OAKLAND, California, September 2, 2026, 16:10 (PDT)
- PG&E finished the session at $13.33, a decline of 5.2%, with 118.6 million shares traded.
- The utility reduced its 2027 investment plan by 14.9%, postponing $2 billion in spending.
- Management maintained its 2026 guidance and raised its 2027 core EPS forecast.
Shares of PG&E Corporation NYSE:PCG dropped 5.2% on Wednesday after the company postponed $2 billion in planned spending for 2027. The stock finished the session at $13.33, with 118.6 million shares traded Yahoo Finance.
The cut makes California’s outstanding wildfire regulations a limit on available capital. PG&E has lowered its 2027 outlook to $11.4 billion, down from $13.4 billion—a decrease of 14.9%.
What’s notable is what remained the same. PG&E maintained its near-term earnings outlook, even after postponing spending. As of the market close on Wednesday, the stock traded at roughly 8.1 times the midpoint of its 2026 guidance.
The share price reached $12.59 shortly after the market opened, before rebounding to $13.34 by 19:10 EDT. Despite the late recovery, investors remained below the previous close of $14.06 on Tuesday.
Chief Executive Patti Poppe linked the review to the cost of financing. “Something has to change so that we can better serve our customers,” she said. The board intends to look at regulatory, financial and organizational alternatives PG&E statement.
The announcement came after legislators were unable to reach a compromise. On Tuesday, California’s Assembly opted not to vote on a wildfire-victim package. Lawmakers argued that the proposal did not provide a sustainable solution for utility risk or fund stability Associated Press.
Wildfire exposure split California utilities from the sector
September 2 regular-session change
Edison International NYSE:EIX dropped 6.1%. Sempra NYSE:SRE was down 0.6%. Meanwhile, the Utilities Select Sector SPDR Fund (NYSEARCA:XLU) rose 0.3%, indicating losses were isolated.
PG&E said it will maintain essential safety measures and adherence to wildfire plan requirements. The company reiterated its 2026 core EPS forecast of $1.64 to $1.66. Fresh 2027 guidance stands at $1.78 to $1.82, representing 9.1% midpoint growth.
PG&E’s 2027 reset protects earnings, trims expansion
These numbers secure near-term profits. Still, PG&E will reevaluate its 2028–2030 investment plans and rate-base projections. As a result, the reassessment moves uncertainty further out past the upcoming year.
Analysts have adjusted their targets to reflect the ongoing uncertainty. BofA’s Ross Fowler downgraded PG&E to Neutral and lowered his price target from $24 to $13 Yahoo Finance. Mizuho also shifted to a Neutral rating, decreasing its target from $21 to $16 Investing.com.
Financing continues to connect policy with profits. PG&E raised $4.4 billion in utility debt by June. The updated plan reduces borrowing requirements for 2027 by $2 billion, according to its second-quarter filing.
Spending on safety remains important. PG&E reported that monitoring prevented 28 potential ignitions between January 2025 and June 2026. The company aims to complete over 1,900 miles of undergrounding by the end of 2027.
Risks: An additional fire, an unfavourable liability judgement, or increased borrowing costs may offset anticipated savings. Progress on reform later this fall or access to lower-cost debt may boost results.
The next scheduled policy review is set for this fall, with lawmakers expected to reconsider the matter at that time. Investors will be monitoring if the strategic assessment maintains PG&E’s long-term growth potential.
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