Abstract

Public Service Enterprise Group Inc will report quarterly results on February 26, 2026 Pre-Market; consensus points to revenue near 2.68 billion USD and EPS around 0.71, with investors focused on cost discipline, weather-normalized demand, and the balance between regulated earnings resilience and softer expectations for EBIT.

Market Forecast

Based on current quarter forecasts, the market expects Public Service Enterprise Group Inc to deliver revenue of 2.68 billion USD, up 5.67% year over year, adjusted EPS of 0.71, down 14.08% year over year, and EBIT of 600.46 million USD, down 15.53% year over year. Forecasts for gross profit margin and net profit margin are not specified; the setup implies profit pressure versus a strong prior-year comparison, even as top-line growth remains positive.

The company’s core operations remain anchored by the Public Service Electric and Gas subsidiary, which generated 2.54 billion USD of revenue last quarter; near-term drivers include execution of approved rate mechanisms, ongoing system upgrades, and steady customer usage trends under weather-normal conditions. The most promising earnings contributor remains the regulated utility platform: it contributed 2.54 billion USD in revenue last quarter, while total group revenue increased 22.10% year over year in that period, setting a high base yet underlining the unit’s durable contribution to consolidated results.

Last Quarter Review

Public Service Enterprise Group Inc posted quarterly revenue of 3.23 billion USD (up 22.10% year over year), a gross profit margin of 36.14%, GAAP net profit attributable to shareholders of 622.00 million USD, a net profit margin of 19.28%, and adjusted EPS of 1.13 (up 25.56% year over year). A notable highlight was that net profit attributable to shareholders increased 6.32% quarter over quarter, while adjusted EPS and revenue each exceeded market estimates, reflecting tighter cost control and a strong operating cadence. Public Service Electric and Gas contributed 2.54 billion USD in revenue last quarter, while the Power and Other line contributed 749.00 million USD and offsets totaled -58.00 million USD; consolidated revenue rose 22.10% year over year on this mix.

Current Quarter Outlook

Main business outlook: Public Service Electric and Gas

Public Service Electric and Gas remains the principal earnings engine for the group this quarter, and investor attention will be on the execution path for approved rates, O&M spending cadence, and weather-normalized volumes. While consensus anticipates revenue growth of 5.67% year over year at the consolidated level, the simultaneous declines in forecast EBIT (-15.53% YoY) and EPS (-14.08% YoY) suggest that mix and cost factors could compress profitability against a tougher prior-year comparison. This pattern would be consistent with timing differences between capital deployment and revenue recognition under regulatory constructs, the normalization of certain non-fuel O&M items after a cost-efficient prior quarter, and the absence of transitory positives that supported last period’s result. Management’s ability to keep storm-related expenses and restoration costs within expectations will also be relevant, as elevated storm activity can shift O&M timing and margins even when cost recovery is generally available over time. With customer growth and service reliability programs proceeding, the unit’s underlying revenue stability should remain intact, but profit conversion looks more sensitive this quarter to the interplay of cost control and the timing of recovery mechanisms.

Most promising business: Infrastructure modernization and customer programs

Within the company’s consolidated mix, the clearest path to sustainable earnings growth continues to run through the regulated utility’s infrastructure modernization, safety, and customer-centric efficiency programs. While the Power and Other line can add variability, the foundation for earnings this quarter and beyond relies on disciplined investment in electric and gas system upgrades that are typically supported by established regulatory frameworks. The strategic logic remains straightforward: projects that bolster reliability, resilience, and safety tend to earn regulated returns, building a larger earnings base over time as assets are placed into service. That dynamic may not fully translate into immediate EPS growth this quarter, as consensus signals near-term margin compression versus last year’s quarter, but it underpins the medium-term trajectory. Given the 2.54 billion USD revenue produced by Public Service Electric and Gas last quarter and the 22.10% year-over-year increase in total group revenue during that period, investors will look for updates on the pacing of ongoing programs and any indications on the timing of cost recovery that could alleviate the near-term pressure implied by the EBIT and EPS forecasts.

What could drive share moves this quarter

The primary swing factor for the stock around this report is the degree to which reported EPS aligns with the 0.71 consensus and whether revenue trends hold close to the 2.68 billion USD projection in a weather-normal quarter. Any deviation in margin outcomes relative to expectations—given the 15.53% year-over-year decline implied for EBIT—could lead to outsized reactions, especially if O&M timing or storm-related expenses diverge from modeled assumptions. Updates on cash flow cadence, capital deployment, and the bridge from quarterly results to the company’s full-year trajectory will also matter, as investors translate quarterly puts and takes into a view on dividend sustainability and long-term growth. Regulatory process updates, including cost-recovery timing for investments and the status of any filings related to infrastructure or customer programs, may recalibrate margin and cash flow expectations for the balance of the year. Within the Power and Other activities, exposure to commodity-driven spreads is less central to the overall story than in prior cycles, but swings in realized margins or hedging results can still color narrative sentiment; any such commentary will be evaluated relative to the limited profits implied by the consolidated EBIT forecast. Finally, management’s qualitative guidance on cost discipline and potential O&M normalization paths could help reconcile the gap between stable revenue trends and the profit compression embedded in consensus.

Analyst Opinions

Across recently published views since January 2026, the balance of opinions on Public Service Enterprise Group Inc skews clearly bullish. Considering six institution updates in this period, five are positive (Buy/Overweight) and one is neutral (Equalweight/Hold), yielding an approximately 83% bullish skew. The positive cohort includes analysts at Bank of America (Buy), Argus Research (Buy, price target 90.00 USD), BTIG Research (Buy, price target 94.00 USD), Wells Fargo (Overweight, price target 92.00 USD), and Ladenburg Thalmann (Buy, price target 87.50 USD). The neutral stance comes from Barclays (Equalweight, price target 81.00 USD). Separately tracked aggregates indicate the mean price target clustered around the high-80s to about 90.00 USD during January 2026, aligning with the bullish center of gravity.

In their supportive theses, bullish analysts consistently emphasize earnings visibility anchored in the regulated utility franchise, progress on simplifying the business mix, and prudent capital allocation. The thematic through-line is that a higher proportion of earnings should come from regulated activities with clear cost-recovery mechanisms, which investors typically ascribe higher valuation stability. Relative to this quarter, the optimistic view tolerates the consensus expectation of EBIT and EPS pressure—both down double digits year over year—by framing it as a near-term normalization against a strong base rather than a structural setback. Bank of America’s reiterated Buy rating highlights confidence in the company’s forward earnings path as infrastructure programs continue to be executed under established regulatory processes. Argus Research’s Buy rating and 90.00 USD target similarly reflect a constructive outlook on multi-year earnings growth potential supported by ongoing investments and rate recognition that, over time, should translate into incremental EPS growth despite quarter-to-quarter variability.

BTIG’s 94.00 USD target pushes the top end of the recent range and underscores the view that the shares can compound as capex turns into rate base and cost discipline keeps cash conversion orderly. Wells Fargo’s upgrade to Overweight with a 92.00 USD target signals that, at current valuation, the balance of risks looks favorable if the company delivers within the zone of consensus and reiterates a steady multi-quarter trajectory. Ladenburg Thalmann’s upgrade to Buy at an 87.50 USD target rounds out the bullish set, citing the same earnings durability drivers and an improving mix profile. On the other side, Barclays’ Equalweight at 81.00 USD captures the central reservation: this quarter’s forecast implies softer year-over-year margins, and valuation already reflects a good portion of the multi-year improvement story, making upside more contingent on execution and near-term cost control.

Taken together, the majority view anticipates that Public Service Enterprise Group Inc can navigate the softer profit optics embedded in current-quarter estimates while maintaining a durable path of revenue and earnings through its regulated utility operations. The emphasis is on consistency: meet or modestly beat the 0.71 EPS and 2.68 billion USD revenue markers, keep O&M and storm costs within modeled bands, and provide steady commentary on recovery timing and project pacing. If those elements hold, the bullish camp expects the shares to remain supported by improving cash flow visibility and the prospect that quarterly margin noise gives way to multi-year compounding from assets placed into service. Conversely, a material miss versus the EBIT/EPS framework or an unfavorable update on cost-recovery timing would likely be required to dislodge the prevailing constructive stance reflected in the recent cluster of Buy and Overweight ratings.