Did Edison International's (EIX) Surging Net Income Just Shift Its Investment Narrative?

• Edison International reported its third quarter and nine-month results for 2025, showing sales of US$5.75 billion and US$14.10 billion respectively, with net income rising to US$832 million for the quarter and US$2.61 billion year-to-date.
• This period saw a very large increase in net income compared to the previous year, reflecting significant growth in profitability amid only moderate sales gains.
• With this sharp increase in quarterly earnings, we’ll now assess what this means for Edison International’s broader investment outlook.

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Edison International Investment Narrative Recap

To invest in Edison International, you generally need confidence in the continued policy and infrastructure tailwinds supporting electrification and grid modernization in California, paired with the company’s ability to manage wildfire and regulatory risks. The sharp upswing in net income for the latest quarter, while a positive earnings surprise, does not appear to materially shift the short-term outlook for its largest risk, ongoing wildfire liabilities, or the key catalyst, which remains supportive regulatory frameworks for cost recovery.

One recent announcement linked to this results period is the update on Edison International’s share repurchase program, with 49,779 shares bought back in the third quarter for US$2.71 million. While this activity demonstrates steady capital return practices, its scale is small relative to overall earnings and does not materially influence the main drivers of near-term performance, which continue to revolve around regulatory decisions and wildfire-related costs.

But despite these positives, investors also need to keep in mind the potential impact of unresolved wildfire liabilities, as...

Read the full narrative on Edison International (it's free!)

Edison International's outlook projects $20.4 billion in revenue and $2.4 billion in earnings by 2028. This is based on analysts' assumptions of 5.2% annual revenue growth, but a decrease in earnings of $0.2 billion from the current $2.6 billion.

Uncover how Edison International's forecasts yield a $67.37 fair value, a 19% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members offered fair value estimates for EIX ranging widely from US$52.50 to US$99.64, based on four individual forecasts. This diversity of opinion sits against the backdrop of ongoing wildfire liability risks that could influence future returns, so it pays to review a range of perspectives before deciding.

Explore 4 other fair value estimates on Edison International - why the stock might be worth 8% less than the current price!

Build Your Own Edison International Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Edison International research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.
• Our free Edison International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Edison International's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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