance sheet remains comparatively stronger.
Wildfire liability remains the dominant risk: the Eaton Fire litigation is ongoing, and SCE's ability to recover uninsured wildfire costs through rates or the Wildfire Fund is uncertain. Rising interest expense ($1.583B YTD, +22.4% YoY) pressures earnings as SCE funds its capital program. SB 254 requires $2.9B in wildfire mitigation capex to be excluded from rate-base equity.