Edison International’s stock rating was downgraded to Hold from Buy by Argus Research on Wednesday, as analyst Marie Ferguson highlighted rising liability risks tied to wildfire incidents.
The downgrade follows a July 2026 decline in shares after California’s Cal Fire determined that equipment from Southern California Edison, a subsidiary of Edison International, may have ignited the Eaton Fire. Separately, a California state judge declined to impose automatic liability on the company for a 2025 wildfire, though Argus noted that legal and regulatory exposure remains a key overhang for the stock.
Edison International reported Q2 2026 core earnings of $1.54 per share, exceeding Wall Street’s $1.20 estimate and rising from $0.97 per share in the same period last year. Revenue, however, totaled $4.36 billion, below the anticipated $4.76 billion. The company reaffirmed its full-year core earnings guidance of $5.90 to $6.20 per share, though Argus cautioned that 2026 comparisons will be challenging given strong 2025 results.
Argus also noted that four analysts have revised their earnings estimates downward for the upcoming period. The stock carries a P/E ratio of 7.73 and a market capitalization of $28.78 billion.
Edison International increased its quarterly dividend by 6% to $0.8775 per share, yielding 4.69%, and has maintained dividend payments for 23 consecutive years. The company’s shares have faced pressure amid policy uncertainty and potential shifts in its financial strategy, as highlighted by a separate downgrade from Barclays, which moved Edison International from Overweight to Equalweight.
Bank of America, in contrast, maintained a positive outlook on the utilities sector, noting that most companies in the space exceeded earnings estimates in recent reporting periods.
