PG&E Corporation (NYSE:PCG) reported first-quarter results on Thursday that came in ahead of analyst expectations, lifting its shares in premarket trading.
The stock gained 2.37% before the open, as investors reacted positively to the utility’s earnings performance and continued progress on reducing customer rates.
Strong revenue and earnings growth
PG&E posted adjusted earnings of $0.43 per share, exceeding the consensus forecast of $0.39. Revenue reached $6.88 billion, topping estimates of $6.38 billion and marking a 15% increase from $5.98 billion in the same period last year.
The company also reiterated its full-year 2026 adjusted EPS guidance of $1.64 to $1.66, with the midpoint of $1.65 aligning with analyst expectations.
Cost reduction and operational drivers
PG&E said it remains on track to achieve its target of reducing non-fuel operating and maintenance costs by 2% to 4%.
Earnings growth was supported by increased customer capital investment and a higher rate base, as well as the final decision related to the 2023 Wildfire Mitigation and Catastrophic Events program. Additional gains came from net savings in operating and maintenance expenses.
These positives were partially offset by a lower return on equity expected in 2026 compared with 2025, as well as higher wildfire-related claims and contributions to the Wildfire Fund.
Rate cuts and infrastructure progress
“Our PG&E team continues our progress in delivering safe, reliable, affordable and clean energy to our customers. We’ve lowered residential bundled electric rates, which are down 23% since January 2024 for our most vulnerable customers,” said Patti Poppe.
During the quarter, PG&E reduced residential bundled electricity rates for the fifth consecutive time, achieving a 23% cut for customers enrolled in the CARE program and a 13% reduction for other users since January 2024.
Regulatory approvals and grid upgrades
The company also secured approval from the U.S. Nuclear Regulatory Commission to extend the operating license of the Diablo Canyon Power Plant by an additional 20 years.
In terms of infrastructure, PG&E completed 31 miles of underground powerlines and installed 44 miles of reinforced poles and covered lines in areas considered at high risk for wildfires during the quarter.