Eversource Energy (ES) opened 2026 with Q1 revenue of about US$4.5 billion and basic EPS of US$1.61, setting the stage against a year of sharply higher trailing earnings and wider margins. Over the last six reported quarters, quarterly revenue has ranged from US$2.8 billion to US$4.5 billion while basic EPS has moved between roughly US$0.20 and US$1.61, and on a trailing twelve month basis EPS reached US$4.69 alongside revenue of about US$13.9 billion. With trailing net margin sitting above last year and earnings growth forecasts pointing higher, this update gives investors plenty to weigh around how durable those margins and cash flows really look.

See our full analysis for Eversource Energy.

With the headline numbers in place, the next step is to see how these results line up against the widely followed narratives around Eversource Energy's growth, risk profile, and income appeal, and where the data may push those views to evolve.

TTM earnings more than doubled to US$1.7b

• Over the last twelve months, net income excluding extra items came in at about US$1.7b on US$13.9b of revenue, with basic EPS of US$4.69 compared with US$2.27 on US$11.9b of revenue a year earlier.
• Consensus narrative sees grid upgrades and regulated investment driving steady growth, and the sharp 108% earnings rise over the past year sits alongside a longer term 7.2% annual EPS decline. Investors are weighing whether recent projects and cost recovery are the start of a more durable phase or just a strong period within a mixed five year record.
  • Q1 2026 net income of US$606.8 million on US$4.5b of revenue compares with US$72.5 million on US$3.0b of revenue in Q4 2024, which lines up with the idea that recent infrastructure spend is now feeding into higher profitability.
  • At the same time, trailing revenue over twelve months rose from US$11.9b to US$13.9b while margins moved up, which fits the consensus view that regulated capital spending can support both the top line and EPS if cost recovery stays constructive.

Net margin at 12.5% vs 6.6% last year

• The trailing net margin is 12.5% on US$13.9b of revenue and US$1.7b of net income, compared with 6.6% on US$11.9b of revenue and US$811.7 million of net income a year ago.
• Bulls argue that grid modernization and regulatory support can keep margins healthy, and the move from 6.6% to 12.5% gives that view some backing while still leaving questions about how it holds up against financing and regulatory pressures highlighted by more cautious investors.
  • Q1 2026 EPS of US$1.61 versus US$0.20 in Q4 2024 shows how margin compression in prior periods can swing back when rate cases, costs and volumes line up more cleanly.
  • Forecast earnings growth of about 6.4% a year alongside margin assumptions rising towards 13.8% in three years is broadly consistent with the current 12.5% level, which bullish investors see as evidence that recent profitability is closer to a new baseline than an outlier.

Have a look at how bullish investors connect these earnings and margin trends to their long term thesis for the stock 🐂 Eversource Energy Bull Case.

P/E of 14.4x and weak interest coverage

• The stock trades on a trailing P/E of 14.4x versus a peer average of 57.4x and US Electric Utilities at 21.6x. The share price of US$67.04 sits below both the DCF fair value of about US$83.86 and the US$72.25 analyst price target, at the same time that interest coverage is described as weak and the 4.7% dividend is not well covered by free cash flow.
• Bears focus on that combination of leverage pressure and cash flow stretch, and the Q1 2026 profile of US$1.7b trailing earnings, weak interest coverage and a dividend not supported by free cash flow gives their concerns real numbers behind them even as the P/E discount and gap to DCF fair value suggest the market is already pricing in some of that risk.
  • Major risk flags around interest payments not being well covered by earnings sit uncomfortably beside a multi year capital plan of US$24.2b, which could add more debt if internal cash generation falls short.
  • The 4.7% yield paired with limited free cash flow coverage and recent insider selling over the last three months adds another layer for cautious investors who see the current 14.4x P/E and discount to DCF fair value as justified by balance sheet and funding strain.

If you want to see how more cautious investors frame these leverage and dividend coverage pressures, check out the bear case narrative next 🐻 Eversource Energy Bear Case.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Eversource Energy on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With that mix of concerns and optimism in mind, act while the details are fresh and stress test your own view against the 4 key rewards and 3 important warning signs.

See What Else Is Out There

The earnings narrative highlights solid recent profit figures but also flags weak interest coverage, stretched free cash flow for dividends, and a large capital plan that could pressure the balance sheet.

If you want income ideas where funding and payout strength look more robust, compare this profile against companies in the solid balance sheet and fundamentals stocks screener (44 results) to see who handles leverage and cash coverage more comfortably.

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.