Did Exelon's Q1 2026 earnings meet expectations and why did adjusted EPS decline year over year?

Adjusted operating EPS was $0.91 versus $0.92 in Q1 2025, a roughly 1-cent decline, and GAAP EPS was flat at $0.90. The decline reflected timing of ComEd distribution earnings, higher depreciation at PECO and PHI, higher interest expense, and the Pepco Maryland multi-year plan reconciliation. Higher Holding Company income taxes and interest also weighed. Rate increases at ComEd, PHI and BGE and favorable weather at PECO and BGE offset part of the pressure. The filing does not include consensus estimates, so the comparison to analyst expectations is not stated here.

Is Exelon still on track to meet its 2026 and long-term earnings guidance?

Yes. Management affirmed 2026 adjusted operating EPS guidance of $2.81-$2.91 per share, based on about 1,031 million expected average shares. It also reiterated that 2025-2029 operating EPS growth is expected near the top end of the 5-7% range. The company described the growth outlook as directional and noted it allows for flexibility in rate case timing.

What changed in Exelon's capital plan and what does it mean for rate base growth?

The four-year capital plan for 2026-2029 rose to $41.7 billion from $41.3 billion. That reflects a $1.1 billion reduction in distribution investment and a $1.5 billion increase in transmission investment. Expected rate base growth is 7.9% from 2025 to 2029, and transmission rate base is projected to grow about 16%. Management also cited $12-17 billion of transmission opportunity beyond the plan, largely expected in 2030 and later.

What are the main credit and financing risks investors should watch?

Credit ratings are the main watch item. S&P downgraded BGE's senior unsecured rating to A- on April 30, 2026, and Moody's placed PECO under review for downgrade on April 24, 2026. Management says Exelon's credit metric outlook of about 14% supports cushions of roughly 200 bps above Moody's and 100 bps above S&P downgrade thresholds. Financing risk is manageable: about 43% of 2026 debt needs are executed, pre-issuance hedges have been put in place, and about 37% of the $3.4 billion equity need through 2029 is priced via forward contracts.

What regulatory events are upcoming that could affect future earnings?

Key near-term events include the Pepco Maryland electric distribution rate case, with a requested $119.9 million revenue increase at a 10.50% ROE and an order expected in August 2026. The DPL Delaware electric case requests $47.6 million, with an order expected in Q3 2027. The ComEd grid plan order is expected by December 15, 2026, and the ComEd reconciliation proceeding is pending. Maryland's Utility RELIEF Act, which passed the legislature, awaited the governor's signature at filing. The company reported no rate case developments in Q1 2026 itself.

EXC 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed May 6, 2026. Cited figures are marked; the original filing is the authoritative source.

Exelon reported first-quarter 2026 results on May 6, 2026.

GAAP net income was $919 million^a, or $0.90 per diluted share, essentially flat versus $908 million ($0.90) in Q1 2025. Adjusted (non-GAAP) operating earnings were $930 million, or $0.91 per share, down from $0.92 a year earlier. The slight decline was driven by timing of ComEd distribution earnings, higher depreciation at PECO and PHI, higher interest expense, a Pepco Maryland multi-year plan reconciliation impact, and higher Holding Company costs from income taxes and interest.

Partially offsetting these were approved distribution and transmission rates at ComEd, PHI and BGE, the absence of PECO surcharge credits, and favorable weather at PECO and BGE. Management affirmed full-year 2026 adjusted operating EPS guidance of $2.81^b-$2.91 and reiterated that 2025-2029 operating EPS CAGR is expected near the top end of the 5-7% range. The headline change is a revised four-year capital plan of $41.7 billion (2026-2029), up from $41.3 billion, which is a $1.1 billion reduction in distribution investment offset by a $1.5 billion increase in transmission investment.

This supports 7.9% rate base growth through 2029, with management citing $12^c-17 billion of additional transmission opportunity beyond the plan and an ~18 GW committed data center pipeline (about 45% secured with Transmission Security Agreements). Financing progress is on track: about 43% of 2026 debt financing is complete, including all Holding Company issuances, and about 37% of the $3.4 billion equity need through 2029 has been priced via forward contracts.

Credit is a watch item: S&P downgraded BGE's senior unsecured rating to A- on April 30, 2026, and Moody's placed PECO on review for downgrade on April 24, 2026. Investors should monitor these ratings actions alongside the pending Pepco Maryland order (expected August 2026) and the Maryland Utility RELIEF Act, which awaited the governor's signature at the time of filing.

02—Key points

Key Highlights

GAAP EPS of $0.90 and adjusted operating EPS of $0.91 in Q1 2026, versus $0.90 and $0.92 in Q1 2025; the only adjustment was a $0.01 after-tax regulatory matter at PHI (Pepco MD).
FY2026 adjusted operating EPS guidance of $2.81-$2.91 was affirmed; the 2025-2029 EPS CAGR is expected near the top end of 5-7%.
Four-year capital plan (2026-2029) revised to $41.7B from $41.3B, with 7.9% rate base growth and $12-17B of transmission opportunity beyond the plan.
Financing is progressing: ~43% of 2026 debt issuances completed and ~37% of the $3.4B equity need through 2029 priced via ATM forward contracts.
Credit watch: S&P cut BGE to A- (April 30, 2026) and Moody's placed PECO under review for downgrade (April 24, 2026); management notes credit metrics ~200 bps above Moody's and ~100 bps above S&P downgrade thresholds.
Dividend of $0.42 per share declared April 28, 2026, payable June 15, 2026; management targets ~60% payout and dividend growth of ~5% annually through 2029.
Q1 2026 operating cash flow rose to $1.72B from $1.20B, but capital expenditures increased to $2.36B from $1.95B, and long-term debt grew to $47.9B from $47.4B.

03—Questions

Frequently Asked Questions

Did Exelon's Q1 2026 earnings meet expectations and why did adjusted EPS decline year over year?
Adjusted operating EPS was $0.91 versus $0.92 in Q1 2025, a roughly 1-cent decline, and GAAP EPS was flat at $0.90. The decline reflected timing of ComEd distribution earnings, higher depreciation at PECO and PHI, higher interest expense, and the Pepco Maryland multi-year plan reconciliation. Higher Holding Company income taxes and interest also weighed. Rate increases at ComEd, PHI and BGE and favorable weather at PECO and BGE offset part of the pressure. The filing does not include consensus estimates, so the comparison to analyst expectations is not stated here.
Is Exelon still on track to meet its 2026 and long-term earnings guidance?
Yes. Management affirmed 2026 adjusted operating EPS guidance of $2.81-$2.91 per share, based on about 1,031 million expected average shares. It also reiterated that 2025-2029 operating EPS growth is expected near the top end of the 5-7% range. The company described the growth outlook as directional and noted it allows for flexibility in rate case timing.
What changed in Exelon's capital plan and what does it mean for rate base growth?
The four-year capital plan for 2026-2029 rose to $41.7 billion from $41.3 billion. That reflects a $1.1 billion reduction in distribution investment and a $1.5 billion increase in transmission investment. Expected rate base growth is 7.9% from 2025 to 2029, and transmission rate base is projected to grow about 16%. Management also cited $12-17 billion of transmission opportunity beyond the plan, largely expected in 2030 and later.
What are the main credit and financing risks investors should watch?
Credit ratings are the main watch item. S&P downgraded BGE's senior unsecured rating to A- on April 30, 2026, and Moody's placed PECO under review for downgrade on April 24, 2026. Management says Exelon's credit metric outlook of about 14% supports cushions of roughly 200 bps above Moody's and 100 bps above S&P downgrade thresholds. Financing risk is manageable: about 43% of 2026 debt needs are executed, pre-issuance hedges have been put in place, and about 37% of the $3.4 billion equity need through 2029 is priced via forward contracts.
What regulatory events are upcoming that could affect future earnings?
Key near-term events include the Pepco Maryland electric distribution rate case, with a requested $119.9 million revenue increase at a 10.50% ROE and an order expected in August 2026. The DPL Delaware electric case requests $47.6 million, with an order expected in Q3 2027. The ComEd grid plan order is expected by December 15, 2026, and the ComEd reconciliation proceeding is pending. Maryland's Utility RELIEF Act, which passed the legislature, awaited the governor's signature at filing. The company reported no rate case developments in Q1 2026 itself.

04—Continue

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