Con Edison Q3 2026 Earnings: Electric Rate-Base Growth Lifts EPS

Con Edison (NYSE: ED) reported Q3 2026 net income of $766 million, up from $688 million a year earlier, while basic EPS increased to $2.07 from $1.91. The main driver was CECONY’s higher electric rate base, with additional support from construction-related allowance income and lower healthcare costs; those gains outweighed share issuance dilution and weaker Con Edison Transmission income. The quarter ended September 30, 2026, and the results were released on November 5, 2026.

Core Earnings Data

GAAP net income increased by $78 million, or approximately 11.3%, while basic EPS rose by about 8.4%. Con Edison estimated that common-share issuance reduced the year-over-year EPS change by $0.05, explaining why per-share earnings grew more slowly than net income.

Adjusted earnings were identical to GAAP earnings in the current quarter. In Q3 2025, adjusted results excluded $2 million, or $0.01 per share, of accretion related to the basis difference in Con Edison’s Mountain Valley Pipeline interest.

CECONY Rate-Base Growth Drove the Quarter

CECONY contributed an $80 million increase in net income, more than accounting for Con Edison’s total $78 million GAAP improvement. A modest gain at O&R was partly offset by lower earnings from Con Edison Transmission.

At CECONY, a higher electric rate base added $62 million to net income. Higher allowance for equity funds used during construction contributed another $9 million, while lower healthcare-related operating and maintenance costs added $8 million. Common-share issuance had no effect on the net income comparison but reduced the EPS bridge by $0.05.

O&R benefited by $11 million from an electric base-rate increase. That was partly offset by $5 million of higher electric and gas operating and maintenance expenses and $3 million of other negative items.

Con Edison Transmission’s earnings declined by $5 million, primarily because investment income fell following the sale of Con Edison’s MVP interest. Accretion related to the MVP basis difference reduced the comparison by another $2 million, partly offset by $2 million from other items.

Under the utilities’ New York revenue-decoupling mechanisms, changes in delivery volumes generally do not alter revenue from approved levels. Fuel, purchased gas, and purchased-power costs are also generally recovered on a current basis, making rate-base and rate-plan developments more important earnings drivers than changes in customer usage.

2026 Earnings Guidance

Con Edison narrowed its full-year adjusted EPS guidance by raising the lower end by $0.05 and lowering the upper end by $0.05. The midpoint remained $6.10, so the update reduced the range without increasing or decreasing the central earnings outlook.

The non-GAAP guidance excludes the $0.37-per-share after-tax gain from the MVP sale, $0.01 per share of MVP basis-difference accretion, transaction costs related to the strategic review of MVP and Honeoye, and the effects of HLBV accounting for tax-equity investments. Con Edison could not provide equivalent GAAP guidance because some excluded amounts will not be determinable until year-end.

Management’s View

Management emphasized regulated energy-delivery investment as the basis for future earnings growth. Con Edison plans to invest approximately $797 million in climate resilience from 2026 through 2030, aiming to protect equipment and customers from increasingly extreme weather while modernizing its systems.

The company has also reached an agreement with regulators and other stakeholders on a new investment plan for its Steam business, although that plan still awaits approval. Management said strategic system upgrades are intended to expand the company’s earnings base while maintaining reliability and balancing customer costs.

Recent Insider Transactions

The supplied insider data show no purchase or sale transactions during the past six months and total insider holdings of approximately 747,050 shares. The 10 latest reported records were director stock-award grants rather than purchases or sales, and all were listed as direct holdings.

Because these transactions were compensation-related grants, they should not be treated as insider purchases.

Risks Investors Need to Watch

• Regulatory outcomes: The higher electric rate base was the quarter’s largest earnings driver, while the new Steam investment plan remains subject to approval. Rate-plan changes that do not provide an adequate return could affect future earnings.
• Financing and dilution: Common-share issuance reduced the year-over-year EPS comparison by $0.05. Con Edison’s capital program also requires continued access to capital markets.
• Operating cost pressure: Higher electric and gas operating and maintenance expenses reduced O&R’s quarterly earnings comparison by $5 million.
• Lower transmission investment income: The sale of the MVP interest reduced Con Edison Transmission’s investment income, creating a $5 million quarterly headwind.
• Climate resilience costs and execution: The planned $797 million of resilience investment through 2030 requires the company to balance system needs, regulatory recovery, customer costs, and financing requirements.

Summary

Con Edison’s Q3 2026 earnings increased primarily because CECONY’s electric rate base expanded, with construction-related allowance income and lower healthcare costs providing additional support. These benefits outweighed share dilution, higher O&R operating expenses, and lower transmission investment income after the MVP sale. Full-year adjusted EPS guidance was narrowed around an unchanged midpoint, leaving regulatory approvals, capital-program execution, and dilution as the main areas to monitor.