Entergy Corporation Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026, for Entergy Corporation and its registrant subsidiaries (Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy Resources). Entergy operates primarily through a single reportable segment, Utility, which generates, transmits, distributes, and sells electric power in portions of Arkansas, Mississippi, Texas, and Louisiana. The natural gas distribution businesses in Louisiana and New Orleans were sold on July 1, 2025, and are no longer included in operations.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Operating Revenues | $3,187.6 million | $2,846.9 million |
| Net Income Attributable to Entergy | $384.9 million | $360.8 million |
| Diluted Earnings Per Share | $0.83 | $0.82 |
| Operating Cash Flow | $829.0 million | $536.2 million |
| Investing Cash Flow | ($2,421.9 million) | ($1,710.4 million) |
| Financing Cash Flow | $3,235.1 million | $1,827.9 million |
| Cash and Cash Equivalents (End of Period) | $3,571.1 million | $1,513.4 million |
| Debt to Capital Ratio | 65.9% | 64.3% |
| Effective Income Tax Rate | 18.3% | 21.6% |
Material Changes vs. Prior Period
- Revenue Growth: Operating revenues increased by approximately $340.7 million (12%) compared to Q1 2025. Drivers included higher retail electric prices, increased return on construction work in progress, and higher fuel/rider revenues. This was partially offset by the absence of natural gas revenues following the July 2025 divestiture and less favorable weather impacts on residential sales.
- Profitability: Net income attributable to Entergy increased by $24.2 million. The increase was driven by higher utility net income, partially offset by an $18.1 million non-cash impairment charge in the "Parent & Other" segment related to the sale of the non-utility operations business's interest in the Independence power plant.
- Winter Storm Fern Impact: In January 2026, Winter Storm Fern caused severe infrastructure damage. Entergy estimates total restoration costs at approximately $480 million ($400 million capital, $80 million non-capital). Natural gas purchases in January 2026 surged to $483 million compared to $207 million in January 2025 due to cold weather demand and supply constraints.
- Capital Expenditures: Investing cash outflows increased significantly due to higher spending on non-nuclear generation construction (e.g., Ironwood, Jefferson, Richland Parish projects) and storm restoration efforts.
- Debt Issuances: Financing activities provided substantial cash due to multiple long-term debt issuances in Q1 2026, including $1.5 billion by Entergy Arkansas and $1.5 billion by Entergy Louisiana, alongside $346 million in proceeds from equity forward sale settlements.
Guidance, Outlook, and Management Commentary
- Capital Plan Update: Entergy updated its 2026-2029 capital plan, reflecting incremental investments for generation projects to meet growing demand, particularly from large-scale data centers. Total planned construction and capital investments for 2026 are estimated at $13.2 billion.
- Data Center Demand: Significant load growth is driven by data centers. Entergy Louisiana entered into an electric service agreement with a Meta Platforms subsidiary (Evest) for a second data center in north Louisiana, requiring approximately $12.9 billion in new generation and transmission resources (pending LPSC approval). Entergy Mississippi also executed agreements to serve Amazon Web Services data center expansions.
- Regulatory Proceedings:
- Entergy Arkansas: The APSC approved the Arkansas Cypress Solar facility but set a cost benchmark for the Jefferson Power Station that was $90 million below Entergy's estimate. Entergy is proceeding with the project as a strategic investment.
- Entergy Louisiana: The LPSC is reviewing a major application for seven new combined cycle units and transmission lines to serve the Meta data center. The utility also filed for approval of the Cypress Harvest Solar facility.
- Storm Cost Recovery: Entergy Mississippi plans to file for storm cost recovery under new state legislation in Q3 2026. Entergy Louisiana requested to defer $141.9 million of January 2026 fuel costs over four months to mitigate customer bill impacts.
- Nuclear Oversight: The NRC issued a preliminary "white" finding with "low safety significance" regarding an emergency diesel generator at Grand Gulf. If finalized, the plant would move to Column 2 of the oversight matrix but would continue operations pending supplemental inspection.
- Dividends: The Board declared a quarterly dividend of $0.64 per share on common stock.
Investor Verification Checklist
- Storm Cost Recovery: Verify the regulatory approval status and timeline for recovering the estimated $480 million in Winter Storm Fern costs across Entergy Louisiana, Mississippi, and Arkansas.
- Data Center Project Approvals: Monitor the LPSC's decision on Entergy Louisiana's $12.9 billion generation and transmission application for the Meta data center and the APSC's final stance on the Jefferson Power Station cost benchmark.
- Capital Expenditure Execution: Assess the ability to execute the updated $13.2 billion 2026 capital plan within budget, given supply chain constraints and labor pressures.
- Debt Refinancing: Review the impact of recent debt issuances on interest expense and the company's ability to maintain its debt-to-capital ratio covenant (currently 65.9% vs. 65% limit in credit facility).
- Nuclear Production Tax Credits: Track the monetization of 2025 nuclear production tax credits and the regulatory treatment of proceeds in Arkansas and Louisiana.