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what it is
Con Edison delivers electricity, gas, and steam to New York-area customers and gets paid under rates approved by regulators.
how it gets paid
Last year Con. Edison made $17.0B in revenue. electric delivery and sales was the main engine at $10.9B, or 64% of sales.
why it's growing
Revenue grew 10.2% last year. Q4 2025 revenue was $3.99B, up 8.9% vs. prior year, according to the company update in the source set.
what just happened
Con Edison beat expectations with $0.89 in EPS versus a $0.84 estimate, but the bigger story is still regulated, slow-growth stability.
At a glance
A+ balance sheet — rock-solid finances — built to survive anything
100/100 earnings predictability — you can trust these numbers
18.5x trailing p/e — priced about right
5.5% return on capital — nothing to write home about
xvary composite: 80/100 — above average
What they do
Con Edison delivers electricity, gas, and steam to New York-area customers and gets paid under rates approved by regulators.
Con Edison serves 4.0 million electric customers and 1.2 million gas customers in and around New York. Utility monopoly (regulated service area → one approved provider → your other choice is moving) is about as sticky as it gets. That setup gives you unusually clear earnings visibility through 2028 after New York approved a new three-year rate case.
How they make money
$17.0B
annual revenue · their business grew +10.2% last year
electric delivery and sales
$10.9B
+3.7%
gas delivery and sales
$3.9B
+3.0%
steam operations
$1.3B
+2.0%
transmission and other
$0.9B
+0.0%
The products that matter
delivers power and gas
CECONY electric & gas distribution
$13.6B · 80% of revenue
it's the core franchise: $13.6B of revenue and 3.5 million customers. if this segment performs, the stock behaves like a bond proxy with a dividend.
core utility
heats manhattan buildings
manhattan steam system
1,600+ buildings
this system serves more than 1,600 buildings in manhattan. there is nothing especially glamorous about steam, but infrastructure nobody wants to duplicate is still a moat.
local moat
builds and operates transmission
con edison transmission
$1.4B · +15.3%
it's only $1.4B today, but it grew 15.3%. if ED grows faster than investors expect, this smaller segment is where that surprise likely starts.
growth lever
Key numbers
$24.9B
long-term debt
That is 40% of capital, which tells you this business runs on borrowed money and regulator-approved returns.
100/100
price stability
The market treats this stock like a bond with a ticker, which is great in a panic and limiting in a rally.
5.5%
return on capital
Return on capital → profit earned on money invested → so what: this is a low-return business by design.
18.5x
trailing p/e
Price-to-earnings → how much investors pay for each $1 of profit → so what: you are paying a full price for safety.
Financial health
A+
strength
- balance sheet grade A+ — near the highest rating possible
- risk rank 1 — safer than 95% of stocks
- price stability 100 / 100
- long-term debt $24.9B (40% of capital)
- return on equity 9% — $0.09 profit for every $1 investors have put in
A+ — among the top-rated companies for balance sheet quality.
Total return vs. market
You invested $10,000 in ED 3 years ago → it's now worth $12,230.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Con Edison beat expectations with $0.89 in EPS versus a $0.84 estimate, but the bigger story is still regulated, slow-growth stability.
Q4 2025 revenue was $3.99B, up 8.9% vs. prior year, according to the company update in the source set. Full-year 2025 EPS was $5.65 versus $5.38 in 2024, which fits the steady utility script.
$3.99B
revenue
$0.89
eps
17.2%
operating margin
the number that mattered
The $0.89 EPS print matters because it beat the $0.84 estimate, proving the new rate framework is already supporting earnings visibility.
-
on january 22nd, the ny state public service commission unanimously approved a new three-year rate case decision for the venerable utility that will take effect retroactive to the start of this year.
-
the final settlement was lower than the company’s initial request, but that is typical for new york regulatory proceedings.
-
on the plus side, the agreement provides clear earnings visibility for the 2026 to 2028 period, supports coned’s capital investment plan, and maintains a reasonable regulated return on equity, with the rate moving up to 9.4% from 9.25% (last set in 2023).with delivery rates for electricity and natural gas set to rise, earnings should be up by a healthy clip this year and next. the newly approved general rate case for con edison lifts delivery rates in order to fund infrastructure improvements, including clean energy projects. in 2026, electric delivery revenues are set to increase by $234.0 million, while natural gas revenue is to rise by $27.5 million.
-
average residential bills will go up by about 3.7%.in 2027, electric delivery revenues are set to increase by an additional $409.7 million, while natural gas revenue is to rise by $68.8 million more.
-
residential electric rates are expected to go up by about 3.3%.finally, in 2028, electric delivery revenues are set to increase by an additional $421.1 million, while natural gas revenue is to rise by $70.3 million more. by 2028, these cumulative changes are expected to lift average monthly bills for the typical new york city customer by about $51 relative to the 2025 level. that’s just on the delivery component of customer bills, as changes in the cost of purchased power and natural gas are passed along to ratepayers and generally don’t impact the company’s profits.
source: company earnings report, 2026
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What could go wrong
the #1 risk here is the $37.7B capital plan earning less than management is promising.
high
capital plan execution slips
Management is asking $37.7B of spending through 2030 to support 6–7% annual EPS growth. If project timing, cost recovery, or rate-base conversion disappoints, the thesis weakens fast.
this is the core setup behind the stock's current valuation
high
equity issuance dilutes the per-share story
Con Edison plans to issue $1,850M in equity during 2026 and up to $4,300M during 2027–2029. More capital helps fund the buildout, but new shares also divide the earnings pie into more slices.
$4.3B of planned equity means dilution is not a hypothetical
med
rate-case politics get harder as bills rise
Average residential bills are expected to rise about 3.7%, then 3.3%, with the typical monthly bill about $51 above 2025 levels by 2028 on the delivery component. Regulators approved this round. Future rounds get tougher if affordability becomes the headline.
higher customer bills raise the odds of pushback on future recovery
med
the stock stays safe and still disappoints
ED returned $12,230 on a $10,000 investment over three years, versus $14,770 for the index. If growth lands near the low end and rates stay restrictive, you can own a very stable stock that still trails.
the opportunity cost is already visible in the recent return gap
The combined risk picture is straightforward: ED's revenues are regulated and visible, but the per-share payoff depends on regulators, execution, and how much new equity gets issued to fund the buildout.
source: institutional data · regulatory filings · risk analysis
Pay attention to
the number
6–7% annual EPS growth target
This is management's promise through 2030. If quarterly results start drifting below that path, the valuation loses its main growth argument.
calendar
q1 2026 earnings report
May 7, 2026 is the next read on whether the new rate structure is already showing up in reported earnings.
funding
2026 equity issuance
The company plans $1,850M of equity in 2026. Watch how much gets issued and what it does to the per-share growth story.
regulatory trend
customer bill pressure into 2028
Bills rising about 3.7%, then 3.3%, and roughly $51 above 2025 levels by 2028 is manageable on paper. The political reaction is what matters next.
Analyst rankings
earnings predictability
100 / 100
in human-speak, analysts view this as one of the more dependable earnings profiles in the market. utilities rarely surprise when the rate case is already doing the talking.
risk rank
1
That puts ED among the safest stocks in the database. Safe does not mean high return. It means the business model is hard to break.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 628 buyers vs. 465 sellers in 3q2025. total institutional holdings: 0.3B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$90
$130
$105
current price
$110
target midpoint · +5% from current · 3-5yr high: $145 (+40% · 11% ann'l return)
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