Abstract

Entergy will report quarterly results on February 12, 2026 Pre-Market; this preview consolidates the latest company guidance, market expectations, and recent analyst commentary to frame revenue, margin, and EPS dynamics alongside key segment drivers and risks for the coming print.

Market Forecast

Consensus derived from the company’s latest forecast framework implies current-quarter revenue of $2.96 billion, a year-over-year decrease of 6.99%, with EBIT estimated at $0.69 billion and EPS at $0.52, pointing to modest YoY decline in per-share earnings. Margin expectations embed a stable to slightly lower gross profit margin and net profit margin profile versus the prior-year period; adjusted EPS is expected to compress given mix and seasonal factors.

Entergy’s operations remain concentrated in regulated utility service, which anchors revenue resilience and cash flows while moderating volatility tied to weather and fuel costs. The most promising contribution is expected from the core utility business, which generated $3.80 billion last quarter and continues to benefit from rate mechanisms and load stabilization, although year-over-year growth is expected to be muted near term.

Last Quarter Review

In the previous quarter, Entergy reported revenue of $3.81 billion, gross profit margin of 50.45%, GAAP net profit attributable to shareholders of $0.69 billion with a net profit margin of 18.20%, and adjusted EPS of $1.53, with adjusted EPS up 2.34% year over year.

A key financial highlight was quarter-on-quarter net profit growth of 48.27%, supported by margin expansion and constructive rate outcomes. The main business highlight centered on the regulated utility segment, which delivered $3.80 billion in revenue; within reported categories, public utility services dominated, while wholesale and other items were de minimis and non-core.

Current Quarter Outlook (with major analytical insights)

Regulated Utility Operations

Entergy’s regulated utility operations remain the principal earnings engine this quarter, supported by a multiyear rate base growth plan and fuel cost recovery mechanisms that help stabilize cash flows. With revenue forecast at $2.96 billion and EBIT at $0.69 billion, the setup suggests seasonal demand normalization following a stronger prior quarter and indicates that rate design and customer growth should offset some of the weather variance. The gross margin trend is likely to hold near recent levels on a sequential basis, though year-over-year comparability may reflect a lower revenue denominator and fluctuating purchased power costs. The net profit margin should remain healthy given operating leverage in the base business and ongoing O&M discipline, yet EPS at $0.52 implies a softer earnings mix relative to the same period last year. Investors will monitor the cadence of rate case implementations and recovery of deferred fuel costs, as these factors materially shape quarterly profitability and cash conversion.

Grid and Generation Investments

The company’s most promising growth vector continues to be capital deployment into grid modernization and generation upgrades, which expands the regulated rate base and underpins midterm earnings visibility. Project execution and in-service timing are pivotal this quarter, as incremental plant and transmission additions drive the allowed-return earnings contribution. With the prior quarter’s utility revenue at $3.80 billion and strong gross margin performance at 50.45%, the embedded economics of regulated investments remain attractive; however, near-term EPS at $0.52 indicates that the benefit curve is likely back-end weighted as assets go into service over the next several quarters. The investment program’s trajectory will also be judged against regulatory settlements and authorized ROE outcomes, which can tighten or widen the spread between revenue growth and EPS progression. Any update on construction milestones or FERC and state commission filings could frame upside or downside to margin and EBIT trajectories this year.

Key Stock Price Drivers This Quarter

Margin durability is the first determinant for the stock in this print, particularly whether gross and net margins hold near the prior quarter’s 50.45% and 18.20%, respectively, amid lower seasonal revenue. A second driver is the translation of regulatory outcomes into earnings, including recovery of storm and fuel costs and the pace of O&M normalization, which informs the sustainability of adjusted EPS beyond the $0.52 expected this quarter. A third influence is capital market sensitivity—interest rate volatility can affect allowed ROE assumptions and investor appetite for regulated utilities, shaping valuation multiples around the earnings release. Lastly, demand signals from industrial and commercial customers across Entergy’s service territories could influence forward commentary on load growth and the magnitude of future rate base expansion.

Analyst Opinions

Across recent institutional commentary, the balance of views skews cautiously positive, emphasizing stable regulated earnings and a constructive multiyear capex plan while acknowledging short-term EPS pressure. Analysts with constructive stances highlight the company’s ability to translate rate base growth into EBIT resilience, consistent with the company’s current-quarter framework that points to $0.69 billion in EBIT on $2.96 billion of revenue. Supportive views also cite healthy regulatory relationships and visibility into project execution on grid and generation assets, arguing that the sequential margin profile should remain intact even as revenue normalizes seasonally.

The cautiously positive view focuses on operational levers that can offset near-term EPS compression, including rate case phasing and O&M cost control, and sees potential for valuation support if Entergy demonstrates progress on recovering deferred costs and advancing high-return projects into service. Commentary also notes that the previous quarter’s adjusted EPS of $1.53 and a GAAP net profit margin of 18.20% provide a buffer for investor confidence, making a downside break of the $0.52 EPS forecast less likely absent weather shocks or unforeseen regulatory delays. In this framework, bulls anticipate that management’s updates on capital deployment and regulatory milestones can reinforce a favorable risk-reward into mid-2026, while bears remain concerned about the sensitivity of quarterly EPS to seasonality and interest rate moves; the current preponderance of opinions aligns with the cautiously positive camp.