Xcel Energy Earnings Beat Estimates by $0.15 a Share, Lifting Stock
Key Facts
Xcel Energy reported third-quarter diluted earnings per share of $1.52, beating analysts’ estimate of $1.37 by $0.15, according to Investing.com data. Revenue, meanwhile, came in at $4.17 billion, below the consensus estimate of $4.26 billion. The results present a mixed picture: earnings growth and a beat on expectations, against revenue below analysts’ forecasts. In its earnings release, the company said both GAAP diluted earnings and ongoing earnings were $1.52 a share in the third quarter of 2026. GAAP net income was $0.88 a share, while ongoing earnings were $1.24 in the year-earlier quarter of 2025.
Total operating revenues rose to $4.172 billion in the third quarter of 2026, from $3.915 billion in the same period of 2025, according to the company’s release. Revenue therefore increased year over year but remained below the market’s quarterly estimate, according to Investing.com. Weather-adjusted retail electric sales rose 3.0% year over year, while actual sales increased 7.3%. The gap highlights the impact of weather conditions on actual demand: adjusted sales grew less than actual sales. The results came as the company said unusual weather contributed to higher ongoing earnings during the quarter.
Xcel attributed the improvement in ongoing earnings per share primarily to increased recovery of electric infrastructure investments, earnings from equity-method investments and warmer-than-normal weather. The company said higher financing costs offset some of these supporting factors. The earnings improvement therefore did not stem from a single factor; it coincided with greater recovery of grid investments, investment returns and favorable weather conditions. At the same time, financing costs remained a countervailing factor in the company’s quarterly comparison. The company did not specify how much each factor contributed.
The company narrowed its 2026 ongoing earnings outlook to $4.10–$4.16 a share, from a range of $4.04–$4.16, which it reaffirmed on July 30. The midpoint of the revised range is $4.13, matching the average analyst estimate of $4.13, according to Investing.com. The company also issued its first 2027 guidance, forecasting ongoing earnings of $4.48 to $4.62 a share. The new range gives investors an indication of management’s expectations for the following year, alongside its updated estimate for the current year. Xcel also expects weather-adjusted retail electric sales to rise about 5% in 2027 and capital riders revenue to increase by $560 million to $570 million.
For the nine months ended September 2026, diluted ongoing earnings were $3.37 a share, compared with $2.84 in the same period of 2025, according to the earnings release. The increase is consistent with the company’s long-term targets for annual earnings-per-share growth of 6% to 8% or more. Xcel also targets annual dividend growth of 4% to 6%, while keeping its payout ratio between 45% and 55%. The company said it aims to maintain its senior secured debt rating in the A category. These targets reflect the company’s stated framework for growth, dividends and credit, alongside the annual guidance it provided.
Chief Executive Bob Frenzel said the updated five-year investment plan gives the company “a clear path to extend our growth cycle and continue delivering reliable, affordable energy.” The company’s 2025 annual report had cited a plan to invest $60 billion over the following five years. Of that amount, about $29 billion was allocated to transmission and distribution under the 2026–2030 capital plan. These investments provide context for the company’s plan to recover electric infrastructure costs, one of the drivers it cited for the change in ongoing earnings. Frenzel’s statement did not give a new figure for the updated plan in the earnings report.
The company’s shares rose 2.4% on October 29 following the results, according to Investing.com. XEL shares closed at $77.18 on October 28, according to EL7 data. The company’s investor relations page said a third-quarter results webcast was scheduled for October 29, 2026. The event follows the release of the figures and guidance, giving management an opportunity to discuss the quarter’s results and outlook with investors. The near-term developments bring together the market’s reaction to the results and the company’s formal presentation of details.