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Xcel Energy Q3 Earnings and Sales Lag Estimates, 2026 EPS Initiated
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Key Takeaways
Xcel Energy posted Q3 2025 operating EPS of $1.24, missing estimates and last year's figure.
Higher interest charges and O&M expenses offset gains from infrastructure recovery.
XEL initiated 2026 outlook of $4.04-$4.16 per share and added new electric and natural gas customers in Q3.
Xcel Energy Inc. (XEL - Free Report) reported third-quarter 2025 operating earnings of $1.24 per share, which lagged the Zacks Consensus Estimate of $1.31 by 5.3%. The bottom line also missed the year-ago quarter’s figure by a penny.
The year-over-year decline in earnings per share was due to higher interest charges and O&M expenses, partially offset by increased recovery of infrastructure investments.
It reported GAAP earnings of 88 cents per share compared with $1.21 in the year-ago quarter.
Total Revenues of XEL
Revenues of $3.92 billion missed the Zacks Consensus Estimate of $3.93 billion by 0.3%. However, the figure increased 7.4% from the year-ago quarter’s $3.64 billion.
Xcel Energy Inc. Price, Consensus and EPS Surprise
Electric: This segment’s revenues totaled $3.64 billion, up 7.4% from $3.39 billion in the year-ago quarter.
Natural Gas: Revenues in this segment increased 10.5% to $264 million from $239 million in the year-ago quarter.
Other: Revenues amounted to $13 million compared with $12 million in the prior-year quarter.
Highlights of XEL’s Earnings Release
Total operating expenses increased 15.8% year over year to $3.17 billion. The increase in operating expenses was due to higher electric fuel and purchased power costs, and taxes other than income tax. Operating income declined 17.8% year over year to $911 million.
Total interest charges and financing costs increased 14.1% from the prior-year quarter’s $348 million to $322 million.
In the first nine months, Xcel Energy registered 2.5% growth in electric customer volume and a 0.3% decline in natural gas customer volume. In the third quarter, natural gas customers increased 0.8% from the year-ago period’s level and electric customers increased 0.9%.
XEL’s Guidance
Xcel Energy reaffirmed its projection for 2025 earnings per share in the range of $3.75-$3.85. The Zacks Consensus Estimate is pegged at $3.81, a tad higher than the midpoint of the guided range of $3.80 per share.
Xcel Energy initiated 2026 earnings per share in the range of $4.04- $4.16. The Zacks Consensus Estimate is pegged at $4.13, a tad higher than the midpoint of the guided range.
XEL estimates retail electric sales to increase 3% in 2025. Natural gas sales volumes are anticipated to remain flat compared with the year-ago level.
Xcel Energy expects long-term annual earnings per share growth of 6-8% and dividend growth of 4-6%.
The company plans to invest $60 billion in 2026-2030 to further strengthen its infrastructure.
FirstEnergy Corp. (FE - Free Report) reported third-quarter 2025 operating earnings of 83 cents per share, which beat the Zacks Consensus Estimate of 76 cents by 9.2%.
FE’s long-term (three to five years) earnings growth is pegged at 6.46%. The Zacks Consensus Estimate for 2025 earnings per share is pegged at $2.53, indicating a year-over-year decline of 3.8%.
NextEra Energy (NEE - Free Report) posted third-quarter 2025 adjusted earnings of $1.13 per share, which surpassed the Zacks Consensus Estimate of $1.04 by 8.65%.
NEE’s long-term earnings growth is currently pegged at 8.04%. The Zacks Consensus Estimate for 2025 earnings per share is pegged at $3.68, indicating year-over-year growth of 7.29%.
CenterPoint Energy, Inc. (CNP - Free Report) reported third-quarter 2025 adjusted earnings of 50 cents per share, which surpassed the Zacks Consensus Estimate of 46 cents by 8.7%.
CNP’s long-term earnings growth is currently pegged at 7.93%. The Zacks Consensus Estimate for 2025 earnings per share is pegged at $1.76, indicating year-over-year growth of 8.64%
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Xcel Energy Q3 Earnings and Sales Lag Estimates, 2026 EPS Initiated
Key Takeaways
Xcel Energy Inc. (XEL - Free Report) reported third-quarter 2025 operating earnings of $1.24 per share, which lagged the Zacks Consensus Estimate of $1.31 by 5.3%. The bottom line also missed the year-ago quarter’s figure by a penny.
The year-over-year decline in earnings per share was due to higher interest charges and O&M expenses, partially offset by increased recovery of infrastructure investments.
It reported GAAP earnings of 88 cents per share compared with $1.21 in the year-ago quarter.
Total Revenues of XEL
Revenues of $3.92 billion missed the Zacks Consensus Estimate of $3.93 billion by 0.3%. However, the figure increased 7.4% from the year-ago quarter’s $3.64 billion.
Xcel Energy Inc. Price, Consensus and EPS Surprise
Xcel Energy Inc. price-consensus-eps-surprise-chart | Xcel Energy Inc. Quote
XEL’s Segmental Results
Electric: This segment’s revenues totaled $3.64 billion, up 7.4% from $3.39 billion in the year-ago quarter.
Natural Gas: Revenues in this segment increased 10.5% to $264 million from $239 million in the year-ago quarter.
Other: Revenues amounted to $13 million compared with $12 million in the prior-year quarter.
Highlights of XEL’s Earnings Release
Total operating expenses increased 15.8% year over year to $3.17 billion. The increase in operating expenses was due to higher electric fuel and purchased power costs, and taxes other than income tax. Operating income declined 17.8% year over year to $911 million.
Total interest charges and financing costs increased 14.1% from the prior-year quarter’s $348 million to $322 million.
In the first nine months, Xcel Energy registered 2.5% growth in electric customer volume and a 0.3% decline in natural gas customer volume. In the third quarter, natural gas customers increased 0.8% from the year-ago period’s level and electric customers increased 0.9%.
XEL’s Guidance
Xcel Energy reaffirmed its projection for 2025 earnings per share in the range of $3.75-$3.85. The Zacks Consensus Estimate is pegged at $3.81, a tad higher than the midpoint of the guided range of $3.80 per share.
Xcel Energy initiated 2026 earnings per share in the range of $4.04- $4.16. The Zacks Consensus Estimate is pegged at $4.13, a tad higher than the midpoint of the guided range.
XEL estimates retail electric sales to increase 3% in 2025. Natural gas sales volumes are anticipated to remain flat compared with the year-ago level.
Xcel Energy expects long-term annual earnings per share growth of 6-8% and dividend growth of 4-6%.
The company plans to invest $60 billion in 2026-2030 to further strengthen its infrastructure.
XEL’s Zacks Rank
XEL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
FirstEnergy Corp. (FE - Free Report) reported third-quarter 2025 operating earnings of 83 cents per share, which beat the Zacks Consensus Estimate of 76 cents by 9.2%.
FE’s long-term (three to five years) earnings growth is pegged at 6.46%. The Zacks Consensus Estimate for 2025 earnings per share is pegged at $2.53, indicating a year-over-year decline of 3.8%.
NextEra Energy (NEE - Free Report) posted third-quarter 2025 adjusted earnings of $1.13 per share, which surpassed the Zacks Consensus Estimate of $1.04 by 8.65%.
NEE’s long-term earnings growth is currently pegged at 8.04%. The Zacks Consensus Estimate for 2025 earnings per share is pegged at $3.68, indicating year-over-year growth of 7.29%.
CenterPoint Energy, Inc. (CNP - Free Report) reported third-quarter 2025 adjusted earnings of 50 cents per share, which surpassed the Zacks Consensus Estimate of 46 cents by 8.7%.
CNP’s long-term earnings growth is currently pegged at 7.93%. The Zacks Consensus Estimate for 2025 earnings per share is pegged at $1.76, indicating year-over-year growth of 8.64%