Essential Utilities Q3 Earnings Rise to $0.36 per Share; Adjusted EPS $0.38

What happened

Essential Utilities reported third-quarter 2026 revenue of $508.3 million and diluted earnings per share of $0.36, compared with $477.0 million and $0.33 a year earlier. Net income rose to $103.8 million from $92.1 million; adjusted diluted earnings per share, excluding costs tied to its pending American Water merger, was $0.38.

Confirmed

Global impact / market context

Higher quarterly revenue and net income indicate stronger reported results, while adjusted earnings exclude merger-related costs and therefore present a different view. Regulatory recoveries, customer additions, rates and usage helped drive revenue, linking performance to utility rates and customer demand.

Analyst inference

The company also reported lower net income for the first nine months of 2026 than in the same 2025 period, despite higher revenue. It invested approximately $1.1 billion in water and natural gas infrastructure, directing substantial cash toward long-term utility assets.

Confirmed

What to watch

1. Watch whether regulatory recoveries and customer additions continue to support water revenue, since these factors contributed to growth in the reported quarter. Analyst inference
2. Track natural gas revenue drivers, including higher rates, surcharges, purchased gas costs and customer usage, which the company identified as key factors. Confirmed
3. Follow updates on the pending American Water merger and related costs, because the reported adjusted earnings exclude those costs while GAAP earnings include them. Analyst inference

Evidence

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