Key Highlights

● Second-quarter core earnings were $0.40 per share, up from $0.31 a year earlier.

● Management reaffirmed 2026 core earnings guidance of $1.64 to $1.66 per share.

● The board declared a third-quarter common dividend of $0.05 per share.

● Wildfire Fund expense was $126 million in the quarter, versus $109 million a year earlier.

PG&E Corporation (NYSE:PCG) is the holding company for Pacific Gas and Electric Company, which the company says serves 16 million Californians across a 70,000-square-mile service area in Northern and Central California. As a regulated electric and gas utility owner, it sits in the Utilities sector. PG&E has been a constituent of the S&P 500 since October 3, 2022.

Second-quarter results

PG&E reported second-quarter 2026 results on July 23, 2026. Net income was $761 million and income available to common shareholders was $733 million, equal to GAAP earnings of $0.33 per diluted share, up from $0.24 a year earlier. Non-GAAP core earnings were $920 million, or $0.40 per share, against $0.31 in the second quarter of 2025. For the first six months, GAAP earnings were $0.72 per share (2025: $0.51) and core earnings were $0.83 (2025: $0.64).

Operating income rose to $1,263 million from $1,096 million, helped by lower operating and maintenance expense of $2,536 million, down from $2,860 million. Electric operating revenues were $4,388 million, little changed from $4,414 million, and natural gas revenues were $1,514 million, up from $1,484 million.

Guidance and operating progress

Management reaffirmed 2026 non-GAAP core earnings guidance of $1.64 to $1.66 per share. That is the company's expectation, not a reported result, and the first-half core figure of $0.83 equals roughly half the guided range. The company said it remains on track for its target of reducing non-fuel operating and maintenance costs by 2 to 4%. It completed a $2.2 billion Utility bond issuance in June, bringing 2026 Utility debt financings to $4.4 billion.

On growth, PG&E reported a data center pipeline of more than 12 gigawatts, which indicates customer interest rather than committed load. On safety, it built 37 miles of undergrounding in the quarter, plans more than 1,900 miles of undergrounding by the end of 2027, and says continuous monitoring has avoided 28 potential ignitions in high fire-risk areas since January 2025.

Dividend and its support

On September 18, 2026 the board declared a third-quarter common dividend of $0.05 per share, with a record date of September 30 and payment on October 15, 2026. At $0.20 a year on an annualized basis, the payment is small relative to guided core earnings of about $1.65 per share, a payout ratio near 12%, which leaves most earnings available for investment. Separate quarterly dividends on Pacific Gas and Electric Company preferred stock were also declared, with a record date of October 30 and payment on November 15. Future payments remain subject to board approval.

Wildfire Liability Reform and the October 22 Call

Wildfire exposure remains the central risk for a California utility. PG&E recorded Wildfire Fund expense of $126 million in the second quarter, compared with $109 million a year earlier, and excludes amortization of its Wildfire Fund contribution, $91 million after tax, from core earnings. Wildfire-related claims, net of recoveries, were zero in the quarter, against $50 million a year earlier. Chief executive Patti Poppe said the company is advocating for a durable solution on wildfire liability reform, but the outcome of that debate is outside management's control.

Non-core items totaled $164 million after tax, or $0.07 per share, in the quarter and are excluded from core earnings. Debt financing needs, regulatory decisions on rates and execution of the undergrounding program are further sensitivities. PG&E has scheduled its third-quarter 2026 earnings conference call for Thursday, October 22, 2026 at 11:00 a.m. Eastern Time.