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NiSource Q3 Earnings Beat Estimates on Columbia Gains, Revenues Miss
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Key Takeaways
NiSource's Q3 earnings surged 42.1% to 27 cents per share, beating estimates, while revenues rose 6%.
Columbia's operating income jumped 130.5%, while NIPSCO faced higher costs despite revenue growth.
NI targets $40B in investments through 2033 and raises its long-term earnings growth outlook to 10-11%.
NiSource Inc. (NI - Free Report) reported third-quarter 2026 adjusted earnings of 27 cents per share, beating the Zacks Consensus Estimate of 22 cents by 22.73%. The bottom line increased 42.1% from 19 cents in the year-ago quarter, supported by stronger Columbia operations and higher adjusted operating income.
Total Revenues
Operating revenues of $1.35 billion missed the consensus estimate of $1.39 billion by 2.88%, but increased 6% year over year.
NIPSCO Electric sales volumes rose 3.5%, driven by higher industrial demand, while increased operating expenses and interest costs remained headwinds.
Columbia operations generated adjusted revenues of $505.5 million, up 3.3% from $489.5 million a year ago. Adjusted operating income surged 130.5% to $123.1 million from $53.4 million, supported by lower operating expenses.
NIPSCO operations recorded adjusted revenues of $831.6 million, increasing 6.3% from $782 million in the prior-year quarter. However, adjusted operating income declined 2.7% to $221.2 million, reflecting higher operating costs despite revenue growth.
NiSource's Operational Highlights
Adjusted operating expenses totaled $1 billion, up 2.8% year over year. Operating and maintenance expenses increased 5.1% to $391.2 million, while depreciation and amortization rose 9.3% to $335.4 million. The cost of energy increased 7.1% to $207.3 million.
NIPSCO Electric sales volumes, excluding weather, increased 3.5% to 4,781.1 gigawatt-hours (GWh). Industrial sales climbed 11.8% to 2,413.6 GWh, while residential sales declined 1.8% to 1,094.6 GWh.
Columbia sales and transportation volumes, excluding weather, declined 4.6% to 95.6 million dekatherms. NIPSCO Gas volumes on the same basis decreased 3% to 68.8 million dekatherms.
Consolidated adjusted operating income improved 16.6% to $342.3 million. However, net interest expense increased 17.1% to $210.6 million, reflecting additional financing costs.
NI's Data Center Strategy Gains Momentum
NiSource expanded its data center strategy through a 20-year electricity supply agreement with Microsoft, announced in October 2026. The agreement supports 788 megawatts of demand and involves approximately 1,100 megawatts of pooled generation resources and transmission infrastructure.
The company's agreements with Microsoft, Amazon and Alphabet are expected to generate approximately $1.75 billion in savings for existing customers over the contract periods.
NI has approximately 5 gigawatts (GW) of signed GenCo capacity, with another 2 GW under strategic negotiations and up to 2 GW of developing opportunities. Its total data center pipeline is estimated to reach 9 GW by 2035.
Microsoft's electricity demand is expected to begin increasing in 2028 and reach full capacity by 2031. The company continues advancing generation, storage and transmission projects to support increasing demand.
NiSource's Profitability and Cash Flow
GAAP net income available to common shareholders increased to $129.5 million from $94.7 million a year ago. Adjusted net income available to common shareholders climbed to $130.9 million from $91.8 million.
For the first nine months of 2026, operating cash flow increased to $1.67 billion from $1.65 billion a year earlier. Capital expenditures rose to $3.10 billion from $1.94 billion, reflecting the company's expanding infrastructure investment program.
Cash and cash equivalents stood at $57.5 million as of Sept. 30, 2026, compared with $110.1 million at 2025-end. Long-term debt, excluding current maturities, totaled $16.38 billion, compared with $15.46 billion at the end of 2025.
NI Narrows 2026 Earnings Guidance
NiSource narrowed its 2026 consolidated adjusted earnings guidance to the upper half of the previously announced $2.02-$2.07 per-share range. The Zacks Consensus Estimate for 2026 is currently pegged at $2.05 per share.
For 2027, the company introduced consolidated adjusted earnings guidance of $2.22-$2.30 per share. The outlook includes a base plan contribution of $2.17-$2.21 and a GenCo contribution of 5-9 cents per share.
NI also raised its expected consolidated adjusted earnings compound annual growth rate to 10-11% for 2027-2033, while extending the base plan adjusted earnings annual growth target of 6-8% through 2033.
NiSource Expands Its Long-Term Capital Plan
The company increased its consolidated capital investment plan to $40 billion for 2027-2033, comprising $32 billion in base plan spending and $8 billion in data center-related investments.
The investments are expected to support consolidated investment base growth of 9-10% annually through 2033, alongside base plan rate base growth of 8-10%.
NiSource also identified $3 billion in additional base plan capital investment opportunities and maintained its annual funds from operations-to-debt target of 14-16% through 2033.
Xcel Energy (XEL - Free Report) is set to release third-quarter 2026 results on Oct. 29. The Zacks Consensus Estimate for earnings per share is pegged at $1.39.
XEL’s long-term (three-to-five years) earnings growth rate is 7.29%. The Zacks Consensus Estimate for third-quarter earnings per share indicates year-over-year growth of 12.1%.
Dominion Energy (D - Free Report) is scheduled to announce third-quarter 2026 results on Oct. 30. The Zacks Consensus Estimate for earnings per share is pegged at $1.2.
D’s long-term earnings growth rate is 6%. The consensus estimate for third-quarter earnings per share indicates growth of 13.2% from the prior-year actual.
Exelon Corporation (EXC - Free Report) is scheduled to announce third-quarter 2026 results on Oct. 30. The Zacks Consensus Estimate for earnings is pegged at 80 cents per share.
Exelon’s long-term earnings growth rate is estimated at 6.39%. The Zacks Consensus Estimate for second-quarter earnings per share indicates a decline of 6.98% from the year-earlier level.
View the Zacks #1 Rank List
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NiSource Q3 Earnings Beat Estimates on Columbia Gains, Revenues Miss
Key Takeaways
NiSource Inc. (NI - Free Report) reported third-quarter 2026 adjusted earnings of 27 cents per share, beating the Zacks Consensus Estimate of 22 cents by 22.73%. The bottom line increased 42.1% from 19 cents in the year-ago quarter, supported by stronger Columbia operations and higher adjusted operating income.
Total Revenues
Operating revenues of $1.35 billion missed the consensus estimate of $1.39 billion by 2.88%, but increased 6% year over year.
NIPSCO Electric sales volumes rose 3.5%, driven by higher industrial demand, while increased operating expenses and interest costs remained headwinds.
NiSource, Inc Price, Consensus and EPS Surprise
NiSource, Inc price-consensus-eps-surprise-chart | NiSource, Inc Quote
NI's Segment Performance
Columbia operations generated adjusted revenues of $505.5 million, up 3.3% from $489.5 million a year ago. Adjusted operating income surged 130.5% to $123.1 million from $53.4 million, supported by lower operating expenses.
NIPSCO operations recorded adjusted revenues of $831.6 million, increasing 6.3% from $782 million in the prior-year quarter. However, adjusted operating income declined 2.7% to $221.2 million, reflecting higher operating costs despite revenue growth.
NiSource's Operational Highlights
Adjusted operating expenses totaled $1 billion, up 2.8% year over year. Operating and maintenance expenses increased 5.1% to $391.2 million, while depreciation and amortization rose 9.3% to $335.4 million. The cost of energy increased 7.1% to $207.3 million.
NIPSCO Electric sales volumes, excluding weather, increased 3.5% to 4,781.1 gigawatt-hours (GWh). Industrial sales climbed 11.8% to 2,413.6 GWh, while residential sales declined 1.8% to 1,094.6 GWh.
Columbia sales and transportation volumes, excluding weather, declined 4.6% to 95.6 million dekatherms. NIPSCO Gas volumes on the same basis decreased 3% to 68.8 million dekatherms.
Consolidated adjusted operating income improved 16.6% to $342.3 million. However, net interest expense increased 17.1% to $210.6 million, reflecting additional financing costs.
NI's Data Center Strategy Gains Momentum
NiSource expanded its data center strategy through a 20-year electricity supply agreement with Microsoft, announced in October 2026. The agreement supports 788 megawatts of demand and involves approximately 1,100 megawatts of pooled generation resources and transmission infrastructure.
The company's agreements with Microsoft, Amazon and Alphabet are expected to generate approximately $1.75 billion in savings for existing customers over the contract periods.
NI has approximately 5 gigawatts (GW) of signed GenCo capacity, with another 2 GW under strategic negotiations and up to 2 GW of developing opportunities. Its total data center pipeline is estimated to reach 9 GW by 2035.
Microsoft's electricity demand is expected to begin increasing in 2028 and reach full capacity by 2031. The company continues advancing generation, storage and transmission projects to support increasing demand.
NiSource's Profitability and Cash Flow
GAAP net income available to common shareholders increased to $129.5 million from $94.7 million a year ago. Adjusted net income available to common shareholders climbed to $130.9 million from $91.8 million.
For the first nine months of 2026, operating cash flow increased to $1.67 billion from $1.65 billion a year earlier. Capital expenditures rose to $3.10 billion from $1.94 billion, reflecting the company's expanding infrastructure investment program.
Cash and cash equivalents stood at $57.5 million as of Sept. 30, 2026, compared with $110.1 million at 2025-end. Long-term debt, excluding current maturities, totaled $16.38 billion, compared with $15.46 billion at the end of 2025.
NI Narrows 2026 Earnings Guidance
NiSource narrowed its 2026 consolidated adjusted earnings guidance to the upper half of the previously announced $2.02-$2.07 per-share range. The Zacks Consensus Estimate for 2026 is currently pegged at $2.05 per share.
For 2027, the company introduced consolidated adjusted earnings guidance of $2.22-$2.30 per share. The outlook includes a base plan contribution of $2.17-$2.21 and a GenCo contribution of 5-9 cents per share.
NI also raised its expected consolidated adjusted earnings compound annual growth rate to 10-11% for 2027-2033, while extending the base plan adjusted earnings annual growth target of 6-8% through 2033.
NiSource Expands Its Long-Term Capital Plan
The company increased its consolidated capital investment plan to $40 billion for 2027-2033, comprising $32 billion in base plan spending and $8 billion in data center-related investments.
The investments are expected to support consolidated investment base growth of 9-10% annually through 2033, alongside base plan rate base growth of 8-10%.
NiSource also identified $3 billion in additional base plan capital investment opportunities and maintained its annual funds from operations-to-debt target of 14-16% through 2033.
Zacks Rank
NiSource currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Earnings Release
Xcel Energy (XEL - Free Report) is set to release third-quarter 2026 results on Oct. 29. The Zacks Consensus Estimate for earnings per share is pegged at $1.39.
XEL’s long-term (three-to-five years) earnings growth rate is 7.29%. The Zacks Consensus Estimate for third-quarter earnings per share indicates year-over-year growth of 12.1%.
Dominion Energy (D - Free Report) is scheduled to announce third-quarter 2026 results on Oct. 30. The Zacks Consensus Estimate for earnings per share is pegged at $1.2.
D’s long-term earnings growth rate is 6%. The consensus estimate for third-quarter earnings per share indicates growth of 13.2% from the prior-year actual.
Exelon Corporation (EXC - Free Report) is scheduled to announce third-quarter 2026 results on Oct. 30. The Zacks Consensus Estimate for earnings is pegged at 80 cents per share.
Exelon’s long-term earnings growth rate is estimated at 6.39%. The Zacks Consensus Estimate for second-quarter earnings per share indicates a decline of 6.98% from the year-earlier level.