Consolidated Edison, Inc. ED

Revenue is driven primarily by SG&A spending, with an elasticity of 0.82: a 1% increase in SG&A is associated with roughly 0.82% higher revenue, per a log-log model. The model’s fit is solid (MAPE 1.9%), and a holdout test predicted $4.0B versus actual $4.0B (about -0.3% error), with no R&D data available, consistent with a utility-sector dynamic. The dataset spans 65 quarters, supporting a stable, interpretable relationship and reliable forecasting under current assumptions. The FY revenue forecast is $18B, up about 6% year over year, implying continued topline growth; the SG&A-driven revenue lift offers a positive ROI signal for spending if margins remain stable.