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Research Alert: Pg&e Q1 2026: 30% Eps Growth Tempered By Rising Wildfire Fund Costs

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

PG&E delivered solid Q1 2026 results with core EPS of $0.43 (+30.3% Y/Y, +8.9% vs. consensus) and operating revenues of $6.88B (+15.0%, +10.0% vs. consensus). The utility reaffirmed 2026 core EPS guidance of $1.64-$1.66, with 9.8% midpoint growth exceeding most peers. We have a positive view on PCG's wildfire mitigation progress, completing 31 miles of undergrounding and generating over $100M in cumulative avoided costs with 90% reliability improvements in completed areas. Management demonstrated confidence in executing capital programs while achieving meaningful customer affordability improvements, including 23% residential rate reductions for CARE customers since January 2024. PCG's data center pipeline reached 4.6 GW in final engineering, with potential for significant long-term load growth that could lower monthly bills by ~1% per GW under favorable conditions. However, we note meaningful downside risk from wildfire fund expenses (+34% Y/Y in Q1) as low snowpack raises the risk of a severe wildfire season.

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