Did Entergy meet expectations and reaffirm its full-year outlook?

Entergy reported Q1 2026 adjusted EPS of $0.86, up from $0.82 a year earlier, and affirmed its 2026 adjusted EPS guidance range of $4.25 to $4.45. The company also raised its longer-term outlooks, signaling confidence in growth from load expansion and its capital plan.

What drove the quarter's results, and what were the one-time items?

The Utility segment drove growth, earning $1.17 per share versus $1.11, helped by favorable regulatory actions, retail price increases, and CWIP returns. Results were partly offset by higher interest and depreciation expense and dilution from more shares outstanding. The only adjustment was a $(14) million after-tax, non-cash impairment on the planned sale of a non-utility Independence plant interest, which reduced as-reported EPS by $0.03.

How significant is data center demand for Entergy's growth?

Very significant. Industrial sales rose 14.9% in the quarter, driven by data center, primary metals, and transportation customers. Management cited another major hyperscale agreement in Louisiana, a 20-year electric service agreement with a Meta subsidiary, which it says will deliver an estimated $2 billion in savings for retail customers. Investors should note that these load forecasts carry execution risk, as the release acknowledges that expected load growth may not materialize or be sustained.

Is Entergy's balance sheet getting more or less leveraged?

Mixed. Total debt rose to $34.2 billion from $31.0 billion a year earlier, and junior subordinated debentures doubled to $2.5 billion. However, key credit metrics improved: FFO to adjusted debt rose to 15.7% from 14.5%, adjusted debt to adjusted capitalization fell to 63% from 65%, and adjusted net debt to adjusted net capitalization fell to 61% from 64%. Rising debt costs were a drag on earnings, with higher interest expense cited in both Utility and Parent results.

ETR 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed April 29, 2026. Cited figures are marked; the original filing is the authoritative source.

Entergy (NYSE: ETR) reported first quarter 2026 as-reported EPS of $0.83^a (net income attributable to Entergy of $385 million) and adjusted EPS of $0.86 (adjusted earnings of $399 million), up from $0.82 in Q1 2025.

The Utility segment delivered $1.17^b per share, up from $1.11, driven by regulatory actions across the operating companies, a $0.05 return on construction work in progress, and a $0.17 retail electric price benefit, partially offset by higher interest expense and depreciation. Parent & Other posted a $(0.34) as-reported loss, including a non-cash $(18) million pre-tax impairment ($(14) million after tax, or $(0.03) per share) tied to the expected sale of a non-utility interest in the Independence power plant. Higher share count from equity forward settlements and higher interest expense on new junior subordinated debentures were also headwinds.

Management affirmed 2026 adjusted EPS guidance of $4.25 to $4.45^c and raised longer-term outlooks while updating its four-year capital plan. Weather-adjusted retail sales rose 6%, led by a 14.9% increase in industrial volumes from data center, primary metals, and transportation customers. Management highlighted another major hyperscale agreement in Louisiana (a 20-year electric service agreement with a Meta subsidiary) and estimated $2 billion of retail customer savings.

Operating cash flow rose to $829 million^d from $536 million, and liquidity improved, with gross liquidity of $7.9 billion and FFO to adjusted debt of 15.7%. Offsetting these positives, total debt rose to $34.2 billion, and as-reported ROE of 11.0% was boosted by the prior-year pension settlement charge effect, while adjusted ROE declined to 11.0% from 11.5%.

02—Key points

Key Highlights

Q1 2026 as-reported EPS of $0.83 vs. $0.82 in Q1 2025; adjusted EPS of $0.86 (+$0.04 YoY), excluding a $(0.03) per share Independence plant impairment
Utility segment EPS rose to $1.17 from $1.11, driven by retail electric price increases ($0.17), higher CWIP returns ($0.05), and favorable regulatory actions
2026 adjusted EPS guidance of $4.25 to $4.45 affirmed; longer-term outlooks raised and four-year capital plan updated
Industrial electricity sales up 14.9% (weather-adjusted retail sales +6%), driven by data center demand and a new 20-year Meta-affiliated electric service agreement in Louisiana
Operating cash flow of $829 million vs. $536 million in Q1 2025, reflecting higher customer advance receipts and collections
Liquidity strengthened, with cash of $3.6 billion and gross liquidity of $7.9 billion, while total debt rose to $34.2 billion (up $3.1 billion YoY)
Adjusted ROE fell to 11.0% from 11.5% on an LTM basis, while financial leverage ratios improved (adjusted debt to adjusted capitalization of 63% vs. 65%)

03—Questions

Frequently Asked Questions

Did Entergy meet expectations and reaffirm its full-year outlook?
Entergy reported Q1 2026 adjusted EPS of $0.86, up from $0.82 a year earlier, and affirmed its 2026 adjusted EPS guidance range of $4.25 to $4.45. The company also raised its longer-term outlooks, signaling confidence in growth from load expansion and its capital plan.
What drove the quarter's results, and what were the one-time items?
The Utility segment drove growth, earning $1.17 per share versus $1.11, helped by favorable regulatory actions, retail price increases, and CWIP returns. Results were partly offset by higher interest and depreciation expense and dilution from more shares outstanding. The only adjustment was a $(14) million after-tax, non-cash impairment on the planned sale of a non-utility Independence plant interest, which reduced as-reported EPS by $0.03.
How significant is data center demand for Entergy's growth?
Very significant. Industrial sales rose 14.9% in the quarter, driven by data center, primary metals, and transportation customers. Management cited another major hyperscale agreement in Louisiana, a 20-year electric service agreement with a Meta subsidiary, which it says will deliver an estimated $2 billion in savings for retail customers. Investors should note that these load forecasts carry execution risk, as the release acknowledges that expected load growth may not materialize or be sustained.
Is Entergy's balance sheet getting more or less leveraged?
Mixed. Total debt rose to $34.2 billion from $31.0 billion a year earlier, and junior subordinated debentures doubled to $2.5 billion. However, key credit metrics improved: FFO to adjusted debt rose to 15.7% from 14.5%, adjusted debt to adjusted capitalization fell to 63% from 65%, and adjusted net debt to adjusted net capitalization fell to 61% from 64%. Rising debt costs were a drag on earnings, with higher interest expense cited in both Utility and Parent results.

04—Continue

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