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Why Is NiSource (NI) Down 4% Since Last Earnings Report?
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A month has gone by since the last earnings report for NiSource (NI - Free Report) . Shares have lost about 4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is NiSource due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for NiSource, Inc before we dive into how investors and analysts have reacted as of late.
NiSource Q2 Earnings Top Estimates on NIPSCO Gains, Data Center Demand
NiSource Inc. reported second-quarter 2026 adjusted earnings of 16 cents per share, beating the Zacks Consensus Estimate of 15 cents by 6.67%. However, the bottom line declined 27.3% from 22 cents in the year-ago quarter.
Total Revenues
Operating revenues of $1.36 billion topped the consensus estimate of $1.33 billion by 1.98% and increased 5.9% year over year. NIPSCO’s stronger operating performance and higher electric sales partly offset weaker Columbia results and elevated operating costs.
NI Segment Details
Columbia operations generated revenues of $610.3 million, up 0.8% from $605.6 million a year ago. The segment’s adjusted operating income declined 6.1% to $115.6 million.
NIPSCO operations recorded revenues of $750.4 million, up 10.4% year over year. Adjusted operating income increased 13.6% to $150.9 million, making the segment the primary source of consolidated operating growth.
NI's Operational Highlights
Adjusted operating expenses totaled $1.09 billion, up 6.6% from the prior-year quarter. Operation and maintenance expenses increased 13% to $411.6 million, while depreciation and amortization rose 26.4% to $362 million. The cost of energy declined 26.1% to $193.6 million.
NIPSCO Electric sales volumes, excluding weather, increased 5% to 4,195.3 gigawatt-hours (GWh). Industrial sales rose 10.4% to 2,246.2 GWh, while residential sales declined 5.8% to 757.7 GWh.
Columbia sales and transportation volumes, excluding weather, fell 1.7% to 112.4 million dekatherms. NIPSCO Gas volumes on the same basis decreased 3.5% to 77.5 million dekatherms. The company recorded a $16 million revenue adjustment for weather compared with normal conditions.
Adjusted operating income improved 3.2% to $270.9 million, but net interest expense climbed 43.2% to $199.2 million, pressuring adjusted net income available to common shareholders.
NI's Data Center Strategy Advances
NiSource advanced its data center strategy with regulatory approvals for special contracts involving Amazon and Alphabet. The agreements are expected to provide $1.4 billion in savings for existing customers.
The company has around 4 GW of signed GenCo capacity, with 3 GW under strategic negotiations and up to 2 GW of developing opportunities. Its data center pipeline could reach up to 9 GW of capacity by 2035. NiSource is also developing a diversified portfolio of generation, battery storage and contracted resources to support the additional load.
NI's Debt and Liquidity Profile
Total debt was about $17.4 billion as of June 30, 2026, including roughly $16.7 billion of long-term debt. The weighted average maturity was about 11.5 years, with a weighted average interest rate of approximately 4.87%.
Net available liquidity was about $2.1 billion at quarter-end. NiSource also had roughly $2.7 billion of committed facilities, including a $2.5 billion revolving credit facility and about $200 million of accounts receivable securitization facilities.
NiSource Reaffirms 2026 Guidance
NiSource reaffirmed its 2026 consolidated adjusted earnings guidance of $2.02-$2.07 per share. The company also maintained its 2026-2033 consolidated adjusted earnings compound annual growth rate target of 9-10%.
NiSource continues to execute a $28.6 billion capital investment plan for 2026-2030. This includes $21 billion of base plan investments and $7.6 billion of data center-related spending, supporting expected consolidated rate base growth of 9-11% through 2033.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, NiSource has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Interestingly, NiSource has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
NiSource is part of the Zacks Utility - Electric Power industry. Over the past month, AES (AES - Free Report) , a stock from the same industry, has gained 0.5%. The company reported its results for the quarter ended June 2026 more than a month ago.
AES reported revenues of $3.42 billion in the last reported quarter, representing a year-over-year change of +19.9%. EPS of $0.44 for the same period compares with $0.51 a year ago.
AES is expected to post earnings of $0.60 per share for the current quarter, representing a year-over-year change of -20%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for AES. Also, the stock has a VGM Score of B.
View the Zacks #1 Rank List
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Why Is NiSource (NI) Down 4% Since Last Earnings Report?
A month has gone by since the last earnings report for NiSource (NI - Free Report) . Shares have lost about 4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is NiSource due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for NiSource, Inc before we dive into how investors and analysts have reacted as of late.
NiSource Q2 Earnings Top Estimates on NIPSCO Gains, Data Center Demand
NiSource Inc. reported second-quarter 2026 adjusted earnings of 16 cents per share, beating the Zacks Consensus Estimate of 15 cents by 6.67%. However, the bottom line declined 27.3% from 22 cents in the year-ago quarter.
Total Revenues
Operating revenues of $1.36 billion topped the consensus estimate of $1.33 billion by 1.98% and increased 5.9% year over year. NIPSCO’s stronger operating performance and higher electric sales partly offset weaker Columbia results and elevated operating costs.
NI Segment Details
Columbia operations generated revenues of $610.3 million, up 0.8% from $605.6 million a year ago. The segment’s adjusted operating income declined 6.1% to $115.6 million.
NIPSCO operations recorded revenues of $750.4 million, up 10.4% year over year. Adjusted operating income increased 13.6% to $150.9 million, making the segment the primary source of consolidated operating growth.
NI's Operational Highlights
Adjusted operating expenses totaled $1.09 billion, up 6.6% from the prior-year quarter. Operation and maintenance expenses increased 13% to $411.6 million, while depreciation and amortization rose 26.4% to $362 million. The cost of energy declined 26.1% to $193.6 million.
NIPSCO Electric sales volumes, excluding weather, increased 5% to 4,195.3 gigawatt-hours (GWh). Industrial sales rose 10.4% to 2,246.2 GWh, while residential sales declined 5.8% to 757.7 GWh.
Columbia sales and transportation volumes, excluding weather, fell 1.7% to 112.4 million dekatherms. NIPSCO Gas volumes on the same basis decreased 3.5% to 77.5 million dekatherms. The company recorded a $16 million revenue adjustment for weather compared with normal conditions.
Adjusted operating income improved 3.2% to $270.9 million, but net interest expense climbed 43.2% to $199.2 million, pressuring adjusted net income available to common shareholders.
NI's Data Center Strategy Advances
NiSource advanced its data center strategy with regulatory approvals for special contracts involving Amazon and Alphabet. The agreements are expected to provide $1.4 billion in savings for existing customers.
The company has around 4 GW of signed GenCo capacity, with 3 GW under strategic negotiations and up to 2 GW of developing opportunities. Its data center pipeline could reach up to 9 GW of capacity by 2035. NiSource is also developing a diversified portfolio of generation, battery storage and contracted resources to support the additional load.
NI's Debt and Liquidity Profile
Total debt was about $17.4 billion as of June 30, 2026, including roughly $16.7 billion of long-term debt. The weighted average maturity was about 11.5 years, with a weighted average interest rate of approximately 4.87%.
Net available liquidity was about $2.1 billion at quarter-end. NiSource also had roughly $2.7 billion of committed facilities, including a $2.5 billion revolving credit facility and about $200 million of accounts receivable securitization facilities.
NiSource Reaffirms 2026 Guidance
NiSource reaffirmed its 2026 consolidated adjusted earnings guidance of $2.02-$2.07 per share. The company also maintained its 2026-2033 consolidated adjusted earnings compound annual growth rate target of 9-10%.
NiSource continues to execute a $28.6 billion capital investment plan for 2026-2030. This includes $21 billion of base plan investments and $7.6 billion of data center-related spending, supporting expected consolidated rate base growth of 9-11% through 2033.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, NiSource has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Interestingly, NiSource has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
NiSource is part of the Zacks Utility - Electric Power industry. Over the past month, AES (AES - Free Report) , a stock from the same industry, has gained 0.5%. The company reported its results for the quarter ended June 2026 more than a month ago.
AES reported revenues of $3.42 billion in the last reported quarter, representing a year-over-year change of +19.9%. EPS of $0.44 for the same period compares with $0.51 a year ago.
AES is expected to post earnings of $0.60 per share for the current quarter, representing a year-over-year change of -20%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for AES. Also, the stock has a VGM Score of B.