10-Q · July 28, 2026
FirstEnergy produced Q2 revenue of $3.678 billion, up 9% year over year, and GAAP EPS of $0.50, up from $0.46; however, operating margin declined to 18.4% from 19.1% and from 19.7% in Q1 2026. Transmission investment…
Earnings analysis · 10-Q
FE earnings analysis
Filed October 28, 2026 · Our reading of the company's report
The latest report
FirstEnergy delivered a strong Q3, with $4.6 billion of revenue and $0.98 EPS, up from $4.15 billion and $0.76 respectively in the prior-year quarter, while also exceeding consensus estimates. The company maintained…
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FirstEnergy delivered a strong Q3, with $4.6 billion of revenue and $0.98 EPS, up from $4.15 billion and $0.76 respectively in the prior-year quarter, while also exceeding consensus estimates. The company maintained 2026 Core EPS guidance of $2.62-$2.82 per share. Momentum is positive, but persistent negative free cash flow and increased letters-of-credit capacity underscore capital and liquidity requirements; the 10-Q reported no material change to previously disclosed risk factors.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.98
What stood out
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Revenue accelerated and beat consensus
Q3 revenue was $4.6 billion, up approximately 25% from $3.68 billion in Q2 2026 and 11% from $4.15 billion in Q3 2025. Revenue also exceeded the $4.292 billion consensus estimate by approximately 7%.
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EPS growth and consensus beat
Reported Q3 EPS was $0.98 versus $0.50 in Q2 2026 and $0.76 in Q3 2025, representing increases of $0.48 sequentially and $0.22 year over year. EPS exceeded the $0.90 estimate by $0.08.
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Full-year EPS outlook reaffirmed
2026 Core EPS guidance was maintained at $2.62-$2.82 per share, with management expecting results at or slightly above the $2.72 midpoint rather than raising the range.
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Credit facility maturities extended
The company amended its credit facilities to extend maturities by one year, including the KATCo facility from October 20, 2029 to October 20, 2030 and the FET facility from October 20, 2030 to October 20, 2031.
What to watch
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Higher letters-of-credit exposure
The amended MP and PE credit facility increased its letters-of-credit commitment from $100 million to $400 million, a $300 million increase that may indicate greater collateral and liquidity requirements.
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Persistent negative free cash flow
Free cash flow remained negative at $356 million in Q2 2026, following negative free cash flow of $1.11 billion in Q1 2026; the supplied filing data do not disclose Q3 free cash flow.
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No formal risk-factor update
The 10-Q states that there was no material change to the risk factors in the 2025 Form 10-K; however, the company continues to operate with a $2.62-$2.82 full-year Core EPS range, leaving earnings sensitive to execution against the outlook.
Management's outlook
2026 Core EPS guidance was reaffirmed at $2.62-$2.82 per share, with expected results at or slightly above the midpoint. The 10-Q excerpt does not provide separate quantitative revenue guidance.
Earlier filings 2
10-Q · April 28, 2026
FirstEnergy reported Q1 2026 consolidated revenue of $4,202 million, up $437 million or 12% versus Q1 2025, and GAAP earnings attributable to FE of $405 million, or $0.70 per share, up $45 million (13%) and $0.08 per…
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