Dominion Energy Q3 2026 Earnings: Regulated Utilities Lift Operating EPS

Dominion Energy (NYSE: D) reported Q3 2026 operating revenue of $5.617 billion, up about 24% from $4.527 billion a year earlier, while diluted GAAP EPS rose to $1.30 from $1.16. Non-GAAP operating EPS increased to $1.28 from $1.06 as the Virginia and South Carolina regulated utilities more than offset a decline at Contracted Energy. GAAP operating margin expanded, and management expects full-year operating EPS to finish in the top half of its unchanged guidance range.

Core Earnings Data

Revenue grew faster than operating expenses, which increased about 18% to $3.775 billion. That produced a roughly 38% increase in operating income and expanded the GAAP operating margin by approximately 3.2 percentage points.

Both GAAP and non-GAAP earnings increased, although EPS growth trailed the corresponding growth in dollar earnings because average diluted shares rose to 882.1 million from 855.4 million.

Business and Segment Performance

Dominion Energy Virginia provided the largest year-over-year increase in operating earnings, while Dominion Energy South Carolina posted the fastest percentage growth. Contracted Energy was the only operating segment to decline.

Dominion Energy Virginia benefited from $137 million of 2025 Biennial Review impacts, $112 million from rider equity returns, and a $55 million weather contribution. These gains were partly offset by higher electric capacity expense, salaries and administrative costs, depreciation, storm restoration costs, and interest expense.

South Carolina’s improvement reflected $46 million from base and Rate Stabilization Act rate-case impacts, $36 million from weather, and $19 million from customer usage and other factors. Higher depreciation and interest expense provided partial offsets.

Contracted Energy’s $22 million margin improvement and $36 million benefit from renewable energy production tax credits were insufficient to offset a $43 million decline related to renewable energy investment tax credits, along with higher interest, depreciation, and other costs.

Operating Leverage Was Partly Absorbed Below the Operating Line

Operating revenue increased by $1.090 billion while operating expenses rose by $587 million, generating a $503 million increase in operating income. The improvement was diluted further down the income statement: other income declined to $271 million from $432 million, while interest and related charges increased to $623 million from $527 million.

Noncontrolling interests also rose to $114 million from $22 million. These factors help explain why operating income grew about 38% but net income attributable to Dominion Energy increased by a more moderate 15%.

Quarterly GAAP and Operating Earnings Were Close, but Year-to-Date Results Diverged

Q3 GAAP earnings of $1.160 billion were only $21 million above non-GAAP operating earnings. The quarter included a $97 million pre-tax gain from nuclear decommissioning trust funds, partly offset by economic hedging impacts, $26 million of merger-related costs, and other adjustments.

For the nine months ended September 30, the distinction was much larger: GAAP earnings were $2.121 billion, compared with non-GAAP operating earnings of $2.698 billion. The year-to-date reconciliation included $719 million of pre-tax nonregulated asset impairments and other charges, primarily associated with renewable natural gas and solar facilities, partly offset by nuclear decommissioning trust gains and a benefit related to Millstone asset retirement obligations.

Earnings Guidance

Dominion Energy reaffirmed its 2026 operating EPS range and now expects the result to fall in the top half of that range. The company also reaffirmed its existing credit, dividend, and long-term growth guidance, although no additional quantitative details were provided for those measures.

Dominion Energy did not provide a corresponding GAAP EPS outlook because the future effects of items excluded from operating earnings cannot be estimated in aggregate.

Recent Insider Transactions

The supplied six-month insider summary showed zero purchase transactions and zero sale transactions, with insiders holding approximately 1.16 million shares in total. The latest ten reported transactions were all director stock awards at $62.95 per share rather than open-market purchases or sales.

The reported value of these ten awards totaled approximately $2.49 million. Because they were compensation-related grants, they do not indicate that directors purchased shares with their own funds.

Risks Investors Need to Watch

• Higher financing costs: Interest and related charges rose by $96 million year over year, absorbing part of the improvement in operating income.
• Dependence on weather and regulatory outcomes: Weather added a combined $91 million to Virginia and South Carolina operating earnings, while rate and regulatory items also made substantial contributions. These benefits may vary between periods.
• Contracted Energy pressure: The segment’s operating earnings fell by $31 million despite better margins, reflecting tax-credit changes and higher interest, depreciation, and other costs.
• Asset and project execution: Year-to-date results included significant nonregulated asset impairments and $95 million of regulated asset retirement and other charges, primarily related to Coastal Virginia Offshore Wind costs not expected to be recovered from customers.
• Merger uncertainty: Q3 adjustments included $26 million of merger-related costs, while the proposed NextEra Energy transaction remains subject to regulatory approvals, timing, and execution risks described in the release.

Summary

Dominion Energy’s Q3 2026 earnings improved as its regulated Virginia and South Carolina utilities more than offset weaker Contracted Energy results, while revenue growth outpaced operating expense growth and widened the operating margin. Higher interest expense, lower other income, and larger noncontrolling interests limited the increase in attributable net income. Management maintained its 2026 operating EPS range and expects to finish in the top half, leaving financing costs, Contracted Energy performance, and large project-related adjustments as the main items to monitor.