Edison International (NYSE:EIX) reported its first-quarter 2026 earnings after the market close on Tuesday, delivering results that beat analyst expectations on adjusted earnings but saw revenue fall short. The utility holding company’s core operations at Southern California Edison (SCE) continue to show year-over-year improvement, though the headline GAAP numbers were heavily impacted by a comparison to an unusually strong quarter a year ago.
First Quarter Results: Core Earnings Beat, Revenue Miss
The company reported first-quarter net income of $531 million, or $1.38 per share, compared to $1.436 billion, or $3.73 per share, in the first quarter of 2025. However, the steep drop in GAAP earnings was largely due to a massive one-time benefit recorded in the prior year related to the Thomas, Koenigstein, and Mud Creek (TKM) Settlement Agreement and insurance reimbursements.
On an adjusted basis, which management refers to as “core earnings,” the picture was more favorable.
- Core Earnings (Non-GAAP): $546 million, or $1.42 per share
- Analyst Estimate (Non-GAAP EPS): $1.3269 per share
- Reported Revenue: $4.103 billion
- Analyst Estimate (Revenue): $4.163 billion
The company beat the consensus EPS estimate by roughly $0.09, but fell short on the top line by approximately $60 million.
Segment Performance: Southern California Edison Drives Growth
The primary driver of the core earnings beat was SCE, the company’s regulated utility subsidiary. SCE’s first-quarter core EPS came in at $1.65, up from $1.61 in the same period last year.
Key factors behind SCE’s performance included:
- The adoption of the 2025 General Rate Case (GRC) final decision in the third quarter of 2025, which has begun to flow through to earnings.
- This was partially offset by the absence of a benefit related to cost recoveries authorized under the TKM Settlement Agreement that was present in the 2025 quarter.
The Edison International Parent and Other segment reported a core loss of $0.23 per share, an improvement from a core loss of $0.24 per share a year earlier, primarily due to lower preferred stock dividends.
2026 Guidance and Market Reaction
Management reaffirmed its full-year 2026 earnings guidance, though with a slight adjustment to the range. The table below compares the original guidance provided in February with the updated guidance issued on April 28.
| Metric | Original Guidance (Feb. 18) | Updated Guidance (Apr. 28) | | :--- | :--- | :--- | | EIX Basic EPS Range | $5.90 - $6.20 | $5.86 - $6.16 | | EIX Core EPS Range | $5.90 - $6.20 | $5.90 - $6.20 | | Less: Non-core Items | - | ($0.04) |
While the core EPS range remains unchanged, the basic EPS range was narrowed slightly downward to account for non-core items already recorded in the first quarter. The midpoint of the core guidance suggests a run-rate of approximately $6.05 per share.
For context, analysts are currently estimating full-year 2026 earnings of $6.18 and full-year sales of $19.291 billion.
Despite the earnings beat, the market’s reaction has been muted. The stock is essentially flat in after-market trading and has declined over the past month.
- Current after-market performance: 0.0%
- Performance last week: -2.85%
- Performance last month: -2.46%
The lack of a positive reaction could be attributed to investors focusing on the slight downward revision to the basic EPS guidance and the revenue miss, suggesting that the market may have been looking for stronger top-line growth to justify a move higher. The company continues to navigate significant wildfire-related liabilities, though CEO Pedro J. Pizarro stressed the company's commitment to its Wildfire Recovery Compensation Program, noting that SCE is administering payments in a “transparent way.”
Analyst Views
With the core earnings beat and reaffirmed core guidance, the utility’s steady operational progress remains intact. However, the stock’s recent price action reflects ongoing uncertainty around regulatory proceedings and the financial impact of wildfire mitigation efforts. The narrowing of the basic EPS guidance to the lower end of the prior range may weigh on sentiment in the near term.
For a complete historical view of earnings performance and future projections, visit the EIX Earnings Page for detailed data, or check the Analyst Ratings and Forecasts for forward-looking estimates.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research before making any trading decisions.