GET DAILY SIGNALSEversource Energy (ES) Q3 2026 Earnings: Narrowed Guidance Points to Stabilizing Outlook
Key Takeaways
- Eversource Energy reported third-quarter 2026 earnings of $346.0 million, or $0.92 per diluted share, down from $367.5 million, or $0.99 per share, in the year-ago quarter.
- There were no non-GAAP (non-Generally Accepted Accounting Principles) adjustments in the quarter, so reported and recurring earnings per share were both $0.92, versus $1.19 of recurring EPS a year earlier.
- Operating revenue of $2.98 billion declined 7.5% year over year and fell short of consensus, while EPS came in modestly ahead of the roughly $0.90 FactSet estimate.
- Management narrowed its 2026 recurring EPS guidance to $4.62–$4.70 and raised the midpoint to $4.66, up from $4.62 previously.
- Nine-month GAAP results absorbed roughly $319 million in after-tax charges tied to the Aquarion sale, the offshore wind divestiture, and a FERC transmission return-on-equity ruling.
Why These Results Matter for Eversource Energy (ES)
Eversource Energy (ES) is New England's largest energy delivery company, serving millions of electric and natural gas customers across Connecticut, Massachusetts, and New Hampshire. Its quarterly results matter because regulated utilities face a delicate balance between recovering infrastructure investment, keeping customer bills affordable, and maintaining the credit metrics that fund growth. This quarter arrives during a strategic reset: Eversource Energy (ES) completed the sale of its Aquarion water business, exited offshore wind, and absorbed a reduction in its allowed transmission return on equity (ROE), the regulated rate of profit utilities earn on their capital. Investors are watching whether rate increases, disciplined cost control, and securitization of deferred storm costs can stabilize earnings and support the company's five-year capital plan. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Reported Results in Detail
For the third quarter of 2026, Eversource Energy (ES) reported GAAP and non-GAAP earnings of $346.0 million, or $0.92 per diluted share, compared with GAAP earnings of $367.5 million, or $0.99 per share, in the prior-year period. There were no non-GAAP adjustments in the latest quarter. Operating revenue was $2.98 billion, a 7.5% decline year over year that came in below consensus expectations, while earnings per share landed modestly above the FactSet estimate of approximately $0.90.
For the first nine months of 2026, GAAP earnings totaled $1.01 billion, or $2.67 per share, down from $1.27 billion, or $3.44 per share, a year earlier. Non-GAAP recurring earnings were $1.33 billion, or $3.52 per share, compared with $1.35 billion, or $3.64 per share. Results reflected segment-level pressure: electric transmission earned $182.0 million (excluding a FERC refund charge), electric distribution earned $200.9 million versus $221.6 million, and natural gas distribution posted a quarterly loss of $43.4 million amid seasonal rate-design changes.
Market Reaction and Investor Sentiment
Investor focus centered less on the headline profit decline and more on guidance and regulatory developments. The narrowing of full-year guidance to a higher midpoint of $4.66 per share signaled management confidence in the back half of the year, even as quarterly revenue disappointed and segment earnings softened. Sentiment around the stock has been shaped by a series of non-recurring charges and the FERC decision reducing the allowed transmission ROE to 9.57%, which management is contesting. The constructive PURA (Public Utilities Regulatory Authority) decision on deferred storm costs and a clear path to securitization were viewed as incremental positives, though unresolved regulatory exposures continue to temper enthusiasm. From what I see, the stock's reaction reflects a focus on execution rather than one-time items.
Forward Outlook and Key Factors to Monitor
Looking ahead, Eversource Energy (ES) reaffirmed its cumulative long-term earnings-per-share growth target of 5% to 7% through 2030, anchored to the revised 2026 recurring EPS midpoint of $4.66. Management continues to expect annual growth toward the upper half of that range by 2028.
The company is advancing a $26.5 billion capital investment plan spanning transmission, electric distribution, gas distribution, and technology projects. Key catalysts include the $700 million TIDE transmission project and a potential Connecticut advanced-metering initiative. How regulators rule on pending rate cases and cost recovery will be critical to funding this expansion without straining the balance sheet.
Investors should also monitor the unresolved FERC refund appeal, with potential payments due by May 2027, as well as the timing and execution of storm-cost securitization. Margin trends, interest expense, and the pace of rate-case approvals across Massachusetts, Connecticut, and New Hampshire remain the most important variables for recurring earnings durability in the quarters ahead. I’m watching this closely as the regulatory path unfolds.
AI Tools in My Research Process
When analyzing utilities like Eversource Energy (ES), I often turn to Tickeron’s AI Screener for a structured way to compare peers and spot emerging setups. It helps filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals, surfacing ideas more efficiently than manual screening. This approach keeps my review of sector opportunities grounded in data without overcomplicating the process.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
ES in upward trend: 10-day moving average broke above 50-day moving average on November 02, 2026
The 10-day moving average for ES crossed bullishly above the 50-day moving average on November 02, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 12 of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 75%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where ES's RSI Oscillator exited the oversold zone, 19 of 28 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 68%.
The Momentum Indicator moved above the 0 level on October 20, 2026. You may want to consider a long position or call options on ES as a result. In 57 of 98 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 58%.
The Moving Average Convergence Divergence (MACD) for ES just turned positive on October 06, 2026. Looking at past instances where ES's MACD turned positive, the stock continued to rise in 25 of 37 cases over the following month. The odds of a continued upward trend are 68%.
ES moved above its 50-day moving average on October 29, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +2.43% 3-day Advance, the price is estimated to grow further. Considering data from situations where ES advanced for three days, in 162 of 315 cases, the price rose further within the following month. The odds of a continued upward trend are 51%.
The Aroon Indicator entered an Uptrend today. In 105 of 250 cases where ES Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 42%.
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 50-day moving average for ES moved below the 200-day moving average on October 05, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
ES broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 41 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.573) is normal, around the industry mean (2.054). P/E Ratio (14.782) is within average values for comparable stocks, (15.083). Projected Growth (PEG Ratio) (2.163) is also within normal values, averaging (1.785). Dividend Yield (0.046) settles around the average of (0.053) among similar stocks. P/S Ratio (1.820) is also within normal values, averaging (187.392).
The Tickeron Price Growth Rating for this company is 48 (best 1 - 100 worst), indicating steady price growth. ES’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 65 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 67 (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 91 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ES’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 51, placing this stock worse than average.
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General Information
generates and distributes electricity
Industry ElectricUtilities
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