PG&E Beats Estimates 3 Times but P/E Stays Below Peers
PG&E Corporation beat consensus EPS estimates in three of its last four quarters, including an 11.2% upside in Q2 2026, yet the stock trades at a trailing P/E of 12.6x against an Electric Utilities in
PG&E Beats Estimates 3 Times but P/E Stays Below Peers
NEW YORK, August 9 —
PG&E Corporation (PCG) has beaten consensus EPS estimates in three of its last four quarters, including an 11.2% upside surprise in Q2 2026. The stock trades at a trailing P/E of 12.6x against an Electric Utilities industry average of 20.8x. The discount traces to $64.7 billion in long-term debt and free cash flow of negative $6.15 billion.
- Q2 2026 EPS of $0.40 beat consensus of by 11.2% per the Q2 8-K; Q1 2026 beat by 7.6%.
- $64.7B long-term debt against $0.97B cash; free cash flow negative $6.15B trailing twelve months.
- Insiders recorded $3.42M in open-market sales with zero purchases in the past 90 days.
Three Beats in Four Quarters
PG&E Corporation delivers electricity and natural gas to residential, commercial, industrial, and agricultural customers across northern and central California, using a generation mix that includes nuclear, hydroelectric, and photovoltaic sources. That scale has produced consistent results: PG&E beat consensus EPS in Q3 2025 by 16.4% and Q2 2026 by 11.2%, with only a narrow 1.1% miss in Q4 2025 interrupting the streak. Trailing twelve-month revenue stands at $25.84 billion on a gross margin of 39.8%. For a regulated utility of that size, three beats in four quarters signals that management is threading the rate-case and cost-recovery needle on the earnings line.
The Debt That Shadows the Multiple
The earnings line is not where the pressure shows. PG&E carries $64.7 billion in long-term debt against $0.97 billion in cash, and the trailing twelve months produced $8.1 billion in operating cash flow consumed by capital expenditure, leaving free cash flow at negative $6.15 billion. Modeling that trajectory in the DCF calculator requires rate-base growth assumptions that justify the capital intensity to close on peers. The cash burn explains a trailing P/E of 12.6x against a peer group average of 24.6x. Insiders add a parallel signal: $3.42 million in open-market sales with zero purchases over the past 90 days, including a $2.85 million block from Marlene Santos on July 22.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| PCG | $38.5B | 9.7x | +15.6% |
| EIX | $26.4B | 10.5x | +24.2% |
| PEG | $37.7B | 16.2x | -12.6% |
| SRE | $54.8B | 15.1x | +3.7% |
| FE | $27.5B | 16.1x | +9.6% |
| AEP | $68.4B | 18.3x | +12.3% |
What Would Close the 30% Gap
The analyst consensus price target of $22.78 sits 30% above the August 2026 price of $17.46, a gap that implies either multiple expansion or earnings growth well above what the forward P/E of 9.7x currently prices in. PCG's five-year total return of 94.8% and one-year return of 17.6% demonstrate the stock can reprice, but the re-rating catalyst remains the balance sheet. The next earnings report and any rate-case filings will indicate whether capital expenditure is trending toward cash-flow breakeven; with 98.9% institutional ownership, the holders most capable of repricing already own the position. Run the free PG&E Corporation deep-dive →
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Frequently Asked Questions
Did PG&E beat earnings estimates recently?
PG&E beat consensus EPS estimates in three of its last four quarters. The most recent beat was Q2 2026, where EPS of $0.40 came in 11.2% above the $0.358 consensus. Q1 2026 and Q3 2025 also produced beats of 7.6% and 16.4% respectively, with only a 1.1% miss in Q4 2025 interrupting the run.
Why is PG&E's P/E below the industry average?
PG&E's trailing P/E of 12.6x sits well below the Electric Utilities industry average of 20.8x. The discount traces to $64.7 billion in long-term debt against $0.97 billion in cash, and trailing twelve-month free cash flow of negative $6.15 billion, which offsets an otherwise consistent earnings record.
How much long-term debt does PG&E carry?
PG&E carries $64.7 billion in long-term debt against $0.97 billion in cash. The company generated $8.1 billion in operating cash flow over the trailing twelve months, but capital expenditure consumed it entirely, leaving free cash flow at negative $6.15 billion.
What is the analyst price target for PG&E stock?
The analyst consensus price target stands at $22.78, roughly 30% above the August 2026 price of $17.46. The forward P/E of 9.7x implies the market requires either multiple expansion or earnings growth above current expectations before that gap closes.
What are PG&E insiders doing with the stock?
Insiders recorded $3.42 million in open-market sales with zero purchases over the past 90 days. That total includes a $2.85 million block sale by Marlene Santos on July 22.
PG&E has beaten consensus EPS estimates in 3 of its last 4 quarters, including an 11.2% upside surprise in Q2 2026, yet the stock trades at a trailing P/E of 12.6x against an Electric Utilities industry average of 20.8x. A utility that keeps delivering on earnings shouldn't be priced at less than two-thirds of the sector multiple — unless the $64.7 billion debt load and negative free cash flow explain why.