$PEG · PUBLIC SERVICE ENTERPRISE GROUP INC
Public Service Enterprise Group filed its Q3 2026 10-Q, reporting net income of $376M ($0.76 diluted EPS) on operating revenues of $3.02B, down 6.4% YoY. Operating income fell to $622M from $855M, pressured by a $90M swing in trust investment gains/losses and an 11% increase in interest expense to $280M. PSE&G, the regulated utility subsidiary, posted relatively stable results with net income of $506M versus $515M a year ago.
- Q3 net income fell to $376M from $622M YoY, a 40% decline.
- Q3 diluted EPS dropped to $0.76 from $1.24 YoY.
- Operating income fell 27% to $622M from $855M, driven by higher O&M and depreciation.
- Trust investments swung to a $28M loss from a $62M gain in Q3 2025.
- Interest expense rose 11% to $280M, reflecting higher debt costs.
Markets closed — no regular-session reaction yet; extended-hours move not captured here.
A 40% YoY earnings drop at a $37B regulated utility is unusual and driven by non-operating factors — trust losses and rising interest costs — that could persist.
PSEG's results reflect broader utility-sector pressure from rising interest costs and volatile trust investment returns, though PSE&G's regulated operations remain stable with operating income flat at $696M vs. $702M.
The filing flags resource adequacy challenges that could prompt adverse policy measures, supply chain disruptions, and nuclear regulatory risks. PSE&G's planned capital investments may not receive full regulatory approval, potentially reducing growth.