Abstract
Edison International is scheduled to report quarterly results on February 18, 2026, Post Market; this preview distills recent performance trends, current-quarter forecasts, and prevailing institutional opinions into a concise framework for investors tracking earnings sensitivity and margin durability.Market Forecast
For the current quarter, Edison International’s forecasts indicate revenue of $4.35 billion, adjusted EPS of $1.48, and EBIT of $1.18 billion, with year-over-year changes of 10.98%, 35.00%, and 4.68%, respectively. The forecast does not include explicit guidance on gross profit margin or net profit margin; consensus expectations focus on EPS expansion aligned with revenue growth and disciplined operating costs.The main business continues to be utility power generation, where throughput and rate mechanics underpin medium-term revenue stability and incremental earnings leverage. The most promising segment remains this core utility generation and grid operation, which delivered $5.75 billion last quarter while company-wide revenue increased 10.56% year-over-year, positioning the core platform to capture current-quarter growth.
Last Quarter Review
Edison International posted revenue of $5.75 billion, a gross profit margin of 49.98%, GAAP net profit attributable to shareholders of $832.00 million, a net profit margin of 14.47%, and adjusted EPS of $2.34 with a 54.97% year-over-year increase. A key financial highlight was the top-line beat, with revenue exceeding estimates by $154.68 million, reflecting resilient customer-demand factors and effective rate structures during the period.The main business highlight was the utility power generation unit, which contributed $5.75 billion, while total revenue rose 10.56% year-over-year, demonstrating strong quarter dynamics and reinforcing the core business’s ability to translate volume and rate recovery into earnings performance.
Current Quarter Outlook
Main Business: Utility Power Generation
The upcoming quarter’s profile for utility power generation is framed by Edison International’s revenue estimate of $4.35 billion and an EPS projection of $1.48—both signaling continued expansion compared with the prior-year quarter, even as sequential revenue normalizes from last quarter’s $5.75 billion peak. The last quarter’s 49.98% gross margin and 14.47% net margin underscore the platform’s capacity to sustain efficiency amid seasonal and operating cost variability; those benchmarks provide useful anchors for evaluating how rate structures and cost management flow through earnings this time. The year-over-year revenue lift of 10.98% in the forecast suggests balanced contributions from demand and authorized revenue mechanisms, with margin retention supported by the operational discipline observed in the prior quarter.Operationally, a key focus will be how the company aligns O&M expense trajectories with the level of throughput in a seasonally cooler top-line setting than last quarter. The last print’s operating performance, reflected in solid EPS growth and a notable revenue beat, sets a constructive tone for earnings conversion from the main business this quarter. The degree to which external influences on customer usage and timing of recognized revenues track the estimates will be central to validating the triangulation between revenue growth, EBIT expansion to $1.18 billion, and EPS development to $1.48.
Most Promising Segment: Core Grid and Generation Operations
Edison International’s largest growth potential remains concentrated in its core grid and generation operations, which drove $5.75 billion in last quarter’s revenue and underpinned the company’s 10.56% year-over-year increase in total revenue. From an earnings vantage point, this segment’s capacity to preserve last quarter’s efficiency levels—evidenced by a 49.98% gross margin—will be pivotal to sustaining the current-quarter’s forecasted EPS uplift of 35.00% on a year-over-year basis. EBIT’s forecasted rise to $1.18 billion (+4.68% YoY) is consistent with a scenario in which incremental revenue gains are partially offset by predictable operating expenses, yielding healthy, though measured, operating leverage.Expectations for the segment center on maintaining stable cost structure alignment with the anticipated revenue mix in a quarter where sequential comparisons naturally compress. The disciplined conversion of top-line growth into EPS gains is likely to hinge on a tight execution cycle across operations, procurement, and maintenance windows. While explicit segment-specific year-over-year growth rates are not provided, the combination of company-level revenue growth and solid prior-quarter margin metrics suggests a foundation for earnings support from the core utility platform.
Key Stock Price Drivers This Quarter
Into the print, the most consequential drivers for the stock are likely to be the interplay between the $4.35 billion revenue estimate, the $1.48 adjusted EPS forecast, and the market’s interpretation of margin carryover from last quarter’s 49.98% gross margin and 14.47% net margin. The degree of alignment between revenue and EPS outcomes relative to forecasts will shape investor confidence around earnings quality and cost discipline, especially given sequential normalization from the prior quarter’s topline. Any variance in realized EBIT against the $1.18 billion estimate could recalibrate views on operating leverage sensitivity, with closer attention to how expense phasing compares to the revenue trajectory.The post-earnings price reaction will also be influenced by the narrative around the durability of year-over-year growth—10.98% for revenue and 35.00% for EPS—versus the absence of explicit margin guidance for the quarter. The street will be parsing the extent of upside or downside surprise risk in EPS as the company translates forecasted revenue into earnings amid typical seasonal patterns. Where execution reinforces the prior quarter’s operating profile, investors could lean on EPS print quality and revenue recognition cadence to gauge whether the forecast adequately reflects the current demand and cost environment.
Analyst Opinions
Among recently published views between January 1, 2026 and February 11, 2026, bearish opinions outnumber bullish ones, forming the majority perspective. Morgan Stanley reaffirmed a Sell rating on Edison International with a price target of $61.00 in early February, underscoring a cautious stance heading into the report and projecting limited upside at that valuation threshold. Wells Fargo adjusted its stance to Underweight on January 20, 2026, setting a price target of $59.00, further reinforcing the bearish tilt among institutions and signaling expectations for a constrained risk-reward into the catalyst.Taken together, the ratio of bearish to bullish views stands at 2:1 in the most recent window, with bearish opinions citing valuation boundaries through their targets of $59–$61 as the key framing for market expectations. This majority view coheres with the notion that the upcoming quarter may be more about validating revenue and EPS forecasts than expanding the narrative beyond the current earnings trajectory. With the company’s forecast calling for $4.35 billion in revenue (+10.98% YoY), $1.48 in adjusted EPS (+35.00% YoY), and $1.18 billion in EBIT (+4.68% YoY), the bearish side appears focused on the possibility that sequential normalization and the lack of explicit margin guidance could cap near-term multiple expansion.
The way earnings quality shows up in the print—specifically, whether EPS and EBIT land smoothly against estimates without raising concerns about expense timing—will be pivotal for evaluating the bearish case’s durability. If the company’s results align with the projected conversions from revenue to EBIT and from EBIT to EPS, the bearish perspective may conclude that the current valuation appropriately discounts the growth profile implied by the forecasts. Conversely, if the report demonstrates greater operating leverage than implied by the $1.18 billion EBIT estimate and clearer momentum in EPS beyond $1.48, the scale of the bearish stance could diminish as the market reconsiders the balance between earnings trajectory and target-based valuations.
In the near term, the dominant institutional view frames Edison International’s quarter as one that should meet or approximate forecasts but not necessarily offer enough incremental guidance or margin clarity to drive a sustained rerating. For investors tracking the narrative, the practical benchmark will be whether the results deliver the forecasted revenue growth of 10.98% and EPS progress of 35.00% year-over-year while preserving last quarter’s efficiency signature—49.98% gross margin and 14.47% net margin—sufficiently to underpin confidence in forward earnings. That is the lens through which the majority of institutional commentary appears poised to assess performance once the company reports on February 18, 2026, Post Market.