A month has gone by since the last earnings report for NRG Energy (NRG). Shares have lost about 6% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is NRG due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for NRG Energy, Inc. before we dive into how investors and analysts have reacted as of late.
NRG Energy Q1 Earnings Lag Estimates, Revenues Increase Y/Y
NRG Energy, Inc. reported first-quarter 2026 earnings of $1.48 per share, which missed the Zacks Consensus Estimate of $1.78 by 16.9%. The bottom line decreased 43.5% from the year-ago quarter.
Revenues of NRG Energy
Total revenues were $10.26 billion, which beat the Zacks Consensus Estimate of $7.11 billion by 44.2%. The top line also increased 19.5% from the prior-year quarter’s level of $8.59 billion.
Highlights of NRG’s Q1 Earnings Release
The company recorded adjusted EBITDA of $1.08 billion in the first quarter, down 4.1% from $1.13 billion registered a year ago.
Total operating costs and expenses were $9.93 billion, up 33.4% from $7.44 billion in the year-ago quarter.
Operating income in the first quarter totaled $0.33 billion compared with $1.13 billion in the year-ago quarter.
Through April 30, 2026, NRG completed $817 million in share repurchases and distributed $102 million in common stock dividends. In 2026, the company plans to return $1 billion through share repurchases and common stock dividends of around $407 million.
NRG’s Financial Highlights
As of March 31, 2026, NRG had cash and cash equivalents worth $0.18 billion compared with $4.71 billion as of Dec. 31, 2025.
As of March 31, 2026, long-term debt and finance leases amounted to $19.78 billion compared with $16.41 billion as of Dec. 31, 2025.
Cash used in operating activities in the first three months of 2026 totaled $169 million against the cash provided by operating activities of $855 million in the year-ago quarter.
Capital expenditures amounted to $317 million in the first three months of 2026 compared with $217 million in the year-ago quarter.
NRG’s Guidance
NRG Energy expects its 2026 adjusted net income to be in the range of $1.685-$2.115 billion.
The company expects its 2026 adjusted EPS to be in the range of $7.90-$9.90. The Zacks Consensus Estimate is pegged at $9.05, which is higher than the midpoint of the company’s guided range.
Free Cash Flow before Growth for 2026 is anticipated to be in the range of $2.8-$3.3 billion.
NRG expects 2026 adjusted EBITDA in the band of $5.325-$5.825 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
At this time, NRG has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, NRG has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
NRG belongs to the Zacks Utility - Electric Power industry. Another stock from the same industry, Edison International (EIX), has gained 4.7% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Edison International reported revenues of $4.1 billion in the last reported quarter, representing a year-over-year change of +7.7%. EPS of $1.42 for the same period compares with $1.37 a year ago.
Edison International is expected to post earnings of $0.99 per share for the current quarter, representing a year-over-year change of +2.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -6.6%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Edison International. Also, the stock has a VGM Score of C.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
