PG&E on Thursday narrowed its full-year profit outlook for 2026 by lifting the lower end of its range, reflecting what the company described as robust electricity demand tied to data centers and broader load growth. The utility pointed to advancing work on data center connections and an ongoing program of transmission upgrades intended to accommodate rising consumption.
The company increased the lower end of its 2026 profit forecast by $0.02, setting the range at $1.64 to $1.66 per share. That updated range sits slightly above Wall Street estimates of $1.63 per share, based on data compiled by LSEG.
PG&E said it has advanced 2 gigawatts (GW) of data center projects into final engineering since its third-quarter update, bringing the total now in final engineering to approximately 3.6 GW. The utility previously outlined a plan to spend $73 billion by 2030 on transmission upgrades intended to meet the surge in demand linked to data center growth.
Those demand drivers align with projections from the U.S. Energy Information Administration, which expects U.S. power demand to reach record levels in 2026 due to the technology industry AI data centers and accelerating electrification of homes and businesses.
Despite tightening its forecast, PG&E reported adjusted earnings of $0.36 per share for the quarter ended December 31, missing the average analyst estimate by $0.01 per share. In premarket trading the company's shares were down about 1%.
PG&E is the parent company of Pacific Gas and Electric Company, which provides energy to roughly 16 million customers across a 70,000-square-mile service area in Northern and Central California. The company s large-scale transmission investment and project advancement reflect efforts to align capacity and infrastructure with expected load growth.
Key points
- PG&E raised the lower bound of its 2026 profit forecast to a range of $1.64-$1.66 per share, modestly above consensus estimates.
- The utility has moved 2 GW of data center projects into final engineering since its Q3 update, with about 3.6 GW now in final engineering.
- PG&E plans $73 billion in transmission upgrades by 2030 to support the surge in electricity demand tied to data centers and electrification.
Risks and uncertainties
- Quarterly adjusted profit of $0.36 per share missed analysts estimates by $0.01, indicating potential near-term earnings sensitivity.
- Shares fell roughly 1% in premarket trading, reflecting market reaction to the earnings and outlook update.
- Execution risk on large-scale transmission spending and project engineering timelines could affect the utility sector and related infrastructure markets.