What the latest earnings mean for Public Service Enterprise Group stock

Public Service Enterprise Group (PEG) released second quarter and first half 2026 results on 4 August, with net income and earnings per share lower than the same periods a year earlier.

The company reported second quarter sales of US$2,554 million compared with US$2,805 million a year ago. Net income for the quarter was US$334 million, with basic and diluted EPS from continuing operations at US$0.67 versus US$1.17 previously.

For the first six months of 2026, Public Service Enterprise Group recorded sales of US$6,402 million compared with US$6,027 million in the prior year period. Net income for the half was US$1,075 million, with basic and diluted EPS from continuing operations at US$2.15 compared with US$2.35 a year earlier.

The latest results have come as the share price has softened, with Public Service Enterprise Group posting a 30 day share price return of down 6.07% and a year to date share price return of down 6.58%, while the 3 year total shareholder return of 37.22% and 5 year total shareholder return of 38.12% show a very different picture.

If you are reassessing utilities after these earnings, it can help to see what else is on the market by scanning 37 power grid technology and infrastructure stocks

Public Service Enterprise Group now trades at a discount to both analyst targets and some fair value estimates after the recent pullback. Is this simply caution around softer earnings, or does it reflect a broader reassessment of what the stock is worth?

Most Popular Narrative: 13.3% Undervalued

Public Service Enterprise Group closed at $75.66, compared with a most-followed narrative fair value of about $87.29 that uses a 7.1% discount rate to assess future cash flows and earnings power.

Growing demand for electricity driven by rapid data center expansion, economic development, and transportation electrification in New Jersey and the surrounding PJM region is driving a significant increase in large load connection requests (pipeline up 47% quarter-over-quarter). If these inquiries convert to utility customers, they will support revenue growth and expand the customer base, positively impacting long-term top-line revenue and rate base growth.

Want to see what is behind that fair value for Public Service Enterprise Group? The narrative leans on steady revenue expansion, firmer margins, and a richer earnings multiple that still sits below the sector high watermark. Curious which combinations of growth and profitability are doing the heavy lifting in that model?

Result: Fair Value of $87.29 (UNDERVALUED)

However, Public Service Enterprise Group still faces real pressure points, including uncertain data center demand conversion and New Jersey policy or regulatory shifts that could weigh on earnings and valuation assumptions.

Another view on Public Service Enterprise Group valuation

The earlier fair value of $87.29 for Public Service Enterprise Group comes from a narrative built on future earnings and cash flows. A simpler lens looks at today's P/E of 18.7x, which sits just above the global Integrated Utilities average of 18.6x but below both the peer average of 20x and a fair ratio of 22.7x.

This mix of slightly richer pricing than the wider industry and cheaper pricing than peers and the fair ratio suggests the market is only partly pricing in the earnings profile that analysts expect. The real question is whether that gap reflects caution that proves justified, or an opportunity that patient investors might be willing to underwrite.

Next Steps

Mixed signals around Public Service Enterprise Group can feel confusing, so move quickly, review the numbers, and weigh both sides using the 3 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.