Entergy Corporation

What they do

Entergy operates regulated electric utilities through subsidiaries Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans and Entergy Texas, and also provides regulated natural gas distribution service. Revenue is primarily regulated electricity sales, supplemented by natural gas and other products and services. The company owns nuclear generation, including River Bend Station, which celebrated 40 years of operation in the second quarter of 2026.

Revenue drivers

• Regulated electricity sales — The largest revenue line, generated from retail and wholesale electric service across the five utility operating companies under state and FERC regulation.
• Regulated natural gas distribution — A smaller revenue stream from regulated natural gas service, historically linked to Entergy New Orleans and Entergy Louisiana natural gas distribution businesses.
• Other products and services — Non-electric, non-gas revenue reported separately, representing the smallest of the three revenue categories.

Recent performance

Second quarter 2026 as-reported and adjusted earnings were $483 million, or $1.03 per share, compared with $468 million, or $1.05 per share, in second quarter 2025. Utility business earnings attributable to Entergy Corporation were $626 million, or $1.34 per share, versus $599 million, or $1.34 per share, a year earlier. The utility increase was driven by the net effect of regulatory actions, a return on construction work in progress, higher retail sales volume, and higher other income, partly offset by higher interest expense, higher O&M, and higher depreciation and amortization. Year-to-date 2026 as-reported earnings were $868 million, or $1.87 per share, with adjusted earnings of $881 million, or $1.90 per share. Full-year 2025 revenue was $12.95 billion and net income was $1.77 billion.

Strategy

Entergy is pursuing growth tied to customer demand, including large-scale data centers and other large customers, and highlighted this at its June investor day. The company is investing in utility plant, as evidenced by return on construction work in progress, and is pursuing regulatory mechanisms such as formula rate plans, riders and DCRF updates across its operating companies. Entergy Texas was awarded an approximately $200 million Texas Energy Fund grant for electric reliability. The company completed a $2.175 billion common stock offering with a forward component, and continues to manage nuclear operations and MISO participation.

Risks

• Rate case and cost recovery risk — Pending and future rate cases, formula rate proceedings and fuel and purchased power cost recovery can be delayed or resolved unfavorably, affecting earnings.
• MISO participation and interconnection risk — MISO market rules, transmission upgrade cost allocation and interconnection queue delays, potentially exacerbated by load growth, could adversely affect the utility operating companies.
• Data center regulatory risk — Changes in utility regulation, including special rules for large-scale data centers, could limit recovery of net utility assets and investments tied to unrealized customer growth expectations.
• Nuclear regulatory risk — Changes in regulation or oversight of Entergy's nuclear generating facilities, materials and fuel, and safety or environmental concerns, could affect operations.

Outlook

Management said the company remains solidly on track to achieve its objectives for 2026 and beyond. The company affirmed its guidance and outlooks in the second quarter 2026 earnings release. It pointed to steady progress across customer, operational, regulatory and financial areas.