The Zacks Utilities sector’s first-quarter 2026 earnings are likely to have benefited from recently implemented electric, natural gas and water rate hikes, along with ongoing cost-efficiency measures and a growing customer base. Rising demand from data centers is also expected to have supported bottom-line growth. According to the latest Earnings Preview, the sector’s earnings are projected to increase 7.9% on revenue growth of 8%.

With the assistance of the Zacks Stock Screener, we have identified three utilities, namely Vistra Corp. (VST Quick QuoteVST - Free Report) , Ameren Corporation (AEE Quick QuoteAEE - Free Report) and PPL Corporation (PPL Quick QuotePPL - Free Report) , which are poised to beat on earnings this reporting cycle. 

These stocks have the ideal combination of two ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) — to surpass expectations. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Major Drivers of Utility Stocks’ Q1 Performance

Utilities are set to benefit from rising electricity demand, primarily fueled by the rapid expansion of data centers, particularly those supporting AI, along with increased consumption from commercial and industrial customers. In addition, the reshoring of industries amid geopolitical uncertainty has been creating fresh demand for utility services. Collectively, these factors are likely to have supported higher revenues in the upcoming quarter.

Utility service providers continue to benefit from several supportive factors, including higher electricity rates, value-accretive acquisitions, cost-cutting measures and the rollout of energy-efficiency programs. These companies have also been gaining from ongoing investments to strengthen infrastructure against extreme weather, along with a steady transition toward cost-effective renewable energy sources for power generation.

Utilities have been investing in smart meter deployments, expanding transmission and distribution networks and strengthening infrastructure maintenance, all of which enhance operational efficiency and support better customer engagement. These efforts help lower costs, drive revenue growth and improve overall grid management.

At the same time, improving economic conditions across service territories are generating new demand for utility services, supporting stronger revenues and overall performance.

Potential Utility Outperformers for This Earnings Season

Ameren generates and distributes electricity and natural gas to residential, commercial, industrial and wholesale end markets in Missouri and Illinois. The company's systematic investments in growth projects, infrastructure upgrades and renewable portfolio will help improve service reliability and generate higher profits. Ameren plans a major expansion of its clean energy portfolio, targeting the addition of 2,700 MW of renewable generation capacity by 2030 and reaching a total of 4,200 MW by 2035.

The Zacks Consensus Estimate for its first-quarter earnings is pegged at $1.17 per share, indicating an increase of 9.35% from the year-ago reported figure. AEE currently has an Earnings ESP of +1.29% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Vistra is an integrated power company operating in competitive U.S. markets, supplying electricity and natural gas to residential, commercial and industrial customers, while managing a diversified generation fleet that supports and hedges its retail operations. Long-term contracts with high-quality partners strengthen stability. 
 
The Zacks Consensus Estimate for its first-quarter earnings is pegged at $2.21 per share, indicating an increase of 380.43% from the year-ago reported figure. VST currently has an Earnings ESP of +4.79% and a Zacks Rank #3. 

PPL Corporation primarily generates electricity from power plants in the northeastern, northwestern and southeastern United States. The company markets wholesale or retail energy chiefly in northeastern and northwestern portions of the United States. PPL is experiencing load growth, driven by data center demand. In Pennsylvania, nearly 25.2 GW (up from 20.5 GW) of potential data-center demand is in the advanced stages. In the Kentucky segment, the Economic development queue holds total potential load growth of 9.3 GW through 2032 (up from 8.5 GW).

The Zacks Consensus Estimate for its first-quarter earnings is pegged at 0.61 cents per share, indicating an increase of 1.67% from the year-ago reported figure. PPL currently has an Earnings ESP of +0.41% and a Zacks Rank #3.