KNOXVILLE – November 13, 2026 -- The Tennessee Valley Authority (TVA) reported net income of $2.1 billion for fiscal 2026, $761 million more than a year earlier, on total operating revenues of $14.2 billion. By our calculation, prior-year net income was about $1.34 billion, so earnings rose roughly 57% while revenue grew approximately 4%.
The fiscal year ended September 30, 2026. Revenue growth of about 4% implies prior-year revenue of roughly $13.7 billion. Net income now equals about 15% of revenue, against about 10% a year earlier, by our calculation.
Electricity sales reached nearly 172 billion kilowatt-hours, up approximately 2%. Revenue therefore grew about twice as fast as volume. TVA attributes the revenue increase to higher sales volume and higher fuel cost recovery rates, so part of the gain reflects what TVA charges for fuel rather than additional power sold. Total operating revenue works out to about 8.3 cents per kilowatt-hour sold.
TVA names three drivers of the volume increase: higher sales in the data processing, web hosting and related services sector, higher residential and small commercial sales, and a 10% increase in cooling degree days.
Lower depreciation and IRA credits cut TVA's costs by $552 million
Operating and maintenance expense fell $264 million, primarily because of IRA tax credits recorded in fiscal 2026. Depreciation and amortization expense fell $288 million, primarily because TVA changed depreciable life assumptions for the Kingston and Cumberland coal-fired plants and because the Browns Ferry Nuclear Plant license was subsequently renewed.
Together the two reductions total $552 million, equal to about 73% of the $761 million increase in net income.
Two lines moved the other way. Fuel and purchased power expense rose $329 million, on higher purchased power market prices and higher effective fuel rates from higher natural gas prices, partly offset by higher TVA generation. Interest expense rose $65 million, on higher average balances and rates on long-term debt and the lease financing for the Cumberland Combined Cycle Plant. The two increases add up to $394 million. Across these four lines, expenses fell a net $158 million.
TVA says it met record demand while running its largest capital program
The company says it served multiple all-time monthly peak demand records across the Tennessee Valley. It also reports record nuclear generation, top-decile safety results and top-quartile fleet performance.
Chief Financial Officer Tom Rice said TVA is carrying out the largest capital investment program in its history. He said it covers existing assets, new generation and new transmission infrastructure. TVA says the program follows its 2026 Integrated Resource Plan. The company did not disclose the size of the capital program.
TVA's Form 10-K, with audited financial statements for the year ended September 30, 2026, is available on the TVA and SEC websites.