Abstract
Consolidated Edison will release fiscal third-quarter 2026 results on November 05, 2026 Post-Mkt; this preview synthesizes consensus forecasts and segment trends to frame revenue, margins, and adjusted EPS expectations, and compares them with the prior quarter’s performance to assess momentum into year-end.
Market Forecast
Consensus for the current quarter points to revenue of 4.75 billion US dollars, EBIT of 1.12 billion US dollars, and adjusted EPS of 2.03, implying year-over-year growth of 12.62%, 15.05%, and 16.48%, respectively; management margin guidance is not available, but the forecast mix suggests stable-to-improving profitability versus last year. The outlook points to steady electric and gas utility contribution with weather-normalized demand and ongoing rate plan recovery, while capital investment pacing supports regulated earnings visibility. The most promising area is the core electric delivery business, projected to contribute about 3.14 billion US dollars this quarter, benefiting from rate base growth and implying mid-to-high single-digit year-over-year expansion.
Last Quarter Review
Last quarter, Consolidated Edison reported revenue of 4.07 billion US dollars, a gross profit margin of 51.78%, GAAP net income attributable to shareholders of 308.00 million US dollars with a net profit margin of 7.57%, and adjusted EPS of 0.83, with year-over-year growth of 13.19%, not comparable for margin YoY from tool data, and 23.88% for EPS. One notable highlight was stronger-than-expected operating performance versus consensus across revenue and EBIT, with EBIT up 55.49% year over year and revenue outpacing expectations by 470.67 million US dollars. By business, electric delivery led with 3.14 billion US dollars in revenue, gas contributed 811.00 million US dollars, and steam delivered 118.00 million US dollars, reflecting a stable regulated mix and an emphasis on recovery under existing rate plans.
Current Quarter Outlook
Main regulated utility operations
This quarter’s performance will hinge on the combined electric, gas, and steam delivery businesses, which account for the vast majority of revenue. Forecast revenue of 4.75 billion US dollars, EPS of 2.03, and EBIT of 1.12 billion US dollars imply a constructive setup as weather-normalized volumes and pass-through mechanics stabilize topline while approved rate trajectories support earnings. Compared with last year’s period, the modeled growth rates of 12.62% for revenue and 16.48% for EPS suggest positive operating leverage alongside disciplined O&M control. Investors will also watch the interaction of fuel and purchased power costs with regulatory cost-recovery mechanisms, which tends to cap gross margin volatility within the regulated framework.
Electric delivery as the growth anchor
Electric remains the largest revenue contributor, at an estimated 3.14 billion US dollars in the latest reported quarter, and it is positioned to drive the bulk of near-term earnings. Drivers include ongoing rate base expansion from grid modernization, reliability investments, and interconnection work supporting electrification trends. The forecast points to year-over-year improvement in EBIT and EPS that exceeds revenue growth, indicating incremental efficiency gains and scale benefits as capital deployed earns regulated returns. Weather patterns, outage events, and load growth in the service territory are variables to monitor, but the rate plan cadence provides guardrails for financial outcomes.
Key stock-price swing factors this quarter
Margin trajectory versus last year will be a central focus, given the 51.78% gross margin print last quarter and the EPS step-up forecast this quarter; positive surprise would likely require O&M savings outpacing expectations or a favorable load and weather setup. Regulatory progress and visibility into upcoming rate cases can influence the equity story by signaling sustained rate base growth and recoverability of costs tied to gas transition and electrification investments. Cash flow deployment, including capital expenditure pacing and balance sheet discipline, will be scrutinized against dividend sustainability and interest-rate sensitivity, especially as higher financing costs can temper net income even amid solid EBIT expansion.
Analyst Opinions
The balance of published opinions over the past months skews neutral to slightly constructive, with a majority expecting an in-line to modest beat outcome on EPS driven by rate base growth and manageable O&M. Several large sell-side desks highlight the defensiveness of regulated earnings and the prospect of incremental upside if weather and usage trends cooperate. The prevailing view emphasizes stable execution within the regulated footprint, with attention on the electric segment’s rate recovery and capital program cadence as the primary levers for any upside to quarterly results.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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