New Jersey Resources (NJR) has just reported its Q2 2026 results, with Q1 fiscal 2026 revenue at US$604.9 million and EPS of US$1.22 setting the tone for how the year is shaping up for the utility. Over the past few quarters, revenue has ranged from US$298.9 million to US$913.0 million while EPS has moved between a loss of US$0.15 and a high of US$2.04. This gives a clear sense of how earnings and the top line have tracked across different periods. With trailing net margin at 15.2% and the share price at US$55.99, this update puts profitability, quality, and consistency in the spotlight for investors watching how margins hold up through changing conditions.

See our full analysis for New Jersey Resources.

With the headline numbers on the table, the next step is to see how these results line up against the main stories investors tell about New Jersey Resources, and where the latest figures start to challenge those expectations.

Margins Ease Back From 18.2% To 15.2%

• Trailing 12 month net margin sits at 15.2%, compared with 18.2% a year earlier, on US$2.2b of revenue and US$326.8 million of net income.
• Consensus narrative expects investments in energy efficiency and clean energy to support earnings visibility. However, the move from an 18.2% to 15.2% margin shows that, for now, profitability is a bit thinner than that story suggests.
  • Programs like SAVEGREEN and clean energy projects are framed as supporting margins, while the recent margin level reflects some pressure on reported profitability.
  • At the same time, trailing net income of US$326.8 million still lines up with the idea of a sizeable earnings base that these projects are built on.

Five Year EPS Growth Meets Softer Recent Trend

• Over the past five years, earnings grew 17.6% per year, but trailing 12 month EPS of US$3.25 is below the recent 12 month peak of US$4.17, and recent annual earnings growth was weaker than that long run pace.
• Analysts' consensus view highlights population growth and new commercial development as key supports for recurring revenue. However, the step down from the higher EPS periods to the current US$3.25 per share shows that near term reported growth has not matched the earlier 17.6% annual trend.
  • Q1 fiscal 2026 EPS of US$1.22 compares with a recent quarterly range from a loss of US$0.15 to a high of US$2.04, which points to some variability against the longer run growth line.
  • Forecasts for earnings growth of about 6.9% a year are lower than the 17.6% historical rate, which fits with a more measured view of how fast profits might build from here.

Mixed Valuation Versus DCF And Analyst Targets

• At a share price of US$55.99, NJR trades on a P/E of 17.3x, above the Global Gas Utilities average of 14.3x, below the peer average of 20.3x, close to the analyst target of US$59.33, and above the DCF fair value of US$37.75.
• Consensus narrative points to growth in clean energy, infrastructure and efficiency projects, while valuation data shows a split picture where some metrics and the DCF fair value lean cautious, and the analyst target and P/E relative to the wider US market at 19.1x leave room for both bulls and bears to make a case.
  • Cash flow risks, including a 3.39% dividend that is not well covered by free cash flow and debt that is not well covered by operating cash, directly test the idea that current projects will comfortably fund payouts and future growth.
  • At the same time, forecasts for revenue growth of about 3.1% a year and earnings growth of about 6.9% a year are what analysts are using to support the US$59.33 target, which is close to where the stock trades today.

Next Steps

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

Given that the story here has both clear risks and some appealing rewards, it makes sense to move quickly, review the underlying data, and weigh both sides for yourself by checking the 2 key rewards and 2 important warning signs.

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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.