ENTERGY ARKANSAS, LLC 10-Q

etr-20260630 Table of Contents __________________________________________________________________________________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2026 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Telephone Number, and IRS Employer Identification No. Commission File Number Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Telephone Number, and IRS Employer Identification No. 1-11299 ENTERGY CORPORATION 1-35747 ENTERGY NEW ORLEANS, LLC (a Delaware corporation) 639 Loyola Avenue New Orleans , Louisiana 70113 Telephone ( 504 ) 576-4000 (a Texas limited liability company) 1600 Perdido Street New Orleans , Louisiana 70112 Telephone ( 504 ) 670-3702 72-1229752 82-2212934 1-10764 ENTERGY ARKANSAS, LLC 1-34360 ENTERGY TEXAS, INC. (a Texas limited liability company) 425 West Capitol Avenue Little Rock , Arkansas 72201 Telephone ( 501 ) 377-4000 (a Texas corporation) 2107 Research Forest Drive The Woodlands , Texas 77380 Telephone ( 409 ) 981-2000 83-1918668 61-1435798 1-32718 ENTERGY LOUISIANA, LLC 1-09067 SYSTEM ENERGY RESOURCES, INC. (a Texas limited liability company) 4809 Jefferson Highway Jefferson , Louisiana 70121 Telephone ( 504 ) 576-4000 (an Arkansas corporation) 1340 Echelon Parkway Jackson , Mississippi 39213 Telephone ( 601 ) 368-5000 47-4469646 72-0752777 1-31508 ENTERGY MISSISSIPPI, LLC (a Texas limited liability company) 308 East Pearl Street Jackson , Mississippi 39201 Telephone ( 601 ) 368-5000 83-1950019 __________________________________________________________________________________________ Table of Contents Table of Contents Securities registered pursuant to Section 12(b) of the Act: Registrant Title of Class Trading Symbol Name of Each Exchange on Which Registered Entergy Corporation Common Stock, $0.01 Par Value ETR New York Stock Exchange Common Stock, $0.01 Par Value ETR NYSE Texas Entergy Arkansas, LLC Mortgage Bonds, 4.875% Series due September 2066 EAI New York Stock Exchange Entergy Louisiana, LLC Mortgage Bonds, 4.875% Series due September 2066 ELC New York Stock Exchange Entergy Mississippi, LLC Mortgage Bonds, 4.90% Series due October 2066 EMP New York Stock Exchange Entergy New Orleans, LLC Mortgage Bonds, 5.0% Series due December 2052 ENJ New York Stock Exchange Mortgage Bonds, 5.50% Series due April 2066 ENO New York Stock Exchange Entergy Texas, Inc. 5.375% Series A Preferred Stock, Cumulative, No Par Value (Liquidation Value $25 Per Share) ETI/PR New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: Registrant Title of Class Entergy Texas, Inc. Common Stock, no par value Table of Contents Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. Yes ☑ No ☐ Indicate by check mark whether the registrants have submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrants were required to submit such files). Yes ☑ No ☐ Indicate by check mark whether each registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. Large accelerated filer Accelerated filer Non-accelerated filer Smaller reporting company Emerging growth company Entergy Corporation ü Entergy Arkansas, LLC ü Entergy Louisiana, LLC ü Entergy Mississippi, LLC ü Entergy New Orleans, LLC ü Entergy Texas, Inc. ü System Energy Resources, Inc. ü If an emerging growth company, indicate by check mark if the registrants have elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑ Common Stock Outstanding Outstanding at June 30, 2026 Entergy Corporation ($0.01 par value) 466,631,498 Entergy Corporation, Entergy Arkansas, LLC, Entergy Louisiana, LLC, Entergy Mississippi, LLC, Entergy New Orleans, LLC, Entergy Texas, Inc., and System Energy Resources, Inc. separately file this combined Quarterly Report on Form 10-Q. Information contained herein relating to any individual company is filed by such company on its own behalf. Each company makes representations only as to itself and makes no other representations whatsoever as to any other company. This combined Quarterly Report on Form 10-Q supplements and updates the Annual Report on Form 10-K for the calendar year ended December 31, 2025 and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, filed by the individual registrants with the SEC, and should be read in conjunction therewith. Table of Contents TABLE OF CONTENTS Page Number Forward-looking Information iii Definitions viii Part I. Financial Information Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis 1 Consolidated Income Statements 21 Consolidated Statements of Comprehensive Income 23 Consolidated Statements of Cash Flows 24 Consolidated Balance Sheets 26 Consolidated Statements of Changes in Equity 28 Notes to Financial Statements Note 1. Commitments and Contingencies 30 Note 2. Rate and Regulatory Matters 31 Note 3. Equity 40 Note 4. Revolving Credit Facilities, Lines of Credit, Short-term Borrowings, and Long-term Debt 46 Note 5. Stock-based Compensation 51 Note 6. Retirement and Other Postretirement Benefits 53 Note 7. Business Segment Information 59 Note 8. Risk Management and Fair Values 62 Note 9. Decommissioning Trust Funds 77 Note 10. Income Taxes 83 Note 11. Variable Interest Entities 84 Note 12. Revenue 85 Item 3. Quantitative and Qualitative Disclosures About Market Risk 90 Item 4. Controls and Procedures 90 Entergy Arkansas, LLC and Subsidiaries Management’s Financial Discussion and Analysis 91 Consolidated Income Statements 102 Consolidated Statements of Cash Flows 103 Consolidated Balance Sheets 104 Consolidated Statements of Changes in Equity 106 Entergy Louisiana, LLC and Subsidiaries Management’s Financial Discussion and Analysis 107 Consolidated Income Statements 123 Consolidated Statements of Comprehensive Income 124 Consolidated Statements of Cash Flows 125 Consolidated Balance Sheets 126 Consolidated Statements of Changes in Equity 128 i Table of Contents TABLE OF CONTENTS Page Number Entergy Mississippi, LLC and Subsidiaries Management’s Financial Discussion and Analysis 129 Consolidated Income Statements 138 Consolidated Statements of Cash Flows 139 Consolidated Balance Sheets 140 Consolidated Statements of Changes in Equity 142 Entergy New Orleans, LLC and Subsidiaries Management’s Financial Discussion and Analysis 143 Consolidated Income Statements 152 Consolidated Statements of Cash Flows 153 Consolidated Balance Sheets 154 Consolidated Statements of Changes in Member’s Equity 156 Entergy Texas, Inc. and Subsidiaries Management’s Financial Discussion and Analysis 157 Consolidated Income Statements 166 Consolidated Statements of Cash Flows 167 Consolidated Balance Sheets 168 Consolidated Statements of Changes in Equity 170 System Energy Resources, Inc. Management’s Financial Discussion and Analysis 171 Income Statements 176 Statements of Cash Flows 177 Balance Sheets 178 Statements of Changes in Common Equity 180 Part II. Other Information Item 1. Legal Proceedings 181 Item 1A. Risk Factors 181 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 181 Item 5. Other Information 182 Item 6. Exhibits 184 Signature 186 ii Table of Contents FORWARD-LOOKING INFORMATION In this combined report and from time to time, Entergy Corporation and the Registrant Subsidiaries each makes statements as a registrant concerning its expectations, beliefs, plans, objectives, goals, projections, strategies, and future events or performance. Such statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “could,” “project,” “believe,” “anticipate,” “intend,” “goal,” “commitment,” “expect,” “estimate,” “continue,” “potential,” “plan,” “predict,” “forecast,” and other similar words or expressions are intended to identify forward-looking statements but are not the only means to identify these statements. Although each of these registrants believes that these forward-looking statements and the underlying assumptions are reasonable, it cannot provide assurance that they will prove correct. Any forward-looking statement is based on information current as of the date of this combined report and speaks only as of the date on which such statement is made. Except to the extent required by the federal securities laws, each registrant undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements involve a number of risks and uncertainties. There are factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including (a) those factors discussed or incorporated by reference in Item 1A. Risk Factors in the Form 10-K and in this report, (b) those factors discussed or incorporated by reference in Management’s Financial Discussion and Analysis in the Form 10-K and in this report, and (c) the following factors (in addition to others described elsewhere in this combined report and in subsequent filings with the SEC): • resolution of pending and future rate cases and related litigation, formula rate proceedings and related negotiations, including various performance-based rate discussions, Entergy’s utility supply plan, and recovery of fuel and purchased power costs, as well as delays in cost recovery resulting from these proceedings; • regulatory and operating challenges and uncertainties and economic risks associated with the Utility operating companies’ participation in MISO, including the benefits of continued MISO participation, the effect of current or projected MISO market rules, market design and market and system conditions in the MISO markets, the allocation of MISO system transmission upgrade costs, delays in developing or interconnecting new generation or other resources or other adverse effects arising from the volume of requests in the MISO transmission interconnection queue, which delays or other adverse effects may be exacerbated by significant current and expected load growth, the MISO-wide base rate of return on equity allowed or any MISO-related charges and credits required by the FERC, and the effect of planning decisions that MISO makes with respect to future transmission investments by the Utility operating companies (including, in each case, as it relates to new generation or transmission projects designed to serve the increased load growth of new large-scale data centers and other large customers); • changes in utility regulation, including, with respect to retail and wholesale competition and special rules supporting service to large-scale data centers, the ability to recover net utility assets and other potential stranded costs, including those capital investments associated with unrealized customer growth expectations (including data center customers), and the application of more stringent return on equity criteria, transmission reliability requirements, or market power criteria by the FERC or the U.S. Department of Justice; • changes in the regulation or regulatory oversight of Entergy’s nuclear generating facilities, nuclear materials and fuel, and the effects of new or existing safety or environmental concerns regarding nuclear power plants and fuel; iii Table of Contents FORWARD-LOOKING INFORMATION (Continued) • resolution of pending or future applications, as well as regulatory proceedings, litigation or actions of governmental officials (including the presidential administration), relating to generation, transmission, or other facilities (including license modifications or other authorizations for nuclear generating facilities and applications relating to any facilities designed to serve large-scale data centers) and the effect of public and political opposition on these applications, regulatory proceedings, litigation, and actions, including without limitation opposition to the employment of technologies to capture, transport, and store carbon dioxide from gas plants, land use opposition to new solar facilities and transmission lines, and land use and other opposition to wind turbines; • the performance of and deliverability of power from Entergy’s generation resources, including the capacity factors at Entergy’s nuclear generating facilities; • increases in costs and capital expenditures that could result from changing regulatory requirements, changing governmental policies, priorities, programs, and actions, including as a result of tariffs, shifts in international trade policies, and other measures, changing or volatile economic conditions, disruptions to pre-existing supply chains and vendor relations, and emerging operating and industry issues, such as anticipated growth in demand from large-scale data centers, and the risks related to recovery of these costs and capital expenditures from Entergy’s customers (especially in an increasing cost environment); • the commitment of substantial human and capital resources required for the safe and reliable operation and maintenance of Entergy’s utility system, including its nuclear generating facilities; • Entergy’s ability to develop and execute on a point of view regarding future prices of electricity, natural gas, and other energy-related commodities; • the prices and availability of fuel and power Entergy must purchase for its Utility customers, particularly given the recent and ongoing significant growth in liquified natural gas exports and the associated significantly increased demand for natural gas and resulting fluctuation in natural gas prices, increasing challenges with respect to natural gas transportation arrangements, and Entergy’s ability to meet credit support requirements for fuel and power supply contracts; • volatility and changes in markets for electricity, natural gas, uranium, emissions allowances, and other energy-related commodities, including as a result of trade-related governmental actions, such as tariffs and other measures, or other geopolitical tensions, and the effect of those changes on Entergy and its customers; • changes in environmental laws and regulations, agency positions, or associated litigation, including requirements for reduced emissions of sulfur dioxide, nitrogen oxide, greenhouse gases, mercury, particulate matter and other regulated air emissions, heat and other regulated discharges to water, waste management and disposal, remediation of contaminated sites, wetlands protection and permitting, and reporting, and changes in costs of compliance with environmental laws and regulations, as well as changes to federal, state, or local laws and regulations, including the One Big Beautiful Bill Act of 2025, and governmental policies incentivizing the development or utilization of alternative sources of generation; • changes in laws and regulations, agency positions, or associated litigation related to protected species and associated critical habitat designations; • the effects of changes in federal, state, or local laws and regulations, such as the One Big Beautiful Bill Act of 2025, and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental, trade/tariff, domestic purchase requirements, or energy (including, among other things, data center energy use, efficiency standards, and sources of power) policies and related laws, regulations, and other governmental actions, including as a result of prolonged litigation over proposed legislation or regulatory actions; • the effects of full or partial shutdowns of the federal government or delays in obtaining government or regulatory actions or decisions; • uncertainty regarding the establishment of interim or permanent sites for spent nuclear fuel and nuclear waste storage and disposal and the level of spent fuel and nuclear waste disposal fees charged by the U.S. government or other providers related to such sites; iv Table of Contents FORWARD-LOOKING INFORMATION (Continued) • variations in weather and the occurrence of hurricanes and other storms and disasters, including uncertainties associated with efforts to remediate the effects of hurricanes, ice storms, floods, wildfires, or other weather events and the recovery of costs associated with restoration, including the ability to access funded storm reserves, federal and local cost recovery mechanisms, securitization, and insurance, as well as any related unplanned outages; • effects of climate change, including the potential for increases in the frequency or severity of extreme weather events, such as hurricanes, heat waves, floods, drought or wildfires, and rising sea levels or coastal land and wetland loss, and Entergy’s ability to effectively prepare for such effects and events, including through accelerated resilience plans and projects, and any challenges in execution thereof and/or in obtaining any necessary regulatory approvals for appropriate scope and timing of such plans and projects now and in the future; • the risk that as a result of Entergy’s membership in Nuclear Electric Insurance Limited (NEIL), an incident at a NEIL member-insured nuclear generation facility could lead to a significant retrospective assessment; • the risk that an incident at a nuclear generation facility participating in a secondary financial protection system could lead to a significant retrospective insurance premium; • changes in the quality and availability of water supplies and the related regulation of water use and diversion; • Entergy’s ability to manage and execute on its capital projects, including any capital projects to serve the growing demand for electricity driven in part by the anticipated development of large-scale data centers, and to complete such capital projects timely and within budget, to obtain the anticipated performance or other benefits of such capital projects, and to manage its capital and operation and maintenance costs; • the effects of supply chain disruptions, including those driven by geopolitical developments or trade-related governmental actions, including tariffs and other measures, and labor pressures, including from increased demand in the electric sector, on Entergy’s ability to complete its capital projects in a timely and cost-effective manner; • Entergy’s ability to purchase and sell assets at attractive prices and on other attractive terms; • the economic climate, and particularly economic conditions in the Utility service area and events and circumstances that could influence economic conditions in those areas, including power prices and inflation, and the risk that anticipated load growth may not materialize; • changes to or the repeal of federal income tax laws, regulations, and interpretive guidance and policies, including the One Big Beautiful Bill Act of 2025 and the continuing impact of the Inflation Reduction Act of 2022 and the Tax Cuts and Jobs Act of 2017, and any related intended or unintended consequences on financial results and future cash flows; • the effects of Entergy’s strategies to reduce tax payments; • the effect of interest rate volatility and other changes in the financial markets, federal law, including the One Big Beautiful Bill Act of 2025, and regulatory requirements for the issuance of securities, particularly as they affect access to and cost of capital and Entergy’s ability to refinance existing securities and fund investments and acquisitions; • actions of rating agencies, including changes in the ratings of debt and preferred stock, changes in general corporate ratings, and changes in the rating agencies’ ratings criteria; • changes in inflation and interest rates and the impacts of inflation or a recession on Entergy’s customers; • the effects of government investigations, proceedings, or audits; v Table of Contents FORWARD-LOOKING INFORMATION (Continued) • changes in technology, including (i) Entergy’s ability to effectively assess, acquire, implement, and manage new or emerging technologies, including its ability to maintain and protect personally identifiable information while doing so; (ii) the emergence of artificial intelligence (including machine learning), which may present increased electricity demand, as well as ethical, security, including cybersecurity, legal, operational, or regulatory challenges; (iii) advances in artificial intelligence (including machine learning) technologies that could reduce the expected electricity demand for these technologies and data centers; (iv) the impact of changes relating to new, developing, or alternative sources of generation such as distributed energy and energy storage, renewable energy, energy efficiency, demand side management, and other measures that reduce load and government policies impacting development or utilization of the foregoing; and (v) competition from other companies offering products and services to Entergy’s customers based on new or emerging technologies or alternative sources of generation; • Entergy’s ability to effectively formulate and implement plans to reduce emissions of greenhouse gases associated with climate change and increase carbon-free energy generation capacity, including its goal to achieve net-zero carbon emissions by 2050, the potential impact on its business and financial condition of attempting to achieve such objectives, and Entergy’s ability to make measurable progress toward any climate goals due to expected load growth or other factors; • the effects, including increased security costs, of threatened or actual terrorism, cyber attacks, including those driven by artificial intelligence, or data security breaches, physical attacks on or other interference with facilities or infrastructure, natural or man-made electromagnetic pulses that affect transmission or generation infrastructure, accidents, and war or a catastrophic event such as a nuclear accident or a natural gas pipeline explosion; • impacts of perceived or actual cybersecurity or data security threats or events on Entergy and its subsidiaries, its vendors, suppliers or other third parties interconnected through the grid, which could, among other things, result in disruptions to its operations, including but not limited to, the loss of operational control, temporary or extended outages, or loss of data, including but not limited to, sensitive customer, employee, financial or operations data; • the effects of a catastrophe, pandemic (or other health-related event), or a global or geopolitical event, such as escalating trade tensions between the United States and China, the military activities between Russia and Ukraine or in the Middle East, or the military conflict in Iran, including resultant economic and societal disruptions; fuel procurement disruptions; volatility in the capital markets (and any related increased cost of capital or any inability to access the capital markets or draw on available bank credit facilities); reduced demand for electricity, particularly from commercial and industrial customers; increased or unrecoverable costs; supply chain, vendor, and contractor disruptions, including as a result of trade-related sanctions or geopolitical tensions; delays in completion of capital or other construction projects, maintenance, and other operations activities, including prolonged or delayed outages; impacts to Entergy’s workforce availability, health, or safety; increased cybersecurity risks as a result of many employees telecommuting and/or working partially remotely; increased late or uncollectible customer payments; regulatory delays; executive orders affecting, or increased regulation of, Entergy’s business; changes in credit ratings or outlooks as a result of any of the foregoing; or other adverse impacts on Entergy’s ability to execute on its business strategies and initiatives or, more generally, on Entergy’s results of operations, financial condition, and liquidity; • Entergy’s ability to attract and retain talented management, directors, and employees with specialized skills, institutional knowledge, capacity, and abilities, including the ability to effectively execute on Entergy’s growth strategy; • Entergy’s ability to attract, retain, and manage an appropriately qualified and sufficiently staffed workforce; • changes in accounting standards and corporate governance best practices; • declines in the market prices of marketable securities and changes in interest rates and resulting pension and retiree welfare plan funding requirements and the effects on benefits costs for Entergy’s defined benefit pension and other postretirement benefits plans; vi Table of Contents FORWARD-LOOKING INFORMATION (Concluded) • future wage and employee benefits costs, including changes in discount rates and returns on benefit plan assets and fluctuating costs to provide employee and retiree health benefits; • changes in decommissioning trust fund values or earnings or in the timing of, requirements for, or cost to decommission Entergy’s nuclear plant sites and the implementation of decommissioning of such sites following shutdown; • the effectiveness of Entergy’s risk management policies and procedures and the ability and willingness of its counterparties, such as lending, hedging, credit support, and major customer counterparties, including counterparties to data center electric service agreements, to satisfy their financial and performance commitments; • reductions in the demand for electricity to power large-scale data centers and other large customers and the potential for stranded assets; • concentration of business and credit risk with a small number of customers in an industry based on emerging technologies, including artificial intelligence and machine learning; and • Entergy and its subsidiaries’ ability to successfully execute on their business strategies, including their ability to complete strategic transactions that they may undertake, and their ability to meet the rapidly growing demand for electricity, including from large-scale data center and other large customers, and to manage the impacts of growth in demand for electricity on customers and Entergy’s business. vii Table of Contents DEFINITIONS Certain abbreviations or acronyms used in the text and notes are defined below: Abbreviation or Acronym Term AFUDC Allowance for Funds Used During Construction ALJ Administrative Law Judge ANO 1 and 2 Units 1 and 2 of Arkansas Nuclear One (nuclear), owned by Entergy Arkansas APSC Arkansas Public Service Commission ASU Accounting Standards Update issued by the FASB Board Board of Directors of Entergy Corporation Cajun Cajun Electric Power Cooperative, Inc. capacity factor Actual plant output divided by maximum potential plant output for the period City Council Council of the City of New Orleans, Louisiana D.C. Circuit U.S. Court of Appeals for the District of Columbia Circuit DOE United States Department of Energy Entergy Entergy Corporation and its direct and indirect subsidiaries Entergy Corporation Entergy Corporation, a Delaware corporation Entergy Gulf States, Inc. Predecessor company for financial reporting purposes to Entergy Gulf States Louisiana that included the assets and business operations of both Entergy Gulf States Louisiana and Entergy Texas Entergy Gulf States Louisiana Entergy Gulf States Louisiana, L.L.C., a Louisiana limited liability company formally created as part of the jurisdictional separation of Entergy Gulf States, Inc. and the successor company to Entergy Gulf States, Inc. for financial reporting purposes. The term is also used to refer to the Louisiana jurisdictional business of Entergy Gulf States, Inc., as the context requires. Effective October 1, 2015, the business of Entergy Gulf States Louisiana was combined with Entergy Louisiana. Entergy Louisiana Entergy Louisiana, LLC, a Texas limited liability company formally created as part of the combination of Entergy Gulf States Louisiana and the company formerly known as Entergy Louisiana, LLC (Old Entergy Louisiana) into a single public utility company and the successor to Old Entergy Louisiana for financial reporting purposes Entergy Texas Entergy Texas, Inc., a Texas corporation formally created as part of the jurisdictional separation of Entergy Gulf States, Inc. The term is also used to refer to the Texas jurisdictional business of Entergy Gulf States, Inc., as the context requires. EPA United States Environmental Protection Agency FASB Financial Accounting Standards Board FERC Federal Energy Regulatory Commission Form 10-K Annual Report on Form 10-K for the calendar year ended December 31, 2025, filed with the SEC by Entergy Corporation and its Registrant Subsidiaries GAAP Generally Accepted Accounting Principles Grand Gulf Unit No. 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by System Energy GWh Gigawatt-hour(s), which equals one million kilowatt-hours Independence Independence Steam Electric Station (coal), owned 16% by Entergy Arkansas and 25% by Entergy Mississippi IRS Internal Revenue Service ISO Independent System Operator kV Kilovolt kW Kilowatt, which equals one thousand watts kWh Kilowatt-hour(s) viii Table of Contents DEFINITIONS (Concluded) Abbreviation or Acronym Term LPSC Louisiana Public Service Commission LURC Louisiana Utilities Restoration Corporation MISO Midcontinent Independent System Operator, Inc., a regional transmission organization MMBtu One million British Thermal Units MPSC Mississippi Public Service Commission MW Megawatt(s), which equals one thousand kilowatts MWh Megawatt-hour(s) Net debt to net capital ratio Gross debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, which is a non-GAAP measure NRC Nuclear Regulatory Commission Parent & Other The portions of Entergy not included in the Utility segment, primarily consisting of the activities of the parent company, Entergy Corporation, and other business activity, including Entergy’s non-utility operations business which owns interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers and also provides decommissioning services to nuclear power plants owned by non-affiliated entities PPA Purchased power agreement or power purchase agreement PUCT Public Utility Commission of Texas Registrant Subsidiaries Entergy Arkansas, LLC, Entergy Louisiana, LLC, Entergy Mississippi, LLC, Entergy New Orleans, LLC, Entergy Texas, Inc., and System Energy Resources, Inc. River Bend River Bend Station (nuclear), owned by Entergy Louisiana SEC Securities and Exchange Commission System Energy System Energy Resources, Inc. Unit Power Sales Agreement Agreement, dated as of June 10, 1982, as amended and approved by the FERC, among Entergy Arkansas, Entergy Mississippi, Entergy New Orleans, and System Energy, relating to the sale of capacity and energy from System Energy’s share of Grand Gulf Utility Entergy’s reportable segment that generates, transmits, distributes, and sells electric power, and which included a small amount of natural gas distribution in portions of Louisiana through June 30, 2025 Utility operating companies Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas Waterford 3 Unit No. 3 (nuclear) of the Waterford Steam Electric Station, owned by Entergy Louisiana weather-adjusted usage Electric usage excluding the effects of deviations from normal weather White Bluff White Bluff Steam Electric Generating Station, 57% owned by Entergy Arkansas ix Table of Contents (Page left blank intentionally) x Table of Contents ENTERGY CORPORATION AND SUBSIDIARIES MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS Entergy operates primarily through a single reportable segment, Utility. The Utility segment includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans; and included operation of a small natural gas distribution business in portions of Louisiana through June 30, 2025. See Note 14 to the financial statements in the Form 10-K for discussion of th e sal e of the Entergy New Orleans and Entergy Louisiana natural gas distribution businesses on July 1, 2025. See Note 7 to the financial statements herein for discussion of and financial information regarding Entergy’s reportable segment. Winter Storm Fern In January 2026, portions of Entergy’s service territory experienced the effects of Winter Storm Fern, including prolonged freezing temperatures, heavy ice accumulations, and wind, which caused severe damage to Entergy’s infrastructure. Entergy’s cost of mobilizing crews and restoring power was approximately $450 million, including approximately $375 million in capital costs and approximately $75 million in non-capital costs. The impacts were primarily at Entergy Louisiana and Entergy Mississippi. There are well-established mechanisms and precedent for addressing these catastrophic events and providing the process for regulatory review of storm costs for prudence and for recovery of prudently incurred storm costs in accordance with applicable regulatory and legal principles. The severe weather event also affected the market for natural gas due to the effects of severe cold on the gas supply system and increased demand for gas to support electricity loads. Natural gas purchases in January 2026 for Entergy were $483 million, including $74 million for Entergy Arkansas, $256 million for Entergy Louisiana, $85 million for Entergy Mississippi, $20 million for Entergy New Orleans, and $48 million for Entergy Texas. This compares to natural gas purchases in January 2025 for Entergy of $207 million, including $25 million for Entergy Arkansas, $115 million for Entergy Louisiana, $28 million for Entergy Mississippi, $4 million for Entergy New Orleans, and $35 million for Entergy Texas. The Utility operating companies each have fuel recovery mechanisms in place to recover their natural gas costs. See Note 2 to the financial statements herein and in the Form 10-K for a discussion of fuel cost recovery at the Utility operating companies. 1 Table of Contents Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis Results of Operations Second Quarter 2026 Compared to Second Quarter 2025 Following are income statement variances for Utility, Parent & Other, and Entergy comparing the second quarter 2026 to the second quarter 2025 showing how much the line item increased or (decreased) in comparison to the prior period. Utility Parent & Other (a) Entergy (In Thousands) 2025 Net Income (Loss) Attributable to Entergy Corporation $598,648 ($130,718) $467,930 Operating revenues 197,765 (2,976) 194,789 Fuel, fuel-related expenses, and gas purchased for resale 125,029 (1,960) 123,069 Purchased power (67,592) (1,270) (68,862) Other regulatory charges (credits) - net 40,597 — 40,597 Other operation and maintenance 45,427 1,528 46,955 Taxes other than income taxes 13,311 (315) 12,996 Depreciation and amortization 26,775 (1,179) 25,596 Other income (deductions) 79,462 5,198 84,660 Interest expense 67,599 20,580 88,179 Other expenses 1,790 (16) 1,774 Income taxes (3,912) (2,809) (6,721) Preferred dividend requirements of subsidiaries and noncontrolling interests 1,189 — 1,189 2026 Net Income (Loss) Attributable to Entergy Corporation $625,662 ($143,055) $482,607 (a) Parent & Other includes eliminations, which are primarily intersegment activity. Operating Revenues Utility Following is an analysis of the change in operating revenues comparing the second quarter 2026 to the second quarter 2025: Amount (In Millions) 2025 operating revenues $3,316 Fuel, rider, and other revenues that do not significantly affect net income 96 Retail electric price 80 Return on construction work in progress for certain utility plant investments 40 Volume/weather 22 Effect of sale of natural gas distribution businesses (41) 2026 operating revenues $3,513 2 Table of Contents Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis The Utility operating companies’ results include revenues from rate mechanisms designed to recover fuel, purchased power, and other costs such that the revenues and expenses associated with these items generally offset and do not affect net income. “Fuel, rider, and other revenues that do not significantly affect net income” includes the revenue variance associated with these items. The retail electric price variance is primarily due to: • an increase in Entergy Arkansas’s formula rate plan rates effective January 2026 and the implementation of the Generating Arkansas Jobs Act rider effective June 2026 ; • an increase in Entergy Louisiana’s resilience plan cost recovery rider effective March 2026; • an increase in Entergy Mississippi’s formula rate plan rates resulting from an increase in interim facilities rate adjustment revenues effective January 2026; and • increases in Entergy Texas’s distribution cost recovery factor rider effective June 2025 and December 2025. See Note 2 to the financial statements herein and in the F orm 10-K for discussion of the regulatory proceedings discussed above. The return on construction work in progress for certain utility plant investments variance represents the revenue related to the amortization of certain customer advances designed to provide a return on investment in construction work in progress for certain utility plant investments, which is recognized as the related costs are incurred. The volume/weather variance is primarily due to an increase in weather-adjusted residential usage and an increase in industrial usage, partially offset by the effect of less favorable weather on residential sales. The increase in weather-adjusted residential usage is primarily due to an increase in customers. The increase in industrial usage is primarily due to an increase in demand from large industrial customers, primarily in the data center, primary metals, and chlor-alkali industries. The effect of sale of natural gas distribution businesses variance represents the decrease in operating revenues resulting from the absence of natural gas revenues at Entergy Louisiana and Entergy New Orleans following the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025. The decrease in natural gas operating revenues is substantially offset in net income by the absence of operating expenses related to the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses following the sale. See Note 14 to the financial statements in the Form 10-K for discussion of the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025. Total electric energy sales for Utility for the three months ended June 30, 2026 and 2025 are as follows: 2026 2025 % Change (GWh) Residential 8,736 8,899 (2) Commercial 7,208 7,265 (1) Industrial 17,164 15,620 10 Governmental 617 617 — Total retail 33,725 32,401 4 Sales for resale 3,338 4,133 (19) Total 37,063 36,534 1 See Note 12 to the financial statements herein for additional discussion of operating revenues. 3 Table of Contents Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis Other Income Statement Items Utility Purchased power includes a decrease of $18 million in costs in 2026, at Entergy Texas, related to the procurement of capacity through MISO’s annual planning resource auction. Higher costs in second quarter 2025 resulted from the effect of a significant increase in MISO’s seasonal auction clearing price, due to the implementation of a reliability-based demand curve, for capacity transactions during the summer months in 2025. Prior to June 2026, Entergy Texas also did not have the ability to recover its MISO capacity costs incurred to date beyond the level included in base rates. In June 2025, Texas legislation established a capacity cost recovery rider mechanism that would allow for the recovery of costs related to the procurement of capacity through MISO’s annual planning resource auction outside of base rates, through a rider that is updated annually. In May 2026, Entergy Texas filed a request with the PUCT for a capacity cost recovery rider to recover eligible capacity procurement costs associated with its participation in MISO’s annual planning resource auction, and the PUCT approved the request in July 2026. See Note 2 to the financial statements herein for discussion of the capacity cost recovery rider. Other operation and maintenance expenses increased from $713 million for the second quarter 2025 to $759 million for the second quarter 2026 primarily due to: • an increase of $24 million in power delivery expenses primarily due to higher vegetation maintenance costs; • an increase of $10 million in compensation and benefits costs primarily due to higher healthcare claims activity and the timing of the recognition of prescription drug rebates; and • several individually insignificant items. The increase was partially offset by a decrease of $9 million in bad debt expense. Taxes other than income taxes increased primarily due to increases in ad valorem taxes resulting from higher assessments and millage rate increases. Depreciation and amortization expenses increased primarily due to additions to plant in service, an increase in FERC jurisdictional depreciation rates at Entergy Arkansas and Entergy Louisiana effective January 2026, and an increase in nuclear depreciation rates at Entergy Louisiana effective September 2025 in accordance with the global stipulated settlement agreement approved by the LPSC in August 2024. See Note 2 to the financial statements in the Form 10-K for discussion of the Entergy Louisiana global stipulated settlement agreement. Entergy records a regulatory charge or credit for the difference between asset retirement obligation-related expenses and nuclear decommissioning trust earnings plus asset retirement obligation-related costs collected in revenue. Other income increased primarily due to: • changes in decommissioning trust fund activity, including portfolio rebalancing of decommissioning trust funds in second quarter 2026; • an increase of $31 million in the amortization of tax gross-up on customer advances, including customer advances for construction; and • an increase of $19 million on interest earned on money pool investments. The increase was partially offset by a $17 million true-up, recorded in second quarter 2025, of Entergy Louisiana’s MISO cost recovery mechanism over-recovery balance to the 2024 formula rate plan filing, which was filed with the LPSC in May 2025. See Note 2 to the financial statements in the Form 10-K for discussion of the 2024 formula rate plan filing. 4 Table of Contents Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis Interest expense increased primarily due to: • the issuances by Entergy Arkansas of $500 million of 5.75% Series mortgage bonds and $500 million of 4.95% Series mortgage bonds, each in January 2026; • the issuances by Entergy Louisiana of $750 million of 5.65% Series mortgage bonds and $750 million of 4.90% Series mortgage bonds, each in February 2026; • the issuance by Entergy Mississippi of $650 million of 5.05% Series mortgage bonds in March 2026; • an increase of $18 million in carrying costs on customer advances, including customer advances for construction; and • $8 million in carrying costs in second quarter 2026 on retained net proceeds from the monetization of nuclear production tax credits. The increase was partially offset by the repayment by Entergy Arkansas of $600 million of 3.5% Series mortgage bonds in February 2026. Parent and Other Interest expense increased primarily due to the issuances of junior subordinated debentures totaling $1.3 billion in November 2025. Income Taxes The effective income tax rate was 21.3% for the second quarter 2026. The difference in the effective income tax rate for the second quarter 2026 versus the federal statutory rate of 21% was primarily due to the accrual for state income taxes and a provision for uncertain tax positions, partially offset by book and tax differences related to the allowance for equity funds used during construction, the amortization of excess accumulated deferred income taxes, and certain book and tax differences related to utility plant items . The effective income tax rate was 22.7% for the second quarter 2025. The difference in the effective income tax rate for the second quarter 2025 versus the federal statutory rate of 21% was primarily due to the accrual for state income taxes, partially offset by book and tax differences related to the allowance for equity funds used during construction and certain book and tax differences related to utility plant items. 5 Table of Contents Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025 Following are income statement variances for Utility, Parent & Other, and Entergy comparing the six months ended June 30, 2026 to the six months ended June 30, 2025 showing how much the line item increased or (decreased) in comparison to the prior period. Utility Parent & Other (a) Entergy (In Thousands) 2025 Net Income (Loss) Attributable to Entergy Corporation $1,088,527 ($259,837) $828,690 Operating revenues 538,441 (2,900) 535,541 Fuel, fuel-related expenses, and gas purchased for resale 391,341 (970) 390,371 Purchased power (51,171) (394) (51,565) Other regulatory charges (credits) - net 176,739 — 176,739 Other operation and maintenance 45,395 2,458 47,853 Asset write-offs, impairments, and related charges — 18,059 18,059 Taxes other than income taxes 21,153 (398) 20,755 Depreciation and amortization 54,068 (1,286) 52,782 Other income (deductions) 274,156 4,467 278,623 Interest expense 103,533 34,595 138,128 Other expenses (4,226) (9) (4,235) Income taxes (6,781) (12,191) (18,972) Preferred dividend requirements of subsidiaries and noncontrolling interests 5,416 — 5,416 2026 Net Income (Loss) Attributable to Entergy Corporation $1,165,657 ($298,134) $867,523 (a) Parent & Other includes eliminations, which are primarily intersegment activity. Operating Revenues Utility Following is an analysis of the change in operating revenues comparing the six months ended June 30, 2026 to the six months ended June 30, 2025: Amount (In Millions) 2025 operating revenues $6,145 Fuel, rider, and other revenues that do not significantly affect net income 423 Retail electric price 142 Return on construction work in progress for certain utility plant investments 70 Volume/weather 17 Effect of sale of natural gas distribution businesses (113) 2026 operating revenues $6,684 The Utility operating companies’ results include revenues from rate mechanisms designed to recover fuel, purchased power, and other costs such that the revenues and expenses associated with these items generally offset 6 Table of Contents Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis and do not affect net income. “Fuel, rider, and other revenues that do not significantly affect net income” includes the revenue variance associated with these items. The retail electric price variance is primarily due to: • an increase in Entergy Arkansas’s formula rate plan rates effective January 2026; • increases in Entergy Louisiana’s resilience plan cost recovery rider effective March 2025 and March 2026; • an increase in Entergy Mississippi’s formula rate plan rates resulting from an increase in interim facilities rate adjustment revenues effective January 2026; and • increases in Entergy Texas’s distribution cost recovery factor rider effective June 2025 and December 2025. See Note 2 to the financial statements herein and in the F orm 10-K for discussion of the regulatory proceedings discussed above. The return on construction work in progress for certain utility plant investments variance represents the revenue related to the amortization of certain customer advances designed to provide a return on investment in construction work in progress for certain utility plant investments, which is recognized as the related costs are incurred. The volume/weather variance is primarily due to an increase in industrial usage and an increase in weather-adjusted residential usage, partially offset by the effect of less favorable weather on residential sales. The increase in industrial usage is primarily due to an increase in demand from large industrial customers, primarily in the data center, primary metals, transportation, and petroleum refining industries. The increase in weather-adjusted residential usage is primarily due to an increase in customers. The effect of sale of natural gas distribution businesses variance represents the decrease in operating revenues resulting from the absence of natural gas revenues at Entergy Louisiana and Entergy New Orleans following the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025. The decrease in natural gas operating revenues is substantially offset in net income by the absence of operating expenses related to the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses following the sale. See Note 14 to the financial statements in the Form 10-K for discussion of the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025. Total electric energy sales for Utility for the six months ended June 30, 2026 and 2025 are as follows: 2026 2025 % Change (GWh) Residential 16,792 17,683 (5) Commercial 13,437 13,507 (1) Industrial 33,060 29,452 12 Governmental 1,172 1,176 — Total retail 64,461 61,818 4 Sales for resale 6,127 5,767 6 Total 70,588 67,585 4 See Note 12 to the financial statements herein for additional discussion of operating revenues. 7 Table of Contents Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis Other Income Statement Items Utility Purchased power includes a decrease of $16 million in costs in 2026, at Entergy Texas, related to the procurement of capacity through MISO’s annual planning resource auction. Higher costs in 2025 resulted from the effect of a significant increase in MISO’s seasonal auction clearing price, due to the implementation of a reliability-based demand curve, for capacity transactions during the summer months in 2025. Prior to June 2026, Entergy Texas also did not have the ability to recover its MISO capacity costs incurred to date beyond the level included in base rates. In June 2025, Texas legislation established a capacity cost recovery rider mechanism that would allow for the recovery of costs related to the procurement of capacity through MISO’s annual planning resource auction outside of base rates, through a rider that is updated annually. In May 2026, Entergy Texas filed a request with the PUCT for a capacity cost recovery rider to recover eligible capacity procurement costs associated with its participation in MISO’s annual planning resource auction, and the PUCT approved the request in July 2026. See Note 2 to the financial statements herein for discussion of the capacity cost recovery rider. Other operation and maintenance expenses increased from $1,376 million for the six months ended June 30, 2025 to $1,421 million for the six months ended June 30, 2026 primarily due to: • an increase of $37 million in power delivery expenses primarily due to higher vegetation maintenance costs, a higher scope of work performed in 2026 as compared to 2025, and increased contract labor costs; • an increase of $20 million in compensation and benefits costs primarily due to a revision to estimated incentive-based compensation expense in 2025; and • several individually insignificant items. The increase was partially offset by: • a decrease of $19 million in insurance expense primarily due to higher nuclear insurance refunds; • a decrease of $14 million in loss provisions; • a decrease of $11 million in bad debt expense; and • a decrease of $10 million in gas operations expenses resulting from the absence of expenses following the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025. See Note 14 to the financial statements in the Form 10-K for discussion of the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025. Taxes other than income taxes increased primarily due to increases in ad valorem taxes resulting from higher assessments and millage rate increases. Depreciation and amortization expenses increased primarily due to additions to plant in service, an increase in FERC jurisdictional depreciation rates at Entergy Arkansas and Entergy Louisiana effective January 2026, and an increase in nuclear depreciation rates at Entergy Louisiana effective September 2025 in accordance with the global stipulated settlement agreement approved by the LPSC in August 2024. See Note 2 to the financial statements in the Form 10-K for discussion of the Entergy Louisiana global stipulated settlement agreement. Entergy records a regulatory charge or credit for the difference between asset retirement obligation-related expenses and nuclear decommissioning trust earnings plus asset retirement obligation-related costs collected in revenue. Other income increased primarily due to: • changes in decommissioning trust fund activity, including portfolio rebalancing of decommissioning trust funds in 2026; 8 Table of Contents Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis • an increase of $39 million in the amortization of tax gross-up on customer advances, including customer advances for construction; and • an increase of $27 million on interest earned on money pool investments. The increase was partially offset by a $17 million true-up, recorded in second quarter 2025, of Entergy Louisiana’s MISO cost recovery mechanism over-recovery balance to the 2024 formula rate plan filing, which was filed with the LPSC in May 2025. See Note 2 to the financial statements in the Form 10-K for discussion of the 2024 formula rate plan filing. Interest expense increased primarily due to: • the issuances by Entergy Arkansas of $500 million of 5.75% Series mortgage bonds and $500 million of 4.95% Series mortgage bonds, each in January 2026; • the issuance by Entergy Arkansas of $300 million of 5.45% Series mortgage bonds in May 2025; • the issuances by Entergy Louisiana of $750 million of 5.65% Series mortgage bonds and $750 million of 4.90% Series mortgage bonds, each in February 2026; • the issuance by Entergy Mississippi of $650 million of 5.05% Series mortgage bonds in March 2026; • the issuance by Entergy Mississippi of $600 million of 5.80% Series mortgage bonds in March 2025; • the issuance by Entergy Texas of $500 million of 5.25% Series mortgage bonds in February 2025; • the issuance by System Energy of $240 million of 5.30% Series mortgage bonds in May 2025; • an increase of $26 million in carrying costs on customer advances, including customer advances for construction; and • $16 million in carrying costs in 2026 on retained net proceeds from the monetization of nuclear production tax credits. The increase was partially offset by the repayment by Entergy Arkansas of $600 million of 3.5% Series mortgage bonds in February 2026 and the repayment by Entergy Louisiana of $250 million of 4.44% Series mortgage bonds in January 2026. Parent and Other Asset write-offs, impairments, and related charges includes an $18 million non-cash impairment charge recognized in first quarter 2026 related to the sale of the non-utility operations businesses’ interest in the Independence power plant in April 2026. Interest expense increased primarily due to the issuances of junior subordinated debentures totaling $1.3 billion in November 2025. Income Taxes The effective income tax rate was 20% for the six months ended June 30, 2026. The difference in the effective income tax rate for the six months ended June 30, 2026 versus the federal statutory rate of 21% was primarily due to book and tax differences related to the allowance for equity funds used during construction, the amortization of excess accumulated deferred income taxes, and certain book and tax differences related to utility plant items, partially offset by the accrual for state income taxes. The effective income tax rate was 22.2% for the six months ended June 30, 2025 . The difference in the effective income tax rate for the six months ended June 30, 2025 versus the federal statutory rate of 21% was primarily due to the accrual for state income taxes, partially offset by book and tax differences related to the allowance for equity funds used during construction and certain book and tax differences related to utility plant items. 9 Table of Contents Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis Income Tax Legislation and Regulation See “ MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Income Tax Legislation and Regulation ” in the Form 10-K for discussion of income tax legislation and regulation. Liquidity and Capital Resources See “ MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources ” in the Form 10-K for a discussion of Entergy’s capital structure, capital spending plans and other uses of capital, and sources of capital. Capital Structure and Resources Entergy’s debt to capital ratio is shown in the following table. June 30, 2026 December 31, 2025 Debt to capital 65.2 % 64.3 % Effect of excluding securitization bonds (0.1 %) (0.2 %) Debt to capital, excluding securitization bonds (non-GAAP) (a) 65.1 % 64.1 % Effect of subtracting cash (2.8 %) (1.5 %) Net debt to net capital, excluding securitization bonds (non-GAAP) (a) 62.3 % 62.6 % (a) Calculation excludes the Texas securitization bonds, which are non-recourse to Entergy Texas. As of June 30, 2026, 20.8% of the debt outstanding is at the parent company, Entergy Corporation, and 79.2% is at the Utility segment. Net debt consists of debt less cash and cash equivalents. Debt consists of notes payable and commercial paper, finance lease obligations, and long-term debt, including the currently maturing portion. Capital consists of debt, equity, and subsidiaries’ preferred stock without sinking fund. Net capital consists of capital less cash and cash equivalents. The debt to capital ratio excluding securitization bonds and net debt to net capital ratio excluding securitization bonds are non-GAAP measures. Entergy uses the debt to capital ratios excluding securitization bonds in analyzing its financial condition and believes they provide useful information to its investors and creditors in evaluating Entergy’s financial condition because the securitization bonds are non-recourse to Entergy, as more fully described in Note 5 to the financial statements in the Form 10-K. Entergy also uses the net debt to net capital ratio excluding securitization bonds in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating Entergy’s financial condition because net debt indicates Entergy’s outstanding debt position that could not be readily satisfied by cash and cash equivalents on hand. 10 Table of Contents Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis Entergy Corporation has in place a credit facility that has a borrowing capacity of $3 billion and expires in June 2031. The facility includes fronting commitments for the issuance of letters of credit against $20 million of the total borrowing capacity of the credit facility. The commitment fee is currently 0.225% of the undrawn commitment amount. Commitment fees and interest rates on loans under the credit facility can fluctuate depending on the senior unsecured debt ratings of Entergy Corporation. Although there were no borrowings under the facility for the six months ended June 30, 2026, the estimated interest rate as of June 30, 2026 that would have been applied to outstanding borrowings under the facility was 5.14%. The following is a summary of the amounts outstanding and capacity available under the credit facility as of June 30, 2026: Capacity Borrowings Letters of Credit Capacity Available (In Millions) $3,000 $— $3 $2,997 Entergy Corporation’s credit facility includes a covenant requiring Entergy to maintain a consolidated debt ratio, as defined, of 65% or less of its total capitalization. The calculation of this debt ratio under Entergy Corporation’s credit facility is different than the calculation of the debt to capital ratio above. Entergy is currently in compliance with the covenant and expects to remain in compliance with this covenant. If Entergy fails to meet this ratio, or if Entergy Corporation or one of the Registrant Subsidiaries (except Entergy New Orleans and System Energy) defaults on other indebtedness or is in bankruptcy or insolvency proceedings, an acceleration of the Entergy Corporation credit facility’s maturity date may occur. See Note 4 to the financial statements herein for additional discussion of the Entergy Corporation credit facility and discussion of the Registrant Subsidiaries’ credit facilities. Entergy Corporation has a commercial paper program with a Board-approved program limit of $2 billion. As of June 30, 2026, Entergy Corporation had $1,544 million of commercial paper outstanding. The weighted-average interest rate for the six months ended June 30, 2026 was 4.01%. As discussed in the Form 10-K, Entergy’s sources to meet its capital requirements and to fund potential investments include, among other things, debt and equity issuances in the capital markets. In addition to other planned debt issuances by the Registrant Subsidiaries and Entergy Corporation, borrowings under new or existing credit facilities and Entergy Corporation’s commercial paper program, and the planned equity issuances discussed below, Entergy Corporation currently expects to issue approximately $3 billion in junior subordinated debentures through 2030. Equity Issuances and Equity Distribution Program See “ MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources - Sources of Capital - Equity Issuances and Equity Distribution Program ” in the Form 10-K and Note 3 to the financial statements herein for discussion of equity issuances, the equity distribution program, and equity forward sale agreements. The following are updates to that discussion. In February 2026, Entergy Corporation physically settled a portion of its obligations under certain of its then-outstanding forward sale agreements under its at the market equity distribution program for cash proceeds of $346 million. In May 2026, Entergy Corporation marketed an equity offering of approximately 19.2 million shares of Entergy Corporation common stock. In lieu of issuing equity at the time of the offering, Entergy Corporation entered into forward sale agreements with several forward counterparties. The forward sale agreements require Entergy Corporation to, at its election on or prior to April 30, 2028, either (1) physically settle the transactions by issuing the total of approximately 19.2 million shares of its common stock to the forward counterparties in exchange for net proceeds at the then-applicable forward sale price specified by the agreements (initially $110.74 per share) or (2) net settle the transactions in whole or in part through the delivery or receipt of cash or shares. The forward sale 11 Table of Contents Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis price is subject to adjustment on a daily basis based on a floating interest rate factor and will decrease by other fixed amounts specified in the agreements. In June 2026, Entergy Corporation physically settled its remaining obligations under certain of its then-outstanding forward sale agreements under its at the market equity distribution program for cash proceeds of $126 million and physically settled a portion of its obligations under certain of its then-outstanding equity forward sale agreements for cash proceeds of $546 million. Entergy Corporation currently expects to issue approximately $7 billion of equity through 2030, which it may issue under its at the market equity distribution program or otherwise, with approximately $4.1 billion already settled or contracted under forward sale agreements as of June 30, 2026. Capital Expenditure Plans and Other Uses of Capital See the table and discussion in the Form 10-K under “ MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources - Capital Expenditure Plans and Other Uses of Capital ,” that sets forth the amounts of Entergy’s planned construction and other capital investments for 2026 through 2029. The following are updates to that discussion. Following are the current annual amounts of Entergy’s planned construction and other capital investments through 2030. Planned construction and capital investments 2026 2027 2028 2029 2030 (In Millions) Generation $7,735 $11,765 $11,040 $7,690 $6,325 Transmission 2,250 2,685 2,295 1,865 895 Distribution 2,725 2,055 1,715 1,965 1,830 Utility Support 455 340 330 300 270 Total $13,165 $16,845 $15,380 $11,820 $9,320 The updated capital plan for 2026-2030 reflects incremental capital investments for potential generation projects, primarily related to resources identified in Entergy Louisiana’s application filed with the LPSC in March 2026 as discussed below in “Entergy Louisiana Additional Generation and Transmission Resources.” The capital plan includes amounts Entergy plans to spend on routine capital projects that are necessary to support reliability of its service, equipment, or systems and to support normal customer growth. In addition to routine capital projects, the capital plan also includes amounts Entergy plans to spend on non-routine capital investments for which Entergy is either contractually obligated, has Board approval, or otherwise expects to make to satisfy regulatory or legal requirements. Amounts include the following types of construction and capital investments: • investments in generation projects to modernize, decarbonize, expand, and diversify the Utility operating companies’ portfolios, as well as to support customer growth, including Ironwood Power Station, Jefferson Power Station, Arkansas Cypress Solar, Segno Solar, Votaw Solar, Bogalusa West Solar, Cypress Harvest Solar, Franklin Farms Power Station Units 1 and 2, Waterford 5 Power Station, Cottonwood Power Station, Westlake Power Station, Richland Parish Units 1-4, Pointe Coupee Units 1-3, Waterford 6 Power Station, Delta Blues Advanced Power Station, Delta Solar, Penton Solar, Traceview Advanced Power Station, Vicksburg Advanced Power Station, Orange County Advanced Power Station, Lone Star Power Station, Legend Power Station, and potential construction of additional generation; • investments in the Utility nuclear fleet; • transmission spending to improve reliability and resilience while also supporting renewables expansion and customer growth; and 12 Table of Contents Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis • distribution and Utility support spending to improve reliability, resilience, and customer experience through projects focused on asset renewals and enhancements and grid stability. The planned construction and capital investments amounts above exclude investments expected to be funded with customer advances for construction. Renewables Entergy Arkansas Special Rate Contract and Arkansas Cypress Solar As discussed in the Form 10-K, in September 2025, Entergy Arkansas filed an application with the APSC seeking a certificate of environmental compatibility and public need for the construction and operation of the Arkansas Cypress Solar facility, a planned 600 MW solar photovoltaic array with a 350 MW battery energy storage system and associated transmission facilities interconnecting at Entergy Arkansas’s White Bluff substation. The estimated cost of the project is $1,602 million. In March 2026 the APSC approved the Arkansas Cypress Solar facility and Entergy Arkansas’s recovery of the costs of the facility through the Generating Arkansas Jobs Act rider. The APSC also ordered implementation of an independent monitor to oversee costs. In April 2026, Entergy Arkansas filed with the APSC its proposal for an independent monitor to oversee the reasonableness of costs. In April 2026 the APSC issued an order consolidating Entergy Arkansas’s cost independent monitor proposals for three pending resources, including the Arkansas Cypress Solar facility, into a single docket and directing parties with full intervention status to respond to the proposals and recommend independent monitor candidates. No alternative recommendations were made by the other parties. The facility is expected to be in service by the end of 2028. Cypress Harvest Solar As discussed in the Form 10-K, in February 2026, Entergy Louisiana filed an application seeking LPSC approval and certification for the Cypress Harvest Solar facility, a 200 MW solar facility to be located in Iberville Parish, Louisiana. In March 2026 the LPSC staff filed an affidavit attesting that the Cypress Harvest Solar facility meets the applicable parameters for Entergy Louisiana’s expedited certification process and recommending that the LPSC grant certification. At its April 2026 meeting, the LPSC voted to grant the requested approval and certification, with a written order issued in May 2026. In July 2026 the Iberville Parish Council adopted a two-year moratorium on battery energy storage system development to allow time for further evaluation of the community impacts of the technology. The facility has a scheduled in service date of 2028. Segno Solar and Votaw Solar As discussed in the Form 10-K, in December 2025, Entergy Louisiana filed an application with the LPSC seeking approval and certification to construct the Segno Solar facility and Votaw Solar facility. The application asks that the LPSC approve, subject to certain ongoing discussions, allocation of the two facilities to a designated renewable resources subscription to Entergy Louisiana’s Rider Geaux Zero, and further asserts that the two solar resources fall below certain breakeven parameters established in connection with the LPSC’s order allowing Entergy Louisiana to procure up to 3 GW of solar resources, thus supporting that the resources should be certified as being in the public interest. The application requests consideration by the LPSC at or before its August 2026 meeting. A procedural schedule was set with a hearing initially scheduled for July 2026. In June 2026, Entergy Louisiana filed an unopposed motion asking that the procedural schedule be suspended to allow for settlement negotiations. The motion was granted and the procedural schedule was suspended. The parties’ settlement negotiations are ongoing. Subject to approval by the LPSC, the Segno Solar facility and the Votaw Solar facility are expected to be in service by 2029. 13 Table of Contents Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis Other Generation and Transmission Jefferson Power Station As discussed in the Form 10-K, in August 2025, Entergy Arkansas filed an application with the APSC seeking a certificate of environmental compatibility and public need for the construction and operation of Jefferson Power Station, an approximately 754 MW natural gas-fired combined cycle combustion turbine facility to be located in Jefferson County, Arkansas. The estimated cost of the project is $1,602 million. In January 2026 the APSC issued its order finding that Entergy Arkansas had demonstrated a need for the resource but had not met its burden with respect to supporting the prudence of the costs to construct the resource. The APSC acknowledged that the costs would be greater if Entergy Arkansas waited to pursue the resource. The APSC authorized Entergy Arkansas to proceed with Jefferson Power Station as a strategic investment with estimated costs set at a benchmark, which the APSC erroneously believed reflected the current cost estimate but was, in fact, $90 million below the cost presented. In its January 2026 order, the APSC also approved Entergy Arkansas’s recovery of the costs of constructing Jefferson Power Station through the Generating Arkansas Jobs Act rider. Additionally, in its January 2026 order, the APSC found that Entergy Arkansas should conduct all-source competitive solicitations for future generation additions, with limited exceptions where Entergy Arkansas believes that a specific solicitation should be restricted to a certain resource and provides a detailed explanation to the APSC supporting this belief, which the APSC later determined in its March 2026 order is a narrow exception. In February 2026, Entergy Arkansas filed for rehearing seeking to correct the benchmark. In March 2026 the APSC issued an order denying Entergy Arkansas’s petition and maintained the benchmark, although costs over the benchmark were not found to be disallowed. Also in its March 2026 order, the APSC ordered Entergy Arkansas to submit a draft of an all-source request for proposals within thirty days of the order, which Entergy Arkansas filed in April 2026. Also in March 2026, Entergy Arkansas filed with the APSC its proposal for an independent monitor to oversee the reasonableness of its construction costs, as required by the APSC order. In April 2026 the APSC issued an order consolidating Entergy Arkansas’s cost independent monitor proposals for three pending resources, including Jefferson Power Station, into a single docket and directing parties with full intervention status to respond to the proposals and recommend independent monitor candidates. No alternative recommendations were made by the other parties. Also as part of the APSC’s January 2026 order, Entergy Arkansas is required to file quarterly status reports on its evaluation of the White Bluff coal to gas conversion. Entergy Arkansas filed its second status report in July 2026, setting forth that it expects to provide the APSC a total cost estimate and project timeline for the White Bluff 1 conversion within the next 60 days as part of an application and/or a supplemental update. The facility is expected to be in service by the end of 2029. Entergy Louisiana Additional Generation and Transmission Resources See the Form 10-K for discussion of Entergy Louisiana’s October 2024 application with the LPSC seeking approval of a variety of generation and transmission resources proposed in connection with establishing service to a new data center to be developed by a subsidiary of Meta Platforms, Inc. in north Louisiana, for which an electric service agreement was previously executed. In March 2026, Entergy Louisiana entered into an electric service agreement with Evest LLC (Evest), a subsidiary of Meta Platforms, Inc., in connection with establishing service to a second new data center to be developed by Evest in north Louisiana. The obligations pursuant to the agreement will commence following construction of certain transmission facilities needed to serve Evest, and the effectiveness of the agreement is conditioned upon receipt of required governmental approvals, including approval from the LPSC. Also in March 2026, Entergy Louisiana filed an application with the LPSC for certification to construct seven new combined cycle combustion turbine generation resources totaling 5,278 MW at a total cost of approximately $12.9 billion, each of which will be enabled for future carbon capture and storage, and three battery energy storage systems, including two that will be co-located with solar resources at the Cypress Harvest Solar Facility in Iberville Parish and the Bogalusa West Solar Facility in Washington Parish. The application also seeks approval to construct a new 500 kV transmission line, from West Fork Creek to St. Landry, estimated to cost $1.4 billion, and other related transmission facilities. Four of the new combined cycle combustion turbine generation resources are to be located near the 14 Table of Contents Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis customer site in north Louisiana (Richland Parish Units 1-4), while the remaining three units will be located near the existing Big Cajun site in Pointe Coupee Parish (Pointe Coupee Units 1-3). The seven new combined cycle combustion turbine generation resources have various estimated in-service dates in 2030 and 2031. The application also requests certain approvals related to a corporate sustainability agreement with the new customer. The corporate sustainability agreement contemplates the new customer contributing to the costs of the future addition of 2,500 MW of new renewable and energy storage resources, agreements involving nuclear-related efforts and contributions to bill assistance and other programs for low-income residents. Entergy Louisiana anticipates recovering the incremental cost to serve the customer through direct financial contributions from the customer and the revenues it expects to earn under the electric service agreement. The application is pending before the LPSC. At its April 2026 meeting, the LPSC voted to direct the administrative hearings division to adopt a procedural schedule that would allow for LPSC consideration of the matter at its December 2026 meeting, and also to have the administrative hearings division serve as a hearing examiner and compile a record for the LPSC to consider without the issuance of a formal recommendation from the ALJ. LPSC staff and intervenor testimony is due to be filed by July 31, 2026. Entergy Louisiana’s rebuttal testimony is due in September 2026. A hearing is scheduled to take place in October 2026. The electric service agreement and related contracts contain provisions that protect Entergy Louisiana’s current customers in a manner consistent with the LPSC’s Lightning Initiative and Entergy Louisiana’s Fair Share Plus guidelines, which the LPSC and Entergy Louisiana, respectively, developed in response to increased investment in large data centers in Louisiana. The protections include terms requiring the customer to pay Entergy Louisiana’s incremental costs to serve the customer, including through contributions in aid of construction, other advanced payments and minimum monthly bills. The agreements also include specified financial obligations in the event that Evest terminates the contracts early, restructures the project, or in the event of default. These specified financial obligations would be based on Entergy Louisiana’s unrecovered incremental costs to serve Evest at the time of such an event. Evest’s obligations under the electric service agreement and related contracts are secured by various forms of collateral, including a guaranty from Meta Platforms, Inc. Finally, the electric service agreement also includes provisions relating to Entergy Louisiana’s performance obligations, including the timely construction of the facilities supporting service to Evest, audit rights for the construction costs supported by Evest, and service standards during the term of the electric service agreement. Entergy Louisiana’s failure to meet one or more of these performance obligations could result in specified financial and/or non-financial penalties. Such penalties would vary based on the nature and severity of the failure, including the potential termination of the electric service agreement. In June 2026 certain intervenors filed a motion requesting that the LPSC issue a subpoena to Meta Platforms, Inc. to obtain certain information about the data center project, including the level of expected investment, job creation, load characteristics, and other aspects of the project, as well as certain financial information. In July 2026, after briefing and argument, the ALJ issued a ruling granting this motion in part and denying it in part. In July 2026, Meta Platforms, Inc. filed a motion to quash the subpoena and a motion for interlocutory appeal of the ruling that granted the issuance of the subpoena. Babel - Webre 500 kV Transmission Project As discussed in the Form 10-K, in December 2025, Entergy Louisiana filed an application with the LPSC seeking a certificate of public convenience and necessity for a 500 kV transmission project that includes the construction of a new 147-mile Babel to Webre 500 kV transmission line, the reconstruction of the Webre 500 kV switching station in Louisiana, and coordination with Entergy Texas on the construction of an approximately 4-mile 500 kV transmission line in Texas. The project was approved by MISO in the 2025 MISO Transmission Expansion Plan and has an estimated cost of $1,238 million and an estimated in-service date of August 2029. In May 2026 the LPSC staff and the Southern Renewable Energy Association (SREA), an intervenor, filed direct testimony. The LPSC staff’s testimony and SREA’s testimony recommended that the LPSC find the project to be in the public 15 Table of Contents Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis interest and grant certification under the LPSC’s general order on transmission siting. A hearing is scheduled for September 2026. Waterford 6 Power Station and Westlake Power Station As discussed in the Form 10-K, in February 2026, Entergy Louisiana filed an application seeking LPSC approval and certification to construct two 754 MW combined cycle combustion turbine generators, the Waterford 6 Power Station and the Westlake Power Station, to be located at Entergy Louisiana’s existing Waterford site near Killona, Louisiana and existing Roy S. Nelson site in Westlake, Louisiana, respectively. In its application, Entergy Louisiana noted the estimated costs are approximately $2,027 million for the Waterford 6 Power Station and $2,091 million for the Westlake Power Station. As described in the application, Entergy Louisiana is considering a third-party financing approach for the Waterford 6 Power Station. A procedural schedule has been set with hearings scheduled in October and November 2026. Entergy Louisiana asked that the LPSC consider the requests in the application at or before its December 2026 meeting. The estimated in-service dates for the Waterford 6 Power Station and Westlake Power Station are July 2030 and October 2030, respectively. Cottonwood Power Station As discussed in the Form 10-K, in December 2025, Entergy Louisiana filed an application seeking LPSC approval and a certificate of convenience and necessity to acquire the Cottonwood combined cycle combustion turbine facility, a 1,263 MW combined cycle facility in Deweyville, Texas that was originally placed in commercial service in 2003. The filing seeks findings from the LPSC that the costs of the acquisition, including the approximately $1.5 billion purchase price and $309.3 million in capital upgrades and maintenance items needed to bring the Cottonwood facility into alignment with Entergy Louisiana’s fleet standards with respect to operations and safety, are eligible for recovery in customer rates. In June 2026 the LPSC staff filed direct testimony raising various concerns and objections to the proposed transaction as presented in Entergy Louisiana’s application. The LPSC staff asserts that the need for the Cottonwood facility is driven predominantly by loads associated with certain large data center projects and opines that the costs and future operational risks of the Cottonwood facility should be borne by these customers in particular, not Entergy Louisiana’s customers generally. The LPSC staff’s direct testimony also raises issues regarding the acquisition premium, potential stranded costs, and future operating risks associated with the Cottonwood facility. Discovery is ongoing, and Entergy Louisiana filed rebuttal testimony in July 2026. A hearing is scheduled for September 2026 and Entergy Louisiana’s application requests an LPSC decision by October 2026. The acquisition is currently targeted to close in January 2027, subject to regulatory approvals and other conditions to closing. Entergy Mississippi Additional Generation and Transmission Resources As discussed in the Form 10-K, in March 2024, Entergy Mississippi executed a large customer supply and service agreement to serve two data center campuses located in Madison County, Mississippi in which Amazon Web Services is investing. In February 2025, Entergy Mississippi executed a large customer supply and service agreement to serve a data center campus located in Warren County, Mississippi in which Amazon Web Services is investing. In April 2026, Amazon Web Services announced the expansion of the data center campuses located in Madison County, Mississippi. The February 2025 agreement will serve this expansion. Also, in April 2026, Entergy Mississippi executed a large customer supply and service agreement to serve a data center campus located in Hinds County, Mississippi in which Amazon Web Services is investing. Consistent with Entergy Mississippi’s Fair Share Plus guidelines, the large customer supply and service agreements are structured to ensure that the customer pays its incremental cost to serve and includes protections in the event of early termination. Dividends Declarations of dividends on Entergy Corporation common stock are made at the discretion of the Board. Among other things, the Board evaluates the level of Entergy Corporation common stock dividends based 16 Table of Contents Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis upon earnings per share from the Utility segment and the Parent and Other portion of the business, financial strength, and future investment opportunities. In July 2026 the Board declared a dividend of $0.64 per share. Cash Flow Activity As shown in Entergy’s Consolidated Statements of Cash Flows, cash flows for the six months ended June 30, 2026 and 2025 were as follows: 2026 2025 (In Millions) Cash and cash equivalents at beginning of period $1,929 $860 Net cash provided by (used in): Operating activities 2,722 1,798 Investing activities (5,093) (3,741) Financing activities 4,296 2,259 Net increase in cash and cash equivalents 1,925 316 Cash and cash equivalents at end of period $3,854 $1,176 Operating Activities Net cash flow provided by operating activities increased $924 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily d ue to an increase of $700 million in receipts of advance payments related to customer agreements, including $599 million in customer advances and $101 million in tax gross-up on customer advances for construction, higher collections from Utility customers, and the timing of recovery of fuel and purchased power costs. The increase was partially offset by higher fuel and purchased power payments, the timing of payments to vendors, and an increase of $36 million in interest paid. See Note 2 to the financial statements herein and in the Form 10-K for a discussion of fuel and purchased power cost recovery. Investing Activities Net cash flow used in investing activities increased $1,352 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to: • an increase of $804 million in non-nuclear generation construction expenditures primarily due to higher spending by Entergy Arkansas on the Jefferson Power Station project, the Cypress Solar project, and the Ironwood Power Station project, by Entergy Louisiana on the Richland Parish Power Station Units 1-4 project, the Pointe Coupee Units 1-3 project, the Waterford 6 Power Station project, the Waterford 5 Power Station project, and the Westlake Power Station project, and by Entergy Mississippi on the Traceview Advanced Power Station project; partially offset by lower spending by Entergy Texas on the Legend Power Station project as a result of the sale of assets related to the in-process project in December 2025 and lower spending on the Orange County Advanced Power Station project in 2026. See Note 8 to the financial statements in the Form 10-K for discussion of the Entergy Texas build-to-suit lease arrangement for the Legend Power Station; • an increase of $297 million in capital expenditures related to storm restoration primarily due to Winter Storm Fern restoration efforts in 2026. See “ Winter Storm Fern ” above for discussion of storm restoration efforts in 2026; • an increase of $228 million in transmission construction expenditures primarily due to higher spending by Entergy Louisiana on the Amite South transmission projects and increased spending on various other Utility transmission projects; 17 Table of Contents Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis • an increase of $71 million in nuclear fuel purchases due to variations from year to year in the timing and pricing of fuel reload requirements, materials and services deliveries, and the timing of cash payments during the nuclear fuel cycle; and • payments to storm reserve escrow accounts of $6 million in 2026 compared to net receipts from storm reserve escrow accounts of $37 million in 2025. The increase was partially offset by a decrease of $69 million in cash collateral posted to support Entergy Louisiana’s, Entergy Arkansas’s, and Entergy Mississippi’s obligations to MISO in 2026. Financing Activities Net cash flow provided by financing activities increased $2,037 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to: • net issuances of $912 million of commercial paper in 2026 as compared to net repayments of $452 million of commercial paper in 2025; • long-term debt activity providing approximately $2,761 million of cash in 2026 compared to providing approximately $1,918 million of cash in 2025; and • $1,017 million in net proceeds from the issuance of common stock in forward contracts under the at the market equity distribution program and the settlement of equity forward sale agreements in 2026 compared to $805 million in net proceeds from the issuance of common stock under the at the market equity distribution program in 2025. The increase was partially offset by: • a $248 million payment by Entergy Texas in June 2026 associated with a financed portion of construction work in progress related to the Orange County Advanced Power Station; • an increase of $69 million in common stock dividends paid in 2026 as compared to 2025 as a result of an increase in the dividend paid per share and an increase in the number of shares outstanding; and • a decrease of $37 million in net customer advances for construction related to transmission, distribution, and generator interconnection agreements. See Note 3 to the financial statements herein and Note 7 to the financial statements in the Form 10-K for discussion of the equity issuances, the equity distribution program, and the equity forward sale agreements. See Note 4 to the financial statements herein and Notes 4 and 5 to the financial statements in the Form 10-K for details of Entergy’s commercial paper program and long-term debt. Industrial and Commercial Customers See “ MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Industrial and Commercial Customers ” in the Form 10-K for a discussion of industrial and commercial customers. Rate, Cost-recovery, and Other Regulation See “ MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Rate, Cost-recovery, and Other Regulation ” in the Form 10-K for discussions of rate regulation, federal regulation, and related regulatory proceedings. State and Local Rate Regulation and Fuel-Cost Recovery See Note 2 to the financial statements herein for updates to the discussion in the Form 10-K regarding these proceedings. 18 Table of Contents Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis Federal Regulation See Note 2 to the financial statements herein for updates to the discussion in the Form 10-K regarding federal regulatory proceedings. Market and Credit Risk Sensitive Instruments See “ MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Market and Credit Risk Sensitive Instruments ” in the Form 10-K for a discussion of market and credit risk sensitive instruments. The following are updates to that discussion. Some of the agreements to sell the power produced by Entergy’s non-utility operations business contain provisions that require an Entergy subsidiary to provide credit support to secure its obligations under such agreements. The primary form of credit support used to satisfy these requirements is an Entergy Corporation guarantee. Cash and letters of credit are also acceptable forms of credit support. At June 30, 2026, based on power prices at that time, Entergy had $4 million of posted cash collateral. In addition to the ability to post cash collateral, each of the Utility operating companies has uncommitted standby letter of credit facilities as a means to post collateral to support its obligations to MISO and for other purposes. See Note 4 to the financial statements herein for discussion of these letter of credit facilities. As of June 30, 2026, Entergy Louisiana had $19 million of posted cash collateral and Entergy Mississippi had $15 million of posted cash collateral. Nuclear Matters See “ MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Nuclear Matters ” in the Form 10-K for a discussion of nuclear matters. The following are updates to that discussion. NRC Reactor Oversight Process The NRC’s Reactor Oversight Process is a program to collect information about plant performance, assess the information for its safety significance, and provide for appropriate licensee and NRC response. The NRC evaluates plant performance by analyzing two distinct inputs: inspection findings resulting from the NRC’s inspection program and performance indicators reported by the licensee. The evaluations result in the placement of each plant in one of the NRC’s Reactor Oversight Process Action Matrix columns: “licensee response column,” or Column 1, “regulatory response column,” or Column 2, “degraded cornerstone column,” or Column 3, “multiple/repetitive degraded cornerstone column,” or Column 4, and “unacceptable performance,” or Column 5. Plants in Column 1 are subject to normal NRC inspection activities. Plants in Column 2, Column 3, or Column 4 are subject to progressively increasing levels of inspection by the NRC with, in general, progressively increasing levels of associated costs. Continued plant operation is not permitted for plants in Column 5. All of the nuclear generating plants owned and operated by Entergy’s Utility business are currently in Column 1, except Grand Gulf, which is in Column 2. In April 2026 the NRC issued a final significance determination and notice of violation for Grand Gulf, in which it finalized a “white” finding with “low safety significance” related to one of Grand Gulf’s emergency diesel generators, resulting in Grand Gulf’s placement in Column 2, effective first quarter 2026.  Grand Gulf will remain in Column 2 until the satisfactory completion of an NRC supplemental inspection. In July 2026 the NRC issued an inspection report for River Bend, in which it identified a preliminary “white” finding with “low safety significance” related to one of the service water pumps at River Bend. The NRC is continuing its evaluation of the issue and is expected to complete its determination during third quarter 2026. If 19 Table of Contents Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis the NRC’s review results in a final “white” finding, River Bend would be placed in Column 2 and would remain in Column 2 until the satisfactory completion of an NRC supplemental inspection. Critical Accounting Estimates See “ MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates ” in the Form 10-K for a discussion of the estimates and judgments necessary in Entergy’s accounting for nuclear decommissioning costs, utility regulatory accounting, taxation and uncertain tax positions, qualified pension and other postretirement benefits, and other contingencies. New Accounting Pronouncements See Note 1 to the financial statements in the Form 10-K for discussion of new accounting pronouncements. The following is an update to that discussion. In May 2026 the FASB issued ASU 2026-02, “Environmental Credits and Environmental Credit Obligations (Topic 818),” which establishes guidance on recognition, measurement, presentation, and disclosure requirements for environmental credits and environmental credit obligations. The ASU requires an entity to recognize an environmental credit as an asset when it is probable that the environmental credit will be (1) used to settle an environmental credit obligation, (2) transferred in an exchange transaction, or (3) used in a nonreciprocal transfer. An environmental credit obligation is required to be recognized when an event occurring on or before the reporting date results in an environmental credit obligation under existing or enacted regulation. The ASU also requires various disclosures related to environmental credits and environmental credit obligations, including how credits are obtained and used, the nature of applicable regulatory compliance programs and related accounting policies, and financial statement impact. ASU 2026-02 is effective for Entergy beginning first quarter 2028. Entergy does not expect ASU 2026-02 to materially affect its results of operations, financial positions, or cash flows. 20 Table of Contents ENTERGY CORPORATION AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS For the Three and Six Months Ended June 30, 2026 and 2025 (Unaudited) Three Months Ended Six Months Ended 2026 2025 2026 2025 (In Thousands, Except Share Data) OPERATING REVENUES Electric $ 3,513,488 $ 3,274,945 $ 6,683,761 $ 6,032,811 Natural gas — 40,778 — 112,509 Other 10,150 13,126 27,503 30,403 TOTAL 3,523,638 3,328,849 6,711,264 6,175,723 OPERATING EXPENSES Operation and Maintenance: Fuel, fuel-related expenses, and gas purchased for resale 759,343 636,274 1,371,167 980,796 Purchased power 307,243 376,105 670,286 721,851 Nuclear refueling outage expenses 28,433 29,613 52,576 62,654 Other operation and maintenance 771,418 724,463 1,444,983 1,397,130 Asset write-offs, impairments, and related charges — — 18,059 — Decommissioning 59,523 56,569 118,341 112,498 Taxes other than income taxes 214,770 201,774 421,294 400,539 Depreciation and amortization 548,179 522,583 1,088,308 1,035,526 Other regulatory charges (credits) - net ( 15,360 ) ( 55,957 ) 103,939 ( 72,800 ) TOTAL 2,673,549 2,491,424 5,288,953 4,638,194 OPERATING INCOME 850,089 837,425 1,422,311 1,537,529 OTHER INCOME Allowance for equity funds used during construction 54,741 51,305 102,081 95,323 Interest and investment income 174,908 87,419 390,718 120,825 Miscellaneous - net ( 49,987 ) ( 43,722 ) ( 27,024 ) ( 28,996 ) TOTAL 179,662 95,002 465,775 187,152 INTEREST EXPENSE Interest expense 433,114 343,067 833,030 691,451 Allowance for borrowed funds used during construction ( 22,861 ) ( 20,993 ) ( 43,037 ) ( 39,586 ) TOTAL 410,253 322,074 789,993 651,865 INCOME BEFORE INCOME TAXES 619,498 610,353 1,098,093 1,072,816 Income taxes 131,678 138,399 219,468 238,440 CONSOLIDATED NET INCOME 487,820 471,954 878,625 834,376 Preferred dividend requirements of subsidiaries and noncontrolling interests 5,213 4,024 11,102 5,686 NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION $ 482,607 $ 467,930 $ 867,523 $ 828,690 Earnings per average common share: Basic $ 1.05 $ 1.07 $ 1.90 $ 1.91 Diluted $ 1.03 $ 1.05 $ 1.87 $ 1.87 Basic average number of common shares outstanding 458,745,729 439,182,369 457,240,145 434,789,473 Diluted average number of common shares outstanding 466,308,890 445,700,889 464,415,110 443,446,875 See Notes to Financial Statements. 21 Table of Contents (Page left blank intentionally) 22 Table of Contents ENTERGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Three and Six Months Ended June 30, 2026 and 2025 (Unaudited) Three Months Ended Six Months Ended 2026 2025 2026 2025 (In Thousands) Net Income $ 487,820 $ 471,954 $ 878,625 $ 834,376 Other comprehensive income (loss) Pension and other postretirement plan changes (net of tax expense (benefit) of ($ 617 ), ($ 1,411 ), $ 420 , and ($ 3,695 )) ( 1,995 ) ( 4,602 ) 1,916 ( 8,331 ) Other comprehensive income (loss) ( 1,995 ) ( 4,602 ) 1,916 ( 8,331 ) Comprehensive Income 485,825 467,352 880,541 826,045 Preferred dividend requirements of subsidiaries and noncontrolling interests 5,213 4,024 11,102 5,686 Comprehensive Income Attributable to Entergy Corporation $ 480,612 $ 463,328 $ 869,439 $ 820,359 See Notes to Financial Statements. 23 Table of Contents ENTERGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2026 and 2025 (Unaudited) 2026 2025 (In Thousands) OPERATING ACTIVITIES Consolidated net income $ 878,625 $ 834,376 Adjustments to reconcile consolidated net income to net cash flow provided by operating activities: Depreciation, amortization, and decommissioning, including nuclear fuel amortization 1,326,139 1,255,204 Deferred income taxes, tax credits, and non-current taxes accrued 220,890 231,274 Asset write-offs, impairments, and related charges 18,059 — Changes in working capital: Receivables ( 225,491 ) ( 275,045 ) Fuel inventory ( 5,679 ) ( 4,852 ) Accounts payable 134,118 ( 53,439 ) Taxes accrued 12,201 11,230 Interest accrued 45,508 22,867 Deferred fuel costs ( 131,572 ) ( 263,205 ) Customer advances - current 740,977 303,791 Other working capital accounts ( 118,766 ) ( 58,819 ) Changes in provisions for estimated losses ( 23,610 ) ( 38,444 ) Changes in other regulatory assets 134,270 174,523 Changes in other regulatory liabilities 32,992 20,040 Changes in customer advances - non-current 135,298 25,000 Changes in pension and other postretirement funded status ( 105,395 ) ( 104,968 ) Other ( 346,811 ) ( 281,743 ) Net cash flow provided by operating activities 2,721,753 1,797,790 INVESTING ACTIVITIES Construction/capital expenditures ( 5,030,819 ) ( 3,668,326 ) Allowance for equity funds used during construction 102,081 83,161 Nuclear fuel purchases ( 199,768 ) ( 129,124 ) Payment for purchase of plant ( 263 ) ( 1,608 ) Insurance proceeds received for property damages 14,282 — Changes in securitization account 215 3,309 Payments to storm reserve escrow accounts ( 5,551 ) ( 6,808 ) Receipts from storm reserve escrow accounts — 43,789 Decrease (increase) in other investments 65,548 ( 1,659 ) Litigation proceeds for reimbursement of spent nuclear fuel storage costs — 3,546 Proceeds from nuclear decommissioning trust fund sales 1,548,167 713,102 Investment in nuclear decommissioning trust funds ( 1,586,838 ) ( 780,211 ) Net cash flow used in investing activities ( 5,092,946 ) ( 3,740,829 ) See Notes to Financial Statements. 24 Table of Contents ENTERGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2026 and 2025 (Unaudited) 2026 2025 (In Thousands) FINANCING ACTIVITIES Proceeds from the issuance of: Long-term debt 4,625,848 3,517,949 Treasury stock 11,534 24,539 Common stock 1,017,171 804,631 Retirement of long-term debt ( 1,864,866 ) ( 1,599,728 ) Changes in commercial paper - net 911,722 ( 451,686 ) Customer advances received for construction 885,867 732,454 Customer advances used for construction ( 436,221 ) ( 245,481 ) Other ( 259,675 ) 2,164 Dividends paid: Common stock ( 585,899 ) ( 516,716 ) Preferred stock ( 9,159 ) ( 9,159 ) Net cash flow provided by financing activities 4,296,322 2,258,967 Net increase in cash and cash equivalents 1,925,129 315,928 Cash and cash equivalents at beginning of period 1,928,916 859,703 Cash and cash equivalents at end of period $ 3,854,045 $ 1,175,631 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid (received) during the period for: Interest - net of amount capitalized $ 683,997 $ 647,900 Income taxes - net ($ 2,301 ) $ 2,487 Noncash investing activities: Accrued construction expenditures $ 1,002,641 $ 576,992 See Notes to Financial Statements. 25 Table of Contents ENTERGY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ASSETS June 30, 2026 and December 31, 2025 (Unaudited) 2026 2025 (In Thousands) CURRENT ASSETS Cash and cash equivalents: Cash $ 118,189 $ 45,895 Temporary cash investments 3,735,856 1,883,021 Total cash and cash equivalents 3,854,045 1,928,916 Accounts receivable: Customer 872,618 735,734 Allowance for doubtful accounts ( 29,436 ) ( 32,324 ) Other 230,059 242,402 Accrued unbilled revenues 635,234 524,420 Total accounts receivable 1,708,475 1,470,232 Deferred fuel costs 192,004 54,133 Fuel inventory - at average cost 137,653 131,974 Materials and supplies 1,784,544 1,710,395 Deferred nuclear refueling outage costs 125,220 86,497 Prepayments and other 402,260 424,704 TOTAL 8,204,201 5,806,851 OTHER PROPERTY AND INVESTMENTS Decommissioning trust funds 6,722,325 6,300,880 Non-utility property - at cost (less accumulated depreciation) 479,919 481,590 Storm reserve escrow accounts 314,335 308,784 Other 128,794 124,414 TOTAL 7,645,373 7,215,668 PROPERTY, PLANT, AND EQUIPMENT Electric 76,545,871 74,750,917 Construction work in progress 9,018,853 6,020,008 Nuclear fuel 809,430 834,690 TOTAL PROPERTY, PLANT, AND EQUIPMENT 86,374,154 81,605,615 Less - accumulated depreciation and amortization 29,250,718 28,751,001 PROPERTY, PLANT, AND EQUIPMENT - NET 57,123,436 52,854,614 DEFERRED DEBITS AND OTHER ASSETS Regulatory assets: Other regulatory assets (includes securitization property of $ 208,212 as of June 30, 2026 and $ 216,107 as of December 31, 2025) 4,871,706 5,005,976 Deferred fuel costs 172,201 172,201 Goodwill 367,582 367,582 Accumulated deferred income taxes 29,719 15,540 Other 588,400 452,298 TOTAL 6,029,608 6,013,597 TOTAL ASSETS $ 79,002,618 $ 71,890,730 See Notes to Financial Statements. 26 Table of Contents ENTERGY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS LIABILITIES AND EQUITY June 30, 2026 and December 31, 2025 (Unaudited) 2026 2025 (In Thousands) CURRENT LIABILITIES Currently maturing long-term debt $ 1,510,174 $ 2,375,140 Notes payable and commercial paper 1,569,496 657,774 Accounts payable 2,716,222 2,565,546 Customer deposits 491,361 479,796 Taxes accrued 537,390 525,189 Interest accrued 331,165 285,657 Deferred fuel costs 20,861 14,562 Pension and other postretirement liabilities 61,365 63,214 Customer advances 1,470,056 632,850 Other 290,501 223,240 TOTAL 8,998,591 7,822,968 NON-CURRENT LIABILITIES Accumulated deferred income taxes and taxes accrued 5,875,664 5,592,681 Accumulated deferred investment tax credits 183,073 187,173 Regulatory liability for income taxes - net 1,034,742 1,079,699 Other regulatory liabilities 3,989,788 3,911,839 Customer advances 170,298 35,000 Decommissioning and asset retirement cost liabilities 5,063,544 4,947,530 Accumulated provisions 472,169 495,779 Pension and other postretirement liabilities 88,612 113,930 Long-term debt (includes securitization bonds of $ 212,647 as of June 30, 2026 and $ 221,139 as of December 31, 2025) 31,547,652 27,902,021 Customer advances for construction 2,086,359 1,615,455 Other 952,030 953,078 TOTAL 51,463,931 46,834,185 Commitments and Contingencies Subsidiaries ’ preferred stock without sinking fund 219,410 219,410 EQUITY Preferred stock, no par value, authorized 1,000,000 shares in 2026 and 2025; issued shares in 2026 and 2025 - none — — Common stock, $ 0.01 par value, authorized 998,000,000 shares in 2026 and 2025; issued 596,525,807 shares in 2026 and 583,203,774 shares in 2025 5,965 5,832 Paid-in capital 9,966,490 8,979,387 Retained earnings 12,980,060 12,698,436 Accumulated other comprehensive loss ( 1,090 ) ( 3,006 ) Less - treasury stock, at cost ( 129,894,309 shares in 2026 and 130,864,409 shares in 2025) 4,722,305 4,757,573 Total shareholders ’ equity 18,229,120 16,923,076 Subsidiaries ’ preferred stock without sinking fund and noncontrolling interests 91,566 91,091 TOTAL 18,320,686 17,014,167 TOTAL LIABILITIES AND EQUITY $ 79,002,618 $ 71,890,730 See Notes to Financial Statements. 27 Table of Contents ENTERGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the Six Months Ended June 30, 2026 (Unaudited) Shareholders’ Equity Subsidiaries’ Preferred Stock and Noncontrolling Interests Common Stock Treasury Stock Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total (In Thousands) Balance at December 31, 2025 $ 91,091 $ 5,832 ($ 4,757,573 ) $ 8,979,387 $ 12,698,436 ($ 3,006 ) $ 17,014,167 Consolidated net income (a) 5,889 — — — 384,916 — 390,805 Other comprehensive income — — — — — 3,911 3,911 Common stock issuances and sales under the at the market equity distribution program — 46 — 349,672 — — 349,718 Common stock issuance costs — — — ( 4,007 ) — — ( 4,007 ) Common stock issuances related to stock plans — — 31,953 ( 49,959 ) — — ( 18,006 ) Common stock dividends declared — — — — ( 292,867 ) — ( 292,867 ) Distributions to noncontrolling interests ( 998 ) — — — — — ( 998 ) Preferred dividend requirements of subsidiaries (a) ( 4,580 ) — — — — — ( 4,580 ) Balance at March 31, 2026 91,402 5,878 ( 4,725,620 ) 9,275,093 12,790,485 905 17,438,143 Consolidated net income (a) 5,213 — — — 482,607 — 487,820 Other comprehensive loss — — — — — ( 1,995 ) ( 1,995 ) Common stock issuances and sales under the at the market equity distribution program — 21 — 127,364 — — 127,385 Common stock issuances from settlement of equity forward sale agreements — 66 — 556,664 — — 556,730 Common stock issuance costs — — — ( 12,656 ) — — ( 12,656 ) Common stock issuances related to stock plans — — 3,315 20,025 — — 23,340 Common stock dividends declared — — — — ( 293,032 ) — ( 293,032 ) Distributions to noncontrolling interests ( 469 ) — — — — — ( 469 ) Preferred dividend requirements of subsidiaries (a) ( 4,580 ) — — — — — ( 4,580 ) Balance at June 30, 2026 $ 91,566 $ 5,965 ($ 4,722,305 ) $ 9,966,490 $ 12,980,060 ($ 1,090 ) $ 18,320,686 See Notes to Financial Statements. (a) Consolidated net income and preferred dividend requirements of subsidiaries for first quarter 2026 and second quarter 2026 each includes $ 4 million of preferred dividends on subsidiaries’ preferred stock without sinking fund that is not presented as equity. 28 Table of Contents ENTERGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the Six Months Ended June 30, 2025 (Unaudited) Shareholders’ Equity Subsidiaries' Preferred Stock and Noncontrolling Interests Common Stock Treasury Stock Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income Total (In Thousands) Balance at December 31, 2024 $ 101,076 $ 5,620 ($ 4,812,321 ) $ 7,833,525 $ 12,014,315 $ 42,769 $ 15,184,984 Consolidated net income (a) 1,662 — — — 360,760 — 362,422 Other comprehensive loss — — — — — ( 3,729 ) ( 3,729 ) Common stock issuances related to stock plans — — 43,398 ( 40,777 ) — — 2,621 Common stock dividends declared — — — — ( 258,249 ) — ( 258,249 ) Distributions to noncontrolling interests ( 1,069 ) — — — — — ( 1,069 ) Preferred dividend requirements of subsidiaries (a) ( 4,580 ) — — — — — ( 4,580 ) Balance at March 31, 2025 97,089 5,620 ( 4,768,923 ) 7,792,748 12,116,826 39,040 15,282,400 Consolidated net income (a) 4,024 — — — 467,930 — 471,954 Other comprehensive loss — — — — — ( 4,602 ) ( 4,602 ) Common stock issuances and sales under the at the market equity distribution program — 155 — 813,716 — — 813,871 Common stock issuance costs — — — ( 9,240 ) — — ( 9,240 ) Common stock issuances related to stock plans — — 2,708 15,489 — — 18,197 Common stock dividends declared — — — — ( 258,467 ) — ( 258,467 ) Distributions to noncontrolling interests ( 593 ) — — — — — ( 593 ) Preferred dividend requirements of subsidiaries (a) ( 4,580 ) — — — — — ( 4,580 ) Balance at June 30, 2025 $ 95,940 $ 5,775 ($ 4,766,215 ) $ 8,612,713 $ 12,326,289 $ 34,438 $ 16,308,940 See Notes to Financial Statements. (a) Consolidated net income and preferred dividend requirements of subsidiaries for first quarter 2025 and second quarter 2025 each includes $ 4 million of preferred dividends on subsidiaries’ preferred stock without sinking fund that is not presented as equity. 29 Table of Contents ENTERGY CORPORATION AND SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS (Unaudited) NOTE 1. COMMITMENTS AND CONTINGENCIES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy and the Registrant Subsidiaries are involved in a number of legal, regulatory, and tax proceedings before various courts, regulatory authorities, and governmental agencies in the ordinary course of business. While management is unable to predict with certainty the outcome of such proceedings, management does not believe that the ultimate resolution of these matters will have a material adverse effect on Entergy’s results of operations, cash flows, or financial condition, except as otherwise discussed in the Form 10-K or in this report. Entergy discusses regulatory proceedings in Note 2 to the financial statements in the Form 10-K and herein and discusses tax proceedings in Note 3 to the financial statements in the Form 10-K and Note 10 to the financial statements herein. Vidalia Purchased Power Agreement See Note 8 to the financial statements in the Form 10-K for information on Entergy Louisiana’s Vidalia purchased power agreement. Spent Nuclear Fuel Litigation See Note 8 to the financial statements in the Form 10-K for information on Entergy’s spent nuclear fuel litigation. Nuclear Insurance See Note 8 to the financial statements in the Form 10-K for information on nuclear liability and property insurance associated with Entergy’s nuclear power plants. Non-Nuclear Property Insurance See Note 8 to the financial statements in the Form 10-K for information on Entergy’s non-nuclear property insurance program. Employment and Labor-related Proceedings See Note 8 to the financial statements in the Form 10-K for information on Entergy’s employment and labor-related proceedings. Asbestos Litigation (Entergy Arkansas, Entergy Louisiana, Entergy New Orleans, and Entergy Texas) See Note 8 to the financial statements in the Form 10-K for information regarding asbestos litigation. Grand Gulf-Related Agreements See Note 8 to the financial statements in the Form 10-K for information regarding Grand Gulf-related agreements, including the Unit Power Sales Agreement and the Availability Agreement. 30 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements Exclusivity Agreement with Major Vendor See Note 8 to the financial statements in the Form 10-K for information regarding Entergy’s exclusivity agreement with a major vendor. The following is an update to that discussion. As discussed in the Form 10-K, Entergy entered into an exclusivity agreement with a major vendor to manufacture power island equipment (PIE) and combustion turbines (CT) for combustion turbine generator set frames larger than 400 MWs. The agreement was amended in second quarter 2026, updating the minimum order commitment of PIE to 27 sets, with no change to the original commitment of a minimum order of two CTs. As of June 30, 2026, 10 sets of PIE and two CT slots of the minimum commitment have been fulfilled. Entergy Texas Build-to-Suit Lease Arrangement for the Legend Power Station See Note 8 to the financial statements in the Form 10-K for information regarding the Entergy Texas build-to-suit lease arrangement for the Legend Power Station. NOTE 2. RATE AND REGULATORY MATTERS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Regulatory Assets and Regulatory Liabilities See Note 2 to the financial statements in the Form 10-K for information regarding regulatory assets and regulatory liabilities in the Utility business presented on the balance sheets of Entergy and the Registrant Subsidiaries. The following are updates to that discussion. Fuel and purchased power cost recovery Entergy Arkansas Energy Cost Recovery Rider In March 2026, Entergy Arkansas filed its annual redetermination of its energy cost rate pursuant to the energy cost recovery rider, which reflected an increase in the rate from $ 0.01333 per kWh to $ 0.01508 per kWh. The primary reason for the rate increase was an under-recovered balance as a result of higher natural gas prices in 2025. Based on circumstances related to ANO 2’s refueling outage, Entergy Arkansas made an adjustment to projected energy costs to phase-in the rate increase gradually. The redetermined rate of $ 0.01508 per kWh became effective with the first billing cycle in April 2026 through the normal operation of the tariff. Entergy Louisiana As discussed in the Form 10-K, in June 2025 the LPSC staff provided notice of an audit of Entergy Louisiana’s purchased gas adjustment clause filings (for Entergy Louisiana’s gas operations). The audit includes a review of the reasonableness of charges flowed through Entergy Louisiana’s purchased gas adjustment clause for the period from January 2023 through June 2025. The LPSC staff issued its audit report in March 2026. The next step is for the LPSC to issue its final report, but there is no deadline or timing requirement associated with the issuance of the final report. In February 2026, Entergy Louisiana, in its monthly filing to update its fuel adjustment clause, requested to defer approximately $ 141.9 million of fuel costs incurred in January 2026 that were primarily attributable to the effects of Winter Storm Fern, consistent with the LPSC’s general order approved at its February 2026 meeting permitting temporary modifications to the LPSC’s fuel adjustment clause general order. The filing proposed to 31 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements defer the recovery of these fuel costs over a four-month period from March 2026 through June 2026 to mitigate the customer bill impacts of these fuel costs. In March 2026 the LPSC issued a special order delegating authority to the LPSC executive secretary to review and approve utility-specific requests for deferral of fuel costs from Winter Storm Fern, subject to audit as per the LPSC’s fuel clause general order. In April 2026 the LPSC executive secretary approved Entergy Louisiana’s request for deferral. In April 2026 the LPSC staff provided notice of an audit of Entergy Louisiana’s fuel adjustment clause filings. The audit includes a review of the reasonableness of charges flowed through Entergy Louisiana’s fuel adjustment clause for the period from 2023 through 2025. Discovery is ongoing, and no audit report has been filed. Retail Rate Proceedings See Note 2 to the financial statements in the Form 10-K for information regarding retail rate proceedings involving the Utility operating companies. The following are updates to that discussion. Filings with the APSC (Entergy Arkansas) Retail Rates 2026 Base Rate Case In February 2026, Entergy Arkansas filed with the APSC a general change in rates, charges, and tariffs. The filing requested a base rate increase to recover a base rate revenue deficiency of $ 44.6 million and notified the APSC of Entergy Arkansas’s intent to implement a forward test year formula rate plan pursuant to Arkansas legislation passed in 2015. The primary drivers of the revenue deficiency were increased depreciation expense and the impact of net capital additions. Additionally, the filing requested a 9.90 % return on common equity and increased depreciation rates as the result of a depreciation study. In March 2026 the APSC issued an order suspending the proposed rates and tariffs filed by Entergy Arkansas. In June 2026 the APSC established a procedural schedule with an evidentiary hearing scheduled to begin in November 2026, and in July 2026 a number of intervenors moved to modify the schedule to conduct additional discovery. Entergy Arkansas opposed the motion in part based on the voluminous discovery conducted to date. 2026 Formula Rate Plan Filing In July 2026, Entergy Arkansas filed with the APSC its 2026 formula rate plan filing to set its formula rate for the 2027 calendar year. The filing contained an evaluation of Entergy Arkansas’s earnings and a netting adjustment for the 2025 historical year. The filing showed that Entergy Arkansas’s earned rate of return on common equity for the 2025 historical year was 8.8 %, resulting in a $ 47.2 million formula rate plan revenue increase to produce a 9.65 % earned rate of return on common equity. When combined with 2025 historical year formula rate plan revenues of $ 56.0 million, the total proposed revenue change for the 2025 historical year netting adjustment is a reduction of $ 8.8 million. By operation of the formula rate plan, Entergy Arkansas’s recovery of the revenue requirement is subject to a four percent annual revenue constraint. Entergy Arkansas’s revenue requirement in this filing did not exceed the constraint. In second quarter 2026, Entergy Arkansas recorded a regulatory liability of $ 8.8 million to reflect the amount of the 2025 historical year netting adjustment that it collected from customers during the 2025 rate effective period. Generating Arkansas Jobs Act Rider In March 2026, Entergy Arkansas filed its first annual update to the strategic investment recovery rider, requesting recovery of $ 110.4 million of financing costs during construction of generation and transmission strategic investments related to Ironwood Power Station, Jefferson Power Station, and the Arkansas Cypress Solar facility. The revised rates were requested to be effective with the first billing cycle of June 2026. In April 2026 the 32 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements APSC general staff filed testimony arguing that the APSC had not issued an order designating Ironwood Power Station as a strategic investment and that related costs should therefore be removed from the annual update. Also in April 2026, Entergy Arkansas filed testimony asserting that the APSC general staff’s position is contrary to the plain language of the statute, which includes an exception for facilities like Ironwood Power Station that were certified by the APSC within a certain timeframe. A hearing was held in April 2026. In June 2026 the APSC approved Entergy Arkansas’s annual update, and rates became effective June 4, 2026. Production Tax Credit Tariffs As discussed in Note 3 to the financial statements in the Form 10-K, in January 2026 the APSC opened a docket to investigate the sale of Entergy Arkansas’s nuclear production tax credits and the appropriate ratemaking treatment of production tax credits for all of Entergy Arkansas’s eligible resources, including how the proceeds of any sales should flow through to customers. For nuclear production tax credits, Entergy Arkansas proposed a nuclear production tax credit rider, which would provide for the immediate flow through to customers of the weighted average cost of capital return on the net proceeds of the monetized nuclear production tax credits. Recognizing that the timing and determination from the IRS is uncertain, the nuclear production tax credit rider also proposes that, if there is an unfavorable IRS determination, Entergy Arkansas would collect applicable costs from customers. As directed by the APSC, in February 2026, Entergy Arkansas submitted a compliance filing to the APSC verifying the status of the solar production tax credits. The filing also verified that the net proceeds from the sale of the nuclear production tax credits were recorded in FERC accounts that are accruing a return for customers’ benefit at a rate that is above the customer deposit rate. Subsequently, in March 2026, Entergy Arkansas filed testimony setting forth its proposal for the solar production tax credits. Specifically, Entergy Arkansas requested the same ratemaking treatment for all of the solar facilities that the APSC already approved for Walnut Bend (i.e., the total net monetized proceeds from production tax credits expected to be generated over the first ten years of a solar facility’s operation are estimated and then amortized over the expected useful life of the asset, which is typically 30 years). Additionally, consistent with prior orders for these resources, the regulatory liabilities associated with the net cash proceeds from monetized solar production tax credits will be included in Entergy Arkansas’s calculation of its weighted average cost of capital providing a return on the unamortized balance for the benefit of customers. Further, Entergy Arkansas proposes to flow the benefits of the solar production tax credits to customers through Entergy Arkansas’s formula rate plan, effective with the formula rate plan rates that will go into effect January 1, 2027. Entergy Arkansas’s proposal would result in the benefits of the production tax credits being passed through to customers, if approved, as reductions in revenue requirement evenly over the life of the assets, rather than only during the 10-year period in which the production tax credits are generated. In April 2026 the APSC general staff filed testimony proposing an amortization period of no more than 15 years for the monetized proceeds for the tax credits associated with the West Memphis Solar and Driver Solar facilities. An evidentiary hearing was held in July 2026, but was not completed. The APSC is to set a date to complete the hearing. Special Rate Contract and Arkansas Cypress Solar As discussed in the Form 10-K, in September 2025, Entergy Arkansas filed an application with the APSC seeking a certificate of environmental compatibility and public need for the construction and operation of the Arkansas Cypress Solar facility, a planned 600 MW solar photovoltaic array with a 350 MW battery energy storage system and associated transmission facilities interconnecting at Entergy Arkansas’s White Bluff substation. The estimated cost of the project is $ 1,602 million. In March 2026 the APSC approved the Arkansas Cypress Solar facility and Entergy Arkansas’s recovery of the costs of the facility through the Generating Arkansas Jobs Act rider. The APSC also ordered implementation of an independent monitor to oversee costs. In April 2026, Entergy Arkansas filed with the APSC its proposal for an independent monitor to oversee the reasonableness of costs. In April 2026 the APSC issued an order consolidating Entergy Arkansas’s cost independent monitor proposals for three pending resources, including the Arkansas Cypress Solar facility, into a single docket and directing parties with full intervention status to respond to the proposals and recommend independent monitor candidates. No alternative recommendations were made by the other parties. The facility is expected to be in service by the end of 2028. 33 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements Filings with the LPSC (Entergy Louisiana) Retail Rates Resilience Plan Cost Recovery Rider In December 2022, Entergy Louisiana filed an application with the LPSC seeking a public interest finding regarding Phase I of Entergy Louisiana’s Future Ready resilience plan and approval of a rider mechanism to recover the program’s costs. Phase I in the December 2022 application reflected the first five years of a ten-year resilience plan and included investment of approximately $ 5 billion, including hardening investment, transmission dead-end structures, enhanced vegetation management, and telecommunications improvement. In April 2024 the LPSC approved a framework which includes an initial five-year resilience plan providing for an investment of approximately $ 1.9 billion with cost recovery via a forward-looking rider with semi-annual true-ups. The plan is subject to specified reporting requirements and includes a performance review of the hardened assets. The LPSC order approving the framework does not include any restrictions on Entergy Louisiana’s ability to file applications for approval of additional investments in resilience. In January 2025, Entergy Louisiana’s semi-annual filing sought to collect from Entergy Louisiana’s retail customers approximately $ 40.4 million, or $ 38.9 million in incremental annual revenues from Entergy Louisiana’s first semi-annual filing in July 2024, for projects expected to be placed in service during the rate-effective period of March 2025 through August 2025. In February 2025 the LPSC staff reviewed the filed rider rates and identified no material issues. In July 2025, Entergy Louisiana’s semi-annual filing sought to collect from Entergy Louisiana’s retail customers approximately $ 50.2 million, or $ 9.8 million in incremental annual revenues, for projects expected to be placed in service during the rate-effective period of September 2025 through February 2026. Additionally, Entergy Louisiana’s true-up filing included an under-recovery totaling $ 5.6 million to be implemented in the January 2026 semi-annual filing. In August 2025 the LPSC staff reviewed the filed rider rates and identified no material issues. In January 2026, Entergy Louisiana’s semi-annual filing sought to collect from Entergy Louisiana’s retail customers approximately $ 101.8 million, or $ 51.6 million in incremental annual revenues, for projects expected to be placed in service during the rate-effective period of March 2026 through August 2026. Additionally, Entergy Louisiana’s true-up filing included an over-recovery totaling $ 16.6 million to be implemented in the July 2026 semi-annual filing. In February 2026 the LPSC staff reviewed the filed rider rates and identified no material issues. In July 2026, Entergy Louisiana’s semi-annual filing sought to collect from Entergy Louisiana’s retail customers approximately $ 114.2 million, or $ 12.4 million in incremental annual revenues, for projects expected to be placed in service during the rate-effective period of September 2026 through February 2027. Additionally, Entergy Louisiana’s true-up filing included an under-recovery totaling $ 2.5 million to be implemented in the January 2027 semi-annual filing. The LPSC staff is reviewing the filed rider rates. Vegetation Management Rider In November 2025 the LPSC staff issued notice of its initiation of a rulemaking to implement a vegetation management pilot program for LPSC jurisdictional electric utilities. The pilot program would be voluntary and would allow utilities to establish a rider for distribution vegetation management for up to 100% of the utility’s prior calendar year vegetation management spending. The rider may not exceed 1% of a customer’s bill, and the utility would be required to maintain its prior calendar year level of spending on vegetation management as reflected in its base rates or formula rate plan. In February 2026 the LPSC staff filed a report and recommendation along with a proposed final rule providing for the adoption of the pilot program consistent with the terms outlined in the original notice. In March 2026 the LPSC voted to accept the LPSC staff’s recommendation and adopt the proposed pilot 34 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements program as presented. In April 2026, Entergy Louisiana filed its vegetation management rider for the rate-effective period of May 2026 through December 2026, which included a revenue requirement of $ 20 million for incremental spending on distribution vegetation management above the prior calendar year level of spending on vegetation management. 2025 Formula Rate Plan Filing In June 2026, Entergy Louisiana filed its formula rate plan evaluation report for its 2025 calendar year operations. Consistent with the global stipulated settlement agreement approved by the LPSC in August 2024, the filing reflected a 9.7 % allowed return on common equity with a bandwidth of 40 basis points above and below the midpoint. For the test year 2025, the formula produced an earned return on equity of 9.63 %, which falls within the established bandwidth and therefore results in no adjustment to base rider formula rate plan revenue. Additional changes in formula rate plan revenue include: (1) the removal of approximately $ 73 million in annual customer credits associated with the global stipulated settlement agreement, which have been fully credited to customers in accordance with the agreement; (2) a reduction in customer credits through the tax adjustment mechanism, attributable to the return of Entergy Louisiana’s over-collection of income tax expense associated with Louisiana state tax law changes effective in 2025 and the expiration of certain ad valorem exemptions; (3) increases in transmission and distribution plant in service, as recognized through the transmission and distribution recovery mechanisms, including restoration costs from Winter Storm Fern, for which Entergy Louisiana does not intend to seek relief or exception to the formula rate plan; (4) increases to the additional capacity mechanism; and (5) the final phase-in of additional nuclear depreciation expense, in accordance with the global stipulated settlement agreement. See Note 2 to the financial statements in the Form 10-K for discussion of the global stipulated settlement agreement. Collectively, these factors contributed to a net increase of $ 222 million in formula rate plan revenue for the period. Subject to LPSC review, the resulting changes from the 2025 formula rate plan evaluation report will become effective for bills rendered during the first billing cycle of September 2026, subject to refund. Request for Extension of Formula Rate Plan In June 2026, Entergy Louisiana submitted a motion requesting the LPSC approve a one-year extension of its current formula rate plan, with all material provisions left unchanged, including the allowed return on common equity of 9.7 % with a bandwidth of 40 basis points above and below the midpoint. Entergy Louisiana has requested LPSC action on the proposed extension by August 2026. River Bend Deregulated Asset Plan Filing In September 2025, Entergy Louisiana filed an application seeking LPSC approval to recover from customers, prospectively, approximately $ 49 million in annual revenues associated with the Louisiana retail deregulated portion of River Bend. Costs associated with the deregulated portion of River Bend have historically been excluded from retail ratemaking as a result of a 1988 LPSC decision. Instead, Entergy Louisiana has been allowed by the LPSC to either recover 4.6 cents per kWh for the power generated from that portion of the plant, or sell the power into the applicable market (subject to certain restrictions). The filing presents evidence that River Bend is a cost-effective and prudent source of needed baseload supply with value to Entergy Louisiana customers and seeks to recover the previously excluded costs, on a prospective basis. In March 2026 the LPSC staff and certain intervenors filed direct testimony recommending that the LPSC deny Entergy Louisiana’s application. The LPSC staff’s testimony further recommends that, if the LPSC were to grant any relief, notwithstanding the LPSC staff’s recommendation, such relief should be limited to allowing only prospective capital additions at River Bend to be included in Entergy Louisiana’s customer rates. Entergy Louisiana’s rebuttal testimony is due in August 2026. A hearing is scheduled for January 2027. 35 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements Filings with the MPSC (Entergy Mississippi) Retail Rates 2026 Formula Rate Plan Filing In February 2026, Entergy Mississippi submitted its formula rate plan 2026 test year filing and 2025 look-back filing showing Entergy Mississippi’s earned return on rate base for the historical 2025 calendar year to be within the formula rate plan bandwidth and projected earned return for the 2026 calendar year to also be within the formula rate plan bandwidth. The 2026 test year filing resulted in an earned return on rate base of 7.64 % and reflected no change in formula rate plan revenues. The 2025 look-back filing compared actual 2025 results to the approved benchmark return on rate base and reflected no change in formula rate plan revenues, although Entergy Mississippi proposed to adjust interim rates by $ 293 thousand to reflect one outside-the-bandwidth change, a true-up of demand side management costs. In June 2026, Entergy Mississippi and the Mississippi Public Utilities Staff entered into a joint stipulation that confirmed the 2026 test year filing, with the exception of immaterial adjustments to certain operations and maintenance expenses. The formula rate plan reflected an earned return on rate base of 7.68 % for calendar year 2026, resu lting in no change in formula rate plan revenues for 2026. Pursuant to the stipulation, Entergy Mississippi’s 2025 look-back filing reflected an earned return on rate base of 8.10 %, which also resulted in no change in formula rate plan revenues for 2025. In addition, the stipulation included the recovery of the outside-the- bandwidth change discussed above as well as the ratemaking treatment of certain customer contributions, the mechanism for recovery of the benefits of nuclear production tax credits, and the realignment of the first project from the interim facilities rate adjustment to the formula rate plan. In June 2026 the MPSC approved the joint stipulation with rates effective in July 2026. See Note 10 to the financial statements herein for further discussion of the mechanism for recovery of the benefits of nuclear production tax credits included in the joint stipulation. Filings with the City Council (Entergy New Orleans) Retail Rates 2026 Formula Rate Plan Filing In April 2026, Entergy New Orleans submitted to the City Council its formula rate plan 2025 test year filing. The 2025 evaluation report produced an earned return on equity of 7.55 % compared to the authorized return on equity of 9.35 %. Without adjustments, this would result in an increase in rates of $ 16.6 million. The increase in rates is driven, in part, by an increase in plant in service, as well as the cost of known and measurable capital additions. The increase is also driven by a decrease in total revenues due to a decline in kWh sales. The filing is subject to a 75-day review and discovery period followed by a 25-day period to resolve any disputes among the parties. In July 2026 the City Council’s advisors issued a report seeking a reduction in Entergy New Orleans’s requested formula rate plan revenues of approximately $ 4.4 million due to certain proposed cost realignments, imputation of revenues, and disallowances. The City Council’s advisors also recommended that Entergy New Orleans be permitted to collect $ 20 million over five years beginning in September 2026 to recover amounts that it might be required to pay Entergy Louisiana and Entergy Arkansas pursuant to a FERC order issued in June 2026, relating to an alleged MSS-4 replacement tariff (MSS-4R) violation. However, the FERC order is unclear on its face, and the specific amount of a payment, if any, is unknown. Requests for rehearing and clarification of the FERC order are pending. See “ MSS-4 Replacement Tariff - Net Operating Loss Carryforward Proceeding ” below for additional discussion of the FERC order. If any rate adjustments are not resolved, the City Council would set a procedural schedule to resolve such disputes. A response by Entergy New Orleans to the advisors’ report is 36 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements due in August 2026. Resulting rates will be effective with the first billing cycle of September 2026 pursuant to the formula rate plan tariff. Request for Extension of Formula Rate Plan In July 2026, Entergy New Orleans submitted a motion requesting the City Council approve a four-year extension of its current formula rate plan, with all material provisions left unchanged, including the authorized return on equity of 9.35 % with a bandwidth of 50 basis points above and below the midpoint. Entergy New Orleans has requested City Council action on the proposed extension by August 2026. Filings with the PUCT and Texas Cities (Entergy Texas) Retail Rates Distribution Cost Recovery Factor (DCRF) Rider In April 2026, Entergy Texas filed with the PUCT a request to amend its DCRF rider. The amended rider was designed to collect from Entergy Texas’s retail customers approximately $ 112.5 million annually, or $ 20.4 million in incremental annual revenues beyond Entergy Texas’s then-effective DCRF rider based on its capital invested in distribution between July 1, 2025 and December 31, 2025. In July 2026 the PUCT approved the DCRF rider, consistent with Entergy Texas’s as-filed request, and rates became effective for usage on and after July 8, 2026. Transmission Cost Recovery Factor (TCRF) Rider As discussed in the Form 10-K, in October 2025, Entergy Texas filed with the PUCT a request to amend its TCRF rider. The amended rider was designed to collect from Entergy Texas’s retail customers approximately $ 30.3 million annually, or $ 20.6 million in incremental annual revenues beyond Entergy Texas’s then-effective TCRF rider based on its capital invested in transmission between July 1, 2024 and June 30, 2025 and changes in other transmission charges. In April 2026 the PUCT approved the TCRF rider, consistent with Entergy Texas’s as-filed request, and rates became effective for usage on and after April 6, 2026. Generation Cost Recovery Rider In March 2026, Entergy Texas filed an application to establish a generation cost recovery rider to begin recovering a return of and on its capital investment in the Orange County Advanced Power Station. The proposed generation cost recovery rider, which includes Entergy Texas’s capital invested in generation for the Orange County Advanced Power Station through December 31, 2025, is designed to collect approximately $ 150.4 million annually from Entergy Texas’s retail customer s. By statute, the proposed generation cost recovery rider rates are to become effective when the Orange County Advanced Power Station is placed into service, which is expected in third quarter 2026. In July 2026 the ALJ with the State Office of Administrative Hearings approved a proposed procedural schedule that includes a hearing on the merits in September 2026 and provides for interim rates to become effective for usage on and after the Orange County Advanced Power Station in-service date, to the extent final rates are not in place by that time. Capacity Cost Recovery Rider (CCRR) In May 2026, Entergy Texas filed with the PUCT a request to establish a new CCRR. The proposed CCRR is designed to collect approximately $ 58 million annually from Entergy Texas’s retail customers based on Entergy Texas’s eligible capacity-related costs and revenues for the 12 months beginning June 1, 2026. The eligible capacity-related costs and revenues are associated with Entergy Texas’s participation in MISO’s annual planning 37 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements resource au ction. In July 2026 the PUCT approved the CCRR, consistent with Entergy Texas’s as-filed request, and rates became effective on July 10, 2026. Entergy Arkansas Opportunity Sales Proceeding See Note 2 to the financial statements in the Form 10-K for discussion of the Entergy Arkansas opportunity sales proceeding. Complaints Against System Energy See Note 2 to the financial statements in the Form 10-K for information regarding complaints against System Energy and the settlements approved by the FERC that resolved all significant aspects of these complaints. Unit Power Sales Agreement See Note 2 to the financial statements in the Form 10-K for discussion of the Unit Power Sales Agreement. The following is an update to that discussion. Pension Costs Amendment Proceeding As discussed in the Form 10-K, in October 2021, System Energy submitted to the FERC proposed amendments to the Unit Power Sales Agreement to include in rate base the prepaid and accrued pension costs associated with System Energy’s qualified pension plans. In November 2025 the FERC issued an order approving System Energy’s proposed prepaid and accrued pension recovery mechanism. System Energy has been utilizing this methodology in billings since December 1, 2022 and will continue to utilize it going forward. As a result of the FERC’s order, System Energy did not owe any refunds. In December 2025 the APSC filed a request for rehearing of the November 2025 order. In January 2026 the FERC denied the APSC’s rehearing request by operation of law. In May 2026 the FERC issued a follow-up substantive order denying the APSC’s rehearing and sustaining its finding that no refunds are owed. MSS-4 Replacement Tariff - Net Operating Loss Carryforward Proceeding See Note 2 to the financial statements in the Form 10-K for discussion of the MSS-4R net operating loss carryforward proceeding. The following is an update to that discussion. As discussed in the Form 10-K, in October 2021 the LPSC filed a complaint with the FERC alleging that Entergy Services improperly excluded net operating loss carryforward accumulated deferred income taxes (NOLC ADIT) from MSS-4R rates in the period before March 20, 2021. The LPSC argued that sales from Entergy Louisiana to Entergy Texas and Entergy New Orleans were charged at rates lower than they otherwise should have been, and it accordingly seeks surcharges for the period prior to March 20, 2021. The FERC set the complaint for hearing procedures and subsequently the hearing for this complaint proceeding was consolidated with the hearing procedures for Entergy Services’ January 2021 NOLC ADIT filing. Testimony was filed by parties in 2023, and the hearing before a FERC ALJ was concluded in February 2024. In June 2024, the FERC ALJ issued an initial decision addressing three major issues: (1) whether Entergy Services’ proposed prospective inclusion and allocation of NOLC ADIT in MSS-4R rates using a modified with-and-without methodology is just and reasonable; (2) whether Entergy Services correctly calculated excess and deficient accumulated deferred income taxes in accordance with the terms of a prior settlement; and (3) whether NOLC ADIT should have been included in MSS-4R rates prior to the effective date of the January 2021 MSS-4R filing. 38 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements With respect to issues (1) and (2), the presiding ALJ concluded that Entergy Services’ proposed methodology for allocating and including NOLC ADIT in MSS-4R rates was just and reasonable and that Entergy Services correctly performed the excess and deficient accumulated deferred income taxes calculations. With respect to issue (3), however, the presiding ALJ agreed with the LPSC that NOLC ADIT should have been included in MSS-4R rates since September 1, 2016, and as a result, the presiding ALJ ordered that Entergy Louisiana and Entergy Arkansas recalculate bills for the period of September 1, 2016 through November 11, 2023 with surcharges expected to be due to those operating companies from the purchasing operating companies, Entergy New Orleans, Entergy Texas, and Entergy Louisiana (for some Entergy Arkansas sales). The presiding ALJ also ordered Entergy Services to pay the interest owed to Entergy Louisiana on these surcharges. The surcharge methodology that the presiding ALJ recommended in connection with issue (3) was not supported by any participant in the hearing. As part of their exceptions to the initial decision, all parties to the proceeding opposed the use of the ALJ’s methodology, except for the FERC trial staff, which took no position. During the hearing, the LPSC and the FERC trial staff advocated that the alleged tariff violation should be remedied by the application of Entergy Services’ January 2021 proposed methodology. All other parties, including the PUCT, the City Council, and Entergy Services, opposed any surcharges for the period prior to the March 20, 2021 effective date of the January 2021 filing. Entergy Services disputed the presiding ALJ's rulings on issue (3) and filed exceptions to these rulings in July 2024. In June 2026 the FERC issued its opinion largely affirming the initial decision. Specifically, the FERC found the historic exclusion of NOLC ADIT from MSS-4R rates was a tariff violation and ordered Entergy Louisiana and Entergy Arkansas to provide refunds and/or surcharges, as appropriate, for the period from September 1, 2016 through November 12, 2023 for sales by Entergy Louisiana and for the period December 19, 2013 until May 13, 2024 for sales by Entergy Arkansas. The FERC also ordered the relevant operating company to pay interest on the amounts owed. In July 2026, Entergy Services, along with the LPSC, the City Council, and the PUCT, filed for rehearing and clarification of the FERC’s order. Entergy Services continues to dispute that the NOLC ADIT should have been included in MSS-4R rates prior to the effective date of the tariff amendment filing. Moreover, because of ambiguity in the order and the pending rehearing and clarification requests, it is unclear whether Entergy Arkansas and Entergy Louisiana as sellers will receive surcharges or have to provide refunds. Specifically, there is a lack of clarity as to whether plant-related liability accumulated deferred income taxes must be included in calculating refunds/surcharges. Entergy Services also identified a lack of clarity regarding including the nuclear decommissioning liability deduction in the NOLC ADIT calculation. Depending on the guidance issued by the FERC in response to the request for rehearing and clarification of its June 2026 order, each of the affected Entergy operating companies could either receive material refunds or owe material surcharges. As such, any amounts payable or receivable between the Entergy operating companies that may result from the order are not reasonably estimable as of June 30, 2026. MSS-4 Replacement Tariff – River Bend 70 Depreciation LPSC Complaint In May 2026 the LPSC filed a complaint with the FERC alleging that Entergy Texas owes surcharges to Entergy Louisiana because the depreciation rates used in the MSS-4R for the River Bend 70 sales of capacity and energy were based on a directive of the PUCT for the period from September 1, 2016 to December 31, 2025. The LPSC quantifies the potential surcharge as $ 100 million, inclusive of interest. Entergy Services disputes that any surcharges are due from Entergy Texas to Entergy Louisiana. In June 2026, Entergy Services filed a motion to dismiss and answer to the complaint submitted by the LPSC. Joint Targeted Interconnection Queue Cost Allocation Dispute In April 2026, MISO submitted to the FERC an unexecuted agreement proposing to assign to Entergy Texas (in its capacity as the owner of the Legend Power Station) costs associated with the MISO and Southwest 39 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements Power Pool Joint Targeted Interconnection Queue. Entergy Texas estimates that MISO’s proposed cost assignment would result in total charges of approximately $ 112 million, paid over twenty years beginning in 2031. In May 2026, Entergy Texas filed a protest to the agreement, as well as a separate complaint at the FERC, arguing that the proposed cost allocation is not just and reasonable. In June 2026 the FERC issued a deficiency notice to MISO. In July 2026, MISO and Southwest Power Pool filed answers to the complaint, and MISO filed an answer to the deficiency letter. Protests and comments in response to MISO’s answer to the deficiency letter are due in August 2026. Storm Cost Recovery Filings with Retail Regulators See Note 2 to the financial statements in the Form 10-K for discussion regarding storm cost recovery filings. NOTE 3. EQUITY (Entergy Corporation and Entergy Louisiana) Common Stock Earnings per Share The following table presents Entergy’s basic and diluted earnings per share calculations for the three and six months ended June 30, 2026 and 2025, included on the consolidated income statements: For the Three Months Ended June 30, 2026 2025 (Dollars In Thousands, Except Per Share Data; Shares in Millions) $/share $/share Consolidated net income $ 487,820 $ 471,954 Less: Preferred dividend requirements of subsidiaries and noncontrolling interests 5,213 4,024 Net income attributable to Entergy Corporation $ 482,607 $ 467,930 Basic shares and earnings per average common share 458.7 $ 1.05 439.2 $ 1.07 Average dilutive effect of: Stock options 1.3 — 0.9 — Other equity plans 1.1 — 1.2 — Equity forwards 5.2 ( 0.02 ) 4.4 ( 0.02 ) Diluted shares and earnings per average common share 466.3 $ 1.03 445.7 $ 1.05 40 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements For the Six Months Ended June 30, 2026 2025 (Dollars In Thousands, Except Per Share Data; Shares in Millions) $/share $/share Consolidated net income $ 878,625 $ 834,376 Less: Preferred dividend requirements of subsidiaries and noncontrolling interests 11,102 5,686 Net income attributable to Entergy Corporation $ 867,523 $ 828,690 Basic shares and earnings per average common share 457.2 $ 1.90 434.8 $ 1.91 Average dilutive effect of: Stock options 1.3 ( 0.01 ) 1.0 — Other equity plans 1.1 — 1.3 ( 0.01 ) Equity forwards 4.8 ( 0.02 ) 6.3 ( 0.03 ) Diluted shares and earnings per average common share 464.4 $ 1.87 443.4 $ 1.87 Earnings per share dilution resulting from stock options outstanding and other equity plans is determined under the treasury stock method. The calculation of diluted earnings per share excluded 366,136 stock options outstanding for the three months ended June 30, 2025 because their effect would have been antidilutive. The calculation of diluted earnings per share excluded 149,415 stock options outstanding for the six months ended June 30, 2026 and 305,113 stock options outstanding for the six months ended June 30, 2025 because their effect would have been antidilutive. Until settlement of the forward sale agreements discussed in Note 7 to the financial statements in the Form 10-K and below in “ Equity Distribution Program ” and “ Equity Forward Sale Agreements ”, earnings per share dilution resulting from the agreements, if any, is determined under the treasury stock method. Share dilution occurs when the average market price of Entergy Corporation’s common stock is higher than the average forward sales price. The calculation of diluted earnings per share excluded 2,423,880 shares for the three months ended June 30, 2025 and 1,304,889 shares for the six months ended June 30, 2025 under forward sale agreements outstanding because their effect would have been antidilutive. Entergy’s stock options and other equity compensation plans are discussed in Note 5 to the financial statements herein and in Note 12 to the financial statements in the Form 10-K. Dividends declared per common share were $ 0.64 for the three months ended June 30, 2026 and $ 0.60 for the three months ended June 30, 2025. Dividends declared per common share were $ 1.28 for the six months ended June 30, 2026 and $ 1.20 for the six months ended June 30, 2025. Equity Distribution Program See Note 7 to the financial statements in the Form 10-K for discussion of Entergy Corporation’s at the market equity distribution program. The following are updates to that discussion. The aggregate number of shares of common stock sold under the equity distribution sales agreement and under any forward sale agreement may not exceed an aggregate gross sales price of $ 4.5 billion. As of June 30, 2026, an aggregate gross sales price of approximately $ 2.8 billion has been sold under the at the market equity distribution program. During the six months ended June 30, 2026 and 2025, there were no shares of common stock directly issued under the at the market equity distribution program. 41 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements During the six months ended June 30, 2026, Entergy Corporation physically settled its obligations under the following forward sale agreements: Effective Date of Forward Sale Agreements Shares of Common Stock Issued Gross Sales Price Forward Sellers Fees Forward Sale Price per Share Cash Proceeds at Settlement (Dollars In Thousands, Except Per Share Data) Forward sale agreements settled in February 2026: September 2024 1,900,000 $ 115,314 $ 1,153 March 2025 2,713,790 $ 232,216 $ 2,322 Total 4,613,790 $ 75.05 $ 346,243 Forward sale agreements settled in June 2026: September 2024 1,169,070 $ 70,952 $ 710 September 2024 888,756 $ 57,702 $ 577 Total 2,057,826 $ 61.28 $ 126,098 Entergy Corporation incurred an aggregate amount of approximately $ 0.5 million of general issuance costs associated with the February 2026 settlement and an aggregate amount of approximately $ 0.3 million of general issuance costs associated with the June 2026 settlement. Entergy Corporation used the net proceeds for general corporate purposes including the repayment of commercial paper. Equity Forward Sale Agreements See Note 7 to the financial statements in the Form 10-K for discussion of Entergy Corporation’s equity forward sale agreements. The following are updates to that discussion. In May 2026, Entergy Corporation marketed an equity offering of approximately 19.2 million shares of Entergy Corporation common stock. In lieu of issuing equity at the time of the offering, Entergy Corporation entered into forward sale agreements with several forward counterparties. No amounts have been or will be recorded on Entergy’s balance sheet with respect to the equity offering until settlements of the forward sale agreements occur. The forward sale agreements require Entergy Corporation to, at its election on or prior to April 30, 2028, either (1) physically settle the transactions by issuing the total of approximately 19.2 million shares of its common stock to the forward counterparties in exchange for net proceeds at the then-applicable forward sale price specified by the agreements (initially $ 110.74 per share) or (2) net settle the transactions in whole or in part through the delivery or receipt of cash or shares. The forward sale price is subject to adjustment on a daily basis based on a floating interest rate factor and will decrease by other fixed amounts specified in the agreements. During the six months ended June 30, 2026, Entergy Corporation physically settled its obligations under the following forward sale agreements: Effective Date of Forward Sale Agreements Shares of Common Stock Issued Gross Sales Price Forward Sellers Fees Forward Sale Price per Share Cash Proceeds at Settlement (Dollars In Thousands, Except Per Share Data) Forward sale agreements settled in June 2026: March 2025 6,650,417 $ 555,310 $ 10,829 $ 81.87 $ 545,902 Entergy Corporation incurred approximately $ 0.3 million of common stock issuance costs with the settlement. Entergy Corporation used the net proceeds for general corporate purposes including the repayment of commercial paper. 42 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements Until settlement of the forward sale agreements, earnings per share dilution resulting from the agreements, if any, will be determined under the treasury stock method. Share dilution occurs when the average market price of Entergy Corporation’s common stock is higher than the average forward sale price. If Entergy Corporation had elected to net share settle the forward sale agreements as of June 30, 2026, Entergy Corporation would have been required to deliver 3.8 million shares. Treasury Stock During the six months ended June 30, 2026, Entergy Corporation reissued 970,100 shares of its previously repurchased common stock to satisfy stock option exercises, vesting of shares of restricted stock, and other stock-based awards. Entergy Corporation did not repurchase any of its common stock during the six months ended June 30, 2026. Retained Earnings On July 31, 2026, Entergy Corporation’s Board of Directors declared a common stock dividend of $ 0.64 per share, payable on September 1, 2026 to holders of record as of August 13, 2026. Comprehensive Income Accumulated other comprehensive income (loss) is included in the equity section of the balance sheets of Entergy and Entergy Louisiana. The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the three months ended June 30, 2026 and 2025: Pension and Other Postretirement Plan Changes 2026 2025 (In Thousands) Beginning balance, April 1, $ 905 $ 39,040 Amounts reclassified from accumulated other comprehensive income (loss) ( 1,995 ) ( 4,602 ) Net other comprehensive loss for the period ( 1,995 ) ( 4,602 ) Ending balance, June 30, ($ 1,090 ) $ 34,438 The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the six months ended June 30, 2026 and 2025: Pension and Other Postretirement Plan Changes 2026 2025 (In Thousands) Beginning balance, January 1, ($ 3,006 ) $ 42,769 Amounts reclassified from accumulated other comprehensive income (loss) 1,916 ( 8,331 ) Net other comprehensive income (loss) for the period 1,916 ( 8,331 ) Ending balance, June 30, ($ 1,090 ) $ 34,438 43 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements The following table presents changes in accumulated other comprehensive income for Entergy Louisiana for the three months ended June 30, 2026 and 2025: Pension and Other Postretirement Plan Changes 2026 2025 (In Thousands) Beginning balance, April 1, $ 32,829 $ 52,687 Amounts reclassified from accumulated other comprehensive income ( 1,088 ) ( 2,132 ) Net other comprehensive loss for the period ( 1,088 ) ( 2,132 ) Ending balance, June 30, $ 31,741 $ 50,555 The following table presents changes in accumulated other comprehensive income for Entergy Louisiana for the six months ended June 30, 2026 and 2025: Pension and Other Postretirement Plan Changes 2026 2025 (In Thousands) Beginning balance, January 1, $ 33,916 $ 53,658 Amounts reclassified from accumulated other comprehensive income ( 2,175 ) ( 3,103 ) Net other comprehensive loss for the period ( 2,175 ) ( 3,103 ) Ending balance, June 30, $ 31,741 $ 50,555 Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) for Entergy for the three months ended June 30, 2026 and 2025 are as follows: Amounts reclassified from AOCI Income Statement Location 2026 2025 (In Thousands) Pension and other postretirement plan changes Amortization of prior service credit $ 946 $ 3,462 (a) Amortization of net gain 1,666 2,551 (a) Total amortization 2,612 6,013 Income taxes ( 617 ) ( 1,411 ) Income taxes Total amortization (net of tax) $ 1,995 $ 4,602 Total reclassifications for the period (net of tax) $ 1,995 $ 4,602 (a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 6 to the financial statements herein for additional details. 44 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) for Entergy for the six months ended June 30, 2026 and 2025 are as follows: Amounts reclassified from AOCI Income Statement Location 2026 2025 (In Thousands) Pension and other postretirement plan changes Amortization of prior service credit $ 1,892 $ 6,924 (a) Amortization of net gain (loss) ( 4,228 ) 5,102 (a) Total amortization ( 2,336 ) 12,026 Income taxes 420 ( 3,695 ) Income taxes Total amortization (net of tax) ($ 1,916 ) $ 8,331 Total reclassifications for the period (net of tax) ($ 1,916 ) $ 8,331 (a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 6 to the financial statements herein for additional details. Total reclassifications out of accumulated other comprehensive income (AOCI) for Entergy Louisiana for the three months ended June 30, 2026 and 2025 are as follows: Amounts reclassified from AOCI Income Statement Location 2026 2025 (In Thousands) Pension and other postretirement plan changes Amortization of prior service credit $ 308 $ 1,136 (a) Amortization of net gain 1,149 1,719 (a) Total amortization 1,457 2,855 Income taxes ( 369 ) ( 723 ) Income taxes Total amortization (net of tax) $ 1,088 $ 2,132 Total reclassifications for the period (net of tax) $ 1,088 $ 2,132 (a) These accumulated other comprehensive income components are included in the computation of net periodic pension and other postretirement cost. See Note 6 to the financial statements herein for additional details. 45 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements Total reclassifications out of accumulated other comprehensive income (AOCI) for Entergy Louisiana for the six months ended June 30, 2026 and 2025 are as follows: Amounts reclassified from AOCI Income Statement Location 2026 2025 (In Thousands) Pension and other postretirement plan changes Amortization of prior service credit $ 617 $ 2,272 (a) Amortization of net gain 2,296 3,438 (a) Total amortization 2,913 5,710 Income taxes ( 738 ) ( 2,607 ) Income taxes Total amortization (net of tax) $ 2,175 $ 3,103 Total reclassifications for the period (net of tax) $ 2,175 $ 3,103 (a) These accumulated other comprehensive income components are included in the computation of net periodic pension and other postretirement cost. See Note 6 to the financial statements herein for additional details. NOTE 4. REVOLVING CREDIT FACILITIES, LINES OF CREDIT, SHORT-TERM BORROWINGS, AND LONG-TERM DEBT (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy Corporation has in place a credit facility that has a borrowing capacity of $ 3 billion and expires in June 2031. The facility includes fronting commitments for the issuance of letters of credit against $ 20 million of the total borrowing capacity of the credit facility. The commitment fee is currently 0.225 % of the undrawn commitment amount. Commitment fees and interest rates on loans under the credit facility can fluctuate depending on the senior unsecured debt ratings of Entergy Corporation. Although there were no borrowings under the facility for the six months ended June 30, 2026, the estimated interest rate as of June 30, 2026 that would have been applied to outstanding borrowings under the facility was 5.14 %. The following is a summary of the amounts outstanding and capacity available under the credit facility as of June 30, 2026: Capacity Borrowings Letters of Credit Capacity Available (In Millions) $ 3,000 $ — $ 3 $ 2,997 Entergy Corporation’s credit facility includes a covenant requiring Entergy to maintain a consolidated debt ratio, as defined, of 65 % or less of its total capitalization. Entergy is in compliance with this covenant. If Entergy fails to meet this ratio, or if Entergy Corporation or one of the Registrant Subsidiaries (except Entergy New Orleans and System Energy) defaults on other indebtedness or is in bankruptcy or insolvency proceedings, an acceleration of the Entergy Corporation credit facility’s maturity date may occur. Entergy Corporation has a commercial paper program with a Board-approved program limit of $ 2 billion. As of June 30, 2026, Entergy Corporation had $ 1,544 million of commercial paper outstanding. The weighted-average interest rate for the six months ended June 30, 2026 was 4.01 %. 46 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of June 30, 2026 as follows: Company Expiration Date Amount of Facility Interest Rate (a) Amount Drawn as of June 30, 2026 Letters of Credit Outstanding as of June 30, 2026 Entergy Arkansas April 2028 $ 25 million (b) 5.59 % $ — $ — Entergy Arkansas June 2031 $ 300 million (c) 4.77 % $ — $ — Entergy Louisiana June 2031 $ 400 million (c) 4.89 % $ — $ — Entergy Mississippi June 2031 $ 300 million (c) 4.77 % $ — $ — Entergy New Orleans June 2027 $ 25 million (c) 5.37 % $ — $ — Entergy Texas June 2031 $ 300 million (c) 4.89 % $ — $ 1.1 million (a) The interest rate is the estimated interest rate as of June 30, 2026 that would have been applied to outstanding borrowings under the facility. (b) Borrowings under this Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option. (c) The credit facility includes fronting commitments for the issuance of letters of credit against a portion of the borrowing capacity of the facility as follows: $ 5 million for Entergy Arkansas; $ 15 million for Entergy Louisiana; $ 5 million for Entergy Mississippi; $ 10 million for Entergy New Orleans; and $ 25 million for Entergy Texas. The commitment fees on the credit facilities range from 0.075 % to 0.375 % of the undrawn commitment amount for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy Texas, and of the entire facility amount for Entergy New Orleans. Each of the credit facilities requires the Registrant Subsidiary borrower to maintain a debt ratio, as defined, of 65 % or less of its total capitalization. Each Registrant Subsidiary is in compliance with this covenant. In addition, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each has one or more uncommitted standby letter of credit facilities as a means to post collateral to support its obligations to MISO and for other purposes. The following is a summary of the uncommitted standby letter of credit facilities as of June 30, 2026: Company Amount of Uncommitted Facility Letter of Credit Fee Letters of Credit Issued as of June 30, 2026 (a) Entergy Arkansas $ 100 million 0.78 % $ 59.5 million Entergy Arkansas $ 200 million 0.50 % $ 118.3 million Entergy Louisiana $ 125 million 0.78 % $ 111.1 million Entergy Louisiana $ 60 million 0.50 % $ 38.5 million (b) Entergy Mississippi $ 65 million 0.78 % $ 64.3 million (c) Entergy Mississippi $ 65 million 0.50 % $ 56.0 million Entergy New Orleans $ 1 million 1.625 % $ 0.5 million Entergy Texas $ 150 million 1.25 % $ 110.6 million Entergy Texas $ 160 million 1.05 % $ — (a) As of June 30, 2026, letters of credit posted with MISO covered financial transmission rights exposure of $ 1.4 million for Entergy Arkansas; $ 1.3 million for Entergy Louisiana; $ 2.5 million for Entergy Mississippi; and $ 0.6 million for Entergy Texas. See Note 8 to the financial statements herein for discussion of financial transmission rights. 47 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements (b) As of June 30, 2026, the letters of credit issued for Entergy Louisiana under this facility include $ 37.0 million in MISO letters of credit and $ 1.5 million in non-MISO letters of credit outstanding. (c) As of June 30, 2026, the letters of credit issued for Entergy Mississippi under this facility include $ 63.0 million in MISO letters of credit and $ 1.3 million in non-MISO letters of credit outstanding. The short-term borrowings of the Registrant Subsidiaries are limited to amounts authorized by the FERC. Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy have FERC-authorized short-term borrowing limits effective through January 2027. The FERC-authorized short-term borrowing limit for Entergy Arkansas is effective through February 2028. In addition to borrowings from commercial banks, these companies may also borrow from the Entergy system money pool and from other internal short-term borrowing arrangements. The money pool is an intercompany cash management program that makes possible intercompany borrowing and lending arrangements, and the money pool and the other internal borrowing arrangements are designed to reduce the Registrant Subsidiaries’ dependence on external short-term borrowings. Borrowings from internal and external short-term borrowings combined may not exceed the FERC-authorized limits. The following are the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of June 30, 2026 (aggregating both internal and external short-term borrowings) for the Registrant Subsidiaries: Authorized Borrowings (In Millions) Entergy Arkansas $ 250 $ — Entergy Louisiana $ 450 $ — Entergy Mississippi $ 200 $ — Entergy New Orleans $ 150 $ — Entergy Texas $ 200 $ — System Energy $ 200 $ 46 Variable Interest Entities (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) See Note 17 to the financial statements in the Form 10-K for a discussion of the consolidation of the nuclear fuel company variable interest entities (VIEs). To finance the acquisition and ownership of nuclear fuel, the nuclear fuel company VIEs have credit facilities, three of which previously provided for the issuance of commercial paper until such provisions relating to commercial paper were terminated in June 2026. The following is a summary of the nuclear fuel company VIE credit facilities as of June 30, 2026: Company Expiration Date Amount of Facility Weighted- Average Interest Rate on Borrowings Amount Outstanding as of June 30, 2026 (Dollars in Millions) Entergy Arkansas VIE June 2029 $ 80 4.76 % $ 40.7 Entergy Louisiana River Bend VIE June 2029 $ 105 4.77 % $ 28.6 Entergy Louisiana Waterford VIE June 2029 $ 105 4.77 % $ 27.7 System Energy VIE June 2029 $ 120 4.81 % $ 54.4 The commitment fees on the credit facilities are 0.100 % of the undrawn commitment amount for the Entergy Arkansas, Entergy Louisiana, and System Energy nuclear fuel company VIEs. Each credit facility requires the respective lessee of nuclear fuel (Entergy Arkansas, Entergy Louisiana, or Entergy Corporation as guarantor for System Energy) to maintain a consolidated debt ratio, as defined, of 70 % or less of its total capitalization. Each lessee is in compliance with this covenant. 48 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements The nuclear fuel company VIEs had notes payable that were included in debt on the respective balance sheets as of June 30, 2026 as follows: Company Description Amount Entergy Arkansas VIE 1.84 % Series N due July 2026 (a) $ 90 million Entergy Arkansas VIE 5.54 % Series O due May 2029 $ 70 million Entergy Louisiana River Bend VIE 2.51 % Series V due June 2027 $ 70 million Entergy Louisiana Waterford VIE 5.94 % Series J due September 2026 $ 70 million System Energy VIE 2.05 % Series K due September 2027 $ 90 million System Energy VIE 5.28 % Series L due January 2029 $ 80 million (a) Repaid at maturity In July 2026, the Entergy Arkansas nuclear fuel company VIE issued $ 120 million of 5.28 % intermediate term secured notes due July 2031. The Entergy Arkansas nuclear fuel company VIE used the proceeds to repay, at maturity, its $ 90 million of 1.84 % Series N intermediate term secured notes and expects to use the remaining funds to purchase additional nuclear fuel. In accordance with regulatory treatment, interest on the nuclear fuel company VIEs’ debt arrangements, which currently include their credit facilities and long-term notes payable, is reported in fuel expense. As of June 30, 2026, Entergy Louisiana and System Energy each has obtained financing authorization from the FERC that extends through January 2027 for issuances by its nuclear fuel company VIEs. Entergy Arkansas has obtained financing authorization from the FERC that extends through February 2028 for issuances by its nuclear fuel company VIE. Debt Issuances and Retirements (Entergy Arkansas) In January 2026, Entergy Arkansas issued $ 500 million of 4.95 % Series mortgage bonds due January 2036 and $ 500 million of 5.75 % Series mortgage bonds due January 2056. Entergy Arkansas used the proceeds, together with other funds, to repay, prior to maturity, its $ 600 million of 3.5 % Series mortgage bonds due April 2026. Entergy Arkansas expects to use the remaining proceeds, together with other funds, to finance a portion of the construction of generation projects, including the Ironwood Power Station and the Arkansas Cypress Solar facility, and for general corporate purposes. (Entergy Louisiana) In January 2026, Entergy Louisiana redeemed, at maturity, $ 250 million of 4.44 % Series mortgage bonds. In February 2026, Entergy Louisiana issued $ 750 million of 4.90 % Series mortgage bonds due April 2036 and $ 750 million of 5.65 % Series mortgage bonds due April 2056. Entergy Louisiana expects to use the proceeds, together with other funds, to finance construction of the Franklin Farms Power Station Units 1 and 2 project, the Waterford 5 Power Station project, and the Westlake Power Station project, to support storm restoration costs related to Winter Storm Fern, and for general corporate purposes. (Entergy Mississippi) In March 2026, Entergy Mississippi issued $ 650 million of 5.05 % Series mortgage bonds due April 2036. Entergy Mississippi expects to use the proceeds, together with other funds, to finance construction of the Traceview 49 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements Advanced Power Station and Vicksburg Advanced Power Station, to finance, on an interim basis, storm restoration costs related to Winter Storm Fern, and for general corporate purposes. (Entergy New Orleans) In May 2026, Entergy New Orleans issued $ 35 million of 5.91 % Series mortgage bonds due June 2036 and $ 55 million of 6.65 % Series mortgage bonds due June 2056. Entergy New Orleans used the proceeds to repay, at maturity, its $ 85 million of 4 % Series mortgage bonds due June 2026 and for general corporate purposes. (Entergy Texas) In May 2026, Entergy Texas issued $ 425 million of 5.20 % Series mortgage bonds due June 2036. Entergy Texas expects to use the proceeds, together with other funds, to finance construction of the Orange County Advanced Power Station and the Lone Star Power Station, to repay, on or at maturity, its $ 130 million of 1.50 % Series mortgage bonds due September 2026, and for general corporate purposes. Fair Value The book value and the fair value of long-term debt for Entergy and the Registrant Subsidiaries as of June 30, 2026 were as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (In Thousands) Entergy $ 33,057,826 $ 30,712,302 Entergy Arkansas $ 5,841,909 $ 5,273,485 Entergy Louisiana $ 11,564,821 $ 10,643,441 Entergy Mississippi $ 3,666,384 $ 3,370,025 Entergy New Orleans $ 661,221 $ 627,938 Entergy Texas $ 4,442,972 $ 4,129,543 System Energy $ 1,188,885 $ 1,187,778 (a) Fair values were classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. 50 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements The book value and the fair value of long-term debt for Entergy and the Registrant Subsidiaries as of December 31, 2025 were as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (In Thousands) Entergy $ 30,277,161 $ 28,208,822 Entergy Arkansas $ 5,423,604 $ 4,931,734 Entergy Louisiana $ 10,366,835 $ 9,510,545 Entergy Mississippi $ 3,021,324 $ 2,755,286 Entergy New Orleans $ 656,849 $ 621,670 Entergy Texas $ 4,030,188 $ 3,780,405 System Energy $ 1,088,703 $ 1,104,007 (a) Fair values were classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. NOTE 5. STOCK-BASED COMPENSATION (Entergy Corporation) Entergy grants stock and stock-based awards, which are described more fully in Note 12 to the financial statements in the Form 10-K. Awards under Entergy’s plans generally vest over three years. Stock Options In January 2026 the Board approved and Entergy granted long-term incentive awards in the form of options on 298,829 shares of its common stock under the 2019 Omnibus Incentive Plan with a fair value of $ 20.81 per option. As of June 30, 2026, there were options on 3,000,194 shares of common stock outstanding with a weighted-average exercise price of $ 60.44 . The intrinsic value, which has no effect on net income, of the outstanding stock options is calculated by the positive difference between the weighted-average exercise price of the stock options granted and Entergy Corporation’s common stock price as of June 30, 2026. The aggregate intrinsic value of the stock options outstanding as of June 30, 2026 was $ 153.9 million. The following table includes financial information for stock options for the three and six months ended June 30, 2026 and 2025: Three Months Ended Six Months Ended 2026 2025 2026 2025 (In Millions) Compensation expense included in Entergy’s consolidated net income $ 1.0 $ 1.0 $ 2.0 $ 2.1 Tax benefit recognized in Entergy’s consolidated net income $ 0.2 $ 0.2 $ 0.4 $ 0.5 Compensation cost capitalized as part of fixed assets and materials and supplies $ 0.5 $ 0.5 $ 1.0 $ 1.0 Other Equity Awards In January 2026 the Board approved and Entergy granted long-term incentive awards in the form of 461,708 restricted stock awards, 20,954 restricted stock units, and 195,692 performance units under the 2019 Omnibus Incentive Plan. The restricted stock awards and restricted stock units were made effective on January 29, 2026, and were valued at $ 96.03 per share, which was the closing price of Entergy Corporation’s common stock on 51 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements the grant date. Shares of restricted stock have the same dividend and voting rights as other common stock, are considered issued and outstanding shares of Entergy upon vesting, and are expensed ratably over the three-year vesting period. One-third of the restricted stock awards and accrued dividends will vest upon each anniversary of the grant date. The restricted stock units do not have voting rights and are not considered issued and outstanding shares of Entergy prior to vesting. One-third of the restricted stock units will vest upon each anniversary of the grant date and are paid in the form of shares of Entergy. Dividend equivalents accrue on the restricted stock units and are converted to additional restricted stock units, which are subject to the same vesting schedule as the underlying restricted stock units. The restricted stock units are expensed ratably over the three-year vesting period. The performance units represent the value of, and are settled with, one share of Entergy Corporation common stock at the end of the three-year performance period, plus dividends accrued during the performance period on the number of performance units earned. For the 2026-2028 performance period, performance will be measured based eighty percent on relative total shareholder return, ten percent on an environmental stewardship achievement measure, and ten percent on a reliability achievement measure. The performance units were granted on January 29, 2026 and eighty percent were valued at $ 118.24 per share based on various factors, primarily market conditions; and both the ten percent for the environmental stewardship achievement and the ten percent for the reliability achievement were valued at $ 96.03 per share, the closing price of Entergy Corporation’s common stock on the grant date. Performance units do not have voting rights and are not considered issued and outstanding shares of Entergy prior to vesting. Performance units are expensed ratably over the three-year vesting period, and compensation cost for the portion of the award based on the environmental stewardship achievement measure and the reliability achievement measure will be adjusted based on the number of units that ultimately vest. See Note 12 to the financial statements in the Form 10-K for a description of the Long-Term Performance Unit Program. The following table includes financial information for other outstanding equity awards for the three and six months ended June 30, 2026 and 2025: Three Months Ended Six Months Ended 2026 2025 2026 2025 (In Millions) Compensation expense included in Entergy’s consolidated net income $ 10.3 $ 9.4 $ 20.3 $ 19.4 Tax benefit recognized in Entergy’s consolidated net income $ 2.5 $ 2.3 $ 5.0 $ 4.8 Compensation cost capitalized as part of fixed assets and materials and supplies $ 5.7 $ 4.7 $ 10.8 $ 9.5 52 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements NOTE 6. RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Components of Qualified Net Pension Cost Entergy’s qualified net pension costs, including amounts capitalized, for the second quarters of 2026 and 2025, included the following components: 2026 2025 (In Thousands) Service cost - benefits earned during the period $ 23,078 $ 23,617 Interest cost on projected benefit obligation 56,047 59,680 Expected return on assets ( 76,536 ) ( 75,280 ) Recognized net loss 13,956 13,309 Net pension cost $ 16,545 $ 21,326 Entergy’s qualified net pension costs, including amounts capitalized, for the six months ended June 30, 2026 and 2025, included the following components: 2026 2025 (In Thousands) Service cost - benefits earned during the period $ 46,156 $ 47,234 Interest cost on projected benefit obligation 112,094 119,360 Expected return on assets ( 153,072 ) ( 150,560 ) Recognized net loss 27,912 26,618 Net pension cost $ 33,090 $ 42,652 The Registrant Subsidiaries’ qualified net pension costs, including amounts capitalized, for their current and former employees for the second quarters of 2026 and 2025, included the following components: 2026 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $ 4,363 $ 5,320 $ 1,296 $ 265 $ 1,011 $ 1,326 Interest cost on projected benefit obligation 12,796 13,411 3,434 1,191 2,660 3,316 Expected return on assets ( 17,825 ) ( 18,908 ) ( 4,945 ) ( 1,669 ) ( 3,779 ) ( 4,684 ) Recognized net loss 4,782 2,159 871 464 489 1,148 Net pension cost $ 4,116 $ 1,982 $ 656 $ 251 $ 381 $ 1,106 53 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements 2025 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $ 4,427 $ 5,454 $ 1,304 $ 411 $ 1,024 $ 1,372 Interest cost on projected benefit obligation 13,814 14,704 3,699 1,647 2,973 3,585 Expected return on assets ( 17,676 ) ( 18,897 ) ( 4,949 ) ( 2,174 ) ( 3,889 ) ( 4,575 ) Recognized net loss 4,791 2,268 822 415 454 1,114 Net pension cost $ 5,356 $ 3,529 $ 876 $ 299 $ 562 $ 1,496 The Registrant Subsidiaries’ qualified net pension costs, including amounts capitalized, for their current and former employees for the six months ended June 30, 2026 and 2025, included the following components: 2026 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $ 8,726 $ 10,640 $ 2,592 $ 530 $ 2,022 $ 2,652 Interest cost on projected benefit obligation 25,592 26,822 6,868 2,382 5,320 6,632 Expected return on assets ( 35,650 ) ( 37,816 ) ( 9,890 ) ( 3,338 ) ( 7,558 ) ( 9,368 ) Recognized net loss 9,564 4,318 1,742 928 978 2,296 Net pension cost $ 8,232 $ 3,964 $ 1,312 $ 502 $ 762 $ 2,212 2025 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $ 8,854 $ 10,908 $ 2,608 $ 822 $ 2,048 $ 2,744 Interest cost on projected benefit obligation 27,628 29,408 7,398 3,294 5,946 7,170 Expected return on assets ( 35,352 ) ( 37,794 ) ( 9,898 ) ( 4,348 ) ( 7,778 ) ( 9,150 ) Recognized net loss 9,582 4,536 1,644 830 908 2,228 Net pension cost $ 10,712 $ 7,058 $ 1,752 $ 598 $ 1,124 $ 2,992 Non-Qualified Net Pension Cost Entergy recognized $ 2.4 million and $ 2.5 million in pension cost for its non-qualified pension plans for the second quarters of 2026 and 2025, respectively. For the second quarters of 2026 and 2025, there were no settlement charges related to the payment of lump sum benefits out of the plan. Entergy recognized $ 4.8 million and $ 5 million in pension cost for its non-qualified pension plans for the six months ended June 30, 2026 and 2025, respectively. For the six months ended June 30, 2026 and 2025, there were no settlement charges related to the payment of lump sum benefits out of the plan. 54 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements The Registrant Subsidiaries recognized the following pension cost for their current and former employees for their non-qualified pension plans for the second quarters of 2026 and 2025: Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) 2026 $ 13 $ 61 $ 62 $ 34 $ 123 2025 $ 47 $ 36 $ 90 $ 35 $ 39 The Registrant Subsidiaries recognized the following pension cost for their current and former employees for their non-qualified pension plans for the six months ended June 30, 2026 and 2025: Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) 2026 $ 26 $ 122 $ 101 $ 69 $ 246 2025 $ 94 $ 72 $ 180 $ 70 $ 78 For the second quarters of 2026 and 2025, there were no settlement charges for the Registrant Subsidiaries related to the payment of lump sum benefits out of the plan. For the six months ended June 30, 2026 and 2025, there were no settlement charges for the Registrant Subsidiaries related to the payment of lump sum benefits out of the plan. Components of Net Other Postretirement Benefits Cost (Income) Entergy’s net other postretirement benefits income, including amounts capitalized, for the second quarters of 2026 and 2025 included the following components: 2026 2025 (In Thousands) Service cost - benefits earned during the period $ 2,694 $ 2,757 Interest cost on accumulated postretirement benefit obligation (APBO) 9,597 9,690 Expected return on assets ( 10,314 ) ( 10,209 ) Amortization of prior service credit ( 1,585 ) ( 5,720 ) Recognized net gain ( 2,877 ) ( 3,870 ) Net other postretirement benefits income ($ 2,485 ) ($ 7,352 ) Entergy’s net other postretirement benefits cost (income), including amounts capitalized, for the six months ended June 30, 2026 and 2025 included the following components: 2026 2025 (In Thousands) Service cost - benefits earned during the period $ 5,388 $ 5,514 Interest cost on APBO 19,194 19,380 Expected return on assets ( 20,628 ) ( 20,418 ) Amortization of prior service credit ( 3,170 ) ( 11,440 ) Recognized net (gain) loss 1,803 ( 7,740 ) Net other postretirement benefits cost (income) $ 2,587 ($ 14,704 ) 55 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements The Registrant Subsidiaries’ net other postretirement benefits cost (income), including amounts capitalized, for their current and former employees for the second quarters of 2026 and 2025 included the following components: 2026 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $ 551 $ 688 $ 159 $ 35 $ 129 $ 186 Interest cost on APBO 1,766 2,039 487 182 495 419 Expected return on assets ( 4,374 ) — ( 1,374 ) ( 1,258 ) ( 2,528 ) ( 722 ) Amortization of prior service cost (credit) 174 ( 309 ) ( 85 ) — ( 604 ) 9 Recognized net (gain) loss ( 475 ) ( 1,098 ) ( 73 ) ( 137 ) 97 45 Net other postretirement benefits cost (income) ($ 2,358 ) $ 1,320 ($ 886 ) ($ 1,178 ) ($ 2,411 ) ($ 63 ) 2025 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $ 572 $ 671 $ 162 $ 52 $ 159 $ 174 Interest cost on APBO 1,775 2,012 489 249 582 394 Expected return on assets ( 4,225 ) — ( 1,328 ) ( 1,445 ) ( 2,452 ) ( 702 ) Amortization of prior service cost (credit) 524 ( 1,136 ) ( 239 ) ( 229 ) ( 1,093 ) ( 73 ) Recognized net (gain) loss ( 353 ) ( 1,811 ) ( 57 ) ( 27 ) 153 ( 7 ) Net other postretirement benefits income ($ 1,707 ) ($ 264 ) ($ 973 ) ($ 1,400 ) ($ 2,651 ) ($ 214 ) The Registrant Subsidiaries’ net other postretirement benefits cost (income), including amounts capitalized, for their current and former employees for the six months ended June 30, 2026 and 2025 included the following components: 2026 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $ 1,102 $ 1,376 $ 318 $ 70 $ 258 $ 372 Interest cost on APBO 3,532 4,078 974 364 990 838 Expected return on assets ( 8,748 ) — ( 2,748 ) ( 2,516 ) ( 5,056 ) ( 1,444 ) Amortization of prior service cost (credit) 348 ( 618 ) ( 170 ) — ( 1,208 ) 18 Recognized net (gain) loss ( 950 ) ( 2,196 ) ( 146 ) ( 274 ) 194 90 Net other postretirement benefits cost (income) ($ 4,716 ) $ 2,640 ($ 1,772 ) ($ 2,356 ) ($ 4,822 ) ($ 126 ) 56 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements 2025 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $ 1,144 $ 1,342 $ 324 $ 104 $ 318 $ 348 Interest cost on APBO 3,550 4,024 978 498 1,164 788 Expected return on assets ( 8,450 ) — ( 2,656 ) ( 2,890 ) ( 4,904 ) ( 1,404 ) Amortization of prior service cost (credit) 1,048 ( 2,272 ) ( 478 ) ( 458 ) ( 2,186 ) ( 146 ) Recognized net (gain) loss ( 706 ) ( 3,622 ) ( 114 ) ( 54 ) 306 ( 14 ) Net other postretirement benefits income ($ 3,414 ) ($ 528 ) ($ 1,946 ) ($ 2,800 ) ($ 5,302 ) ($ 428 ) Reclassification out of Accumulated Other Comprehensive Income (Loss) Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the second quarters of 2026 and 2025: 2026 Qualified Pension Costs Other Postretirement Costs Non-Qualified Pension Costs Total (In Thousands) Entergy Amortization of prior service credit (cost) $ — $ 1,008 ($ 62 ) $ 946 Amortization of net gain (loss) ( 515 ) 2,274 ( 93 ) 1,666 ($ 515 ) $ 3,282 ($ 155 ) $ 2,612 Entergy Louisiana Amortization of prior service credit $ — $ 308 $ — $ 308 Amortization of net gain (loss) ( 86 ) 1,236 ( 1 ) 1,149 ($ 86 ) $ 1,544 ($ 1 ) $ 1,457 2025 Qualified Pension Costs Other Postretirement Costs Non-Qualified Pension Costs Total (In Thousands) Entergy Amortization of prior service credit (cost) $ — $ 3,493 ($ 31 ) $ 3,462 Amortization of net gain (loss) ( 411 ) 3,070 ( 108 ) 2,551 ($ 411 ) $ 6,563 ($ 139 ) $ 6,013 Entergy Louisiana Amortization of prior service credit $ — $ 1,136 $ — $ 1,136 Amortization of net gain (loss) ( 91 ) 1,811 ( 1 ) 1,719 ($ 91 ) $ 2,947 ($ 1 ) $ 2,855 57 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the six months ended June 30, 2026 and 2025: 2026 Qualified Pension Costs Other Postretirement Costs Non-Qualified Pension Costs Total (In Thousands) Entergy Amortization of prior service credit (cost) $ — $ 2,016 ($ 124 ) $ 1,892 Amortization of net loss ( 1,030 ) ( 3,009 ) ( 189 ) ( 4,228 ) ($ 1,030 ) ($ 993 ) ($ 313 ) ($ 2,336 ) Entergy Louisiana Amortization of prior service credit (cost) $ — $ 618 ($ 1 ) $ 617 Amortization of net gain (loss) ( 173 ) 2,471 ( 2 ) 2,296 ($ 173 ) $ 3,089 ($ 3 ) $ 2,913 2025 Qualified Pension Costs Other Postretirement Costs Non-Qualified Pension Costs Total (In Thousands) Entergy Amortization of prior service credit (cost) $ — $ 6,986 ($ 62 ) $ 6,924 Amortization of net gain (loss) ( 822 ) 6,140 ( 216 ) 5,102 ($ 822 ) $ 13,126 ($ 278 ) $ 12,026 Entergy Louisiana Amortization of prior service credit $ — $ 2,272 $ — $ 2,272 Amortization of net gain (loss) ( 182 ) 3,622 ( 2 ) 3,438 ($ 182 ) $ 5,894 ($ 2 ) $ 5,710 Accounting for Pension and Other Postretirement Benefits In accordance with accounting standards, the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income. In addition, non-service benefit costs previously eligible for capitalization into property, plant, and equipment are being deferred to a regulatory asset/liability and will be amortized over the estimated lives of the respective assets. 58 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements Employer Contributions Based on current assumptions, Entergy expects to contribute $ 200 million to its qualified pension plans in 2026. As of June 30, 2026, Entergy had contributed $ 85.1 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their current and former employees in 2026: Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Expected 2026 pension contributions $ 29,716 $ 41,599 $ 3,991 $ 3,304 $ 5,931 $ 13,249 Pension contributions made through June 2026 $ 12,073 $ 16,351 $ 2,026 $ 1,552 $ 2,604 $ 5,626 Remaining estimated pension contributions to be made in 2026 $ 17,643 $ 25,248 $ 1,965 $ 1,752 $ 3,327 $ 7,623 NOTE 7. BUSINESS SEGMENT INFORMATION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy has a single reportable segment, Utility, which includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans; and included operation of a small natural gas distribution business in portions of Louisiana through June 30, 2025. See Note 14 to the financial statements in the Form 10-K for discussion of the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025. Parent & Other includes the parent company, Entergy Corporation, and other business activity, including Entergy’s non-utility operations business, which is an operating segment that does not meet the quantitative thresholds for determining reportable segments. 59 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements The following table includes operating revenues and significant expense categories regularly provided to the chief operating decision maker for the Utility segment, a reconciliation of Utility operating revenues to Entergy’s consolidated operating revenues, and a reconciliation of Utility net income to consolidated net income and net income attributable to Entergy Corporation for the three and six months ended June 30, 2026 and 2025: Three Months Ended Six Months Ended 2026 2025 2026 2025 (In Thousands) (In Thousands) Utility operating revenues $ 3,513,488 $ 3,315,723 $ 6,683,761 $ 6,145,320 Reconciliation of revenues: Other revenues (a) 10,157 13,144 27,535 30,448 Elimination of intersegment revenues ( 7 ) ( 18 ) ( 32 ) ( 45 ) Consolidated operating revenues 3,523,638 3,328,849 6,711,264 6,175,723 Less Utility expenses and other items: Fuel, fuel-related expenses, and gas purchased for resale 756,802 631,773 1,362,097 970,756 Purchased power 305,250 372,842 663,755 714,926 Other operation and maintenance expenses 758,723 713,296 1,421,165 1,375,770 Other regulatory charges (credits) - net ( 15,360 ) ( 55,957 ) 103,939 ( 72,800 ) Other Utility items (b) 1,077,697 1,051,596 1,957,044 2,063,453 Utility net income 630,376 602,173 1,175,761 1,093,215 Reconciliation of net income: Other loss ( 72,537 ) ( 55,678 ) ( 156,360 ) ( 109,050 ) Elimination of intersegment profit ( 70,019 ) ( 74,541 ) ( 140,776 ) ( 149,789 ) Consolidated net income 487,820 471,954 878,625 834,376 Preferred dividend requirements of subsidiaries and noncontrolling interests (c) 5,213 4,024 11,102 5,686 Net income attributable to Entergy Corporation $ 482,607 $ 467,930 $ 867,523 $ 828,690 (a) See Note 12 to the financial statements herein and Note 19 to the financial statements in the Form 10-K for discussion of other revenues. (b) Other Utility items includes nuclear refueling outage expenses, decommissioning expenses, taxes other than income taxes, depreciation and amortization expenses, other income, interest expense, and income tax expense. (c) Preferred dividend requirements of subsidiaries and noncontrolling interests is substantially derived from the Utility segment. See Note 6 to the financial statements in the Form 10-K for discussion of preferred stock and noncontrolling interests. 60 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements The following table presents segment financial information for Entergy’s single reportable segment, Utility, and a reconciliation to the corresponding consolidated amounts for Entergy Corporation for the three months ended June 30, 2026 and 2025: Utility Parent & Other Eliminations Consolidated (In Thousands) 2026 Depreciation, amortization, and decommissioning $ 607,131 $ 571 $ — $ 607,702 Interest and investment income $ 243,168 $ 2,558 ($ 70,818 ) $ 174,908 Interest expense $ 328,632 $ 82,419 ($ 798 ) $ 410,253 Income taxes $ 148,924 ($ 17,246 ) $ — $ 131,678 2025 Depreciation, amortization, and decommissioning $ 577,386 $ 1,766 $ — $ 579,152 Interest and investment income $ 160,248 $ 2,146 ($ 74,975 ) $ 87,419 Interest expense $ 261,033 $ 61,475 ($ 434 ) $ 322,074 Income taxes $ 152,836 ($ 14,437 ) $ — $ 138,399 The following table presents segment financial information for Entergy’s single reportable segment, Utility, and a reconciliation to the corresponding consolidated amounts for Entergy Corporation for the six months ended June 30, 2026 and 2025: Utility Parent & Other Eliminations Consolidated (In Thousands) 2026 Depreciation, amortization, and decommissioning $ 1,204,493 $ 2,156 $ — $ 1,206,649 Interest and investment income $ 526,847 $ 5,976 ($ 142,105 ) $ 390,718 Interest expense $ 631,697 $ 159,625 ($ 1,329 ) $ 789,993 Income taxes $ 260,328 ($ 40,860 ) $ — $ 219,468 Total assets as of June 30, 2026 $ 82,679,238 $ 1,005,372 ($ 4,681,992 ) $ 79,002,618 Total expenditures for additions to long-lived assets $ 5,231,590 ($ 740 ) $ — $ 5,230,850 2025 Depreciation, amortization, and decommissioning $ 1,144,573 $ 3,451 $ — $ 1,148,024 Interest and investment income $ 267,423 $ 3,835 ($ 150,433 ) $ 120,825 Interest expense $ 528,164 $ 124,344 ($ 643 ) $ 651,865 Income taxes $ 267,109 ($ 28,669 ) $ — $ 238,440 Total assets as of December 31, 2025 $ 75,726,104 $ 773,056 ($ 4,608,430 ) $ 71,890,730 Total expenditures for additions to long-lived assets $ 3,798,452 $ 606 $ — $ 3,799,058 Eliminations are primarily intersegment activity. All of Entergy’s goodwill is related to the Utility segment. 61 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements Registrant Subsidiaries Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each has one operating and reportable segment, an integrated utility business which includes the generation, transmission, and distribution of electric power; and included operation of a small natural gas distribution business at each of Entergy Louisiana and Entergy New Orleans through June 30, 2025. See Note 14 to the financial statements in the Form 10-K for discussion of the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025. System Energy has one operating and reportable segment, which is an electricity generation business. Each of the Registrant Subsidiaries’ operations are managed on an integrated basis by that company because of the substantial effect of cost-based rates and regulatory oversight on the business process, cost structures, and operating results. All segment financial information for the Registrant Subsidiaries is as reported on the respective financial statements for each of the Registrant Subsidiaries. NOTE 8. RISK MANAGEMENT AND FAIR VALUES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Market Risk In the normal course of business, Entergy is exposed to a number of market risks. Market risk is the potential loss that Entergy may incur as a result of changes in the market or fair value of a particular commodity or instrument. All financial and commodity-related instruments, including derivatives, are subject to market risk including commodity price risk, equity price, and interest rate risk. Entergy uses derivatives primarily to mitigate commodity price risk associated with the price of fuel and to mitigate interest rate exposure related to certain financing agreements. The Utility has limited exposure to the effects of market risk because it operates primarily under cost-based rate regulation. To the extent approved by their retail regulators, the Utility operating companies use commodity and financial instruments to hedge the exposure to price volatility inherent in their purchased power, fuel, and gas purchased for resale costs, that are recovered from customers. Derivatives Entergy designates a significant portion of its derivative instruments as normal purchase/normal sale transactions due to their physical settlement provisions, including power purchase and sales agreements, fuel purchase agreements, and capacity contracts. Certain derivative instruments do not qualify for designation as normal purchase/normal sale transactions due to their financial settlement provisions. See further discussion below regarding the accounting for these derivative instruments. In 2025, Entergy Texas entered into interest rate swaps, accounted for as derivatives, to manage interest rate risks associated with Entergy Texas’s build-to-suit lease arrangement for the Legend Power Station. See Note 8 to the financial statements in the Form 10-K for further discussion of the build-to-suit lease arrangement for the Legend Power Station. These interest rate swaps are not designated as hedging instruments. Interest will be calculated as the sum of the Secured Overnight Financing Rate plus the blended spreads per the build-to-suit lease arrangement, compounded monthly, with one cash settlement per year over the approximate two year construction period. The notional volume of the hedge was calculated based on the expected costs for the Legend Power Station at the time Entergy Texas entered into the interest rate swaps. Changes in the fair value of these interest rate swaps are recognized each period, with gains and losses deferred as a regulatory asset or liability. The interest rate swaps run through January 31, 2028. The total notional volume is up to $ 1.1 billion for Entergy Texas as of June 30, 2026. Credit support for the swaps are covered by master agreements that do not require Entergy Texas to provide collateral based on mark-to-market values. 62 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements Entergy manages fuel price volatility for Entergy Louisiana and Entergy Mississippi through the purchase of natural gas swaps that financially settle against either the average Henry Hub Gas Daily prices or the NYMEX Henry Hub. These swaps are marked-to-market through fuel expense with offsetting regulatory assets or liabilities. All benefits or costs of the program are recorded in fuel costs. The notional volumes of these swaps are based on a portion of projected annual exposure to gas price volatility for electric generation at Entergy Louisiana and Entergy Mississippi. The maximum length of time over which Entergy has executed natural gas swaps as of June 30, 2026 is nine months for Entergy Mississippi. The total volume of natural gas swaps outstanding as of June 30, 2026 is 9,124,250 MMBtu for Entergy and Entergy Mississippi. As of June 30, 2026, Entergy Louisiana had no outstanding natural gas swaps. Credit support for these natural gas swaps is covered by master agreements that do not require Entergy to provide collateral based on mark-to-market value, but do carry adequate assurance language that may lead to requests for collateral. Prior to the sale of the Entergy New Orleans natural gas distribution business, Entergy also managed fuel price volatility related to projected winter purchases for gas distribution at Entergy New Orleans through the purchase of natural gas swaps. See Note 14 to the financial statements in the Form 10-K for discussion of the sale of the Entergy New Orleans and Entergy Louisiana natural gas distribution businesses on July 1, 2025. During the second quarter 2026, Entergy participated in the annual financial transmission rights auction process for the MISO planning year of June 1, 2026 through May 31, 2027. Financial transmission rights are derivative instruments that represent economic hedges of future congestion charges that will be incurred in serving Entergy’s customer load. They are not designated as hedging instruments. Entergy initially records financial transmission rights at their estimated fair value and subsequently adjusts the carrying value to their estimated fair value at the end of each accounting period prior to settlement. Unrealized gains or losses on financial transmission rights held by the non-utility operations are included in operating revenues. The Utility operating companies recognize regulatory liabilities or assets for unrealized gains or losses on financial transmission rights. The total volume of financial transmission rights outstanding as of June 30, 2026 is 131,545 GWh for Entergy, including 34,807 GWh for Entergy Arkansas, 54,548 GWh for Entergy Louisiana, 16,033 GWh for Entergy Mississippi, 5,533 GWh for Entergy New Orleans, and 20,171 GWh for Entergy Texas. Credit support for financial transmission rights held by the Utility operating companies is covered by cash and/or letters of credit issued by each Utility operating company as required by MISO. No cash was required to be posted for financial transmission rights exposure for the Utility operating companies as of June 30, 2026 and December 31, 2025. Letters of credit posted with MISO covered the financial transmission rights exposure for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy Texas as of June 30, 2026 and for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy Texas as of December 31, 2025. Credit support for financial transmission rights held by Entergy’s non-utility operations business may also be covered by cash and/or letters of credit. No cash or letters of credit were required to be posted for financial transmission rights exposure for the non-utility operations business as of June 30, 2026 and December 31, 2025. 63 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements The fair values of Entergy’s derivative instruments not designated as hedging instruments on the consolidated balance sheets as of June 30, 2026 and December 31, 2025 are shown in the table below. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) (In Millions) 2026 Assets: Financial transmission rights Prepayments and other $ 68 ($ 4 ) $ 64 Interest rate swaps Prepayments and other $ 1 $ — $ 1 Interest rate swaps Other deferred debits and other assets $ 8 $ — $ 8 Liabilities: Natural gas swaps Other current liabilities $ 4 $ — $ 4 2025 Assets: Financial transmission rights Prepayments and other $ 27 $ — $ 27 Interest rate swaps Prepayments and other $ 1 $ — $ 1 Liabilities: Natural gas swaps Other current liabilities $ 5 $ — $ 5 Interest rate swaps Other non-current liabilities $ 3 $ — $ 3 (a) Represents the gross amounts of recognized assets/liabilities (b) Represents the netting of fair value balances with the same counterparty (c) Represents the net amounts of assets/liabilities presented on the Entergy Corporation and Subsidiaries’ Consolidated Balance Sheets (d) Excludes letters of credit posted with MISO to cover financial transmission rights exposure in the amount of $ 6 million as of June 30, 2026 and $ 2 million as of December 31, 2025 64 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the three months ended June 30, 2026 and 2025 are as follows: Instrument Income Statement Location Amount of gain (loss) recorded in the income statement (In Millions) 2026 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale (a) ($ 1 ) Financial transmission rights Purchased power expense (b) $ 43 Interest rate swaps Interest expense (c) ($ 5 ) 2025 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale (a) $ 11 Financial transmission rights Purchased power expense (b) $ 66 The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the six months ended June 30, 2026 and 2025 are as follows: Instrument Income Statement Location Amount of gain (loss) recorded in the income statement (In Millions) 2026 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale (a) $ 2 Financial transmission rights Purchased power expense (b) $ 87 Interest rate swaps Interest expense (c) ($ 9 ) 2025 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale (a) ($ 1 ) Financial transmission rights Purchased power expense (b) $ 114 (a) Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms. (b) Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms. (c) Due to regulatory treatment, the changes in the estimated fair value of the interest rate swaps for Entergy Texas are recorded through interest expense and such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as interest expense when the interest rate swaps for Entergy Texas are settled are expected to be recovered in ratemaking relating to the Legend 65 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements Power Station. See Note 8 to the financial statements in the Form 10-K for discussion of the build-to-suit lease arrangement for the Legend Power Station. The fair values of derivative instruments not designated as hedging instruments on the Registrant Subsidiaries’ balance sheets as of June 30, 2026 and December 31, 2025 are shown in the tables below. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Registrant (In Millions) 2026 Assets: Financial transmission rights Prepayments and other $ 23.8 $ — $ 23.8 Entergy Arkansas Financial transmission rights Prepayments and other $ 32.1 $ — $ 32.1 Entergy Louisiana Financial transmission rights Prepayments and other $ 0.9 ($ 0.2 ) $ 0.7 Entergy Mississippi Financial transmission rights Prepayments and other $ 4.0 $ — $ 4.0 Entergy New Orleans Financial transmission rights Prepayments and other $ 6.9 ($ 3.8 ) $ 3.1 Entergy Texas Interest rate swaps Prepayments and other $ 1.1 $ — $ 1.1 Entergy Texas Interest rate swaps Other deferred debits and other assets $ 7.5 $ — $ 7.5 Entergy Texas Liabilities: Natural gas swaps Other current liabilities $ 4.1 $ — $ 4.1 Entergy Mississippi 66 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Registrant (In Millions) 2025 Assets: Financial transmission rights Prepayments and other $ 5.5 $ — $ 5.5 Entergy Arkansas Financial transmission rights Prepayments and other $ 16.8 ($ 0.1 ) $ 16.7 Entergy Louisiana Financial transmission rights Prepayments and other $ 0.4 $ — $ 0.4 Entergy Mississippi Financial transmission rights Prepayments and other $ 1.8 $ — $ 1.8 Entergy New Orleans Financial transmission rights Prepayments and other $ 2.3 ($ 0.2 ) $ 2.1 Entergy Texas Interest rate swaps Prepayments and other $ 0.5 $ — $ 0.5 Entergy Texas Liabilities: Natural gas swaps Other current liabilities $ 5.3 $ — $ 5.3 Entergy Mississippi Interest rate swaps Other non-current liabilities $ 3.0 $ — $ 3.0 Entergy Texas (a) Represents the gross amounts of recognized assets/liabilities (b) Represents the netting of fair value balances with the same counterparty (c) Represents the net amounts of assets/liabilities presented on the Registrant Subsidiaries’ balance sheets (d) Excludes letters of credit posted with MISO to cover financial transmission rights exposure in the amount of $ 1.4 million for Entergy Arkansas, $ 1.3 million for Entergy Louisiana, $ 2.5 million for Entergy Mississippi, and $ 0.6 million for Entergy Texas as of June 30, 2026 and in the amount of $ 0.1 million for Entergy Arkansas, $ 0.8 million for Entergy Louisiana, $ 0.8 million for Entergy Mississippi, and $ 0.1 million for Entergy Texas as of December 31, 2025 67 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements The effects of derivative instruments not designated as hedging instruments on the Registrant Subsidiaries’ income statements for the three months ended June 30, 2026 and 2025 are as follows: Instrument Income Statement Location Amount of gain (loss) recorded in the income statement Registrant (In Millions) 2026 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($ 0.8 ) (a) Entergy Mississippi Financial transmission rights Purchased power expense $ 8.9 (b) Entergy Arkansas Financial transmission rights Purchased power expense $ 22.7 (b) Entergy Louisiana Financial transmission rights Purchased power expense $ 3.4 (b) Entergy Mississippi Financial transmission rights Purchased power expense $ 2.4 (b) Entergy New Orleans Financial transmission rights Purchased power expense $ 5.1 (b) Entergy Texas Interest rate swaps Interest expense ($ 4.9 ) (c) Entergy Texas 2025 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $ 11.4 (a) Entergy Mississippi Financial transmission rights Purchased power expense $ 9.5 (b) Entergy Arkansas Financial transmission rights Purchased power expense $ 42.0 (b) Entergy Louisiana Financial transmission rights Purchased power expense $ 3.1 (b) Entergy Mississippi Financial transmission rights Purchased power expense $ 8.8 (b) Entergy New Orleans Financial transmission rights Purchased power expense $ 2.3 (b) Entergy Texas 68 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements The effects of derivative instruments not designated as hedging instruments on the Registrant Subsidiaries’ income statements for the six months ended June 30, 2026 and 2025 are as follows: Instrument Income Statement Location Amount of gain (loss) recorded in the income statement Registrant (In Millions) 2026 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $ 2.2 (a) Entergy Mississippi Financial transmission rights Purchased power expense $ 17.4 (b) Entergy Arkansas Financial transmission rights Purchased power expense $ 48.2 (b) Entergy Louisiana Financial transmission rights Purchased power expense $ 11.9 (b) Entergy Mississippi Financial transmission rights Purchased power expense $ 1.3 (b) Entergy New Orleans Financial transmission rights Purchased power expense $ 7.8 (b) Entergy Texas Interest rate swaps Interest expense ($ 8.6 ) (c) Entergy Texas 2025 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($ 1.2 ) (a) Entergy Mississippi Financial transmission rights Purchased power expense $ 28.2 (b) Entergy Arkansas Financial transmission rights Purchased power expense $ 64.1 (b) Entergy Louisiana Financial transmission rights Purchased power expense $ 5.1 (b) Entergy Mississippi Financial transmission rights Purchased power expense $ 11.1 (b) Entergy New Orleans Financial transmission rights Purchased power expense $ 5.8 (b) Entergy Texas (a) Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms. (b) Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms. (c) Due to regulatory treatment, the changes in the estimated fair value of the interest rate swaps for Entergy Texas are recorded through interest expense and such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as interest expense when the interest rate swaps for Entergy Texas are settled are expected to be recovered in ratemaking relating to the Legend Power Station. See Note 8 to the financial statements in the Form 10-K for discussion of the build-to-suit lease arrangement for the Legend Power Station. Fair Values The estimated fair values of Entergy’s financial instruments and derivatives are determined using historical prices, bid prices, market quotes, and financial modeling. Considerable judgment is required in developing the estimates of fair value. Therefore, estimates are not necessarily indicative of the amounts that Entergy could realize in a current market exchange. Gains or losses realized on financial instruments are reflected in future rates and 69 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements therefore do not affect net income. Entergy considers the carrying amounts of most financial instruments classified as current assets and liabilities to be a reasonable estimate of their fair value because of the short maturity of these instruments. Accounting standards define fair value as an exit price, or the price that would be received to sell an asset or the amount that would be paid to transfer a liability in an orderly transaction between knowledgeable market participants at the date of measurement. Entergy and the Registrant Subsidiaries use assumptions or market input data that market participants would use in pricing assets or liabilities at fair value. The inputs can be readily observable, corroborated by market data, or generally unobservable. Entergy and the Registrant Subsidiaries endeavor to use the best available information to determine fair value. Accounting standards establish a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy establishes the highest priority for unadjusted market quotes in an active market for the identical asset or liability and the lowest priority for unobservable inputs. The three levels of the fair value hierarchy are: • Level 1 - Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of individually owned common stocks, cash equivalents (temporary cash investments, securitization recovery trust account, and escrow accounts), debt instruments, and gas swaps traded on exchanges with active markets. Cash equivalents includes all unrestricted highly liquid debt instruments with an original or remaining maturity of three months or less at the date of purchase. • Level 2 - Level 2 inputs are inputs other than quoted prices included in Level 1 that are, either directly or indirectly, observable for the asset or liability at the measurement date. Assets are valued based on prices derived by independent third parties that use inputs such as benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. Prices are reviewed and can be challenged with the independent parties and/or overridden by Entergy if it is believed such would be more reflective of fair value. Level 2 inputs include the following: – quoted prices for similar assets or liabilities in active markets; – quoted prices for identical assets or liabilities in inactive markets; – inputs other than quoted prices that are observable for the asset or liability; or – inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 2 consists primarily of individually-owned debt instruments, gas swaps, and interest rate swaps valued using observable inputs. • Level 3 - Level 3 inputs are pricing inputs that are generally less observable or unobservable from objective sources. These inputs are used with internally developed methodologies to produce management’s best estimate of fair value for the asset or liability. Level 3 consists primarily of financial transmission rights. The values of financial transmission rights are based on unobservable inputs, including estimates of congestion costs in MISO between applicable generation and load pricing nodes based on the 50th percentile of historical prices. They are classified as Level 3 assets and liabilities. The valuations of these assets and liabilities are performed by the Office of Corporate Risk Oversight. The values are calculated internally and verified against the data published by MISO. Entergy’s Accounting group reviews these valuations for reasonableness, with the assistance of others within the organization with knowledge of the various inputs and assumptions used in the 70 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements valuation. The Office of Corporate Risk Oversight reports to the Vice President and Treasurer. The Accounting group reports to the Chief Accounting Officer. The following tables set forth, by level within the fair value hierarchy, Entergy’s assets and liabilities that are accounted for at fair value on a recurring basis as of June 30, 2026 and December 31, 2025. The assessment of the significance of a particular input to a fair value measurement requires judgment and may affect placement within the fair value hierarchy levels. 2026 Level 1 Level 2 Level 3 Total (In Millions) Assets: Temporary cash investments $ 3,736 $ — $ — $ 3,736 Decommissioning trust funds (a): Equity securities 100 — — 100 Debt securities 1,038 1,428 — 2,466 Common trusts (b) 4,156 Securitization recovery trust account 1 — — 1 Storm reserve escrow accounts 314 — — 314 Financial transmission rights — — 64 64 Interest rate swaps — 9 — 9 $ 5,189 $ 1,437 $ 64 $ 10,846 Liabilities: Natural gas swaps $ 4 $ — $ — $ 4 $ 4 $ — $ — $ 4 2025 Level 1 Level 2 Level 3 Total (In Millions) Assets: Temporary cash investments $ 1,883 $ — $ — $ 1,883 Decommissioning trust funds (a): Equity securities 51 — — 51 Debt securities 905 1,297 — 2,202 Common trusts (b) 4,048 Securitization recovery trust account 1 — — 1 Storm reserve escrow accounts 309 — — 309 Financial transmission rights — — 27 27 Interest rate swaps — 1 — 1 $ 3,149 $ 1,298 $ 27 $ 8,522 Liabilities: Natural gas swaps $ 5 $ — $ — $ 5 Interest rate swaps — 3 — 3 $ 5 $ 3 $ — $ 8 (a) The decommissioning trust funds hold equity and fixed income securities. Equity securities are invested to approximate the returns of major market indices. Fixed income securities are held in various governmental 71 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements and corporate securities. See Note 9 to the financial statements herein for additional information on the investment portfolios. (b) Common trust funds are not publicly quoted and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table. The fund administrator of these investments allows daily trading at the net asset value and trades settle at a later date. The following table sets forth a reconciliation of changes in the net assets for the fair value of financial transmission rights classified as Level 3 in the fair value hierarchy for the three months ended June 30, 2026 and 2025: 2026 2025 (In Millions) Balance as of April 1, $ 11 $ 7 Issuances of financial transmission rights 81 49 Gains included as a regulatory liability/asset 15 58 Settlements ( 43 ) ( 66 ) Balance as of June 30, $ 64 $ 48 The following table sets forth a reconciliation of changes in the net assets for the fair value of financial transmission rights classified as Level 3 in the fair value hierarchy for the six months ended June 30, 2026 and 2025: 2026 2025 (In Millions) Balance as of January 1, $ 27 $ 20 Issuances of financial transmission rights 81 49 Gains included as a regulatory liability/asset 43 93 Settlements ( 87 ) ( 114 ) Balance as of June 30, $ 64 $ 48 The fair values of the Level 3 financial transmission rights are based on unobservable inputs calculated internally and verified against historical pricing data published by MISO. 72 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements The following tables set forth, by level within the fair value hierarchy, the Registrant Subsidiaries’ assets and liabilities that are accounted for at fair value on a recurring basis as of June 30, 2026 and December 31, 2025. The assessment of the significance of a particular input to a fair value measurement requires judgment and may affect placement within the fair value hierarchy levels. Entergy Arkansas 2026 Level 1 Level 2 Level 3 Total (In Millions) Assets: Temporary cash investments $ 504.8 $ — $ — $ 504.8 Decommissioning trust funds (a): Equity securities 42.4 — — 42.4 Debt securities 340.1 353.1 — 693.2 Common trusts (b) 1,197.8 Financial transmission rights — — 23.8 23.8 $ 887.3 $ 353.1 $ 23.8 $ 2,462.0 2025 Level 1 Level 2 Level 3 Total (In Millions) Assets: Temporary cash investments $ 268.5 $ — $ — $ 268.5 Decommissioning trust funds (a): Equity securities 20.0 — — 20.0 Debt securities 251.9 362.1 — 614.0 Common trusts (b) 1,182.3 Financial transmission rights — — 5.5 5.5 $ 540.4 $ 362.1 $ 5.5 $ 2,090.3 Entergy Louisiana 2026 Level 1 Level 2 Level 3 Total (In Millions) Assets: Temporary cash investments $ 1,567.7 $ — $ — $ 1,567.7 Decommissioning trust funds (a): Equity securities 53.5 — — 53.5 Debt securities 418.0 675.0 — 1,093.0 Common trusts (b) 1,797.9 Storm reserve escrow account 239.2 — — 239.2 Financial transmission rights — — 32.1 32.1 $ 2,278.4 $ 675.0 $ 32.1 $ 4,783.4 73 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements 2025 Level 1 Level 2 Level 3 Total (In Millions) Assets: Temporary cash investments $ 776.7 $ — $ — $ 776.7 Decommissioning trust funds (a): Equity securities 22.8 — — 22.8 Debt securities 373.2 619.4 — 992.6 Common trusts (b) 1,738.4 Storm reserve escrow account 235.0 — — 235.0 Financial transmission rights — — 16.7 16.7 $ 1,407.7 $ 619.4 $ 16.7 $ 3,782.2 Entergy Mississippi 2026 Level 1 Level 2 Level 3 Total (In Millions) Assets: Temporary cash investments $ 829.8 $ — $ — $ 829.8 Financial transmission rights — — 0.7 0.7 $ 829.8 $ — $ 0.7 $ 830.5 Liabilities: Natural gas swaps $ 4.1 $ — $ — $ 4.1 2025 Level 1 Level 2 Level 3 Total (In Millions) Assets: Temporary cash investments $ 341.5 $ — $ — $ 341.5 Financial transmission rights — — 0.4 0.4 $ 341.5 $ — $ 0.4 $ 341.9 Liabilities: Natural gas swaps $ 5.3 $ — $ — $ 5.3 Entergy New Orleans 2026 Level 1 Level 2 Level 3 Total (In Millions) Assets: Temporary cash investments $ 63.3 $ — $ — $ 63.3 Storm reserve escrow account 75.1 — — 75.1 Financial transmission rights — — 4.0 4.0 $ 138.4 $ — $ 4.0 $ 142.4 74 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements 2025 Level 1 Level 2 Level 3 Total (In Millions) Assets: Temporary cash investments $ 110.2 $ — $ — $ 110.2 Storm reserve escrow account 73.8 — — 73.8 Financial transmission rights — — 1.8 1.8 $ 184.0 $ — $ 1.8 $ 185.8 Entergy Texas 2026 Level 1 Level 2 Level 3 Total (In Millions) Assets : Temporary cash investments $ 535.1 $ — $ — $ 535.1 Securitization recovery trust account 1.3 — — $ 1.3 Financial transmission rights — — 3.1 3.1 Interest rate swaps — 8.6 — 8.6 $ 536.4 $ 8.6 $ 3.1 $ 548.1 2025 Level 1 Level 2 Level 3 Total (In Millions) Assets : Temporary cash investments $ 274.9 $ — $ — $ 274.9 Securitization recovery trust account 1.5 — — 1.5 Financial transmission rights — — 2.1 2.1 Interest rate swaps — 0.5 — 0.5 $ 276.4 $ 0.5 $ 2.1 $ 279.0 Liabilities: Interest rate swaps $ — $ 3.0 $ — $ 3.0 System Energy 2026 Level 1 Level 2 Level 3 Total (In Millions) Assets: Decommissioning trust funds (a): Equity securities $ 4.4 $ — $ — $ 4.4 Debt securities 279.8 399.8 — 679.6 Common trusts (b) 1,160.5 $ 284.2 $ 399.8 $ — $ 1,844.5 75 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements 2025 Level 1 Level 2 Level 3 Total (In Millions) Assets: Decommissioning trust funds (a): Equity securities $ 8.6 $ — $ — $ 8.6 Debt securities 280.5 314.5 — 595.0 Common trusts (b) 1,127.1 $ 289.1 $ 314.5 $ — $ 1,730.7 (a) The decommissioning trust funds hold equity and fixed income securities. Equity securities are invested to approximate the returns of major market indices. Fixed income securities are held in various governmental and corporate securities. See Note 9 to the financial statements herein for additional information on the investment portfolios. (b) Common trust funds are not publicly quoted and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table. The fund administrator of these investments allows daily trading at the net asset value and trades settle at a later date. The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of financial transmission rights classified as Level 3 in the fair value hierarchy for the three months ended June 30, 2026. Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Millions) Balance as of April 1, 2026 $ 2.4 $ 7.1 $ 0.1 $ 0.8 $ 0.9 Issuances of financial transmission rights 26.3 41.7 1.5 6.2 5.0 Gains (losses) included as a regulatory liability/asset 4.0 6.0 2.5 ( 0.6 ) 2.3 Settlements ( 8.9 ) ( 22.7 ) ( 3.4 ) ( 2.4 ) ( 5.1 ) Balance as of June 30, 2026 $ 23.8 $ 32.1 $ 0.7 $ 4.0 $ 3.1 The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of financial transmission rights classified as Level 3 in the fair value hierarchy for the three months ended June 30, 2025. Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Millions) Balance as of April 1, 2025 $ 3.0 $ 3.4 ($ 0.1 ) $ 0.4 $ 0.4 Issuances of financial transmission rights 11.8 28.7 1.5 3.0 4.0 Gains included as a regulatory liability/asset 5.8 38.2 3.1 8.4 1.8 Settlements ( 9.5 ) ( 42.0 ) ( 3.1 ) ( 8.8 ) ( 2.3 ) Balance as of June 30, 2025 $ 11.1 $ 28.3 $ 1.4 $ 3.0 $ 3.9 76 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements The following table sets forth a reconciliation of changes in the net assets for the fair value of financial transmission rights classified as Level 3 in the fair value hierarchy for the six months ended June 30, 2026. Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Millions) Balance as of January 1, 2026 $ 5.5 $ 16.7 $ 0.4 $ 1.8 $ 2.1 Issuances of financial transmission rights 26.3 41.7 1.5 6.1 5.0 Gains (losses) included as a regulatory liability/asset 9.4 21.9 10.7 ( 2.6 ) 3.8 Settlements ( 17.4 ) ( 48.2 ) ( 11.9 ) ( 1.3 ) ( 7.8 ) Balance as of June 30, 2026 $ 23.8 $ 32.1 $ 0.7 $ 4.0 $ 3.1 The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of financial transmission rights classified as Level 3 in the fair value hierarchy for the six months ended June 30, 2025. Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Millions) Balance as of January 1, 2025 $ 8.6 $ 8.6 ($ 0.5 ) $ 1.3 $ 1.9 Issuances of financial transmission rights 11.8 28.7 1.5 2.9 4.0 Gains included as a regulatory liability/asset 18.9 55.1 5.5 9.9 3.8 Settlements ( 28.2 ) ( 64.1 ) ( 5.1 ) ( 11.1 ) ( 5.8 ) Balance as of June 30, 2025 $ 11.1 $ 28.3 $ 1.4 $ 3.0 $ 3.9 NOTE 9. DECOMMISSIONING TRUST FUNDS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) The NRC requires certain of the Utility operating companies and System Energy to maintain nuclear decommissioning trusts to fund the costs of decommissioning ANO 1 and 2, River Bend, Waterford 3, and Grand Gulf. Entergy’s nuclear decommissioning trust funds invest in equity securities, fixed-rate debt securities, and cash and cash equivalents. Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, for unrealized gains/(losses) on investment securities, the Registrant Subsidiaries record an offsetting amount in other regulatory liabilities/assets. For the 30 % interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other long-term liabilities on the consolidated balance sheets of Entergy and Entergy Louisiana for the unrealized trust earnings not currently expected to be needed to decommission the plant. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2026 on equity securities still held as of June 30, 2026 were $ 532 million and $ 351 million, respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds that are designed to approximate or somewhat exceed the return of the Wilshire 4500 Index. The debt securities are generally held in individual government and credit issuances. 77 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements The available-for-sale debt securities held as of June 30, 2026 and December 31, 2025 are summarized as follows: 2026 2025 (In Millions) Fair value $ 2,466 $ 2,202 Unrealized gains $ 13 $ 28 Unrealized losses $ 56 $ 45 As of June 30, 2026 and December 31, 2025, there were no deferred taxes on unrealized gains/(losses). The amortized cost of available-for-sale debt securities was $ 2,508 million as of June 30, 2026 and $ 2,219 million as of December 31, 2025. As of June 30, 2026, available-for-sale debt securities had an average coupon rate of approximately 4.25 %, an average duration of approximately 6.20 years, and an average maturity of approximately 10.78 years. The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2026 and December 31, 2025: 2026 2025 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $ 1,122 $ 17 $ 361 $ 3 More than 12 months 460 39 549 42 Total $ 1,582 $ 56 $ 910 $ 45 The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2026 and December 31, 2025 were as follows: 2026 2025 (In Millions) Less than 1 year $ 14 $ 31 1 year - 5 years 736 649 5 years - 10 years 757 645 10 years - 15 years 195 188 15 years - 20 years 326 218 20 years+ 438 471 Total $ 2,466 $ 2,202 The following table summarizes proceeds from the dispositions of available-for-sale debt securities and the related gains and losses from the sales during the three and six months ended June 30, 2026 and 2025: Three Months Ended Six Months Ended 2026 2025 2026 2025 (In Millions) Proceeds from disposition of securities $ 209 $ 227 $ 368 $ 489 Realized gains $ 1 $ 1 $ 2 $ 2 Realized losses $ 6 $ 4 $ 8 $ 8 78 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements During the three and six months ended June 30, 2026 and 2025, gross gains and gross losses related to available-for-sale debt securities were reclassified out of other regulatory liabilities/assets into earnings. Entergy Arkansas Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale debt securities held as of June 30, 2026 and December 31, 2025 are summarized as follows: 2026 2025 (In Millions) Fair value $ 693.2 $ 614.0 Unrealized gains $ 2.7 $ 7.5 Unrealized losses $ 20.1 $ 14.2 The amortized cost of available-for-sale debt securities was $ 710.7 million as of June 30, 2026 and $ 620.7 million as of December 31, 2025. As of June 30, 2026, the available-for-sale debt securities had an average coupon rate of approximately 3.87 %, an average duration of approximately 6.29 years, and an average maturity of approximately 8.58 years. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2026 on equity securities still held as of June 30, 2026 were $ 153.5 million and $ 101.8 million, respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds that are designed to approximate or somewhat exceed the return of the Wilshire 4500 Index. The debt securities are generally held in individual government and credit issuances. The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2026 and December 31, 2025: 2026 2025 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $ 310.6 $ 5.1 $ 89.1 $ 0.6 More than 12 months 183.8 15.0 211.1 13.6 Total $ 494.4 $ 20.1 $ 300.2 $ 14.2 79 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2026 and December 31, 2025 were as follows: 2026 2025 (In Millions) Less than 1 year $ 12.3 $ 27.7 1 year - 5 years 195.9 140.2 5 years - 10 years 288.2 256.8 10 years - 15 years 56.1 69.1 15 years - 20 years 97.1 61.4 20 years+ 43.6 58.8 Total $ 693.2 $ 614.0 The following table summarizes proceeds from the dispositions of available-for-sale debt securities and the related gains and losses from the sales during the three and six months ended June 30, 2026 and 2025: Three Months Ended Six Months Ended 2026 2025 2026 2025 (In Millions) Proceeds from disposition of securities $ 7.2 $ — $ 11.0 $ — Realized gains $ 0.1 $ — $ 0.1 $ — During the three and six months ended June 30, 2026 and 2025, gross gains and gross losses related to available-for-sale debt securities were reclassified out of other regulatory liabilities/assets into earnings. Entergy Louisiana Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale debt securities held as of June 30, 2026 and December 31, 2025 are summarized as follows: 2026 2025 (In Millions) Fair value $ 1,093.0 $ 992.6 Unrealized gains $ 7.6 $ 13.0 Unrealized losses $ 14.4 $ 15.0 The amortized cost of available-for-sale debt securities was $ 1,100 million as of June 30, 2026 and $ 994.6 million as of December 31, 2025. As of June 30, 2026, the available-for-sale debt securities had an average coupon rate of approximately 4.46 %, an average duration of approximately 6.07 years, and an average maturity of approximately 11.94 years. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2026 on equity securities still held as of June 30, 2026 were $ 229.5 million and $ 150.3 million, respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds that are designed to approximate or somewhat exceed the return of the Wilshire 4500 Index. The debt securities are generally held in individual government and credit issuances. 80 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2026 and December 31, 2025: 2026 2025 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $ 437.4 $ 5.3 $ 179.8 $ 1.6 More than 12 months 150.0 9.1 196.6 13.4 Total $ 587.4 $ 14.4 $ 376.4 $ 15.0 The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2026 and December 31, 2025 were as follows: 2026 2025 (In Millions) Less than 1 year $ 5.3 $ 0.9 1 year - 5 years 277.1 259.0 5 years - 10 years 297.4 227.7 10 years - 15 years 98.0 93.6 15 years - 20 years 154.4 110.9 20 years+ 260.8 300.5 Total $ 1,093.0 $ 992.6 The following table summarizes proceeds from the dispositions of available-for-sale debt securities and the related gains and losses from the sales during the three and six months ended June 30, 2026 and 2025: Three Months Ended Six Months Ended 2026 2025 2026 2025 (In Millions) Proceeds from disposition of securities $ 113.9 $ 71.5 $ 189.6 $ 181.5 Realized gains $ 0.2 $ 0.1 $ 0.6 $ 0.2 Realized losses $ 4.6 $ 2.4 $ 6.1 $ 4.0 During the three and six months ended June 30, 2026 and 2025, gross gains and gross losses related to available-for-sale debt securities were reclassified out of other regulatory liabilities/assets into earnings. System Energy System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale debt securities held as of June 30, 2026 and December 31, 2025 are summarized as follows: 2026 2025 (In Millions) Fair value $ 679.6 $ 595.0 Unrealized gains $ 3.0 $ 7.4 Unrealized losses $ 21.2 $ 16.2 81 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements The amortized cost of available-for-sale debt securities was $ 697.8 million as of June 30, 2026 and $ 603.7 million as of December 31, 2025. As of June 30, 2026, the available-for-sale debt securities had an average coupon rate of approximately 4.29 %, an average duration of approximately 6.33 years, and an average maturity of approximately 11.20 years. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2026 on equity securities still held as of June 30, 2026 were $ 148.6 million and $ 98.4 million, respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds that are designed to approximate or somewhat exceed the return of the Wilshire 4500 Index. The debt securities are generally held in individual government and credit issuances. The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2026 and December 31, 2025: 2026 2025 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $ 374.8 $ 6.1 $ 91.9 $ 1.1 More than 12 months 126.0 15.1 141.7 15.1 Total $ 500.8 $ 21.2 $ 233.6 $ 16.2 The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2026 and December 31, 2025 were as follows: 2026 2025 (In Millions) Less than 1 year $ 8.4 $ 2.2 1 year - 5 years 262.6 249.8 5 years - 10 years 171.4 160.3 10 years - 15 years 40.9 25.5 15 years - 20 years 74.1 46.2 20 years+ 122.2 111.0 Total $ 679.6 $ 595.0 The following table summarizes proceeds from the dispositions of available-for-sale debt securities and the related gains and losses from the sales during the three and six months ended June 30, 2026 and 2025: Three Months Ended Six Months Ended 2026 2025 2026 2025 (In Millions) Proceeds from disposition of securities $ 87.7 $ 155.3 $ 166.7 $ 307.6 Realized gains $ 0.3 $ 0.8 $ 0.6 $ 1.3 Realized losses $ 1.4 $ 1.4 $ 2.1 $ 4.0 During the three and six months ended June 30, 2026 and 2025, gross gains and gross losses related to available-for-sale debt securities were reclassified out of other regulatory liabilities/assets into earnings. 82 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements NOTE 10. INCOME TAXES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) See “ Income Tax Audits ” and “ Other Tax Matters ” in Note 3 to the financial statements in the Form 10-K for a discussion of income tax audits, the Tax Cuts and Jobs Act, the Inflation Reduction Act of 2022, and other income tax matters involving Entergy. The following are updates to that discussion. Other Tax Matters Inflation Reduction Act of 2022 In April 2026 the LPSC issued an order approving an agreement between Entergy Louisiana and the LPSC staff regarding the monetization of the 2025 nuclear production tax credits. The order allows Entergy Louisiana to retain the net proceeds of the monetized credits while the associated tax position remains uncertain. While retaining these proceeds, Entergy Louisiana will accrue carrying charges to its customers at its weighted average cost of capital. The order further provides that customers will be responsible for any associated costs should the IRS reduce some or all of the value of the nuclear production tax credits transferred to third parties. Once the IRS makes a final determination affirming the value of the credits or the audit period expires without a disallowance, Entergy Louisiana will commence flowing the net proceeds of the nuclear production tax credits, including carrying charges, to its customers. This treatment is consistent with the approach previously approved for the 2024 nuclear production tax credits, as discussed in Note 3 to the financial statements in the Form 10-K. In June 2026, as part of Entergy Mississippi’s 2026 formula rate plan filing, the MPSC issued an order approving the joint stipulation between the Mississippi Public Utilities Staff and Entergy Mississippi that included, among other items, the mechanism for treatment of the monetization of past and future nuclear production tax credits. The order allows Entergy Mississippi to retain the net proceeds of the monetized credits while the associated tax position remains uncertain. While retaining these proceeds, Entergy Mississippi will accrue carrying charges at its average cost of debt, as determined by Entergy Mississippi’s debt rate in its current formula rate plan. The order further provides that Entergy Mississippi will be responsible for any associated costs should the IRS reduce some or all of the value of the nuclear production tax credits transferred to third parties. Once the IRS makes a final determination affirming the value of the credits or the audit period expires without a disallowance, Entergy Mississippi will commence flowing the net proceeds of the nuclear production tax credits, including carrying charges, to its customers in accordance with the return period to be determined by the MPSC. Carrying charges at Entergy Mississippi’s average cost of debt will only apply to the value of the credits that are allowed by the IRS. See Note 2 to the financial statements herein for discussion of Entergy Mississippi’s 2026 formula rate plan filing. In second quarter 2026, Entergy Arkansas, Entergy Louisiana, and System Energy entered into agreements with third-party purchasers to transfer in the third and fourth quarters of 2026 certain nuclear and solar production tax credits for cash, including a reasonable discount, prior to the filing of Entergy’s 2025 federal income tax return. The monetized value of these credits, net of applicable expenses, is expected to be addressed in retail rates in accordance with applicable regulatory mechanisms. Arkansas Corporate Income Tax Rate Change In May 2026 the State of Arkansas enacted a corporate income tax rate reduction from 4.3 % to 4.1 %, effective January 1, 2027. As a result of the rate reduction, Entergy Arkansas recorded a regulatory liability for income taxes of approximately $ 16 million. The regulatory liability includes both the direct tax benefit and the associated tax gross-up required under the retail and wholesale ratemaking formulas. 83 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements Amortization of Tax Gross-up on Customer Advances Amortization of tax gross-up on customer advances, including customer advances for construction, were $ 40.4 million for Entergy, $ 2.8 million for Entergy Arkansas, $ 27.9 million for Entergy Louisiana, $ 9.5 million for Entergy Mississippi, and $ 0.2 million for Entergy Texas for the three months ended June 30, 2026 and $ 9.1 million for Entergy, $ 0.2 million for Entergy Arkansas, $ 6.9 million for Entergy Louisiana, $ 1.6 million for Entergy Mississippi, and $ 0.4 million for Entergy Texas for the three months ended June 30, 2025. Amortization of tax gross-up on customer advances, including customer advances for construction, were $ 63.2 million for Entergy, $ 4.2 million for Entergy Arkansas, $ 42.5 million for Entergy Louisiana, $ 15.8 million for Entergy Mississippi, and $ 0.7 million for Entergy Texas for the six months ended June 30, 2026 and $ 24.6 million for Entergy, $ 1.3 million for Entergy Arkansas, $ 13.5 million for Entergy Louisiana, $ 7.6 million for Entergy Mississippi, and $ 2.2 million for Entergy Texas for the six months ended June 30, 2025. Amortization of tax gross-up on customer advances is included in miscellaneous – net in other income on the income statement. NOTE 11. VARIABLE INTEREST ENTITIES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) See Note 17 to the financial statements in the Form 10-K for a discussion of variable interest entities (VIEs). See Note 4 to the financial statements herein for details of the nuclear fuel companies’ credit facilities, commercial paper borrowings, and long-term debt. See Note 6 to the financial statements in the Form 10-K for discussion of noncontrolling interests. Restoration Law Trust I (the storm trust I), a trust consolidated by Entergy Louisiana, is a VIE and Entergy Louisiana is the primary beneficiary. As of June 30, 2026 and December 31, 2025, the primary asset held by the storm trust I was $ 2.6 billion and $ 2.7 billion, respectively, of outstanding Entergy Finance Company preferred membership interests, which is reflected as an investment in affiliate preferred membership interests on the consolidated balance sheets of Entergy Louisiana. The LURC’s 1 % beneficial interest in the storm trust I is recorded as noncontrolling interest on the consolidated balance sheets of Entergy and Entergy Louisiana, with balances of $ 27.1 million as of June 30, 2026 and $ 27.1 million as of December 31, 2025. Restoration Law Trust II (the storm trust II), a trust consolidated by Entergy Louisiana, is a VIE and Entergy Louisiana is the primary beneficiary. As of June 30, 2026 and December 31, 2025, the primary asset held by the storm trust II was $ 1.3 billion and $ 1.3 billion, respectively, of outstanding Entergy Finance Company preferred membership interests, which is reflected as an investment in affiliate preferred membership interests on the consolidated balance sheets of Entergy Louisiana. The LURC’s 1 % beneficial interest in the storm trust II is recorded as noncontrolling interest on the consolidated balance sheets of Entergy and Entergy Louisiana, with balances of $ 13.3 million as of June 30, 2026 and $ 13.1 million as of December 31, 2025. System Energy is considered to hold a variable interest in the lessor from which it leases an undivided interest in the Grand Gulf nuclear plant. System Energy is the lessee under this arrangement, which is described in more detail in Note 5 to the financial statements in the Form 10-K. System Energy made payments under this arrangement, including interest, of $ 8.6 million in each of the six months ended June 30, 2026 and the six months ended June 30, 2025. AR Searcy Partnership, LLC is a tax equity partnership that qualifies as a VIE, which Entergy Arkansas is required to consolidate as it is the primary beneficiary. As of June 30, 2026, AR Searcy Partnership, LLC recorded assets equal to $ 123.4 million, primarily consisting of property, plant, and equipment, and the carrying value of Entergy Arkansas’s ownership interest in the partnership was approximately $ 111.9 million. As of December 31, 2025, AR Searcy Partnership, LLC recorded assets equal to $ 124.4 million, primarily consisting of property, plant, and equipment, and the carrying value of Entergy Arkansas’s ownership interest in the partnership was 84 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements approximately $ 113.1 million. The tax equity investor’s ownership interest is recorded as noncontrolling interest on the consolidated balance sheets of Entergy and Entergy Arkansas. MS Sunflower Partnership, LLC is a tax equity partnership that qualifies as a VIE, which Entergy Mississippi is required to consolidate as it is the primary beneficiary. As of June 30, 2026, MS Sunflower Partnership, LLC recorded assets equal to $ 149.8 million, primarily consisting of property, plant, and equipment, and the carrying value of Entergy Mississippi’s ownership interest in the partnership was approximately $ 134.0 million. As of December 31, 2025, MS Sunflower Partnership, LLC recorded assets equal to $ 154.5 million, primarily consisting of property, plant, and equipment, and the carrying value of Entergy Mississippi’s ownership interest in the partnership was approximately $ 134.9 million. The tax equity investor’s ownership interest is recorded as noncontrolling interest on the consolidated balance sheets of Entergy and Entergy Mississippi. NOTE 12. REVENUE (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Operating Revenues See Note 19 to the financial statements in the Form 10-K for a discussion of revenue recognition. Entergy’s total revenues for the three months ended June 30, 2026 and 2025 were as follows: 2026 2025 (In Thousands) Utility: Residential $ 1,154,074 $ 1,091,035 Commercial 822,850 771,097 Industrial 1,068,589 945,901 Governmental 73,822 70,623 Total billed retail 3,119,335 2,878,656 Sales for resale (a) 96,041 146,457 Other electric revenues (b) 289,968 246,674 Revenues from contracts with customers 3,505,344 3,271,787 Other Utility revenues (c) 8,144 3,158 Electric revenues 3,513,488 3,274,945 Natural gas revenues — 40,778 Other revenues (d) 10,150 13,126 Total operating revenues $ 3,523,638 $ 3,328,849 85 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements Entergy’s total revenues for the six months ended June 30, 2026 and 2025 were as follows: 2026 2025 (In Thousands) Utility: Residential $ 2,303,510 $ 2,204,340 Commercial 1,570,969 1,455,104 Industrial 2,003,034 1,720,020 Governmental 141,482 133,441 Total billed retail 6,018,995 5,512,905 Sales for resale (a) 238,124 198,330 Other electric revenues (b) 408,966 322,892 Revenues from contracts with customers 6,666,085 6,034,127 Other Utility revenues (c) 17,676 ( 1,316 ) Electric revenues 6,683,761 6,032,811 Natural gas revenues — 112,509 Other revenues (d) 27,503 30,403 Total operating revenues $ 6,711,264 $ 6,175,723 The Utility operating companies’ total revenues for the three months ended June 30, 2026 and 2025 were as follows: 2026 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) Residential $ 226,609 $ 426,035 $ 196,834 $ 71,647 $ 232,949 Commercial 150,110 321,904 168,041 56,309 126,486 Industrial 193,328 627,316 80,997 6,837 160,111 Governmental 4,832 24,287 16,822 19,514 8,367 Total billed retail 574,879 1,399,542 462,694 154,307 527,913 Sales for resale (a) 40,255 95,716 34,442 22,574 5,153 Other electric revenues (b) 76,621 107,505 58,349 12,159 36,676 Revenues from contracts with customers 691,755 1,602,763 555,485 189,040 569,742 Other revenues (c) 1,731 3,592 2,397 1,508 ( 1,085 ) Electric revenues 693,486 1,606,355 557,882 190,548 568,657 Natural gas revenues — — — — — Total operating revenues $ 693,486 $ 1,606,355 $ 557,882 $ 190,548 $ 568,657 86 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements 2025 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) Residential $ 212,265 $ 408,293 $ 172,575 $ 73,279 $ 224,623 Commercial 141,468 306,916 147,052 58,133 117,528 Industrial 174,555 570,303 53,629 7,800 139,614 Governmental 4,911 23,622 14,544 20,656 6,890 Total billed retail 533,199 1,309,134 387,800 159,868 488,655 Sales for resale (a) 84,533 109,243 61,713 10,027 5,195 Other electric revenues (b) 78,808 75,871 41,739 13,779 37,761 Revenues from contracts with customers 696,540 1,494,248 491,252 183,674 531,611 Other revenues (c) 1,147 1,256 623 107 30 Electric revenues 697,687 1,495,504 491,875 183,781 531,641 Natural gas revenues — 14,559 — 26,219 — Total operating revenues $ 697,687 $ 1,510,063 $ 491,875 $ 210,000 $ 531,641 The Utility operating companies’ total revenues for the six months ended June 30, 2026 and 2025 were as follows: 2026 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) Residential $ 497,995 $ 818,039 $ 403,439 $ 138,640 $ 445,397 Commercial 290,308 606,452 322,165 107,248 244,796 Industrial 367,088 1,162,030 151,568 12,956 309,392 Governmental 9,491 45,887 32,325 37,189 16,590 Total billed retail 1,164,882 2,632,408 909,497 296,033 1,016,175 Sales for resale (a) 77,560 207,191 92,428 53,097 9,309 Other electric revenues (b) 93,147 183,782 76,575 9,981 48,166 Revenues from contracts with customers 1,335,589 3,023,381 1,078,500 359,111 1,073,650 Other revenues (c) 4,194 7,059 4,766 3,088 ( 1,461 ) Electric revenues 1,339,783 3,030,440 1,083,266 362,199 1,072,189 Natural gas revenues — — — — — Total operating revenues $ 1,339,783 $ 3,030,440 $ 1,083,266 $ 362,199 $ 1,072,189 87 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements 2025 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) Residential $ 486,871 $ 786,531 $ 358,883 $ 138,969 $ 433,086 Commercial 273,085 570,116 282,925 105,755 223,223 Industrial 323,620 1,036,010 100,974 13,454 245,962 Governmental 9,130 45,290 28,234 37,185 13,602 Total billed retail 1,092,706 2,437,947 771,016 295,363 915,873 Sales for resale (a) 121,262 220,791 89,810 13,917 7,590 Other electric revenues (b) 94,884 113,861 53,538 13,214 50,057 Revenues from contracts with customers 1,308,852 2,772,599 914,364 322,494 973,520 Other revenues (c) 2,346 ( 5,149 ) 1,220 212 60 Electric revenues 1,311,198 2,767,450 915,584 322,706 973,580 Natural gas revenues — 44,160 — 68,349 — Total operating revenues $ 1,311,198 $ 2,811,610 $ 915,584 $ 391,055 $ 973,580 (a) Sales for resale includes day-ahead sales of energy in a market administered by an ISO. These sales represent financially binding commitments for the sale of physical energy the next day. These sales are adjusted to actual power generated and delivered in the real time market. Given the short duration of these transactions, Entergy does not consider them to be derivatives subject to fair value adjustments and includes them as part of customer revenues. (b) Other electric revenues consist primarily of the return on construction work in progress for certain utility plant investments, transmission and ancillary services provided to participants of an ISO-administered market, and unbilled revenue. (c) Other Utility revenues include occasional sales of inventory, alternative revenue programs, provisions for revenue subject to refund, late fees, and amounts resulting from other operating activities. (d) Other revenues include the sale of electric power and capacity to wholesale customers, day-ahead sales of energy in a market administered by an ISO, and operation and management services fees. Electric Revenues See Note 19 to the financial statements in the Form 10-K for a discussion of electric revenues. The following is an update to that discussion. Most of Entergy’s contracts are on demand, with customer bills that vary each month based on an approved tariff and usage. Certain retail customers, primarily large industrial customers from various industries, have electric service agreements that include a fixed amount of consideration to be paid through the end of a contract term longer than one year. As of June 30, 2026, the amount of revenues related to this fixed consideration that Entergy expects to recognize over the remaining contract terms, extending through 2048, was $ 8,563 million for Entergy, including $ 4,740 million for Entergy Arkansas, $ 788 million for Entergy Louisiana, $ 2,570 million for Entergy Mississippi, and $ 465 million for Entergy Texas. These contracts also require variable payments based on the actual amount of energy service, which are recognized as revenue as Entergy has the right to bill the customer for services performed. ________________ In the opinion of the management of Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy, the accompanying unaudited financial statements contain all adjustments (consisting primarily of normal recurring accruals and reclassification of 88 Table of Contents Entergy Corporation and Subsidiaries Notes to Financial Statements previously reported amounts to conform to current classifications) necessary for a fair statement of the results for the interim periods presented. Entergy’s business is subject to seasonal fluctuations, however, with peak periods occurring typically during the first and third quarters. The results for the interim periods presented should not be used as a basis for estimating results of operations for a full year. 89 Table of Contents Part I, Item 3. Quantitative and Qualitative Disclosures About Market Risk See the “ Market and Credit Risk Sensitive Instruments ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis. Part I, Item 4. Controls and Procedures Disclosure Controls and Procedures As of June 30, 2026, evaluations were performed under the supervision and with the participation of Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy (each individually a “Registrant” and collectively the “Registrants”) management, including their respective Principal Executive Officers (PEO) and Principal Financial Officers (PFO). The evaluations assessed the effectiveness of the Registrants’ disclosure controls and procedures. Based on the evaluations, each PEO and PFO has concluded that, as to the Registrant or Registrants for which they serve as PEO or PFO, the Registrant’s or Registrants’ disclosure controls and procedures are effective to ensure that information required to be disclosed by each Registrant in reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in Securities and Exchange Commission rules and forms; and that the Registrant’s or Registrants’ disclosure controls and procedures are also effective in reasonably assuring that such information is accumulated and communicated to the Registrant’s or Registrants’ management, including their respective PEOs and PFOs, as appropriate to allow timely decisions regarding required disclosure. Changes in Internal Control over Financial Reporting Under the supervision and with the participation of each Registrant’s management, including its respective PEO and PFO, each Registrant evaluated changes in internal control over financial reporting that occurred during the quarter ended June 30, 2026 and found no change that has materially affected, or is reasonably likely to materially affect, internal control over financial reporting. 90 Table of Contents ENTERGY ARKANSAS, LLC AND SUBSIDIARIES MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS Winter Storm Fern See the “ Winter Storm Fern ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for a discussion of Winter Storm Fern. Entergy Arkansas’s cost of mobilizing crews and restoring power was approximately $50 million, including approximately $40 million in capital costs and approximately $10 million in non-capital costs. Natural gas purchases for Entergy Arkansas were $74 million in January 2026 compared to $25 million in January 2025. Results of Operations Net Income Second Quarter 2026 Compared to Second Quarter 2025 Net income decreased $13.8 million primarily due to higher other operation and maintenance expenses, higher interest expense, higher depreciation and amortization expenses, and higher taxes other than income taxes, partially offset by higher retail electric price. Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025 Net income decreased $17.6 million primarily due to higher interest expense, higher other operation and maintenance expenses, higher depreciation and amortization expenses, higher taxes other than income taxes, and lower volume/weather, partially offset by higher retail electric price and higher other income. Operating Revenues Second Quarter 2026 Compared to Second Quarter 2025 Following is an analysis of the change in operating revenues comparing the second quarter 2026 to the second quarter 2025: Amount (In Millions) 2025 operating revenues $697.7 Fuel, rider, and other revenues that do not significantly affect net income (37.1) Volume/weather 0.7 Retail electric price 32.2 2026 operating revenues $693.5 Entergy Arkansas’s results include revenues from rate mechanisms designed to recover fuel, purchased power, and other costs such that the revenues and expenses associated with these items generally offset and do not affect net income. “Fuel, rider, and other revenues that do not significantly affect net income” includes the revenue variance associated with these items. 91 Table of Contents Entergy Arkansas, LLC and Subsidiaries Management's Financial Discussion and Analysis The volume/weather variance is insignificant and primarily due to an increase in industrial usage, substantially offset by the effect of less favorable weather on residential sales . The increase in industrial usage is primarily due to an increase in demand from large industrial customers, primarily in the primary metals industry. The retail electric price variance is primarily due to an increase in formula rate plan rates effective January 2026 and the implementation of the Generating Arkansas Jobs Act rider effective June 2026. See Note 2 to the financial statements in the Form 10-K for discussion of the 2025 formula rate plan filing. See Note 2 to the financial statements herein for discussion of the Generating Arkansas Jobs Act rider filing. Total electric energy sales for Entergy Arkansas for the three months ended June 30, 2026 and 2025 are as follows: 2026 2025 % Change (GWh) Residential 1,672 1,674 — Commercial 1,396 1,393 — Industrial 3,315 3,064 8 Governmental 43 49 (12) Total retail 6,426 6,180 4 Sales for resale: Associated companies 187 559 (67) Non-associated companies 868 1,893 (54) Total 7,481 8,632 (13) See Note 12 to the financial statements herein for additional discussion of Entergy Arkansas’s operating revenues. Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025 Following is an analysis of the change in operating revenues comparing the six months ended June 30, 2026 to the six months ended June 30, 2025: Amount (In Millions) 2025 operating revenues $1,311.2 Fuel, rider, and other revenues that do not significantly affect net income (15.3) Retail electric price 54.7 Volume/weather (10.8) 2026 operating revenues $1,339.8 Entergy Arkansas’s results include revenues from rate mechanisms designed to recover fuel, purchased power, and other costs such that the revenues and expenses associated with these items generally offset and do not affect net income. “Fuel, rider, and other revenues that do not significantly affect net income” includes the revenue variance associated with these items. The retail electric price variance is primarily due to an increase in formula rate plan rates effective January 2026. See Note 2 to the financial statements in the Form 10-K for discussion of the 2025 formula rate plan filing. The volume/weather variance is primarily due to the effect of less favorable weather on residential sales and a decrease in weather-adjusted residential usage, partially offset by an increase in industrial usage. The increase in 92 Table of Contents Entergy Arkansas, LLC and Subsidiaries Management’s Financial Discussion and Analysis industrial usage is primarily due to an increase in demand from large industrial customers, primarily in the primary metals industry. Total electric energy sales for Entergy Arkansas for the six months ended June 30, 2026 and 2025 are as follows: 2026 2025 % Change (GWh) Residential 3,637 3,885 (6) Commercial 2,635 2,653 (1) Industrial 6,376 5,606 14 Governmental 84 88 (5) Total retail 12,732 12,232 4 Sales for resale: Associated companies 424 1,096 (61) Non-associated companies 1,484 2,456 (40) Total 14,640 15,784 (7) See Note 12 to the financial statements herein for additional discussion of Entergy Arkansas’s operating revenues. Other Income Statement Variances Second Quarter 2026 Compared to Second Quarter 2025 Other operation and maintenance expenses increased primarily due to: • an increase of $10.5 million in power delivery expenses primarily due to higher vegetation maintenance costs; • an increase of $3.1 million in compensation and benefits costs primarily due to higher healthcare claims activity and the timing of the recognition of prescription drug rebates ; and • several individually insignificant items. Taxes other than income taxes increased primarily due to increases in ad valorem taxes resulting from higher assessments. Depreciation and amortization expenses increased primarily due to additions to plant in service and an increase in FERC jurisdictional depreciation rates effective January 2026. Other regulatory charges (credits) - net includes a regulatory charge of $8.8 million, recorded in second quarter 2026, to reflect the amount of the 2025 historical year netting adjustment to be returned to Entergy Arkansas’s customers during the 2027 rate effective period as included in the 2026 formula rate plan filing. See Note 2 to the financial statements herein for discussion of the 2026 formula rate plan filing. In addition, Entergy Arkansas records a regulatory charge or credit for the difference between asset retirement obligation-related expenses and nuclear decommissioning trust earnings plus asset retirement obligation-related costs collected in revenue. Interest expense increased primarily due to the issuances of $500 million of 5.75% Series mortgage bonds and $500 million of 4.95% Series mortgage bonds, each in January 2026, and $4.1 million in carrying costs in second quarter 2026 on retained net proceeds from the monetization of nuclear production tax credits. The increase was partially offset by the repayment of $600 million of 3.5% Series mortgage bonds in February 2026. 93 Table of Contents Entergy Arkansas, LLC and Subsidiaries Management's Financial Discussion and Analysis Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025 Other operation and maintenance expenses increased primarily due to: • an increase of $17.5 million in power delivery expenses primarily due to higher vegetation maintenance costs; • an increase of $6.7 million in compensation and benefits costs primarily due to higher healthcare claims activity, the timing of the recognition of prescription drug rebates, and a revision to estimated incentive-based compensation expense in 2025; and • several individually insignificant items. The increase was partially offset by a decrease of $8.0 million in energy efficiency expenses primarily due to the timing of recovery from customers and a decrease of $5.6 million in insurance expense primarily due to higher nuclear insurance refunds. Taxes other than income taxes increased primarily due to increases in ad valorem taxes resulting from higher assessments and millage rate increases. Depreciation and amortization expenses increased primarily due to additions to plant in service and an increase in FERC jurisdictional depreciation rates effective January 2026. Other regulatory charges (credits) - net includes a regulatory charge of $8.8 million, recorded in second quarter 2026, to reflect the amount of the 2025 historical year netting adjustment to be returned to Entergy Arkansas’s customers during the 2027 rate effective period as included in the 2026 formula rate plan filing. See Note 2 to the financial statements herein for discussion of the 2026 formula rate plan filing. In addition, Entergy Arkansas records a regulatory charge or credit for the difference between asset retirement obligation-related expenses and nuclear decommissioning trust earnings plus asset retirement obligation-related costs collected in revenue. Other income increased primarily due to changes in decommissioning trust fund activity, including portfolio rebalancing of decommissioning trust funds in first quarter 2026. Interest expense increased primarily due to: • the issuances of $500 million of 5.75% Series mortgage bonds and $500 million of 4.95% Series mortgage bonds, each in January 2026; • the issuance of $300 million of 5.45% Series mortgage bonds in May 2025; and • $8.0 million in carrying costs in 2026 on retained net proceeds from the monetization of nuclear production tax credits. The increase was partially offset by the repayment of $600 million of 3.5% Series mortgage bonds in February 2026. Income Taxes The effective income tax rates were 17.6% for the second quarter 2026 and 17.6% for the six months ended June 30, 2026. The differences in the effective income tax rates for the second quarter 2026 and the six months ended June 30, 2026 versus the federal statutory rate of 21% were primarily due to the amortization of excess accumulated deferred income taxes, certain book and tax differences related to utility plant items, and book and tax differences related to the allowance for equity funds used during construction, partially offset by the accrual for state income taxes. 94 Table of Contents Entergy Arkansas, LLC and Subsidiaries Management’s Financial Discussion and Analysis The effective income tax rates were 20.6% for the second quarter 2025 and 20.8% for the six months ended June 30, 2025. The differences in the effective income tax rates for the second quarter 2025 and the six months ended June 30, 2025 versus the federal statutory rate of 21% were primarily due to the amortization of excess accumulated deferred income taxes as a result of tax rate changes and certain book and tax differences related to utility plant items, partially offset by the accrual for state income taxes. Income Tax Legislation and Regulation See “ MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Income Tax Legislation and Regulation ” in the Form 10-K for discussion of income tax legislation and regulation. Liquidity and Capital Resources Cash Flow Cash flows for the six months ended June 30, 2026 and 2025 were as follows: 2026 2025 (In Thousands) Cash and cash equivalents at beginning of period $275,570 $4,747 Net cash provided by (used in): Operating activities 413,957 437,887 Investing activities (919,085) (493,179) Financing activities 738,274 277,533 Net increase in cash and cash equivalents 233,146 222,241 Cash and cash equivalents at end of period $508,716 $226,988 Operating Activities Net cash flow provided by operating activities decreased $23.9 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to higher fuel and purchased power payments and an increase of $30.3 million in spending on nuclear refueling outage costs in 2026 as compared to 2025, partially offset by higher collections from customers and the receipt of $81 million in advance payments related to customer agreements in 2026, including $66.8 million in customer advances and $14.2 million in tax gross-up on customer advances for construction. See Note 2 to the financial statements herein and in the Form 10-K for a discussion of fuel and purchased power cost recovery. Investing Activities Net cash flow used in investing activities increased $425.9 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to: • an increase of $384.9 million in non-nuclear generation construction expenditures primarily due to higher spending on the Jefferson Power Station project, the Cypress Solar project, and the Ironwood Power Station project; • an increase of $72 million in nuclear construction expenditures primarily due to increased spending on various nuclear projects in 2026; 95 Table of Contents Entergy Arkansas, LLC and Subsidiaries Management's Financial Discussion and Analysis • an increase of $28.1 million in net purchases as a result of fluctuations in nuclear fuel activity due to variations from year to year in the timing and pricing of fuel reload requirements, materials and services deliveries, and the timing of cash payments during the nuclear fuel cycle; and • an increase of $21.3 million in distribution construction expenditures primarily due to a higher scope of work performed in 2026 as compared to 2025. The increase was partially offset by: • a decrease of $37 million in cash collateral posted to support Entergy Arkansas’s obligations to MISO in 2026; • money pool activity; and • a decrease of $23.3 million in capital expenditures related to storm restoration due to a lower scope of work in 2026 as compared to 2025. Increases in Entergy Arkansas’s receivable from the money pool are a use of cash flow, and Entergy Arkansas’s receivable from the money pool increased $17.4 million for the six months ended June 30, 2026 compared to increasing by $49 million for the six months ended June 30, 2025. The money pool is an intercompany cash management program that makes possible intercompany borrowing and lending arrangements, and the money pool and other borrowing arrangements are designed to reduce the Registrant Subsidiaries’ dependence on external short-term borrowings. Financing Activities Net cash flow provided by financing activities increased $460.7 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to: • the issuances of $500 million of 5.75% Series mortgage bonds and $500 million of 4.95% Series mortgage bonds, each in January 2026; • capital contributions of $200 million received from Entergy Corporation in 2026 in order to maintain Entergy Arkansas’s capital structure; • an increase of $143.1 million in net customer advances for construction related to transmission, distribution, and generator interconnection agreements; • net long-term borrowings of $27 million in 2026 compared to net repayments of $10.7 million in 2025 on the nuclear fuel company variable interest entity’s credit facility; and • money pool activity. The increase was partially offset by the repayment of $600 million of 3.5% Series mortgage bonds in February 2026 and the issuance of $300 million of 5.45% Series mortgage bonds in May 2025. Decreases in Entergy Arkansas’s payable to the money pool are a use of cash flow, and Entergy Arkansas’s payable to the money pool decreased $15.2 million for the six months ended June 30, 2025. See Note 4 to the financial statements herein and Note 5 to the financial statements in the Form 10-K for more details on long-term debt. 96 Table of Contents Entergy Arkansas, LLC and Subsidiaries Management’s Financial Discussion and Analysis Capital Structure Entergy Arkansas’s debt to capital ratio is shown in the following table. June 30, 2026 December 31, 2025 Debt to capital 53.7 % 53.7 % Effect of subtracting cash (2.3 %) (1.3 %) Net debt to net capital (non-GAAP) 51.4 % 52.4 % Net debt consists of debt less cash and cash equivalents. Debt consists of short-term borrowings, finance lease obligations, and long-term debt, including the currently maturing portion. Capital consists of debt and equity. Net capital consists of capital less cash and cash equivalents. Entergy Arkansas uses the debt to capital ratio in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating Entergy Arkansas’s financial condition. The net debt to net capital ratio is a non-GAAP measure. Entergy Arkansas also uses the net debt to net capital ratio in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating Entergy Arkansas’s financial condition because net debt indicates Entergy Arkansas’s outstanding debt position that could not be readily satisfied by cash and cash equivalents on hand. Uses and Sources of Capital See “ MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources ” in the Form 10-K for a discussion of Entergy Arkansas’s uses and sources of capital. The following are updates to the information provided in the Form 10-K. Following are updates to the current annual amounts of Entergy Arkansas’s planned construction and other capital investments through 2030. 2026 2027 2028 2029 2030 (In Millions) Planned construction and capital investments: Generation $1,510 $1,865 $1,235 $580 $435 Transmission 80 135 175 205 45 Distribution 300 310 370 510 365 Utility Support 60 65 70 55 65 Total $1,950 $2,375 $1,850 $1,350 $910 In addition to routine capital spending to maintain operations, the capital plan for Entergy Arkansas includes investments in generation projects to modernize, decarbonize, expand, and diversify Entergy Arkansas’s portfolio, as well as to support customer growth, including Ironwood Power Station (formerly Lake Catherine Unit 5), Jefferson Power Station, and Arkansas Cypress Solar; investments in ANO 1 and 2; distribution and Utility support spending to improve reliability and customer experience; transmission spending to improve reliability while also supporting customer growth and renewables expansion; and other investments. The planned construction and capital investments amounts above exclude investments expected to be funded with customer advances for construction. 97 Table of Contents Entergy Arkansas, LLC and Subsidiaries Management's Financial Discussion and Analysis Entergy Arkansas’s receivables from or (payables to) the money pool were as follows: June 30, 2026 December 31, 2025 June 30, 2025 December 31, 2024 (In Thousands) $39,135 $21,715 $49,019 ($15,190) See Note 4 to the financial statements in the Form 10-K for a description of the money pool. Entergy Arkansas has a credit facility in the amount of $300 million scheduled to expire in June 2031. Entergy Arkansas also has a $25 million credit facility scheduled to expire in April 2028. The $300 million credit facility includes fronting commitments for the issuance of letters of credit against $5 million of the borrowing capacity of the facility. As of June 30, 2026, there were no cash borrowings under either credit facility and no letters of credit outstanding under the $300 million credit facility. In addition, Entergy Arkansas is a party to two uncommitted letter of credit facilities as a means to post collateral to support its obligations to MISO. As of June 30, 2026, $177.8 million in letters of credit were outstanding under Entergy Arkansas’s uncommitted letter of credit facilities. See Note 4 to the financial statements herein for additional discussion of the credit facilities. The Entergy Arkansas nuclear fuel company variable interest entity has a credit facility in the amount of $80 million scheduled to expire in June 2029. As of June 30, 2026, there were $40.7 million in loans outstanding under the credit facility for the Entergy Arkansas nuclear fuel company variable interest entity. See Note 4 to the financial statements herein for discussion of the nuclear fuel company variable interest entity credit facility. Jefferson Power Station As discussed in the Form 10-K, in August 2025, Entergy Arkansas filed an application with the APSC seeking a certificate of environmental compatibility and public need for the construction and operation of Jefferson Power Station, an approximately 754 MW natural gas-fired combined cycle combustion turbine facility to be located in Jefferson County, Arkansas. The estimated cost of the project is $1,602 million. In January 2026 the APSC issued its order finding that Entergy Arkansas had demonstrated a need for the resource but had not met its burden with respect to supporting the prudence of the costs to construct the resource. The APSC acknowledged that the costs would be greater if Entergy Arkansas waited to pursue the resource. The APSC authorized Entergy Arkansas to proceed with Jefferson Power Station as a strategic investment with estimated costs set at a benchmark, which the APSC erroneously believed reflected the current cost estimate but was, in fact, $90 million below the cost presented. In its January 2026 order, the APSC also approved Entergy Arkansas’s recovery of the costs of constructing Jefferson Power Station through the Generating Arkansas Jobs Act rider. Additionally, in its January 2026 order, the APSC found that Entergy Arkansas should conduct all-source competitive solicitations for future generation additions, with limited exceptions where Entergy Arkansas believes that a specific solicitation should be restricted to a certain resource and provides a detailed explanation to the APSC supporting this belief, which the APSC later determined in its March 2026 order is a narrow exception. In February 2026, Entergy Arkansas filed for rehearing seeking to correct the benchmark. In March 2026 the APSC issued an order denying Entergy Arkansas’s petition and maintained the benchmark, although costs over the benchmark were not found to be disallowed. Also in its March 2026 order, the APSC ordered Entergy Arkansas to submit a draft of an all-source request for proposals within thirty days of the order, which Entergy Arkansas filed in April 2026. Also in March 2026, Entergy Arkansas filed with the APSC its proposal for an independent monitor to oversee the reasonableness of its construction costs, as required by the APSC order. In April 2026 the APSC issued an order consolidating Entergy Arkansas’s cost independent monitor proposals for three pending resources, including Jefferson Power Station, into a single docket and directing parties with full intervention status to respond to the proposals and recommend independent monitor candidates. No alternative recommendations were made by the other parties. Also as part of the APSC’s January 2026 order, Entergy Arkansas is required to file quarterly status reports on its evaluation of the White Bluff coal to gas conversion. Entergy Arkansas filed its second status report in July 2026, setting forth that it expects to provide 98 Table of Contents Entergy Arkansas, LLC and Subsidiaries Management’s Financial Discussion and Analysis the APSC a total cost estimate and project timeline for the White Bluff 1 conversion within the next 60 days as part of an application and/or a supplemental update. The facility is expected to be in service by the end of 2029. Special Rate Contract and Arkansas Cypress Solar As discussed in the Form 10-K, in September 2025, Entergy Arkansas filed an application with the APSC seeking a certificate of environmental compatibility and public need for the construction and operation of the Arkansas Cypress Solar facility, a planned 600 MW solar photovoltaic array with a 350 MW battery energy storage system and associated transmission facilities interconnecting at Entergy Arkansas’s White Bluff substation. The estimated cost of the project is $1,602 million. In March 2026 the APSC approved the Arkansas Cypress Solar facility and Entergy Arkansas’s recovery of the costs of the facility through the Generating Arkansas Jobs Act rider. The APSC also ordered implementation of an independent monitor to oversee costs. In April 2026, Entergy Arkansas filed with the APSC its proposal for an independent monitor to oversee the reasonableness of costs. In April 2026 the APSC issued an order consolidating Entergy Arkansas’s cost independent monitor proposals for three pending resources, including the Arkansas Cypress Solar facility, into a single docket and directing parties with full intervention status to respond to the proposals and recommend independent monitor candidates. No alternative recommendations were made by the other parties. The facility is expected to be in service by the end of 2028. State and Local Rate Regulation and Fuel-Cost Recovery See “ MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – State and Local Rate Regulation and Fuel-Cost Recovery ” in the Form 10-K for a discussion of state and local rate regulation and fuel-cost recovery. The following are updates to that discussion. Retail Rates 2026 Base Rate Case In February 2026, Entergy Arkansas filed with the APSC a general change in rates, charges, and tariffs. The filing requested a base rate increase to recover a base rate revenue deficiency of $44.6 million and notified the APSC of Entergy Arkansas’s intent to implement a forward test year formula rate plan pursuant to Arkansas legislation passed in 2015. The primary drivers of the revenue deficiency were increased depreciation expense and the impact of net capital additions. Additionally, the filing requested a 9.90% return on common equity and increased depreciation rates as the result of a depreciation study. In March 2026 the APSC issued an order suspending the proposed rates and tariffs filed by Entergy Arkansas. In June 2026 the APSC established a procedural schedule with an evidentiary hearing scheduled to begin in November 2026, and in July 2026 a number of intervenors moved to modify the schedule to conduct additional discovery. Entergy Arkansas opposed the motion in part based on the voluminous discovery conducted to date. 2026 Formula Rate Plan Filing In July 2026, Entergy Arkansas filed with the APSC its 2026 formula rate plan filing to set its formula rate for the 2027 calendar year. The filing contained an evaluation of Entergy Arkansas’s earnings and a netting adjustment for the 2025 historical year. The filing showed that Entergy Arkansas’s earned rate of return on common equity for the 2025 historical year was 8.8%, resulting in a $47.2 million formula rate plan revenue increase to produce a 9.65% earned rate of return on common equity. When combined with 2025 historical year formula rate plan revenues of $56.0 million, the total proposed revenue change for the 2025 historical year netting adjustment is a reduction of $8.8 million. By operation of the formula rate plan, Entergy Arkansas’s recovery of the revenue requirement is subject to a four percent annual revenue constraint. Entergy Arkansas’s revenue requirement in this filing did not exceed the constraint. In second quarter 2026, Entergy Arkansas recorded a 99 Table of Contents Entergy Arkansas, LLC and Subsidiaries Management's Financial Discussion and Analysis regulatory liability of $8.8 million to reflect the amount of the 2025 historical year netting adjustment that it collected from customers during the 2025 rate effective period. Generating Arkansas Jobs Act Rider In March 2026, Entergy Arkansas filed its first annual update to the strategic investment recovery rider, requesting recovery of $110.4 million of financing costs during construction of generation and transmission strategic investments related to Ironwood Power Station, Jefferson Power Station, and the Arkansas Cypress Solar facility. The revised rates were requested to be effective with the first billing cycle of June 2026. In April 2026 the APSC general staff filed testimony arguing that the APSC had not issued an order designating Ironwood Power Station as a strategic investment and that related costs should therefore be removed from the annual update. Also in April 2026, Entergy Arkansas filed testimony asserting that the APSC general staff’s position is contrary to the plain language of the statute, which includes an exception for facilities like Ironwood Power Station that were certified by the APSC within a certain timeframe. A hearing was held in April 2026. In June 2026 the APSC approved Entergy Arkansas’s annual update, and rates became effective June 4, 2026. Production Tax Credit Tariffs As discussed in Note 3 to the financial statements in the Form 10-K, in January 2026 the APSC opened a docket to investigate the sale of Entergy Arkansas’s nuclear production tax credits and the appropriate ratemaking treatment of production tax credits for all of Entergy Arkansas’s eligible resources, including how the proceeds of any sales should flow through to customers. For nuclear production tax credits, Entergy Arkansas proposed a nuclear production tax credit rider, which would provide for the immediate flow through to customers of the weighted average cost of capital return on the net proceeds of the monetized nuclear production tax credits. Recognizing that the timing and determination from the IRS is uncertain, the nuclear production tax credit rider also proposes that, if there is an unfavorable IRS determination, Entergy Arkansas would collect applicable costs from customers. As directed by the APSC, in February 2026, Entergy Arkansas submitted a compliance filing to the APSC verifying the status of the solar production tax credits. The filing also verified that the net proceeds from the sale of the nuclear production tax credits were recorded in FERC accounts that are accruing a return for customers’ benefit at a rate that is above the customer deposit rate. Subsequently, in March 2026, Entergy Arkansas filed testimony setting forth its proposal for the solar production tax credits. Specifically, Entergy Arkansas requested the same ratemaking treatment for all of the solar facilities that the APSC already approved for Walnut Bend (i.e., the total net monetized proceeds from production tax credits expected to be generated over the first ten years of a solar facility’s operation are estimated and then amortized over the expected useful life of the asset, which is typically 30 years). Additionally, consistent with prior orders for these resources, the regulatory liabilities associated with the net cash proceeds from monetized solar production tax credits will be included in Entergy Arkansas’s calculation of its weighted average cost of capital providing a return on the unamortized balance for the benefit of customers. Further, Entergy Arkansas proposes to flow the benefits of the solar production tax credits to customers through Entergy Arkansas’s formula rate plan, effective with the formula rate plan rates that will go into effect January 1, 2027. Entergy Arkansas’s proposal would result in the benefits of the production tax credits being passed through to customers, if approved, as reductions in revenue requirement evenly over the life of the assets, rather than only during the 10-year period in which the production tax credits are generated. In April 2026 the APSC general staff filed testimony proposing an amortization period of no more than 15 years for the monetized proceeds for the tax credits associated with the West Memphis Solar and Driver Solar facilities. An evidentiary hearing was held in July 2026, but was not completed. The APSC is to set a date to complete the hearing. Energy Cost Recovery Rider In March 2026, Entergy Arkansas filed its annual redetermination of its energy cost rate pursuant to the energy cost recovery rider, which reflected an increase in the rate from $0.01333 per kWh to $0.01508 per kWh. The primary reason for the rate increase was an under-recovered balance as a result of higher natural gas prices in 2025. Based on circumstances related to ANO 2’s refueling outage, Entergy Arkansas made an adjustment to 100 Table of Contents Entergy Arkansas, LLC and Subsidiaries Management’s Financial Discussion and Analysis projected energy costs to phase-in the rate increase gradually. The redetermined rate of $0.01508 per kWh became effective with the first billing cycle in April 2026 through the normal operation of the tariff. Industrial and Commercial Customers See “ MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Industrial and Commercial Customers ” in the Form 10-K for a discussion of industrial and commercial customers. Federal Regulation See “ MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Federal Regulation ” in the Form 10-K and Note 2 to the financial statements herein and in the Form 10-K for a discussion of federal regulation. Nuclear Matters See “ MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Nuclear Matters ” in the Form 10-K for a discussion of nuclear matters. Environmental Risks See “ MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Environmental Risks ” in the Form 10-K for a discussion of environmental risks. Critical Accounting Estimates See “ MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates ” in the Form 10-K for a discussion of the estimates and judgments necessary in Entergy Arkansas’s accounting for nuclear decommissioning costs, utility regulatory accounting, taxation and uncertain tax positions, qualified pension and other postretirement benefits, and other contingencies. New Accounting Pronouncements See the “ New Accounting Pronouncements ” section of Note 1 to the financial statements in the Form 10-K for a discussion of new accounting pronouncements and the “ New Accounting Pronouncements ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis herein for updates to the discussion of new accounting pronouncements. 101 Table of Contents ENTERGY ARKANSAS, LLC AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS For the Three and Six Months Ended June 30, 2026 and 2025 (Unaudited) Three Months Ended Six Months Ended 2026 2025 2026 2025 (In Thousands) (In Thousands) OPERATING REVENUES Electric $ 693,486 $ 697,687 $ 1,339,783 $ 1,311,198 OPERATING EXPENSES Operation and Maintenance: Fuel, fuel-related expenses, and gas purchased for resale 66,251 113,093 129,147 160,652 Purchased power 71,335 58,964 145,824 123,911 Nuclear refueling outage expenses 13,053 10,668 23,742 21,249 Other operation and maintenance 201,322 180,510 373,941 352,028 Decommissioning 26,445 24,988 52,549 49,610 Taxes other than income taxes 41,040 35,430 82,544 71,411 Depreciation and amortization 122,679 117,121 243,369 230,389 Other regulatory charges (credits) - net ( 7,111 ) ( 7,763 ) 72,166 ( 12,880 ) TOTAL 535,014 533,011 1,123,282 996,370 OPERATING INCOME 158,472 164,676 216,501 314,828 OTHER INCOME Allowance for equity funds used during construction 4,910 5,355 10,032 9,617 Interest and investment income 11,328 14,801 119,154 28,380 Miscellaneous - net 166 ( 3,547 ) 1,532 ( 6,325 ) TOTAL 16,404 16,609 130,718 31,672 INTEREST EXPENSE Interest expense 73,621 59,057 148,180 116,800 Allowance for borrowed funds used during construction ( 2,429 ) ( 2,642 ) ( 4,959 ) ( 4,695 ) TOTAL 71,192 56,415 143,221 112,105 INCOME BEFORE INCOME TAXES 103,684 124,870 203,998 234,395 Income taxes 18,266 25,677 35,878 48,679 NET INCOME 85,418 99,193 168,120 185,716 Net income (loss) attributable to noncontrolling interest ( 117 ) ( 889 ) 473 ( 2,080 ) EARNINGS APPLICABLE TO MEMBER'S EQUITY $ 85,535 $ 100,082 $ 167,647 $ 187,796 See Notes to Financial Statements. 102 Table of Contents ENTERGY ARKANSAS, LLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2026 and 2025 (Unaudited) 2026 2025 (In Thousands) OPERATING ACTIVITIES Net income $ 168,120 $ 185,716 Adjustments to reconcile net income to net cash flow provided by operating activities: Depreciation, amortization, and decommissioning, including nuclear fuel amortization 336,915 324,540 Deferred income taxes, tax credits, and non-current taxes accrued 69,959 65,494 Changes in assets and liabilities: Receivables ( 33,892 ) ( 63,276 ) Fuel inventory ( 15,348 ) ( 14,868 ) Accounts payable ( 690 ) 43,551 Taxes accrued ( 32,357 ) ( 19,741 ) Interest accrued 19,873 69 Deferred fuel costs ( 101,077 ) ( 33,234 ) Other working capital accounts ( 33,560 ) ( 25,426 ) Provisions for estimated losses ( 370 ) ( 2,436 ) Other regulatory assets 83,451 ( 4,658 ) Other regulatory liabilities 51,004 65,970 Customer advances - non-current 66,800 — Pension and other postretirement funded status ( 19,801 ) ( 20,651 ) Other assets and liabilities ( 145,070 ) ( 63,163 ) Net cash flow provided by operating activities 413,957 437,887 INVESTING ACTIVITIES Construction expenditures ( 881,053 ) ( 400,384 ) Allowance for equity funds used during construction 10,032 9,617 Payment for purchase of plant ( 262 ) ( 1,608 ) Nuclear fuel purchases ( 99,151 ) ( 73,283 ) Proceeds from sale of nuclear fuel 38,369 40,601 Proceeds from nuclear decommissioning trust fund sales 399,485 51,462 Investment in nuclear decommissioning trust funds ( 406,062 ) ( 70,616 ) Changes in money pool receivable - net ( 17,420 ) ( 49,019 ) Other 36,977 51 Net cash flow used in investing activities ( 919,085 ) ( 493,179 ) FINANCING ACTIVITIES Proceeds from the issuance of long-term debt 1,267,608 350,312 Retirement of long-term debt ( 854,811 ) ( 40,311 ) Capital contributions from parent 200,000 — Change in money pool payable - net — ( 15,190 ) Customer advances received for construction 203,556 39,895 Customer advances used for construction ( 75,369 ) ( 54,838 ) Other ( 2,710 ) ( 2,335 ) Net cash flow provided by financing activities 738,274 277,533 Net increase in cash and cash equivalents 233,146 222,241 Cash and cash equivalents at beginning of period 275,570 4,747 Cash and cash equivalents at end of period $ 508,716 $ 226,988 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for: Interest - net of amount capitalized $ 103,952 $ 115,404 Noncash investing activities: Accrued construction expenditures $ 140,749 $ 77,169 See Notes to Financial Statements. 103 Table of Contents ENTERGY ARKANSAS, LLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ASSETS June 30, 2026 and December 31, 2025 (Unaudited) 2026 2025 (In Thousands) CURRENT ASSETS Cash and cash equivalents: Cash $ 3,892 $ 7,048 Temporary cash investments 504,824 268,522 Total cash and cash equivalents 508,716 275,570 Accounts receivable: Customer 175,389 164,296 Allowance for doubtful accounts ( 6,566 ) ( 7,303 ) Associated companies 68,696 43,859 Other 75,152 87,029 Accrued unbilled revenues 158,222 130,950 Total accounts receivable 470,893 418,831 Deferred fuel costs 128,781 27,704 Fuel inventory - at average cost 54,730 39,382 Materials and supplies 440,038 430,662 Deferred nuclear refueling outage costs 59,523 36,718 Prepayments and other 77,894 98,975 TOTAL 1,740,575 1,327,842 OTHER PROPERTY AND INVESTMENTS Decommissioning trust funds 1,933,464 1,816,331 Other 791 793 TOTAL 1,934,255 1,817,124 UTILITY PLANT Electric 17,345,424 17,022,476 Construction work in progress 1,137,464 621,218 Nuclear fuel 255,255 302,706 TOTAL UTILITY PLANT 18,738,143 17,946,400 Less - accumulated depreciation and amortization 6,683,410 6,585,693 UTILITY PLANT - NET 12,054,733 11,360,707 DEFERRED DEBITS AND OTHER ASSETS Regulatory assets: Other regulatory assets 1,660,397 1,743,848 Other 248,445 221,381 TOTAL 1,908,842 1,965,229 TOTAL ASSETS $ 17,638,405 $ 16,470,902 See Notes to Financial Statements. 104 Table of Contents ENTERGY ARKANSAS, LLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS LIABILITIES AND EQUITY June 30, 2026 and December 31, 2025 (Unaudited) 2026 2025 (In Thousands) CURRENT LIABILITIES Currently maturing long-term debt $ 90,000 $ 690,000 Accounts payable: Associated companies 55,354 103,411 Other 403,430 346,541 Customer deposits 139,439 136,587 Taxes accrued 82,636 114,993 Interest accrued 59,582 39,709 Other 77,309 56,083 TOTAL 907,750 1,487,324 NON-CURRENT LIABILITIES Accumulated deferred income taxes and taxes accrued 1,901,775 1,846,713 Accumulated deferred investment tax credits 24,267 24,868 Regulatory liability for income taxes - net 437,792 422,740 Other regulatory liabilities 1,080,012 1,044,060 Customer advances 76,800 10,000 Decommissioning 1,836,999 1,791,372 Accumulated provisions 85,169 85,539 Long-term debt 5,751,909 4,733,604 Other 457,836 314,495 TOTAL 11,652,559 10,273,391 Commitments and Contingencies EQUITY Member's equity 5,067,015 4,699,369 Noncontrolling interest 11,081 10,818 TOTAL 5,078,096 4,710,187 TOTAL LIABILITIES AND EQUITY $ 17,638,405 $ 16,470,902 See Notes to Financial Statements. 105 Table of Contents ENTERGY ARKANSAS, LLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY For the Six Months Ended June 30, 2026 and 2025 (Unaudited) Noncontrolling Interest Member's Equity Total (In Thousands) Balance at December 31, 2024 $ 15,168 $ 4,448,837 $ 4,464,005 Net income (loss) ( 1,191 ) 87,714 86,523 Distributions to noncontrolling interest ( 181 ) — ( 181 ) Balance at March 31, 2025 13,796 4,536,551 4,550,347 Net income (loss) ( 889 ) 100,082 99,193 Distributions to noncontrolling interest ( 275 ) — ( 275 ) Balance at June 30, 2025 $ 12,632 $ 4,636,633 $ 4,649,265 Balance at December 31, 2025 $ 10,818 $ 4,699,369 $ 4,710,187 Net income 590 82,111 82,701 Distributions to noncontrolling interest ( 79 ) — ( 79 ) Balance at March 31, 2026 11,329 4,781,480 4,792,809 Net income (loss) ( 117 ) 85,535 85,418 Capital contribution from parent — 200,000 200,000 Distributions to noncontrolling interest ( 131 ) — ( 131 ) Balance at June 30, 2026 $ 11,081 $ 5,067,015 $ 5,078,096 See Notes to Financial Statements. 106 Table of Contents ENTERGY LOUISIANA, LLC AND SUBSIDIARIES MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS Winter Storm Fern See the “ Winter Storm Fern ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for a discussion of Winter Storm Fern. Entergy Louisiana’s cost of mobilizing crews and restoring power was approximately $240 million, including approximately $205 million in capital costs and approximately $35 million in non-capital costs. Natural gas purchases for Entergy Louisiana were $256 million in January 2026 compared to $115 million in January 2025. See Note 2 to the financial statements herein and in the Form 10-K for discussion of fuel cost recovery at Entergy Louisiana. See Note 2 to the financial statements herein for discussion of restoration costs from Winter Storm Fern included in the 2025 formula rate plan filing. Results of Operations Net Income Second Quarter 2026 Compared to Second Quarter 2025 Net income increased $12.6 million primarily due to higher other income, higher retail electric price, higher revenues resulting from the return on construction work in progress for certain utility plant investments, and higher volume/weather. The increase was partially offset by higher interest expense, higher other operation and maintenance expenses, higher depreciation and amortization expenses, and higher taxes other than income taxes. Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025 Net income increased $34.3 million primarily due to higher other income, higher revenues resulting from the return on construction work in progress for certain utility plant investments, higher retail electric price, and higher volume/weather. The increase was partially offset by higher interest expense, higher other operation and maintenance expenses, higher depreciation and amortization expenses, and higher taxes other than income taxes. Operating Revenues Second Quarter 2026 Compared to Second Quarter 2025 Following is an analysis of the change in operating revenues comparing the second quarter 2026 to the second quarter 2025: Amount (In Millions) 2025 operating revenues $1,510.1 Fuel, rider, and other revenues that do not significantly affect net income 53.5 Return on construction work in progress for certain utility plant investments 25.7 Retail electric price 21.6 Volume/weather 10.1 Effect of sale of natural gas distribution business (14.6) 2026 operating revenues $1,606.4 107 Table of Contents Entergy Louisiana, LLC and Subsidiaries Management’s Financial Discussion and Analysis Entergy Louisiana’s results include revenues from rate mechanisms designed to recover fuel, purchased power, and other costs such that the revenues and expenses associated with these items generally offset and do not affect net income. “Fuel, rider, and other revenues that do not significantly affect net income” includes the revenue variance associated with these items. The return on construction work in progress for certain utility plant investments variance represents the revenue related to the amortization of certain customer advances designed to provide a return on investment in construction work in progress for certain utility plant investments, which is recognized as the related costs are incurred. The retail electric price variance is primarily due to an increase in the resilience plan cost recovery rider effective March 2026. See Note 2 to the financial statements herein for discussion of the resilience plan cost recovery rider filing. The volume/weather variance is primarily due to an increase in industrial usage and an increase in weather-adjusted residential usage, partially offset by the effect of less favorable weather on residential sales. The increase in industrial usage is primarily due to an increase in demand from large industrial customers, primarily in the chlor-alkali, petroleum refining, petrochemicals, and solar technology industries, and an increase in demand from co-generation customers. The effect of sale of natural gas distribution business variance represents the decrease in operating revenues resulting from the absence of natural gas revenues following the sale of the natural gas distribution business on July 1, 2025. See Note 14 to the financial statements in the Form 10-K for discussion of the sale of the Entergy Louisiana natural gas distribution business on July 1, 2025. Total electric energy sales for Entergy Louisiana for the three months ended June 30, 2026 and 2025 are as follows: 2026 2025 % Change (GWh) Residential 3,490 3,583 (3) Commercial 2,851 2,886 (1) Industrial 9,659 9,183 5 Governmental 205 203 1 Total retail 16,205 15,855 2 Sales for resale: Associated companies 1,514 1,533 (1) Non-associated companies 175 167 5 Total 17,894 17,555 2 See Note 12 to the financial statements herein for additional discussion of Entergy Louisiana’s operating revenues. 108 Table of Contents Entergy Louisiana, LLC and Subsidiaries Management’s Financial Discussion and Analysis Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025 Following is an analysis of the change in operating revenues comparing the six months ended June 30, 2026 to the six months ended June 30, 2025: Amount (In Millions) 2025 operating revenues $2,811.6 Fuel, rider, and other revenues that do not significantly affect net income 162.6 Return on construction work in progress for certain utility plant investments 43.2 Retail electric price 37.6 Volume/weather 19.6 Effect of sale of natural gas distribution business (44.2) 2026 operating revenues $3,030.4 Entergy Louisiana’s results include revenues from rate mechanisms designed to recover fuel, purchased power, and other costs such that the revenues and expenses associated with these items generally offset and do not affect net income. “Fuel, rider, and other revenues that do not significantly affect net income” includes the revenue variance associated with these items. The return on construction work in progress for certain utility plant investments variance represents the revenue related to the amortization of certain customer advances designed to provide a return on investment in construction work in progress for certain utility plant investments, which is recognized as the related costs are incurred. The retail electric price variance is primarily due to increases in the resilience plan cost recovery rider effective March 2025 and March 2026. See Note 2 to the financial statements herein and in the Form 10-K for discussion of the resilience plan cost recovery rider filings. The volume/weather variance is primarily due to an increase in industrial usage and an increase in weather-adjusted residential usage, partially offset by the effect of less favorable weather on residential sales. The increase in industrial usage is primarily due to an increase in demand from large industrial customers, primarily in the petroleum refining, solar technology, petrochemicals, and agricultural chemicals industries, and an increase in demand from co-generation customers. The effect of sale of natural gas distribution business variance represents the decrease in operating revenues resulting from the absence of natural gas revenues following the sale of the natural gas distribution business on July 1, 2025. See Note 14 to the financial statements in the Form 10-K for discussion of the sale of the Entergy Louisiana natural gas distribution business on July 1, 2025. 109 Table of Contents Entergy Louisiana, LLC and Subsidiaries Management’s Financial Discussion and Analysis Total electric energy sales for Entergy Louisiana for the six months ended June 30, 2026 and 2025 are as follows: 2026 2025 % Change (GWh) Residential 6,436 6,753 (5) Commercial 5,284 5,318 (1) Industrial 18,861 17,716 6 Governmental 388 398 (3) Total retail 30,969 30,185 3 Sales for resale: Associated companies 2,911 2,981 (2) Non-associated companies 507 395 28 Total 34,387 33,561 2 See Note 12 to the financial statements herein for additional discussion of Entergy Louisiana’s operating revenues. Other Income Statement Variances Second Quarter 2026 Compared to Second Quarter 2025 Other operation and maintenance expenses increased primarily due to: • an increase of $9.6 million in nuclear generation expenses primarily due to a higher scope of work performed in 2026 as compared to 2025; • an increase of $8.2 million in power delivery expenses primarily due to a higher scope of work performed in 2026 as compared to 2025 and higher vegetation maintenance costs ; and • an increase of $3.6 million in compensation and benefits costs primarily due to higher healthcare claims activity and the timing of the recognition of prescription drug rebates. Taxes other than income taxes increased primarily due to increases in ad valorem taxes resulting from higher assessments. Depreciation and amortization expenses increased primarily due to additions to plant in service, an increase in FERC jurisdictional depreciation rates effective January 2026, and an increase in nuclear depreciation rates effective September 2025 in accordance with the global stipulated settlement agreement approved by the LPSC in August 2024. See Note 2 to the financial statements in the Form 10-K for discussion of the global stipulated settlement agreement. Entergy Louisiana records a regulatory charge or credit for the difference between asset retirement obligation-related expenses and nuclear decommissioning trust earnings plus asset retirement obligation-related costs collected in revenue. Other income increased primarily due to: • changes in decommissioning trust fund activity, including portfolio rebalancing of certain decommissioning trust funds in second quarter 2026; • an increase of $21 million in the amortization of tax gross-up on customer advances, including customer advances for construction; • an increase of $11.2 million on interest earned on money pool investments; and 110 Table of Contents Entergy Louisiana, LLC and Subsidiaries Management’s Financial Discussion and Analysis • an increase in the allowance for equity funds used during construction due to higher construction work in progress in 2026 including the Amite South transmission projects, the Waterford 6 Power Station project, and the Westlake Power Station project. The increase was partially offset by a $17.1 million true-up in 2025 of Entergy Louisiana's MISO cost recovery mechanism over-recovery balance to the 2024 formula rate plan filing, which was filed with the LPSC in May 2025, and a decrease of $4.5 million in affiliated dividend income from affiliated preferred membership interests related to storm cost securitizations. See Note 2 to the financial statements in the Form 10-K for discussion of the 2024 formula rate plan filing and the storm cost securitizations. Interest expense increased primarily due to: • an increase of $18 million in carrying costs on customer advances, including customer advances for construction; • the issuances of $750 million of 5.65% Series mortgage bonds and $750 million of 4.90% Series mortgage bonds, each in February 2026; and • $4.1 million in carrying costs in second quarter 2026 on retained net proceeds from the monetization of nuclear production tax credits. Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025 Other operation and maintenance expenses increased primarily due to: • an increase of $11.4 million in power delivery expenses primarily due to a higher scope of work performed in 2026 as compared to 2025 and higher vegetation maintenance costs ; • an increase of $8.9 million in nuclear generation expenses primarily due to a higher scope of work performed in 2026 as compared to 2025; • an increase of $8.8 million in compensation and benefits costs primarily due to a revision to estimated incentive-based compensation expense in first quarter 2025; and • several individually insignificant items. The increase was partially offset by: • a decrease of $7 million in loss provisions; • a decrease of $4.3 million in insurance expense primarily due to higher nuclear insurance refunds; and • a decrease of $4.3 million due to the absence of natural gas expenses in 2026 following the sale of Entergy Louisiana’s natural gas distribution business on July 1, 2025. See Note 14 to the financial statements in the Form 10-K for discussion of the sale of the Entergy Louisiana natural gas distribution business on July 1, 2025. Taxes other than income taxes increased primarily due to increases in ad valorem taxes resulting from higher assessments. Depreciation and amortization expenses increased primarily due to additions to plant in service, an increase in FERC jurisdictional depreciation rates effective January 2026, and an increase in nuclear depreciation rates effective September 2025 in accordance with the global stipulated settlement agreement approved by the LPSC in August 2024. See Note 2 to the financial statements in the Form 10-K for discussion of the global stipulated settlement agreement. Entergy Louisiana records a regulatory charge or credit for the difference between asset retirement obligation-related expenses and nuclear decommissioning trust earnings plus asset retirement obligation-related costs collected in revenue. 111 Table of Contents Entergy Louisiana, LLC and Subsidiaries Management’s Financial Discussion and Analysis Other income increased primarily due to: • changes in decommissioning trust fund activity, including portfolio rebalancing of certain decommissioning trust funds in 2026; • an increase of $29.1 million in the amortization of tax gross-up on customer advances, including customer advances for construction; • an increase in the allowance for equity funds used during construction due to higher construction work in progress in 2026, including the Amite South transmission projects, the Waterford 6 Power Station project, and the Westlake Power Station project; and • an increase of $9.7 million in interest earned on money pool investments. The increase was partially offset by a $17.1 million true-up in 2025 of Entergy Louisiana's MISO cost recovery mechanism over-recovery balance to the 2024 formula rate plan filing, which was filed with the LPSC in May 2025, and a decrease of $9 million in affiliated dividend income from affiliated preferred membership interests related to storm cost securitizations. See Note 2 to the financial statements in the Form 10-K for discussion of the 2024 formula rate plan filing. See Note 2 to the financial statements in the Form 10-K for discussion of the storm cost securitizations. Interest expense increased primarily due to: • an increase of $27.9 million in carrying costs on customer advances, including customer advances for construction; • the issuances of $750 million of 5.65% Series mortgage bonds and $750 million of 4.90% Series mortgage bonds, each in February 2026; and • $8.2 million in carrying costs in 2026 on retained net proceeds from the monetization of nuclear production tax credits. The increase was partially offset by an increase in the allowance for borrowed funds used during construction due to higher construction work in progress in 2026, including the Amite South transmission projects and the Waterford 6 Power Station project. Income Taxes The effective income tax rates were 17.1% for the second quarter 2026 and 16.4% for the six months ended June 30, 2026. The differences in the effective income tax rates for the second quarter 2026 and the six months ended June 30, 2026 versus the federal statutory rate of 21% were primarily due to the book and tax differences related to the non-taxable income distributions earned on preferred membership interests, the amortization of excess accumulated deferred income taxes, book and tax differences related to the allowance for equity funds used during construction, and certain book and tax differences related to utility plant items, partially offset by the accrual for state income taxes. The effective income tax rates were 19.5% for the second quarter 2025 and 18.6% for the six months ended June 30, 2025. The differences in the effective income tax rates for the second quarter 2025 and the six months ended June 30, 2025 versus the federal statutory rate of 21% were primarily due to the book and tax differences related to the non-taxable income distributions earned on preferred membership interests, book and tax differences related to the allowance for equity funds used during construction, and certain book and tax differences related to utility plant items, partially offset by the accrual for state income taxes. 112 Table of Contents Entergy Louisiana, LLC and Subsidiaries Management’s Financial Discussion and Analysis Income Tax Legislation and Regulation See “ MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Income Tax Legislation and Regulation ” in the Form 10-K for discussion of income tax legislation and regulation. Sale of Natural Gas Distribution Business See Note 14 to the financial statements in the Form 10-K for discussion of the sale of the Entergy Louisiana natural gas distribution business on July 1, 2025. Liquidity and Capital Resources Cash Flow Cash flows for the six months ended June 30, 2026 and 2025 were as follows: 2026 2025 (In Thousands) Cash and cash equivalents at beginning of period $776,961 $327,102 Net cash provided by (used in): Operating activities 1,711,203 978,699 Investing activities (2,308,068) (1,467,670) Financing activities 1,387,935 461,319 Net increase (decrease) in cash and cash equivalents 791,070 (27,652) Cash and cash equivalents at end of period $1,568,031 $299,450 Operating Activities Net cash flow provided by operating activities increased $732.5 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to: • an increase of $460 million in receipts of advance payments related to customer agreements, including $398.2 million in customer advances and $61.8 million in tax gross-up on customer advances for construction; • the timing of recovery of fuel and purchased power costs, partially offset by higher fuel and purchased power payments in 2026 as compared to 2025. See Note 2 to the financial statements herein and in the Form 10-K for a discussion of fuel and purchased power cost recovery; and • a decrease of $42.2 million in spending on nuclear refueling outage costs in 2026 as compared to 2025. The increase was partially offset by lower collections from customers and the timing of payments to vendors. Investing Activities Net cash flow used in investing activities increased $840.4 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to: • an increase of $574.1 million in non-nuclear generation construction expenditures primarily due to higher spending on the Richland Parish Power Station Units 1-4 project, the Pointe Coupee Units 1-3 project, the Waterford 6 Power Station project, the Waterford 5 Power Station project, and the Westlake Power Station project; 113 Table of Contents Entergy Louisiana, LLC and Subsidiaries Management’s Financial Discussion and Analysis • an increase of $299.0 million in transmission construction expenditures primarily due to higher capital expenditures as a result of higher spending on the Amite South transmission projects and on various other transmission projects in 2026; • an increase of $210.4 million in capital expenditures related to storm restoration primarily due to Winter Storm Fern restoration efforts in 2026. See “ Winter Storm Fern ” above for discussion of storm restoration efforts in 2026; and • the receipt of $33.5 million from the storm reserve escrow account in first quarter 2025. See Note 2 to the financial statements in the Form 10-K for a discussion of the storm reserve funds. The increase was partially offset by: • a decrease of $119.2 million in nuclear construction expenditures primarily due to decreased spending on various nuclear projects in 2026; • a decrease in cash used of $88.4 million as a result of fluctuations in nuclear fuel activity due to variations from year to year in the timing and pricing of fuel reload requirements, materials and services deliveries, and the timing of cash payments during the nuclear fuel cycle; and • a decrease of $39 million in cash collateral posted to support Entergy Louisiana’s obligations to MISO in 2026. Financing Activities Net cash flow provided by financing activities increased $926.6 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to: • the issuances of $750 million of 5.65% Series mortgage bonds and $750 million of 4.90% Series mortgage bonds, each in February 2026; • $495 million in common equity distributions paid in 2025 in order to maintain Entergy Louisiana’s capital structure. No common equity distributions were paid in 2026; • the repayment of $190 million of 3.78% Series mortgage bonds in March 2025; and • the repayment of $110 million of 3.78% Series mortgage bonds in March 2025. The increase was partially offset by: • the issuance of $750 million of 5.80% Series mortgage bonds in January 2025; • the repayment of $250 million of 4.44% Series mortgage bonds in January 2026; • a decrease of $232.7 million in net customer advances for construction related to transmission, distribution, and generator interconnection agreements; and • net repayments of $37.7 million in 2026 compared to net long-term borrowings of $92.9 million in 2025 on the nuclear fuel company variable interest entities’ credit facilities. See Note 4 to the financial statements herein and Note 5 to the financial statements in the Form 10-K for more details on long-term debt. 114 Table of Contents Entergy Louisiana, LLC and Subsidiaries Management’s Financial Discussion and Analysis Capital Structure Entergy Louisiana’s debt to capital ratio is shown in the following table. The increase in the debt to capital ratio for Entergy Louisiana is primarily due to the net issuance of long-term debt in 2026. June 30, 2026 December 31, 2025 Debt to capital 48.1 % 46.6 % Effect of subtracting cash (3.6 %) (2.0 %) Net debt to net capital (non-GAAP) 44.5 % 44.6 % Net debt consists of debt less cash and cash equivalents. Debt consists of short-term borrowings, finance lease obligations, and long-term debt, including the currently maturing portion. Capital consists of debt and equity. Net capital consists of capital less cash and cash equivalents. Entergy Louisiana uses the debt to capital ratio in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating Entergy Louisiana’s financial condition. The net debt to net capital ratio is a non-GAAP measure. Entergy Louisiana also uses the net debt to net capital ratio in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating Entergy Louisiana’s financial condition because net debt indicates Entergy Louisiana’s outstanding debt position that could not be readily satisfied by cash and cash equivalents on hand. Uses and Sources of Capital See “ MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources ” in the Form 10-K for a discussion of Entergy Louisiana’s uses and sources of capital. The following are updates to the information provided in the Form 10-K. Following are updates to the current annual amounts of Entergy Louisiana’s planned construction and other capital investments through 2030. 2026 2027 2028 2029 2030 (In Millions) Planned construction and capital investments: Generation $3,990 $8,235 $7,725 $6,730 $5,190 Transmission 1,560 1,740 1,280 875 370 Distribution 1,320 835 565 610 635 Utility Support 120 110 90 75 55 Total $6,990 $10,920 $9,660 $8,290 $6,250 The updated capital plan for 2026-2030 reflects incremental capital investments for potential generation projects, primarily related to resources identified in Entergy Louisiana’s application filed with the LPSC in March 2026 as discussed below in “Additional Generation and Transmission Resources.” In addition to routine capital spending to maintain operations, the capital plan for Entergy Louisiana includes investments in generation projects to modernize, decarbonize, expand, and diversify Entergy Louisiana’s portfolio, as well as to support customer growth, including Segno Solar, Votaw Solar, Bogalusa West Solar, Cypress Harvest Solar, Franklin Farms Power Station Units 1 and 2, Waterford 5 Power Station, Cottonwood Power Station, Westlake Power Station, Richland Parish Units 1-4, Pointe Coupee Units 1-3, Waterford 6 Power Station, and other new generation resources; investments in River Bend and Waterford 3; distribution and Utility support spending to improve reliability, resilience, and customer experience; transmission spending to improve reliability and resilience while also supporting customer growth and renewables expansion; and other investments. The planned construction and capital investments amounts above exclude investments expected to be funded with customer advances for construction. 115 Table of Contents Entergy Louisiana, LLC and Subsidiaries Management’s Financial Discussion and Analysis Entergy Louisiana’s receivables from the money pool were as follows: June 30, 2026 December 31, 2025 June 30, 2025 December 31, 2024 (In Thousands) $122,145 $63,435 $81,208 $32,668 See Note 4 to the financial statements in the Form 10-K for a description of the money pool. Entergy Louisiana has a credit facility in the amount of $400 million scheduled to expire in June 2031. The credit facility includes fronting commitments for the issuance of letters of credit against $15 million of the borrowing capacity of the facility. As of June 30, 2026, there were no cash borrowings and no letters of credit outstanding under the credit facility. In addition, Entergy Louisiana is a party to two uncommitted letter of credit facilities as a means to post collateral to support its obligations to MISO and for other purposes. As of June 30, 2026, $148.1 million in MISO letters of credit and $1.5 million in non-MISO letters of credit were outstanding under Entergy Louisiana’s uncommitted letter of credit facilities. See Note 4 to the financial statements herein for additional discussion of the credit facilities. The Entergy Louisiana nuclear fuel company variable interest entities have two separate credit facilities, each in the amount of $105 million and scheduled to expire in June 2029. As of June 30, 2026, $28.6 million in loans were outstanding under the credit facility for the Entergy Louisiana River Bend nuclear fuel company variable interest entity and $27.7 million in loans were outstanding under the credit facility for the Entergy Louisiana Waterford nuclear fuel company variable interest entity. See Note 4 to the financial statements herein for additional discussion of the nuclear fuel company variable interest entity credit facilities. Renewables Cypress Harvest Solar As discussed in the Form 10-K, in February 2026, Entergy Louisiana filed an application seeking LPSC approval and certification for the Cypress Harvest Solar facility, a 200 MW solar facility to be located in Iberville Parish, Louisiana. In March 2026 the LPSC staff filed an affidavit attesting that the Cypress Harvest Solar facility meets the applicable parameters for Entergy Louisiana’s expedited certification process and recommending that the LPSC grant certification. At its April 2026 meeting, the LPSC voted to grant the requested approval and certification, with a written order issued in May 2026. In July 2026 the Iberville Parish Council adopted a two-year moratorium on battery energy storage system development to allow time for further evaluation of the community impacts of the technology. The facility has a scheduled in service date of 2028. Segno Solar and Votaw Solar As discussed in the Form 10-K, in December 2025, Entergy Louisiana filed an application with the LPSC seeking approval and certification to construct the Segno Solar facility and Votaw Solar facility. The application asks that the LPSC approve, subject to certain ongoing discussions, allocation of the two facilities to a designated renewable resources subscription to Entergy Louisiana’s Rider Geaux Zero, and further asserts that the two solar resources fall below certain breakeven parameters established in connection with the LPSC’s order allowing Entergy Louisiana to procure up to 3 GW of solar resources, thus supporting that the resources should be certified as being in the public interest. The application requests consideration by the LPSC at or before its August 2026 meeting. A procedural schedule was set with a hearing initially scheduled for July 2026. In June 2026, Entergy Louisiana filed an unopposed motion asking that the procedural schedule be suspended to allow for settlement negotiations. The motion was granted and the procedural schedule was suspended. The parties’ settlement 116 Table of Contents Entergy Louisiana, LLC and Subsidiaries Management’s Financial Discussion and Analysis negotiations are ongoing. Subject to approval by the LPSC, the Segno Solar facility and the Votaw Solar facility are expected to be in service by 2029. Other Generation and Transmission Additional Generation and Transmission Resources See the Form 10-K for discussion of Entergy Louisiana’s October 2024 application with the LPSC seeking approval of a variety of generation and transmission resources proposed in connection with establishing service to a new data center to be developed by a subsidiary of Meta Platforms, Inc. in north Louisiana, for which an electric service agreement was previously executed. In March 2026, Entergy Louisiana entered into an electric service agreement with Evest LLC (Evest), a subsidiary of Meta Platforms, Inc., in connection with establishing service to a second new data center to be developed by Evest in north Louisiana. The obligations pursuant to the agreement will commence following construction of certain transmission facilities needed to serve Evest, and the effectiveness of the agreement is conditioned upon receipt of required governmental approvals, including approval from the LPSC. Also in March 2026, Entergy Louisiana filed an application with the LPSC for certification to construct seven new combined cycle combustion turbine generation resources totaling 5,278 MW at a total cost of approximately $12.9 billion, each of which will be enabled for future carbon capture and storage, and three battery energy storage systems, including two that will be co-located with solar resources at the Cypress Harvest Solar Facility in Iberville Parish and the Bogalusa West Solar Facility in Washington Parish. The application also seeks approval to construct a new 500 kV transmission line, from West Fork Creek to St. Landry, estimated to cost $1.4 billion, and other related transmission facilities. Four of the new combined cycle combustion turbine generation resources are to be located near the customer site in north Louisiana (Richland Parish Units 1-4), while the remaining three units will be located near the existing Big Cajun site in Pointe Coupee Parish (Pointe Coupee Units 1-3). The seven new combined cycle combustion turbine generation resources have various estimated in-service dates in 2030 and 2031. The application also requests certain approvals related to a corporate sustainability agreement with the new customer. The corporate sustainability agreement contemplates the new customer contributing to the costs of the future addition of 2,500 MW of new renewable and energy storage resources, agreements involving nuclear-related efforts and contributions to bill assistance and other programs for low-income residents. Entergy Louisiana anticipates recovering the incremental cost to serve the customer through direct financial contributions from the customer and the revenues it expects to earn under the electric service agreement. The application is pending before the LPSC. At its April 2026 meeting, the LPSC voted to direct the administrative hearings division to adopt a procedural schedule that would allow for LPSC consideration of the matter at its December 2026 meeting, and also to have the administrative hearings division serve as a hearing examiner and compile a record for the LPSC to consider without the issuance of a formal recommendation from the ALJ. LPSC staff and intervenor testimony is due to be filed by July 31, 2026. Entergy Louisiana’s rebuttal testimony is due in September 2026. A hearing is scheduled to take place in October 2026. The electric service agreement and related contracts contain provisions that protect Entergy Louisiana’s current customers in a manner consistent with the LPSC’s Lightning Initiative and Entergy Louisiana’s Fair Share Plus guidelines, which the LPSC and Entergy Louisiana, respectively, developed in response to increased investment in large data centers in Louisiana. The protections include terms requiring the customer to pay Entergy Louisiana’s incremental costs to serve the customer, including through contributions in aid of construction, other advanced payments and minimum monthly bills. The agreements also include specified financial obligations in the event that Evest terminates the contracts early, restructures the project, or in the event of default. These specified financial obligations would be based on Entergy Louisiana’s unrecovered incremental costs to serve Evest at the time of such an event. Evest’s obligations under the electric service agreement and related contracts are secured by various forms of collateral, including a guaranty from Meta Platforms, Inc. 117 Table of Contents Entergy Louisiana, LLC and Subsidiaries Management’s Financial Discussion and Analysis Finally, the electric service agreement also includes provisions relating to Entergy Louisiana’s performance obligations, including the timely construction of the facilities supporting service to Evest, audit rights for the construction costs supported by Evest, and service standards during the term of the electric service agreement. Entergy Louisiana’s failure to meet one or more of these performance obligations could result in specified financial and/or non-financial penalties. Such penalties would vary based on the nature and severity of the failure, including the potential termination of the electric service agreement. In June 2026 certain intervenors filed a motion requesting that the LPSC issue a subpoena to Meta Platforms, Inc. to obtain certain information about the data center project, including the level of expected investment, job creation, load characteristics, and other aspects of the project, as well as certain financial information. In July 2026, after briefing and argument, the ALJ issued a ruling granting this motion in part and denying it in part. In July 2026, Meta Platforms, Inc. filed a motion to quash the subpoena and a motion for interlocutory appeal of the ruling that granted the issuance of the subpoena. Babel - Webre 500 kV Transmission Project As discussed in the Form 10-K, in December 2025, Entergy Louisiana filed an application with the LPSC seeking a certificate of public convenience and necessity for a 500 kV transmission project that includes the construction of a new 147-mile Babel to Webre 500 kV transmission line, the reconstruction of the Webre 500 kV switching station in Louisiana, and coordination with Entergy Texas on the construction of an approximately 4-mile 500 kV transmission line in Texas. The project was approved by MISO in the 2025 MISO Transmission Expansion Plan and has an estimated cost of $1,238 million and an estimated in-service date of August 2029. In May 2026 the LPSC staff and the Southern Renewable Energy Association (SREA), an intervenor, filed direct testimony. The LPSC staff’s testimony and SREA’s testimony recommended that the LPSC find the project to be in the public interest and grant certification under the LPSC’s general order on transmission siting. A hearing is scheduled for September 2026. Waterford 6 Power Station and Westlake Power Station As discussed in the Form 10-K, in February 2026, Entergy Louisiana filed an application seeking LPSC approval and certification to construct two 754 MW combined cycle combustion turbine generators, the Waterford 6 Power Station and the Westlake Power Station, to be located at Entergy Louisiana’s existing Waterford site near Killona, Louisiana and existing Roy S. Nelson site in Westlake, Louisiana, respectively. In its application, Entergy Louisiana noted the estimated costs are approximately $2,027 million for the Waterford 6 Power Station and $2,091 million for the Westlake Power Station. As described in the application, Entergy Louisiana is considering a third-party financing approach for the Waterford 6 Power Station. A procedural schedule has been set with hearings scheduled in October and November 2026. Entergy Louisiana asked that the LPSC consider the requests in the application at or before its December 2026 meeting. The estimated in-service dates for the Waterford 6 Power Station and Westlake Power Station are July 2030 and October 2030, respectively. Cottonwood Power Station As discussed in the Form 10-K, in December 2025, Entergy Louisiana filed an application seeking LPSC approval and a certificate of convenience and necessity to acquire the Cottonwood combined cycle combustion turbine facility, a 1,263 MW combined cycle facility in Deweyville, Texas that was originally placed in commercial service in 2003. The filing seeks findings from the LPSC that the costs of the acquisition, including the approximately $1.5 billion purchase price and $309.3 million in capital upgrades and maintenance items needed to bring the Cottonwood facility into alignment with Entergy Louisiana’s fleet standards with respect to operations and safety, are eligible for recovery in customer rates. In June 2026 the LPSC staff filed direct testimony raising various concerns and objections to the proposed transaction as presented in Entergy Louisiana’s application. The LPSC staff asserts that the need for the Cottonwood facility is driven predominantly by loads associated with certain large data center projects and opines that the costs and future operational risks of the Cottonwood facility should be borne 118 Table of Contents Entergy Louisiana, LLC and Subsidiaries Management’s Financial Discussion and Analysis by these customers in particular, not Entergy Louisiana’s customers generally. The LPSC staff’s direct testimony also raises issues regarding the acquisition premium, potential stranded costs, and future operating risks associated with the Cottonwood facility. Discovery is ongoing, and Entergy Louisiana filed rebuttal testimony in July 2026. A hearing is scheduled for September 2026 and Entergy Louisiana’s application requests an LPSC decision by October 2026. The acquisition is currently targeted to close in January 2027, subject to regulatory approvals and other conditions to closing. State and Local Rate Regulation and Fuel-Cost Recovery See “ MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – State and Local Rate Regulation and Fuel Cost Recovery ” in the Form 10-K for a discussion of state and local rate regulation and fuel-cost recovery. The following are updates to that discussion. Retail Rates Resilience Plan Cost Recovery Rider In December 2022, Entergy Louisiana filed an application with the LPSC seeking a public interest finding regarding Phase I of Entergy Louisiana’s Future Ready resilience plan and approval of a rider mechanism to recover the program’s costs. Phase I in the December 2022 application reflected the first five years of a ten-year resilience plan and included investment of approximately $5 billion, including hardening investment, transmission dead-end structures, enhanced vegetation management, and telecommunications improvement. In April 2024 the LPSC approved a framework which includes an initial five-year resilience plan providing for an investment of approximately $1.9 billion with cost recovery via a forward-looking rider with semi-annual true-ups. The plan is subject to specified reporting requirements and includes a performance review of the hardened assets. The LPSC order approving the framework does not include any restrictions on Entergy Louisiana’s ability to file applications for approval of additional investments in resilience. In January 2025, Entergy Louisiana’s semi-annual filing sought to collect from Entergy Louisiana’s retail customers approximately $40.4 million, or $38.9 million in incremental annual revenues from Entergy Louisiana’s first semi-annual filing in July 2024, for projects expected to be placed in service during the rate-effective period of March 2025 through August 2025. In February 2025 the LPSC staff reviewed the filed rider rates and identified no material issues. In July 2025, Entergy Louisiana’s semi-annual filing sought to collect from Entergy Louisiana’s retail customers approximately $50.2 million, or $9.8 million in incremental annual revenues, for projects expected to be placed in service during the rate-effective period of September 2025 through February 2026. Additionally, Entergy Louisiana’s true-up filing included an under-recovery totaling $5.6 million to be implemented in the January 2026 semi-annual filing. In August 2025 the LPSC staff reviewed the filed rider rates and identified no material issues. In January 2026, Entergy Louisiana’s semi-annual filing sought to collect from Entergy Louisiana’s retail customers approximately $101.8 million, or $51.6 million in incremental annual revenues, for projects expected to be placed in service during the rate-effective period of March 2026 through August 2026. Additionally, Entergy Louisiana’s true-up filing included an over-recovery totaling $16.6 million to be implemented in the July 2026 semi-annual filing. In February 2026 the LPSC staff reviewed the filed rider rates and identified no material issues. In July 2026, Entergy Louisiana’s semi-annual filing sought to collect from Entergy Louisiana’s retail customers approximately $114.2 million, or $12.4 million in incremental annual revenues, for projects expected to be placed in service during the rate-effective period of September 2026 through February 2027. Additionally, Entergy Louisiana’s true-up filing included an under-recovery totaling $2.5 million to be implemented in the January 2027 semi-annual filing. The LPSC staff is reviewing the filed rider rates. 119 Table of Contents Entergy Louisiana, LLC and Subsidiaries Management’s Financial Discussion and Analysis Vegetation Management Rider In November 2025 the LPSC staff issued notice of its initiation of a rulemaking to implement a vegetation management pilot program for LPSC jurisdictional electric utilities. The pilot program would be voluntary and would allow utilities to establish a rider for distribution vegetation management for up to 100% of the utility’s prior calendar year vegetation management spending. The rider may not exceed 1% of a customer’s bill, and the utility would be required to maintain its prior calendar year level of spending on vegetation management as reflected in its base rates or formula rate plan. In February 2026 the LPSC staff filed a report and recommendation along with a proposed final rule providing for the adoption of the pilot program consistent with the terms outlined in the original notice. In March 2026 the LPSC voted to accept the LPSC staff’s recommendation and adopt the proposed pilot program as presented. In April 2026, Entergy Louisiana filed its vegetation management rider for the rate-effective period of May 2026 through December 2026, which included a revenue requirement of $20 million for incremental spending on distribution vegetation management above the prior calendar year level of spending on vegetation management. 2025 Formula Rate Plan Filing In June 2026, Entergy Louisiana filed its formula rate plan evaluation report for its 2025 calendar year operations. Consistent with the global stipulated settlement agreement approved by the LPSC in August 2024, the filing reflected a 9.7% allowed return on common equity with a bandwidth of 40 basis points above and below the midpoint. For the test year 2025, the formula produced an earned return on equity of 9.63%, which falls within the established bandwidth and therefore results in no adjustment to base rider formula rate plan revenue. Additional changes in formula rate plan revenue include: (1) the removal of approximately $73 million in annual customer credits associated with the global stipulated settlement agreement, which have been fully credited to customers in accordance with the agreement; (2) a reduction in customer credits through the tax adjustment mechanism, attributable to the return of Entergy Louisiana’s over-collection of income tax expense associated with Louisiana state tax law changes effective in 2025 and the expiration of certain ad valorem exemptions; (3) increases in transmission and distribution plant in service, as recognized through the transmission and distribution recovery mechanisms, including restoration costs from Winter Storm Fern, for which Entergy Louisiana does not intend to seek relief or exception to the formula rate plan; (4) increases to the additional capacity mechanism; and (5) the final phase-in of additional nuclear depreciation expense, in accordance with the global stipulated settlement agreement. See Note 2 to the financial statements in the Form 10-K for discussion of the global stipulated settlement agreement. Collectively, these factors contributed to a net increase of $222 million in formula rate plan revenue for the period. Subject to LPSC review, the resulting changes from the 2025 formula rate plan evaluation report will become effective for bills rendered during the first billing cycle of September 2026, subject to refund. Request for Extension of Formula Rate Plan In June 2026, Entergy Louisiana submitted a motion requesting the LPSC approve a one-year extension of its current formula rate plan, with all material provisions left unchanged, including the allowed return on common equity of 9.7% with a bandwidth of 40 basis points above and below the midpoint. Entergy Louisiana has requested LPSC action on the proposed extension by August 2026. River Bend Deregulated Asset Plan Filing In September 2025, Entergy Louisiana filed an application seeking LPSC approval to recover from customers, prospectively, approximately $49 million in annual revenues associated with the Louisiana retail deregulated portion of River Bend. Costs associated with the deregulated portion of River Bend have historically been excluded from retail ratemaking as a result of a 1988 LPSC decision. Instead, Entergy Louisiana has been allowed by the LPSC to either recover 4.6 cents per kWh for the power generated from that portion of the plant, or sell the power into the applicable market (subject to certain restrictions). The filing presents evidence that River 120 Table of Contents Entergy Louisiana, LLC and Subsidiaries Management’s Financial Discussion and Analysis Bend is a cost-effective and prudent source of needed baseload supply with value to Entergy Louisiana customers and seeks to recover the previously excluded costs, on a prospective basis. In March 2026 the LPSC staff and certain intervenors filed direct testimony recommending that the LPSC deny Entergy Louisiana’s application. The LPSC staff’s testimony further recommends that, if the LPSC were to grant any relief, notwithstanding the LPSC staff’s recommendation, such relief should be limited to allowing only prospective capital additions at River Bend to be included in Entergy Louisiana’s customer rates. Entergy Louisiana’s rebuttal testimony is due in August 2026. A hearing is scheduled for January 2027. Fuel and purchased power cost recovery As discussed in the Form 10-K, in June 2025 the LPSC staff provided notice of an audit of Entergy Louisiana’s purchased gas adjustment clause filings (for Entergy Louisiana’s gas operations). The audit includes a review of the reasonableness of charges flowed through Entergy Louisiana’s purchased gas adjustment clause for the period from January 2023 through June 2025. The LPSC staff issued its audit report in March 2026. The next step is for the LPSC to issue its final report, but there is no deadline or timing requirement associated with the issuance of the final report. In February 2026, Entergy Louisiana, in its monthly filing to update its fuel adjustment clause, requested to defer approximately $141.9 million of fuel costs incurred in January 2026 that were primarily attributable to the effects of Winter Storm Fern, consistent with the LPSC’s general order approved at its February 2026 meeting permitting temporary modifications to the LPSC’s fuel adjustment clause general order. The filing proposed to defer the recovery of these fuel costs over a four-month period from March 2026 through June 2026 to mitigate the customer bill impacts of these fuel costs. In March 2026 the LPSC issued a special order delegating authority to the LPSC executive secretary to review and approve utility-specific requests for deferral of fuel costs from Winter Storm Fern, subject to audit as per the LPSC’s fuel clause general order. In April 2026 the LPSC executive secretary approved Entergy Louisiana’s request for deferral. In April 2026 the LPSC staff provided notice of an audit of Entergy Louisiana’s fuel adjustment clause filings. The audit includes a review of the reasonableness of charges flowed through Entergy Louisiana’s fuel adjustment clause for the period from 2023 through 2025. Discovery is ongoing, and no audit report has been filed. Industrial and Commercial Customers See “ MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Industrial and Commercial Customers ” in the Form 10-K for a discussion of industrial and commercial customers. Federal Regulation See “ MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Federal Regulation ” in the Form 10-K and Note 2 to the financial statements herein and in the Form 10-K for a discussion of federal regulation. Nuclear Matters See “ MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Nuclear Matters ” in the Form 10-K for a discussion of nuclear matters. The following is an update to that discussion. NRC Reactor Oversight Process The NRC’s Reactor Oversight Process is a program to collect information about plant performance, assess the information for its safety significance, and provide for appropriate licensee and NRC response. The NRC evaluates plant performance by analyzing two distinct inputs: inspection findings resulting from the NRC’s 121 Table of Contents Entergy Louisiana, LLC and Subsidiaries Management’s Financial Discussion and Analysis inspection program and performance indicators reported by the licensee. The evaluations result in the placement of each plant in one of the NRC’s Reactor Oversight Process Action Matrix columns: “licensee response column,” or Column 1, “regulatory response column,” or Column 2, “degraded cornerstone column,” or Column 3, “multiple/repetitive degraded cornerstone column,” or Column 4, and “unacceptable performance,” or Column 5. Plants in Column 1 are subject to normal NRC inspection activities. Plants in Column 2, Column 3, or Column 4 are subject to progressively increasing levels of inspection by the NRC with, in general, progressively increasing levels of associated costs. Continued plant operation is not permitted for plants in Column 5. All of the nuclear generating plants owned and operated by Entergy Louisiana are currently in Column 1. In July 2026 the NRC issued an inspection report for River Bend, in which it identified a preliminary “white” finding with “low safety significance” related to one of the service water pumps at River Bend. The NRC is continuing its evaluation of the issue and is expected to complete its determination during third quarter 2026. If the NRC’s review results in a final “white” finding, River Bend would be placed in Column 2 and would remain in Column 2 until the satisfactory completion of an NRC supplemental inspection. Environmental Risks See “ MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Environmental Risks ” in the Form 10-K for a discussion of environmental risks. Critical Accounting Estimates See “ MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates ” in the Form 10-K for a discussion of the estimates and judgments necessary in Entergy Louisiana’s accounting for nuclear decommissioning costs, utility regulatory accounting, taxation and uncertain tax positions, qualified pension and other postretirement benefits, and other contingencies. New Accounting Pronouncements See the “ New Accounting Pronouncements ” section of Note 1 to the financial statements in the Form 10-K for a discussion of new accounting pronouncements and the “ New Accounting Pronouncements ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis herein for updates to the discussion of new accounting pronouncements. 122 Table of Contents ENTERGY LOUISIANA, LLC AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS For the Three and Six Months Ended June 30, 2026 and 2025 (Unaudited) Three Months Ended Six Months Ended 2026 2025 2026 2025 (In Thousands) (In Thousands) OPERATING REVENUES Electric $ 1,606,355 $ 1,495,504 $ 3,030,440 $ 2,767,450 Natural gas — 14,559 — 44,160 TOTAL 1,606,355 1,510,063 3,030,440 2,811,610 OPERATING EXPENSES Operation and Maintenance: Fuel, fuel-related expenses, and gas purchased for resale 450,330 326,256 794,453 540,108 Purchased power 196,376 297,179 412,809 558,967 Nuclear refueling outage expenses 9,924 14,809 19,865 33,180 Other operation and maintenance 301,428 275,187 561,081 533,224 Decommissioning 20,624 19,608 40,989 39,025 Taxes other than income taxes 77,383 68,010 150,916 134,231 Depreciation and amortization 213,580 201,842 425,131 399,464 Other regulatory charges (credits) - net ( 6,097 ) ( 61,915 ) ( 42,567 ) ( 109,148 ) TOTAL 1,263,548 1,140,976 2,362,677 2,129,051 OPERATING INCOME 342,807 369,087 667,763 682,559 OTHER INCOME Allowance for equity funds used during construction 25,082 18,470 45,158 33,676 Interest and investment income 141,084 53,599 158,344 54,687 Interest and investment income - affiliated 71,237 75,195 142,497 151,766 Miscellaneous - net ( 53,512 ) ( 33,797 ) ( 30,497 ) ( 16,726 ) TOTAL 183,891 113,467 315,502 223,403 INTEREST EXPENSE Interest expense 158,684 116,524 296,340 237,858 Allowance for borrowed funds used during construction ( 9,354 ) ( 6,691 ) ( 16,899 ) ( 12,876 ) TOTAL 149,330 109,833 279,441 224,982 INCOME BEFORE INCOME TAXES 377,368 372,721 703,824 680,980 Income taxes 64,598 72,541 115,154 126,603 NET INCOME 312,770 300,180 588,670 554,377 Net income attributable to noncontrolling interests 700 745 1,407 1,497 EARNINGS APPLICABLE TO MEMBER'S EQUITY $ 312,070 $ 299,435 $ 587,263 $ 552,880 See Notes to Financial Statements. 123 Table of Contents ENTERGY LOUISIANA, LLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Three and Six Months Ended June 30, 2026 and 2025 (Unaudited) Three Months Ended Six Months Ended 2026 2025 2026 2025 (In Thousands) (In Thousands) Net Income $ 312,770 $ 300,180 $ 588,670 $ 554,377 Other comprehensive loss Pension and other postretirement plan changes (net of tax benefit of $ 369 , $ 723 , $ 738 , and $ 2,607 ) ( 1,088 ) ( 2,132 ) ( 2,175 ) ( 3,103 ) Other comprehensive loss ( 1,088 ) ( 2,132 ) ( 2,175 ) ( 3,103 ) Comprehensive Income 311,682 298,048 586,495 551,274 Net income attributable to noncontrolling interests 700 745 1,407 1,497 Comprehensive Income Applicable to Member’s Equity $ 310,982 $ 297,303 $ 585,088 $ 549,777 See Notes to Financial Statements. 124 Table of Contents ENTERGY LOUISIANA, LLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2026 and 2025 (Unaudited) 2026 2025 (In Thousands) OPERATING ACTIVITIES Net income $ 588,670 $ 554,377 Adjustments to reconcile net income to net cash flow provided by operating activities: Depreciation, amortization, and decommissioning, including nuclear fuel amortization 520,656 474,334 Deferred income taxes, tax credits, and non-current taxes accrued 208,499 225,635 Changes in working capital: Receivables ( 90,616 ) ( 122,848 ) Fuel inventory 4,405 8,300 Accounts payable 128,737 9,253 Taxes accrued 34,902 ( 790 ) Interest accrued 18,454 10,430 Deferred fuel costs 36,122 ( 92,390 ) Customer advances - current 666,217 200,389 Other working capital accounts ( 260,463 ) ( 122,808 ) Changes in provisions for estimated losses 5,891 ( 23,918 ) Changes in other regulatory assets ( 19,466 ) 48,355 Changes in other regulatory liabilities ( 54,004 ) ( 70,161 ) Changes in pension and other postretirement funded status ( 19,221 ) ( 18,124 ) Other ( 57,580 ) ( 101,335 ) Net cash flow provided by operating activities 1,711,203 978,699 INVESTING ACTIVITIES Construction expenditures ( 2,419,557 ) ( 1,450,693 ) Allowance for equity funds used during construction 45,158 26,560 Proceeds from sale of assets — 366 Nuclear fuel purchases ( 92,108 ) ( 130,279 ) Proceeds from sale of nuclear fuel 67,461 17,240 Payments to storm reserve escrow account ( 4,228 ) ( 5,144 ) Receipt from storm reserve escrow account — 33,456 Redemption of preferred membership interests of affiliate 123,874 118,805 Proceeds from nuclear decommissioning trust fund sales 657,378 291,901 Investment in nuclear decommissioning trust funds ( 680,951 ) ( 321,342 ) Changes in money pool receivable - net ( 58,710 ) ( 48,540 ) Insurance proceeds received for property damages 14,282 — Decrease in other investments 39,333 — Net cash flow used in investing activities ( 2,308,068 ) ( 1,467,670 ) FINANCING ACTIVITIES Proceeds from the issuance of long-term debt 1,843,941 1,465,747 Retirement of long-term debt ( 650,119 ) ( 936,318 ) Customer advances received for construction 470,638 548,476 Customer advances used for construction ( 272,221 ) ( 117,339 ) Common equity distributions paid — ( 495,000 ) Other ( 4,304 ) ( 4,247 ) Net cash flow provided by financing activities 1,387,935 461,319 Net increase (decrease) in cash and cash equivalents 791,070 ( 27,652 ) Cash and cash equivalents at beginning of period 776,961 327,102 Cash and cash equivalents at end of period $ 1,568,031 $ 299,450 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for: Interest - net of amount capitalized $ 214,130 $ 222,889 Noncash investing activities: Accrued construction expenditures $ 535,676 $ 258,408 See Notes to Financial Statements. 125 Table of Contents ENTERGY LOUISIANA, LLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ASSETS June 30, 2026 and December 31, 2025 (Unaudited) 2026 2025 (In Thousands) CURRENT ASSETS Cash and cash equivalents: Cash $ 379 $ 237 Temporary cash investments 1,567,652 776,724 Total cash and cash equivalents 1,568,031 776,961 Accounts receivable: Customer 373,098 292,366 Allowance for doubtful accounts ( 9,605 ) ( 9,069 ) Associated companies 202,618 164,911 Other 43,009 50,471 Accrued unbilled revenues 235,825 194,429 Total accounts receivable 844,945 693,108 Deferred fuel costs — 15,672 Fuel inventory - at average cost 31,563 35,968 Materials and supplies 856,020 792,217 Deferred nuclear refueling outage costs 22,410 40,683 Prepayments and other 291,045 187,832 TOTAL 3,614,014 2,542,441 OTHER PROPERTY AND INVESTMENTS Investment in affiliate preferred membership interests 3,884,044 4,007,919 Decommissioning trust funds 2,944,386 2,753,828 Non-utility property - at cost (less accumulated depreciation) 458,296 459,706 Storm reserve escrow account 239,189 234,961 Other 10,220 10,132 TOTAL 7,536,135 7,466,546 UTILITY PLANT Electric 31,437,940 30,408,352 Construction work in progress 3,604,096 2,031,650 Nuclear fuel 267,784 323,052 TOTAL UTILITY PLANT 35,309,820 32,763,054 Less - accumulated depreciation and amortization 11,507,910 11,275,981 UTILITY PLANT - NET 23,801,910 21,487,073 DEFERRED DEBITS AND OTHER ASSETS Regulatory assets: Other regulatory assets 1,560,175 1,540,709 Deferred fuel costs 168,122 168,122 Other 150,051 132,679 TOTAL 1,878,348 1,841,510 TOTAL ASSETS $ 36,830,407 $ 33,337,570 See Notes to Financial Statements. 126 Table of Contents ENTERGY LOUISIANA, LLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS LIABILITIES AND EQUITY June 30, 2026 and December 31, 2025 (Unaudited) 2026 2025 (In Thousands) CURRENT LIABILITIES Currently maturing long-term debt $ 540,000 $ 720,000 Accounts payable: Associated companies 84,017 92,126 Other 1,279,388 761,359 Customer deposits 176,776 172,594 Taxes accrued 99,695 64,793 Interest accrued 144,803 126,349 Deferred fuel costs 20,450 — Customer advances 1,209,529 543,312 Other 123,496 94,876 TOTAL 3,678,154 2,575,409 NON-CURRENT LIABILITIES Accumulated deferred income taxes and taxes accrued 3,335,894 3,093,218 Accumulated deferred investment tax credits 81,970 84,177 Regulatory liability for income taxes - net 279,489 312,684 Other regulatory liabilities 1,609,956 1,630,763 Decommissioning 1,981,306 1,932,412 Accumulated provisions 266,551 260,660 Pension and other postretirement liabilities 156,781 159,075 Long-term debt 11,024,821 9,646,835 Customer advances for construction 1,298,872 1,152,530 Other 600,214 558,621 TOTAL 20,635,854 18,830,975 Commitments and Contingencies EQUITY Member’s equity 12,444,302 11,857,063 Accumulated other comprehensive income 31,741 33,916 Noncontrolling interests 40,356 40,207 TOTAL 12,516,399 11,931,186 TOTAL LIABILITIES AND EQUITY $ 36,830,407 $ 33,337,570 See Notes to Financial Statements. 127 Table of Contents ENTERGY LOUISIANA, LLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY For the Six Months Ended June 30, 2026 and 2025 (Unaudited) Noncontrolling Interests Member’s Equity Accumulated Other Comprehensive Income Total (In Thousands) Balance at December 31, 2024 $ 42,706 $ 11,503,030 $ 53,658 $ 11,599,394 Net income 752 253,445 — 254,197 Other comprehensive loss — — ( 971 ) ( 971 ) Common equity distributions — ( 36,250 ) — ( 36,250 ) Distributions to LURC ( 888 ) — — ( 888 ) Other — ( 12 ) — ( 12 ) Balance at March 31, 2025 42,570 11,720,213 52,687 11,815,470 Net income 745 299,435 — 300,180 Other comprehensive loss — — ( 2,132 ) ( 2,132 ) Common equity distributions — ( 458,750 ) — ( 458,750 ) Distributions to LURC ( 319 ) — — ( 319 ) Other — ( 12 ) — ( 12 ) Balance at June 30, 2025 $ 42,996 $ 11,560,886 $ 50,555 $ 11,654,437 Balance at December 31, 2025 $ 40,207 $ 11,857,063 $ 33,916 $ 11,931,186 Net income 707 275,193 — 275,900 Other comprehensive loss — — ( 1,087 ) ( 1,087 ) Distributions to LURC ( 919 ) — — ( 919 ) Other — ( 14 ) — ( 14 ) Balance at March 31, 2026 39,995 12,132,242 32,829 12,205,066 Net income 700 312,070 — 312,770 Other comprehensive loss — — ( 1,088 ) ( 1,088 ) Distributions to LURC ( 339 ) — — ( 339 ) Other — ( 10 ) — ( 10 ) Balance at June 30, 2026 $ 40,356 $ 12,444,302 $ 31,741 $ 12,516,399 See Notes to Financial Statements. 128 Table of Contents ENTERGY MISSISSIPPI, LLC AND SUBSIDIARIES MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS Winter Storm Fern See the “ Winter Storm Fern ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for a discussion of Winter Storm Fern. Entergy Mississippi’s cost of mobilizing crews and restoring power was approximately $155 million, including approximately $125 million in capital costs and approximately $30 million in non-capital costs. Natural gas purchases for Entergy Mississippi were $85 million in January 2026 compared to $28 million in January 2025. The “Mississippi 2026 Severe Winter Storm Electric Utility Customer Relief and Electric Utility System Restoration Act” passed in Mississippi legislation in April 2026. This legislation provides that the MPSC may issue an electric utility financing order authorizing the issuance of system restoration bonds, the proceeds of which shall be used to securitize the system restoration costs and storm damage reserve levels of those utilities affected by Winter Storm Fern. The legislation requires that an electric utility affected by the storm must first petition the MPSC for such a financing order that complies with the requirements outlined in the legislation. The legislation states that any system restoration bonds issued under a financing order will not be considered debt of the electric utility. These bonds will only be backed by the system restoration property specified in the financing order. Entergy Mississippi plans to file for storm cost recovery under this legislation in third quarter 2026. Results of Operations Net Income Second Quarter 2026 Compared to Second Quarter 2025 Net income increased $19.9 million primarily due to higher revenues resulting from the return on construction work in progress for certain utility plant investments, higher retail electric price, higher other income, and higher volume/weather. The increase was partially offset by higher interest expense and higher other operation and maintenance expenses. Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025 Net income increased $57.4 million primarily due to higher retail electric price, higher revenues resulting from the return on construction work in progress for certain utility plant investments, a regulatory charge, recorded in the first quarter 2025, to reflect an adjustment to the grid modernization over/under recovery deferral balance, higher other income, and higher volume/weather. The increase was partially offset by higher interest expense and higher other operation and maintenance expenses. 129 Table of Contents Entergy Mississippi, LLC and Subsidiaries Management’s Financial Discussion and Analysis Operating Revenues Second Quarter 2026 Compared to Second Quarter 2025 Following is an analysis of the change in operating revenues comparing the second quarter 2026 to the second quarter 2025: Amount (In Millions) 2025 operating revenues $491.9 Fuel, rider, and other revenues that do not significantly affect net income 29.7 Return on construction work in progress for certain utility plant investments 14.4 Retail electric price 14.3 Volume/weather 7.6 2026 operating revenues $557.9 Entergy Mississippi’s results include revenues from rate mechanisms designed to recover fuel, purchased power, and other costs such that the revenues and expenses associated with these items generally offset and do not affect net income. “Fuel, rider, and other revenues that do not significantly affect net income” includes the revenue variance associated with these items. The return on construction work in progress for certain utility plant investments variance represents the revenue related to the amortization of certain customer advances designed to provide a return on investment in construction work in progress for certain utility plant investments, which is recognized as the related costs are incurred. The retail electric price variance is primarily due to an increase in formula rate plan rates resulting from an increase in interim facilities rate adjustment revenues effective January 2026. See Note 2 to the financial statements in the Form 10-K for discussion of the interim facilities rate adjustment filing. The volume/weather variance is primarily due to an increase in weather-adjusted residential usage and an increase in industrial usage, partially offset by the effect of less favorable weather on residential