Con Edison Q2 2026 Earnings: Rate-Base Growth Lifts EPS to $0.83

Con Edison (NYSE: ED) reported Q2 2026 net income for common stock of $308 million, or $0.83 per share, up from $246 million, or $0.68 per share, in Q2 2025. Adjusted earnings were also $308 million, or $0.83 per share, compared with $240 million, or $0.67 per share. The improvement was led by CECONY, where higher electric and gas rate bases and the timing of rate-increase billing more than offset weaker contributions from transmission and parent-level items.

Core earnings data

Reported net income increased by $62 million year over year, while adjusted earnings increased by $68 million. Although reported and adjusted earnings were both $308 million in the current quarter, the adjusted figure excluded small transaction-cost and tax-equity accounting effects that offset in aggregate.

Business and segment performance

CECONY accounted for a $74 million year-over-year increase in net income, exceeding Con Edison’s consolidated increase of $62 million. That contribution was partly offset by Con Edison Transmission and other operations, while O&R was unchanged overall.

At CECONY, higher electric rate base and rate-increase billing timing added $25 million, while the equivalent gas factors added $23 million. Lower other interest expense and lower electric operations and maintenance expense contributed another $9 million each, and higher allowance for funds used during construction added $4 million. Common-share issuance reduced EPS by $0.02 without affecting net income.

O&R benefited from a $3 million electric base-rate increase and a $2 million gas base-rate increase. Those gains were offset by $3 million of higher interest expense on long-term debt and $2 million of other negative items.

Con Edison’s New York electric and gas rate plans generally decouple delivery revenue from changes in customer volumes relative to approved levels. Fuel, purchased gas and purchased-power costs are also generally recovered on a current basis, limiting their direct effect on earnings.

The MVP sale affects first-half comparability, not Q2 earnings

For the six months ended June 30, 2026, reported net income was $1.232 billion, or $3.37 per share, compared with $1.038 billion, or $2.93 per share, a year earlier. Adjusted earnings increased more modestly to $1.098 billion, or $3.00 per share, from $1.032 billion, or $2.91 per share.

The main reason for the gap between first-half reported and adjusted results was a $134 million after-tax gain, equal to $0.37 per share, from the sale of Con Edison’s equity interest in Mountain Valley Pipeline. That gain was not part of the Q2 year-over-year earnings increase and is excluded from adjusted earnings and full-year adjusted guidance.

Earnings guidance

Con Edison reaffirmed its 2026 adjusted EPS range, indicating that the second-quarter improvement did not change its full-year outlook. Management also said year-to-date performance remained in line with its expectations.

The company did not provide equivalent GAAP guidance because transaction costs associated with its review of MVP and Honeoye interests, along with tax-equity HLBV accounting effects, will not be determinable until year-end. Adjusted guidance also excludes the $0.37-per-share after-tax MVP sale gain and $0.01-per-share accretion related to the MVP basis difference.

Management’s view

Chairman and CEO Tim Cawley emphasized reliability, resilience investments and preparation for extreme heat, while also identifying customer affordability as a priority. The company continues to frame infrastructure spending as supporting both New York’s clean-energy transition and long-term regulated growth.

CFO Kirk Andrews cited building and transportation electrification as factors supporting the long-term investment plan. Con Edison expects to place 28 new substations in service by 2035 and plans tens of billions of dollars of additional capital investment to meet customer energy needs.

Recent insider transactions

The supplied insider data reports 79,315 shares classified as purchases across 22 transactions during the past six months, compared with 9,834 shares sold in two transactions. That produced net purchases of 69,481 shares; total insider holdings were listed as approximately 751,800 shares, with net purchases equal to 10.20%.

The latest 10 reported transactions were all stock awards to directors rather than open-market purchases or sales. All were reported as direct ownership; entries sharing the same date follow the source’s ordering.

Risks investors should monitor

• Rate-plan execution and affordability: Higher rate bases and rate increases were the largest earnings drivers. Regulatory decisions that limit recovery or allowed returns could therefore affect future earnings, while management is also seeking to keep service affordable.
• Financing costs and share dilution: Higher long-term debt interest reduced O&R’s quarterly net income by $3 million. Common-share issuance also reduced consolidated EPS by $0.02 in Q2 and $0.09 in the first half, making financing choices important as capital spending continues.
• Capital-project execution: The plan for 28 substations and tens of billions of dollars in other investments creates execution and funding requirements. Delays, cost increases or infrastructure problems could affect reliability and financial returns.
• Transaction and accounting uncertainty: Adjusted guidance excludes MVP and Honeoye review costs and HLBV accounting effects whose amounts will not be known until year-end, limiting visibility into the eventual relationship between adjusted and GAAP earnings.

Summary

Con Edison’s Q2 2026 earnings improvement came primarily from CECONY’s growing electric and gas rate bases, rate-increase billing timing and lower expenses. O&R was flat, while transmission and parent-level items partly offset the utility gains. The unchanged adjusted EPS guidance keeps attention on regulatory execution, financing costs, dilution and delivery of the company’s large infrastructure program.