IDACORP Raises 2026 EPS Forecast to $6.40–$6.50 After Quarterly Earnings Growth
Key Facts
IDACORP raised its 2026 diluted earnings per share forecast range to $6.40–$6.50 after reporting net income attributable to the company of $160.2 million in the third quarter, compared with $124.4 million a year earlier. Diluted earnings per share were $2.73, versus $2.26 in the third quarter of 2025, according to a company statement published via Nasdaq. The company linked the updated forecast to continued customer growth, revenue from current base rates and contributions from large-contract customers as they expand their operations. The forecast assumes normal weather through year-end and that Idaho Power uses less than $10 million of the additional tax credits available in 2026. The company began the year with an EPS forecast range of $6.25 to $6.45 before raising it later.
Chief Executive Lisa Grow said strong quarterly results came from "continued customer growth, additional revenue from current base rates, and large-contract customers as they continue to expand their operations." Base rates in Idaho increased effective January 1, 2026, adding $38.1 million to third-quarter operating income compared with the same period a year earlier. Idaho Power's customer count also increased by about 15,000, or 2.2%, in the 12 months ended September 30. Customer-base growth contributed $5.8 million to quarterly operating income after accounting for power supply costs and cost-adjustment mechanisms. These contributions show that the higher forecast rests on more than one source of revenue, with customer-base growth distinct from the impact of large contracts.
Revenue from large-contract customers added $11.8 million to third-quarter operating income year over year, after accounting for power supply costs and the cost-adjustment mechanism, according to the company statement. On the earnings call, Grow said industrial-sector revenue rose 27% from the third quarter of last year. The Meta data center south of Boise began operating in September and started ramping up activity, while expansion work at Micron's Fab 1 and Fab 2 continued to advance, according to management's update on the call. This gives industrial demand growth greater weight in explaining quarterly performance, alongside contributions from base rates and new customers. Idaho Power's 2025 plan projected annual growth of 8.3% in retail sales and 5.1% in peak demand over the next five years, while the company expects to submit an updated integrated resource plan in summer 2027.
Income growth came alongside a $22.5 million increase in other operations and maintenance expenses in the third quarter compared with the previous year. IDACORP attributed the increase mainly to the amortization of deferred costs related to converting generating units at the Jim Bridger and North Valmy plants from coal to gas, as well as higher wildfire risk-mitigation costs. Meanwhile, the company recorded $6.3 million in amortization of additional investment tax credits during the first nine months of 2026, compared with $39.0 million in the same period of 2025. Diluted earnings per share for the first nine months of the year were $5.76, compared with $5.13 a year earlier. These figures put earnings growth in the context of rising revenue and some higher costs, alongside lower amortization of tax credits than in the year-earlier period.
Management kept its 2026 capital spending forecast at a range of $1.3 billion to $1.5 billion, with spending expected to approach the high end, according to the earnings call transcript. The projected spending coincides with expanding industrial demand and continued projects by large customers, while sales and demand growth forecasts remain tied to the next integrated resource plan. The updated plan is due in summer 2027, according to Idaho Power's previous filing with the Securities and Exchange Commission. IDACORP shares closed at $139.73 on October 28, 2026, according to EL7 data. The closing price shows the stock's level that day, while the available evidence did not include a comparison that would establish the direction of its reaction to the earnings announcement.