Overview

• US utility's Q2 operating revenue missed analyst expectations

• GAAP EPS for Q2 rose to $0.33 from $0.24 a year earlier

• Company reaffirmed full-year non-GAAP core EPS guidance

Outlook

• PG&E reaffirms full-year 2026 non-GAAP core EPS guidance of $1.64 to $1.66

• Company expects 2-4% non-fuel O&M cost reduction for 2026

• PG&E says customer capital investment and unrecoverable interest expense will drive 2026 earnings

Result Drivers

• CUSTOMER CAPITAL INVESTMENT - Co said higher customer capital investment, resulting in a higher rate base, drove the increase in Q2 earnings

• O&M COST SAVINGS - Net operating and maintenance cost savings contributed to higher Q2 earnings

• LOWER RETURN ON EQUITY & WILDFIRE FUND EXPENSE - Lower CPUC return on equity and increased Wildfire Fund expense partially offset earnings growth

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Operating Revenue	Miss	$5.90 bln	$6.18 bln (4 Analysts)
Q2 EPS		$0.33

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the electric utilities peer group is "buy"

• Wall Street's median 12-month price target for PG&E Corp is $23.00, about 27% above its July 22 closing price of $18.11

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• July 22 - High PJM grid prices are credit negative for regulated electric utilities, Moody's says

• July 21 - Texas grid operator forecasts record-high electricity demand

• July 21 - US states, New York City sue EPA for relaxing climate rule over hydrofluorocarbons

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