PCG US S&P 500Russell 1000 Earnings call · transcribed from the recording
PG&E Corporation (PCG) · Q2 2026 results and valuation
Share price: $13.10 · 2026-11-11
PG&E Corporation is a holding company that operates a public utility in Northern and Central California. The company generates revenue through the sale and delivery of electricity and natural gas to customers in its service area. Source: 10-K annual report (2026-02-12)
Results Q2 2026 vs Q1 2026 · previous quarter · published 23 Jul 2026 and 23 Apr 2026
Net income down 14.0% on the previous quarter. Management sounded restrained, in its script and in answers to analysts.
1 · Numbers
−14.0%
Net income vs Q1 2026
Outlook given
Net income 761.0M vs 885.0M
Revenue −14.2%
Against the same quarter last year (Q2 2025) it is +38.6%, so the move on last quarter looks seasonal or timing-related rather than a trend.
2 · How management spoke
Restrained
Less upbeat than 73% of company calls
Answers to analysts: cautious, in line with the script.
Similar to last call.
3 · What stood out
PG&E Corporation announced a $73 billion capital plan through 2030 without additional equity financing and a target dividend payout of 20% by 2028 compared to an implied 12% in 2026.
Valuation
Is PG&E Corporation undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
The projected cash flow doesn't cover the debt, so the price is far above the model's fair value.
Current price
$13.10
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+16.4% for 10 yrs
Fair value / share
$-8.00
Buy below
$-6.00
Price vs fair value
n/a
Price vs buy-below price
n/a
Read between the lines
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Guidance
PCG raised full year core EPS guidance to $1.64 to $1.66, which is up 10% over 2025 at the midpoint.
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Guidance
PCG announced a $73 billion capital plan through 2030 without additional equity financing and a target dividend payout of 20% by 2028 compared to an implied 12% in 2026.
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Key theme
Earnings grew due to customer capital investment contributing $0.09 year over year and O&M savings and redeployment contributing a net $0.03.
Source quote
“The core drivers of this year's earnings growth are coming in as expected. With customer capital investment contributing $0.09 year over year and O&M savings and redeployment contributing a net $0.03.”
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Guidance
The company expects approximately 1.8 gigawatts of its pipeline to be online by 2030.
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Figure
Since January 2025, PG&E's team has helped avoid nearly 20 million outage minutes, 28 ignitions in high fire risk areas, and over 5 thousand emergency response hours while saving more than $11 million through lower cost…
3 more
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Key theme
The capital plan aims to deliver customer outcomes and premium growth while avoiding the need for equity.
Source quote
“Our capital plan is designed to deliver the right customer outcomes while offering premium growth and avoiding the need for equity.”
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Key theme
The company stated there will be action in the event of inaction on the part of the legislature.
Source quote
“But I want you to know that there will be action in the event of inaction on the part of the legislature.”
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Figure
PG&E has daily continuous monitoring of its poles with these sensors, so I cannot overstate the safety enhancements and reliability and cost because now it can plan to address that poll on planned work bundle it with…
Source quote
“Now we have daily continuous monitoring of our poles with these sensors, so I cannot overstate the safety enhancements and reliability and cost because now we can plan to address that poll on planned work bundle it with other work, and lower the cost to resolve that issue before there ever is an issue.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Done right, these efforts can help build a high confidence pipeline that lowers electric bills drives economic growth, and keeps California at the forefront of technology and innovation.”
“If you look at our capital to expense ratio, we hit 1.0 last year, which was an improvement, and then we are really proud of that, and we look to...”
“A key enabler is electric load growth, 1 of the most exciting opportunities in front of us is large load demand coming from our data center pipeline.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 5.90B | 6.88B | −14.2% | 5.90B | +0.1% |
| Operating income | 1.26B | 1.47B | −14.1% | 1.10B | +15.2% |
| Net income | 761.0M | 885.0M | −14.0% | 549.0M | +38.6% |
| EPS | 0.33 | 0.39 | −15.4% | 0.24 | +37.5% |
| P/E today 9.3 | 12.1 | 13.6 | −1.5 | 12.9 | −0.8 |
Topics
Most discussed now
- 13 of those could have been potential ignitions PG&E justs see technology and innovation every single day from its wildfire...
- PG&E assesses all of them first, and that is why the cluster study process is powerful.
- Halfway through 2026, PG&E is well on its way to extending its run of double digit earnings growth for a...
- These opportunities largely for capital, have the potential to improve the plan by facilitating incremental rate reducing load.
- PG&E continues to see at least $5 billion of customer beneficial investment opportunity that sit outside the plan.
Faded since Q1 2026
- Dropped These actions underscore Diablo Canyon's critical role in supporting California's reliability and clean energy goals, although further…
- Fading Looking forward, PG&E is reaffirming its EPS growth guidance for 2027 through 2030, which is unchanged at 9% plus annually.
- Fading In February, PG&E's Diablo Canyon nuclear power plant received the final state permit approvals needed to support extended operations…
- Fading At the same time, PG&E is seeing good progression of its rate-reducing large load pipeline, and it is encouraged by California's focus...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations; Regulation FD disclosure · SEC 8-K
PG&E Corporation reported GAAP earnings of $0.34 per share for the third quarter of 2026, compared to $0.37 per share in the third quarter of 2025.
- Regulation FD disclosure · SEC 8-K
PG&E Corporation will hold a webcast and conference call on September 2, 2026, to provide an investor update regarding its response to Senate Bill 492.
- Other events · SEC 8-K
The filing identifies PG&E Corporation and Pacific Gas and Electric Company as the reporting entities for the event occurring on July 27, 2026.
- Results of operations; Regulation FD disclosure · SEC 8-K
PG&E Corporation reported GAAP earnings of $0.33 per share for the second quarter of 2026, compared to $0.24 per share in the second quarter of 2025.
- Material agreement; Other events · SEC 8-K
PG&E Corporation filed a Form 8-K on June 22, 2026, regarding a material agreement and other events.
- Other events · SEC 8-K
The filing identifies various classes of preferred and mandatory convertible preferred stock for PG&E Corporation and Pacific Gas and Electric Company as of June 1, 2026.
- Shareholder vote results · SEC 8-K · routine
- Results of operations; Regulation FD disclosure · SEC 8-K
PG&E Corporation reported GAAP earnings of $0.39 per share for the first quarter of 2026, compared to $0.28 per share in the first quarter of 2025.
Balance sheet & ownership
From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-27.
Cash & runway
Cash & equivalents
$972.0M
2026-06-30
Implied runway
—
operating cash flow positive over the TTM window
Dilution
weighted-average basic shares, per quarter. Change: +0.2% YoY, +0.1% QoQ.
| Quarter | Shares |
|---|---|
| Q3 2024 | 2.14B |
| Q1 2025 | 2.19B |
| Q2 2025 | 2.20B |
| Q3 2025 | 2.20B |
| Q1 2026 | 2.20B |
| Q2 2026 | 2.20B |
Shares outstanding: 2.68B (2026-07-15)
Insider transactions
Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 67 filings; 50 filings parsed.
Sold by insiders
367.5K shares
$6.4M · 10 transactions
Bought by insiders
7.5K shares
$91.5K · 1 transactions
Net direction
net selling
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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full year
core EPS guidance
Source quote
“Including our full year core EPS guidance of $1.64 to $1.66, which at the midpoint is up 10% over 2025.”
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2027 through 2030
annual EPS growth
Source quote
“Our 9% plus annual EPS growth from 2027 through 2030.”
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through 2030
capital plan
Source quote
“Our $73 billion capital plan through 2030, which does not require additional equity financing”
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by 2028
target of reaching a 20% dividend payout
Source quote
“and our target of reaching a 20% dividend payout by 2028 versus an implied 12% in 2026.”
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next month's deadline
respond to FERC's order to show cause
Source quote
“We are collaborating with external stakeholders, including CAISO, to respond by next month's deadline.”