Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended June 30, 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 (Six Months Ended June 30, 2026)
| Metric | 2026 (YTD) | 2025 (YTD) | Variance |
|---|---|---|---|
| Operating Revenues | $6,711 million | $6,176 million | +$535 million |
| Net Income Attributable to Entergy Corp. | $868 million | $829 million | +$39 million |
| Diluted Earnings Per Share | $1.87 | $1.87 | — |
| Operating Cash Flow | $2,722 million | $1,798 million | +$924 million |
| Investing Cash Flow | ($5,093 million) | ($3,741 million) | ($1,352 million) increase in use |
| Financing Cash Flow | $4,296 million | $2,259 million | +$2,037 million |
| Debt to Capital Ratio | 65.2% | 64.3% | +0.9% |
| Cash and Cash Equivalents | $3,854 million | $1,176 million | +$2,678 million |
Material Changes vs. Prior Period
- Revenue Growth: Operating revenues increased primarily due to higher retail electric prices (driven by rate plan adjustments and riders in Arkansas, Louisiana, Mississippi, and Texas), increased return on construction work in progress, and higher industrial usage (notably from data centers). This was partially offset by the absence of natural gas revenues following the 2025 sale of gas distribution businesses.
- Winter Storm Fern Impact: In January 2026, Winter Storm Fern caused severe infrastructure damage. Entergy incurred approximately $450 million in restoration costs ($375 million capital, $75 million non-capital). Natural gas purchases in January 2026 were $483 million compared to $207 million in January 2025 due to cold weather demand and supply constraints.
- Interest Expense: Interest expense increased significantly due to new debt issuances in early 2026 (e.g., $1 billion by Entergy Arkansas, $1.5 billion by Entergy Louisiana, $650 million by Entergy Mississippi) and higher carrying costs on customer advances.
- Capital Expenditures: Investing cash outflows increased by $1.35 billion, driven by higher spending on non-nuclear generation construction (Jefferson Power Station, Richland Parish, Waterford 6, etc.) and storm restoration efforts.
Guidance, Outlook, and Risks
- Capital Plan Update: Entergy updated its capital expenditure plan for 2026–2030 to $66.5 billion, reflecting incremental investments for generation projects to meet growing demand, particularly from large-scale data centers. The 2026 planned spend is $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 for a second data center, requiring ~$12.9 billion in new generation and transmission resources. Entergy Mississippi also executed agreements to serve Amazon Web Services data centers.
- Regulatory Proceedings:
- FERC MSS-4R Order: A June 2026 FERC order regarding Net Operating Loss Carryforward (NOLC) ADIT in wholesale rates is under rehearing. The outcome could result in material refunds or surcharges between operating companies, though amounts are not currently estimable.
- Rate Cases: Various rate filings are pending or approved, including Entergy Arkansas's 2026 formula rate plan and Entergy Louisiana's resilience plan cost recovery rider.
- Nuclear Oversight: Grand Gulf was placed in NRC Column 2 (regulatory response) in Q1 2026 due to a low safety significance finding regarding an emergency diesel generator. River Bend received a preliminary finding in July 2026 that may also result in Column 2 placement.
- Equity Issuances: Entergy expects to issue approximately $7 billion of equity through 2030. As of June 30, 2026, approximately $4.1 billion was settled or contracted under forward sale agreements.
Investor Verification Checklist
- Storm Cost Recovery: Verify the regulatory approval status and timeline for recovering the $450 million in Winter Storm Fern restoration costs across Louisiana and Mississippi.
- Data Center Load Growth: Assess the execution risk and capital intensity of the $12.9 billion generation/transmission plan for the Meta data center in Louisiana and similar projects in Mississippi.
- FERC MSS-4R Outcome: Monitor the rehearing process for the FERC order on NOLC ADIT to determine potential inter-company financial impacts (refunds vs. surcharges).
- Interest Rate Exposure: Review the impact of rising interest rates on the company's significant new debt issuances and the cost of capital for future projects.
- Nuclear Plant Status: Track the NRC supplemental inspections for Grand Gulf and River Bend to ensure no operational disruptions or extended outages occur.