01—Abstract
Summary
Summary of the 10-Q filed July 31, 2026. Cited figures are marked; the original filing is the authoritative source.
Entergy's second quarter 2026 10-Q shows strong earnings momentum driven by its regulated utility.
Entergy Corporation reported net income attributable to common shareholders of $482.6 milliona for Q2 2026 (up from $467.9 million) and $867.5 million for the first half (up from $828.7 million). Diluted EPS was $1.03 for the quarter versus $1.05 a year earlier, and $1.87 for the six months, flat year over year, as share count grew substantially from equity issuances. Utility net income rose to $625.7 million for the quarter, while Parent & Other losses widened to $143.1 million, mainly from higher interest expense on $1.3 billion of junior subordinated debentures issued in November 2025.
The Utility segment benefited from retail price increases, higher industrial load from data centers and other large customers, and returns on construction work in progress. The company is in a heavy capital investment cycle. Planned construction spending for 2026 through 2030 totals roughly $66 billion, and the 2026 figure was raised to $13.2 billionb, with large generation projects in Louisiana (including a proposed $12.9 billion gas-fired buildout tied to a Meta data center) and Arkansas.
Funding relies on sizable external capital: long-term debt issuances exceeded $4.6 billionc in the first half, and Entergy has about $7 billion of equity planned through 2030, with roughly $4.1 billion already settled or under forward sale agreements. Debt to capital stands at 65.2% at the parent level, with a credit facility covenant ceiling of 65%, which leaves limited headroom and makes the equity program important to credit metrics.
Key risks include regulatory outcomes on several large proceedings (Louisiana data center generation, Cottonwood acquisition, River Bend, and Arkansas base rate and production tax credit matters), a FERC order on MSS-4 net operating loss carryforward surcharges whose financial exposure is not yet estimable, Winter Storm Fern costs of about $450 milliond, and NRC findings at Grand Gulf and River Bend. Investors will want to watch execution on the capital plan, the pace of regulatory approvals for new generation, and the parent-level leverage trajectory.
02—Key points
Key Highlights
- Net income attributable to Entergy rose 3.2% to $482.6 million in Q2 2026 and 4.7% to $867.5 million for the first half, though diluted EPS was roughly flat at $1.87 for six months as share count increased about 4%.
- Utility segment net income grew to $625.7 million in Q2 2026 (up from $598.6 million), driven by higher retail electric prices, volume growth from industrial and data center customers, and return on construction work in progress.
- Capital plan for 2026-2030 totals about $66 billion, with 2026 spending raised to $13.2 billion, including incremental generation tied to Entergy Louisiana's roughly $12.9 billion combined-cycle application and a $1.5 billion Cottonwood acquisition.
- Entergy issued substantial new debt in the first half of 2026 (over $4.6 billion of long-term debt) and raised about $1.0 billion of equity through forward settlements, with roughly $7 billion of equity planned through 2030.
- Parent-level debt to capital rose to 65.2% from 64.3% at year-end 2025, close to the 65% covenant under the $3 billion credit facility, though the company states it is in compliance.
- Significant contingent exposure from a June 2026 FERC order on MSS-4 NOLC ADIT: amounts payable or receivable among Entergy operating companies are not reasonably estimable, and a separate LPSC complaint seeks about $100 million from Entergy Texas.
- Winter Storm Fern (January 2026) cost approximately $450 million to restore, mostly capital, with Entergy Louisiana and Entergy Mississippi most affected; recovery mechanisms and precedent are cited, and Entergy Mississippi plans a securitization filing in Q3 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 31, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $3.52B$3.33B | +5.9% |
| Operating Expenses | $2.67B$2.49B | +7.3% |
| Operating Income | $850.09M$837.42M | +1.5% |
| Interest Expense | $433.11M$343.07M | +26.2% |
| Net Income | $487.82M$471.95M | +3.4% |
| EPS (Basic) | $1.05$1.07 | −1.9% |
| EPS (Diluted) | $1.03$1.05 | −1.9% |
| Shares Outstanding (Basic) | 458.75M439.18M | +4.5% |
| Shares Outstanding (Diluted) | 466.31M445.70M | +4.6% |
05—Questions
Frequently Asked Questions
How did Entergy's earnings perform in the second quarter of 2026?
Net income attributable to Entergy Corporation was $482.6 million, or $1.03 diluted EPS, compared with $467.9 million, or $1.05 diluted EPS, in Q2 2025. The EPS decline despite higher net income reflects a larger diluted share count, which rose to about 466 million from about 446 million, mainly due to equity issuances. The Utility segment drove the gain, while Parent & Other losses increased on higher interest expense.
What is driving the increase in the utility's revenue and load?
Operating revenue from electric service rose about $238 million in Q2 2026 versus Q2 2025. Retail price increases contributed $80 million, mainly from formula rate plan increases in Arkansas and resilience rider recovery in Louisiana, and return on construction work in progress added $40 million. Industrial sales grew 10% in Q2, primarily from data center, primary metals, and chlor-alkali customers, while residential weather-adjusted usage increased with customer growth.
How is Entergy funding its large capital program?
Entergy is relying on a mix of debt, equity, and customer advances. In the first half of 2026, long-term debt proceeds were about $4.6 billion, and the company received $1.0 billion of net equity proceeds through forward sales and settlements. Customer advances for construction also rose sharply, and Entergy plans about $3 billion of junior subordinated debentures and about $7 billion of equity through 2030, with about $4.1 billion already settled or contracted.
What are the main regulatory risks to watch in the near term?
Key near-term items include the Louisiana LPSC decision on the roughly $12.9 billion generation application and Meta-related data center service, targeted for December 2026; the Cottonwood acquisition hearing in September 2026 with a targeted January 2027 close; Arkansas base rate and production tax credit proceedings; the River Bend deregulated asset filing; and FERC rehearing on the MSS-4 NOLC ADIT order. Each could affect cost recovery, earned returns, or the timing of new capacity additions.
Is the parent company's leverage a concern?
Parent-level debt to capital increased to 65.2% at June 30, 2026, up from 64.3% at year-end 2025. The company's credit facility requires a consolidated debt ratio of 65% or less, and Entergy states it is in compliance and expects to remain so. Management points to the equity program, including settlements of forward sale agreements, as a means of reducing leverage over time. The 2026 headroom is narrow, so further parent-level debt issuance or delays in equity could pressure the covenant.
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