Edison International (NYSE: EIX) core EPS slides to $1.92, but guidance holds

Posted by Andrew Walz on Oct 31st, 2026

What happened

Edison International (NYSE: EIX) reported third-quarter core EPS of $1.92 and reaffirmed its 2026 core EPS guidance of $5.90 to $6.20. Core earnings were $738 million, down from $901 million a year earlier, because Southern California Edison (SCE) earned less than in the third quarter of 2025.

Core EPS was $2.34 a year earlier. GAAP EPS was $1.88 against $2.16. Diluted EPS was $1.87. Net income available to common shareholders was $724 million versus $832 million.

Operating revenue was $4.89 billion, down $864 million or 15.0% from $5.75 billion in the third quarter of 2025.

Key numbers

Metric	Latest	Change	Source
Q3 core EPS	$1.92	from $2.34, -$0.42	SEC EDGAR 8-K Item 2.02, Exhibit 99.1
Q3 basic (GAAP) EPS	$1.88	from $2.16, -$0.28	SEC EDGAR 8-K Item 2.02, Exhibit 99.1
Q3 diluted EPS	$1.87	from $2.16, -13.4%	SEC EDGAR 8-K Item 2.02, Exhibit 99.1
Q3 operating revenue	$4.89 billion	from $5.75 billion, -15.0%	SEC EDGAR 8-K Item 2.02, Exhibit 99.1
Q3 net income available to common shareholders	$724 million	from $832 million, -$108 million	SEC EDGAR 8-K Item 2.02, Exhibit 99.1
2026 core EPS guidance (reaffirmed)	$5.90 to $6.20		SEC EDGAR 8-K Item 2.02, Exhibit 99.1

Where the earnings drop comes from

At SCE, core EPS was $2.14 against $2.58 a year earlier. The company says the decline comes mainly from earnings recognized in the third quarter of 2025, when the 2025 GRC final decision was put in place, retroactive to Jan. 1, 2025. Higher revenue from the escalation mechanism in that decision partly offset the drop.

The holding company's core loss per share narrowed to $0.22, mainly because of lower preferred stock dividends. Higher interest expense partly offset that gain. Company-wide interest expense was $545 million, up from $488 million.

Operating income was $980 million, down from $1.43 billion. Income before taxes was $548 million, down from $1.06 billion. An income tax benefit of $203 million, against a $175 million expense a year earlier, left net income at $751 million versus $888 million.

Non-core items, which are left out of core EPS, cost $0.04 per share, against $0.18 a year earlier. The earlier quarter included net charges of $76 million, mainly for impairment of utility property tied to capital spending disallowed in the 2025 GRC final decision. This quarter, wildfire-related items were net earnings of $18 million, mainly expected recoveries and reimbursements for costs from prior years.

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Why it matters

OptimistFi has argued that Edison International's value depends on turning SCE's regulated investment into steady earnings. The quarterly drop traces to a prior-year item and the guidance range is unchanged. That supports the view for 2026 but leaves the wildfire question open.

Year to date, earnings are ahead of last year. Nine-month core EPS was $4.89 versus $4.68, with SCE at $5.53 against $5.42.

Basic EPS guidance moved down to $5.66 to $5.96 from $5.70 to $6.00 in July. It now includes $0.24 per share of non-core items recorded through Sept. 30, up from $0.20. The core range did not change. The 5% to 7% growth target for 2025 to 2030 starts from $5.84.

Investment is running alongside rising debt. Nine-month interest expense was $1.58 billion versus $1.29 billion. Long-term debt was $39.00 billion at Sept. 30 against $36.07 billion at Dec. 31. Capital expenditures were $5.21 billion versus $4.62 billion, while operating cash flow rose to $5.39 billion from $4.23 billion.

Wildfire reform is still unresolved

SCE says it has hardened approximately 90% of its distribution system in high fire risk areas and continues targeted investment to cut the remaining risk. The larger open question is legal. As of Oct. 28, the company's presentation says, California's regular legislative session ended without reform and the wildfire liability framework remains unchanged.

The company wants a clear source of cash for claims and a true cap on shareholder liability that is separate from the Wildfire Fund. Pedro J. Pizarro, president and CEO, said California needs lasting wildfire reform to protect customer affordability and support investment in a safer, more reliable grid.

The presentation names higher customer costs and reduced grid investment as the costs of inaction. It cites elevated credit spreads and higher financing costs.

What's next

The next dated test is the Nov. 2 CPUC report on the statewide impact of the lack of structural reform. Nov. 15 is the constitutional deadline to pass a bill and present it to the governor. SCE supports reconvening the Legislature in a special session.

A bill by Nov. 15 with a clear source of cash for claims and a shareholder cap would address the risks OptimistFi's case turns on. Absent action in 2026, the company's presentation says, reform efforts move to the next legislative session in 2027.