PG&E Corp (PCG) shares plummeted 5.03% in intraday trading after the utility company reported disappointing second-quarter results. The company's earnings and revenue fell short of analyst expectations, primarily due to increased operating costs and wildfire-related expenses.

PG&E reported quarterly earnings of $0.31 per share, missing the analyst consensus estimate of $0.36 by 13.41%. The company's quarterly sales came in at $5.898 billion, falling short of the expected $6.369 billion by 7.39%. This represents a 1.47% decrease compared to the same period last year. The utility firm was hit by a 3.7% increase in total operating and maintenance costs, which rose to $2.86 billion.

Despite the disappointing quarterly results, PG&E reaffirmed its full-year 2025 adjusted earnings per share guidance of $1.48 to $1.52. The company also reported that it has stabilized bills over the past year and expects them to decrease in 2026. However, investors seem to be focusing on the near-term challenges, including higher wildfire-related claims and expenses, which have increased from the previous year. These factors, combined with the earnings miss, appear to be driving the significant stock price decline.