01—Abstract
Summary
Summary of the 10-Q filed July 23, 2026. Cited figures are marked; the original filing is the authoritative source.
PG&E Corporation reported income available to common shareholders of $733 milliona for the three months ended June 30, 2026, up from $521 million a year earlier, and $1.59 billion for the six months, up from $1.13 billion.
The filing attributes the increase to the Utility, whose income available for common stock rose to $827 millionb in the quarter from $608 million. Results for the six months were supported by about $620 million of revenue authorized in the 2023 WMCE final decision, partly offset by higher cost of electricity, which rose $363 million in the six months as lower CAISO market sales revenues and higher transmission costs flowed through. Wildfire exposure remains the dominant issue.
The Utility recorded a $2.25 billionc aggregate liability for the 2021 Dixie fire before recoveries, after a $100 million charge in the second quarter, and a $400 million aggregate liability for the 2022 Mosquito fire. Recoveries include a $1.25 billion Wildfire Fund receivable for Dixie and insurance receivables, but the filing states that liabilities could exceed available recoveries. The Utility also filed a $1.59 billion cost-recovery request tied to the 2019 Kincade and 2021 Dixie fires, with a proposed decision expected by November 2026.
California lawmakers are considering wildfire legislation in a session ending August 31, 2026, and the filing says insufficient action could lead management to revisit its financial plan and capital allocation. Liquidity was about $6.5 billiond as of June 30, 2026, including $5.5 billion of revolving credit availability.
The Utility expects to invest $12.4 billion in capital expenditures in 2026, and it expanded its revolving credit facility to $6.25 billion with a 2031 maturity. PG&E Corporation does not expect to issue equity through 2030 and has guided to a dividend payout ratio of approximately 20% of core earnings by 2028.
02—Key points
Key Highlights
- Income available for common shareholders was $733 million in Q2 2026 versus $521 million in Q2 2025, and $1.59 billion for the six months versus $1.13 billion.
- The Utility recorded approximately $620 million of revenues from the 2023 WMCE final decision in the six months ended June 30, 2026, with no comparable revenues in the prior-year period.
- The 2021 Dixie fire aggregate liability reached $2.25 billion before recoveries, with a $1.25 billion Wildfire Fund receivable recorded; the 2022 Mosquito fire aggregate liability is $400 million.
- The Utility's 2027 GRC requests a revenue requirement of $16.64 billion, with interim rate recovery requested in May 2026 and a final decision expected by May 2027.
- Total liquidity was approximately $6.5 billion as of June 30, 2026, and the Utility's revolving credit facility was increased to $6.25 billion with a June 2031 maturity.
- The Utility estimates $12.4 billion of 2026 capital expenditures, and net cash provided by operating activities for the Utility decreased by $448 million, or 11%, in the six months.
- PG&E Corporation recorded $300 million for wildfire-related securities claims, and a proposed $100 million settlement of the consolidated securities actions has a settlement approval hearing scheduled for August 25, 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 23, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $5.90B$5.90B | +0.1% |
| Operating Income | $1.26B$1.10B | +15.2% |
| Net Income | $761.00M$549.00M | +38.6% |
| EPS (Basic) | $0.33$0.24 | +37.5% |
| EPS (Diluted) | $0.33$0.24 | +37.5% |
| Shares Outstanding (Basic) | 2.20B2.20B | +0.2% |
| Shares Outstanding (Diluted) | 2.29B2.20B | +3.7% |
05—Questions
Frequently Asked Questions
What drove the increase in earnings this quarter?
The Utility's income available for common stock rose to $827 million from $608 million in the three months ended June 30, 2026. Operating income rose $160 million, lower wildfire-related claims (none in 2026 versus $50 million in 2025) contributed, and income tax was a benefit of $61 million versus a $39 million provision a year earlier. Interest income fell $72 million on lower interest-bearing account balances.
How much wildfire liability does the company carry, and can it be recovered?
The Utility's accrued losses are $2.25 billion for the 2021 Dixie fire and $400 million for the 2022 Mosquito fire, before available recoveries. Recoveries recorded include $1.25 billion from the Wildfire Fund and $521 million of insurance for Dixie, plus $418 million of insurance for Mosquito. The filing says liabilities could exceed available recoveries, and recovery depends on the CPUC finding the Utility's conduct just and reasonable under the AB 1054 prudency standard.
What is pending with regulators and legislators that could affect future results?
The 2023 WMCE final decision authorized $1.9 billion of costs in February 2026, and the Utility filed for rehearing in March 2026. The 2027 GRC requests a $16.64 billion revenue requirement, with a proposed decision expected by March 2027. The Kincade and Dixie AB 1054 application seeks recovery of about $1.9 billion, with a proposed decision expected by November 2026. California's legislative session ends August 31, 2026, and the filing says insufficient action on wildfire matters could affect financing and financial plans.
How is the company funding its capital program and what are its dividend plans?
Net cash from financing activities for the Utility was $2.41 billion in the six months, including a $1.9 billion increase in net long-term debt proceeds and $522 million of equity contributions from PG&E Corporation. PG&E Corporation does not expect equity issuances through 2030. It has guided to consistent dividend increases targeting a payout ratio of approximately 20% of core earnings by 2028, and it paid common dividends of $0.05 per share in each of the quarters shown.
06—Continue