Gotrade News - The wave of Q1 2026 reports from US utilities has shown a consistent beat-and-reaffirm pattern. Entergy (ETR), PG&E (PCG), and FirstEnergy (FE) all topped Q1 consensus and reaffirmed their full-year guidance.
The pattern signals stability against broader equity volatility. Utilities are also getting an additional lift from long-dated capital commitments tied to hyperscale data center power demand from the largest cloud operators.
Key Takeaways
- Entergy (ETR) reported adjusted Q1 EPS of USD0.86 and raised its four-year capital plan by USD14 billion to USD57 billion, largely for a Meta data center supply agreement in North Louisiana.
- PG&E (PCG) booked USD6.9 billion in revenue (+15% YoY) with core EPS of USD0.43, reaffirming full-year core EPS guidance of USD1.64 to USD1.66.
- The hyperscale and AI power-demand theme is supporting utility growth outlooks, with names like American Electric Power (AEP) and NextEra Energy (NEE) appearing on hedge-fund top-pick lists.
Entergy serves 3 million customers across Arkansas, Louisiana, Mississippi, and Texas. Industrial sales grew 15% in Q1 2026 while retail sales rose 6%, driven by customer investments and regulatory actions.
Management raised its long-term outlook by adding USD0.20 to 2027 guidance and USD0.50 to its 2029 target, lifting the latter to USD6.40 per share. Projections assume 8.5% retail sales CAGR through 2029, including 16% industrial CAGR.
ETR's four-year capital plan rose by USD14 billion to USD57 billion, primarily for a new Electric Service Agreement with Meta for a North Louisiana data center. The investment covers seven combined-cycle units, transmission infrastructure, and battery storage facilities.
PG&E posted USD6.9 billion in Q1 2026 revenue, up 15% YoY per its April 23 release. Core EPS rose USD0.10 YoY to USD0.43 on the back of capital investments and operational efficiency gains.
PCG management reaffirmed full-year core EPS guidance of USD1.64 to USD1.66, signaling roughly 10% growth versus 2025. This marks the fifth consecutive year of double-digit core earnings expansion for the utility.
PG&E's long-term outlook remains anchored at "9% plus annually" EPS growth for 2027 to 2030. Its five-year capex plan through 2030 stays unchanged at USD73 billion.
NRG Energy (NRG) saw a USD10 price target cut from Raymond James, while Constellation Energy (CEG) is expected to report a strong Q1 per Scotiabank. Edison International (EIX) also took a target trim from Barclays after its Q1 print, reflecting some dispersion in analyst reactions across the sector.
The consistent theme across Q1 utility prints is capex execution on capacity additions and transmission reliability. Hyperscale data center power demand, layered on top of broader industrial electrification, is the multi-year catalyst investors increasingly view as a structural growth anchor.
For global investors, US utilities offer a steadier growth profile than cyclical equities. The combination of reaffirmed guidance and disciplined long-dated capex makes the sector a credible defensive sleeve with a thematic AI-infrastructure tilt.
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