What the latest earnings mean for Consolidated Edison stock

Consolidated Edison (ED) just released second quarter and first half 2026 results, with revenue and net income figures for both periods above the prior year, which has focused fresh attention on the stock.

At a share price of $108.80, Consolidated Edison has delivered an 8.81% year to date share price return and an 11.78% total shareholder return over the past year, with the recent earnings report appearing to support steady rather than accelerating momentum.

If solid utility earnings have you thinking about other income and infrastructure ideas, it could be a good time to scan for power grid and transmission opportunities using the 40 power grid technology and infrastructure stocks.

After that move in Consolidated Edison and with earnings on an upswing, the issue now is simple. Is most of the easy upside already reflected in the US$108.80 price, or does valuation still leave room ahead?

Price-to-earnings of 18.1x for Consolidated Edison: Is it justified?

On the latest numbers, Consolidated Edison trades on a P/E of 18.1x, which sits below both its peer group on 20.5x and the broader US market on 19.2x. That places the current $108.80 share price in territory where the stock screens as relatively modestly valued compared with similar integrated utilities.

The P/E ratio compares the share price with earnings per share. For a regulated utility like Consolidated Edison, it is a common way for investors to think about how much they are paying for each dollar of earnings, given usually steadier cash flows and tightly overseen returns.

Here, the P/E of 18.1x is lower than peer and industry averages. The company has recorded earnings growth of 7.9% per year over the past five years and 14.5% over the past year. That growth rate has also been faster than the integrated utilities industry over the past year, and current profit margins of 12.5% sit above last year. Against that backdrop, the estimated fair P/E of 22.9x indicates that the current multiple is some way below that estimate.

On top of that, ED is assessed as trading at good value compared with both direct peers and the wider global integrated utilities industry. This reinforces the idea that the present earnings multiple is not stretched against its sector context.

Result: Price-to-earnings of 18.1x (UNDERVALUED)

However, investors still need to watch for regulatory changes that affect allowed returns, as well as capital spending needs across Consolidated Edison’s networks that could pressure future earnings.

Another view on Consolidated Edison using DCF

The earnings based P/E view suggests Consolidated Edison looks reasonably priced, yet the SWS DCF model points in a different direction. On that measure, the stock at $108.80 sits slightly above an estimated future cash flow value of $107.65, which frames ED as marginally overvalued rather than discounted. Which signal should carry more weight for you right now?

For a closer look at how this cash flow view is built and where the key sensitivities sit, Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Consolidated Edison for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 52 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

If this mix of signals around Consolidated Edison leaves you unsure, you may want to act while the data is fresh and test the thesis yourself using the 4 key rewards and 2 important warning signs.

Looking for more investment ideas beyond Consolidated Edison?

Consolidated Edison might be on your radar now, but you do not want to stop with a single stock when there are other potential opportunities on the table.

• Target dependable income by reviewing a curated set of resilient payers through the 10 dividend fortresses that could complement a utility holding like Consolidated Edison.
• Spot strong businesses at sensible prices by checking the 52 high quality undervalued stocks and see which stocks currently combine quality financials with restrained valuations.
• Protect the downside of your portfolio by assessing the 80 resilient stocks with low risk scores and focus on stocks that score well on stability and financial strength.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.