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what it is
PEG keeps lights and heat on for New Jersey customers and runs five nuclear plants in the Northeast.
how it gets paid
Last year P.S. Enterprise Gp made $12.2B in revenue. Electric commercial was the main engine at $4.0B, or 33% of sales.
why it's growing
Revenue grew 18.3% last year. The quarter was a non-event on EPS. The bigger contrast is annual revenue up 18.3% versus projected long-term sales growth of 5.0%.
what just happened
PEG reported $0.72 in EPS, exactly matching estimates, while annual revenue reached $12.2B.
At a glance
A balance sheet — strong enough to weather a downturn
95/100 earnings predictability — you can trust these numbers
19.5x trailing p/e — priced about right
7.0% return on capital — nothing to write home about
xvary composite: 70/100 — average
What they do
PEG keeps lights and heat on for New Jersey customers and runs five nuclear plants in the Northeast.
Your power bill is the moat. PSE&G serves 2.4 million electric and 1.9 million gas customers in New Jersey, where wires and pipes are already in the ground. Nuclear fleet → always-on carbon-free power → so what: five plants give PEG generation it cannot replace quickly if power demand rises.
How they make money
$12.2B
annual revenue · their business grew +18.3% last year
Electric commercial
$4.0B
Electric residential
$2.4B
Electric industrial
$0.6B
Gas delivery
$2.8B
Nuclear and other power
$2.4B
The products that matter
electricity and gas for businesses
Commercial
~57% of revenue
this is the biggest piece of the $12.2B revenue base. if business demand softens or rate recovery gets squeezed, you feel it here first.
largest segment
household power and gas delivery
Residential
~34% of revenue
about one-third of revenue comes from homes, which makes politics part of the business. rate relief headlines land here before they land in your model.
politically visible
industrial energy delivery
Industrial
~9% of revenue
it is the smallest customer class at roughly 9% of revenue, but it helps diversify demand away from pure household usage.
minor mix piece
Key numbers
$21.7B
long-term debt
Debt equals 35% of capital, which is manageable for a utility but still a giant fixed claim on your future cash flow.
24.5%
operating margin
Operating margin → profit after core operating costs → so what: PEG keeps about 25 cents from each revenue dollar before interest and taxes.
$15B
2029 revenue
Management's base path points to about $15B of revenue by 2029 versus $12.2B today, or a bigger but still utility-shaped business.
19.5x
trailing p/e
Price-to-earnings → how much investors pay for each dollar of profit → so what: PEG is priced like a dependable utility, not a bargain bin stock.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 1 — safer than 95% of stocks
- price stability 95 / 100
- long-term debt $21.7B (35% of capital)
- return on equity 12% — $0.12 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 PEG 3 years ago → it's now worth $14,330.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
PEG reported $0.72 in EPS, exactly matching estimates, while annual revenue reached $12.2B.
The quarter was a non-event on EPS. The bigger contrast is annual revenue up 18.3% versus projected long-term sales growth of 5.0%, which tells you some of this surge is not a forever trend.
$12.2B
annual revenue
$0.72
quarterly eps
24.5%
operating margin
the number that mattered
Zero surprise mattered most. PEG earned $0.72 versus a $0.72 estimate, which is Wall Street's way of saying the utility did exactly the utility thing.
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public service enterprise group is facing uncertainties with the change in new jersey’s governor.
-
mikie sherrill was sworn in january and on her first day in office she signed executive orders declaring a state of emergency on utility costs, initiating a one-year freeze on rate hikes.this action targets relief for consumers, but does not undo the $505 million revenue hike that pse&g began billing for starting in june of 2025 or the $10per-month recovery fee for summer credits, which is active through this month.
-
the policy seeks to halt the 1.5% to 5% expected increase to consumers’ bills starting from june of 2026.
-
as compared to the june of 2023 level, electric rates are up more than 33% across the state’s four major utilities, with the bulk of the rise tied to a shortage of in-state generating capacity.
-
relying on regional providers via an auction process is very expensive.in past years, natural gas and coal-fired generation were de-emphasized prematurely by the previous administration, in favor of a major offshore wind plan that stalled out for economic and political reasons.
source: company earnings report, 2026
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What could go wrong
the #1 risk is new jersey rate-case politics.
med
rate-freeze policy spillover
the governor's one-year freeze on rate hikes puts PEG's regulated pricing power under a brighter political spotlight. utilities live or die on what they are allowed to recover.
if that posture extends into future cases, it directly pressures recovery on a $12.2B revenue base.
med
customer bill backlash
electric rates across the state's four major utilities are up more than 33% from june 2023. when bills rise that fast, politicians stop speaking in abstractions.
the state is already trying to halt another 1.5% to 5% increase starting in june 2026.
med
generation-capacity shortage
regional auctions are expensive because in-state generating capacity is tight. PEG can run its system well and still get dragged into higher end-customer bills.
higher procurement costs do not automatically become higher shareholder returns. sometimes they just become a political problem.
med
capital structure pressure
PEG carries $21.7B in long-term debt, equal to 35% of capital. that is manageable with stable regulation, but less comfortable if allowed returns get squeezed.
this is still a capital-intensive business. slower recovery plus heavy funding needs is how a safe stock gets less safe.
the immediate pressure point is not energy commodity exposure. it is whether PEG can keep earning regulated returns while policymakers push back on bills that are already up more than 33% from june 2023.
source: institutional data · regulatory filings · risk analysis
Pay attention to
risk
whether the rate freeze stays temporary
a one-year freeze is a headline. the real issue is whether that posture bleeds into future recovery decisions.
metric
fy2026 eps versus the $4.40 estimate
the stock looks stable because earnings usually behave. if PEG starts missing that bar, the "safe utility" story weakens fast.
calendar
june 2026 bill-increase decision
the state is trying to stop a 1.5% to 5% increase from landing. that ruling will tell you how hard politics is leaning on the business.
trend
regional power-auction costs
tight generation capacity keeps outside power expensive. if that persists, customer-bill pressure probably does too.
Analyst rankings
short-term outlook
below average
momentum score 4 — in human-speak, analysts think this is safe but not especially exciting over the next stretch.
risk profile
safest 5%
stability score 1 — lower downside risk than almost any stock you can buy.
chart momentum
average
technical score 3 — the chart is behaving. there is no dramatic signal here.
earnings predictability
95 / 100
the numbers tend to land close to expectations. that matters more for a utility than a flashy beat.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 566 buyers vs. 448 sellers in 3q2025. total institutional holdings: 0.4B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$67
$115
$79
current price
$91
target midpoint · +15% from current · 3-5yr high: $120 (+50% · 14% ann'l return)
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