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Xcel Energy Q3 Earnings Beat Estimates, Revenues Increase Y/Y
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Key Takeaways
Xcel Energy's Q3 earnings rose 22.6% to $1.52 per share, while revenues climbed 6.6% to $4.17 billion.
Infrastructure investment recovery, favorable weather and higher electric sales boosted XEL.
XEL narrowed its 2026 EPS guidance to $4.10-$4.16 and introduced a 2027 outlook of $4.48-$4.62 per share.
Xcel Energy Inc. (XEL - Free Report) reported third-quarter 2026 ongoing earnings of $1.52 per share, which surpassed the Zacks Consensus Estimate of $1.39 by 9.4%. The bottom line also increased 22.6% from $1.24 in the year-ago quarter.
Higher recovery of electric infrastructure investments, earnings from equity method investments and unseasonably warm weather supported quarterly performance.
Total Revenues of XEL
Revenues of $4.17 billion topped the Zacks Consensus Estimate of $4.15 billion by 0.6%. The figure also increased 6.6% from the year-ago quarter's $3.92 billion.
Xcel Energy Inc. Price, Consensus and EPS Surprise
Electric: This segment's revenues totaled $3.89 billion, up 6.9% from $3.64 billion in the year-ago quarter. The increase was supported by higher non-fuel rider revenues, regulatory rate outcomes and favorable weather conditions.
Natural Gas: Revenues in this segment rose 3% to $272 million from $264 million in the prior-year quarter. Higher regulatory rate revenues and other favorable items supported the improvement.
Other: Revenues amounted to $12 million, down 7.7% from $13 million in the year-ago quarter.
Highlights of XEL’s Earnings Release
Total operating expenses in the third quarter decreased 5.8% year over year to $2.98 billion. The decline was primarily driven by lower Marshall Wildfire litigation expenses and reduced electric fuel and purchased power costs.
Operating income in the third quarter increased 59% year over year to $1.19 billion from $0.75 billion.
Total interest charges and financing costs rose 24.1% from the prior-year quarter's $348 million to $432 million.
Xcel Energy's Sales Performance
In third-quarter 2026, Xcel Energy registered an 11.7% year-over-year increase in residential electric sales volumes. Commercial and industrial electric sales volumes jumped 5.4%.
Weather-normalized retail electric sales increased 3% year over year, reflecting underlying demand growth. Weather-normalized residential electric sales improved 3.2%, while commercial and industrial sales increased 2.9%.
Firm natural gas sales volumes declined 3.8% year over year. On a weather-normalized basis, natural gas sales decreased 2.2%.
Xcel Energy's 2026 and 2027 Guidance
Xcel Energy narrowed its 2026 ongoing earnings guidance to $4.10-$4.16 per share from the earlier range of $4.04-$4.16. The Zacks Consensus Estimate is pegged at $4.13 per share, which is at the midpoint of the company’s guided range.
XEL expects weather-normalized retail electric sales to increase approximately 3% during 2026.
The company introduced 2027 ongoing earnings guidance of $4.48-$4.62 per share. The Zacks Consensus Estimate is pegged at $4.51 per share, which is lower than the midpoint of the company’s guided range.
Weather-normalized retail electric sales are expected to increase nearly 5% in 2027, while natural gas sales are projected to improve nearly 1%.
Xcel Energy expects long-term annual earnings per share growth of 6-8% or more and dividend growth of 4-6%. The company also targets a dividend payout ratio of 45-55%.
CenterPoint Energy, Inc. (CNP - Free Report) reported third-quarter 2026 adjusted earnings of 53 cents per share, which surpassed the Zacks Consensus Estimate of 50 cents by 6%. The bottom line also increased 6% from the year-ago quarter’s figure of 50 cents.
CNP generated revenues of $2.19 billion, which beat the Zacks Consensus Estimate by 1.9%. The top line also came in 10.2% higher than the year-ago quarter’s reported figure of $1.99 billion.
PG&E Corporation (PCG - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of 41 cents, which missed the Zacks Consensus Estimate of 42 cents by 2.4%. The bottom line also declined 18% from the year-ago quarter’s figure of 50 cents.
PCG reported third-quarter total revenues of $6.19 billion, down 1% from $6.25 billion registered in the year-ago period. The top line also missed the Zacks Consensus Estimate of $6.59 billion by 6%.
CMS Energy Corporation (CMS - Free Report) reported third-quarter 2026 adjusted earnings of $1.44 per share, which surpassed the Zacks Consensus Estimate of $1.34 by 7.5%. The bottom line increased 54.8% from 93 cents in the year-ago quarter.
Operating revenues totaled $2.183 billion, which beat the Zacks Consensus Estimate of $2.178 billion by 0.2%. The top line also rose 8% from $2.02 billion in the prior-year quarter.
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Xcel Energy Q3 Earnings Beat Estimates, Revenues Increase Y/Y
Key Takeaways
Xcel Energy Inc. (XEL - Free Report) reported third-quarter 2026 ongoing earnings of $1.52 per share, which surpassed the Zacks Consensus Estimate of $1.39 by 9.4%. The bottom line also increased 22.6% from $1.24 in the year-ago quarter.
Higher recovery of electric infrastructure investments, earnings from equity method investments and unseasonably warm weather supported quarterly performance.
Total Revenues of XEL
Revenues of $4.17 billion topped the Zacks Consensus Estimate of $4.15 billion by 0.6%. The figure also increased 6.6% from the year-ago quarter's $3.92 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 $3.89 billion, up 6.9% from $3.64 billion in the year-ago quarter. The increase was supported by higher non-fuel rider revenues, regulatory rate outcomes and favorable weather conditions.
Natural Gas: Revenues in this segment rose 3% to $272 million from $264 million in the prior-year quarter. Higher regulatory rate revenues and other favorable items supported the improvement.
Other: Revenues amounted to $12 million, down 7.7% from $13 million in the year-ago quarter.
Highlights of XEL’s Earnings Release
Total operating expenses in the third quarter decreased 5.8% year over year to $2.98 billion. The decline was primarily driven by lower Marshall Wildfire litigation expenses and reduced electric fuel and purchased power costs.
Operating income in the third quarter increased 59% year over year to $1.19 billion from $0.75 billion.
Total interest charges and financing costs rose 24.1% from the prior-year quarter's $348 million to $432 million.
Xcel Energy's Sales Performance
In third-quarter 2026, Xcel Energy registered an 11.7% year-over-year increase in residential electric sales volumes. Commercial and industrial electric sales volumes jumped 5.4%.
Weather-normalized retail electric sales increased 3% year over year, reflecting underlying demand growth. Weather-normalized residential electric sales improved 3.2%, while commercial and industrial sales increased 2.9%.
Firm natural gas sales volumes declined 3.8% year over year. On a weather-normalized basis, natural gas sales decreased 2.2%.
Xcel Energy's 2026 and 2027 Guidance
Xcel Energy narrowed its 2026 ongoing earnings guidance to $4.10-$4.16 per share from the earlier range of $4.04-$4.16. The Zacks Consensus Estimate is pegged at $4.13 per share, which is at the midpoint of the company’s guided range.
XEL expects weather-normalized retail electric sales to increase approximately 3% during 2026.
The company introduced 2027 ongoing earnings guidance of $4.48-$4.62 per share. The Zacks Consensus Estimate is pegged at $4.51 per share, which is lower than the midpoint of the company’s guided range.
Weather-normalized retail electric sales are expected to increase nearly 5% in 2027, while natural gas sales are projected to improve nearly 1%.
Xcel Energy expects long-term annual earnings per share growth of 6-8% or more and dividend growth of 4-6%. The company also targets a dividend payout ratio of 45-55%.
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.
Recent Releases
CenterPoint Energy, Inc. (CNP - Free Report) reported third-quarter 2026 adjusted earnings of 53 cents per share, which surpassed the Zacks Consensus Estimate of 50 cents by 6%. The bottom line also increased 6% from the year-ago quarter’s figure of 50 cents.
CNP generated revenues of $2.19 billion, which beat the Zacks Consensus Estimate by 1.9%. The top line also came in 10.2% higher than the year-ago quarter’s reported figure of $1.99 billion.
PG&E Corporation (PCG - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of 41 cents, which missed the Zacks Consensus Estimate of 42 cents by 2.4%. The bottom line also declined 18% from the year-ago quarter’s figure of 50 cents.
PCG reported third-quarter total revenues of $6.19 billion, down 1% from $6.25 billion registered in the year-ago period. The top line also missed the Zacks Consensus Estimate of $6.59 billion by 6%.
CMS Energy Corporation (CMS - Free Report) reported third-quarter 2026 adjusted earnings of $1.44 per share, which surpassed the Zacks Consensus Estimate of $1.34 by 7.5%. The bottom line increased 54.8% from 93 cents in the year-ago quarter.
Operating revenues totaled $2.183 billion, which beat the Zacks Consensus Estimate of $2.178 billion by 0.2%. The top line also rose 8% from $2.02 billion in the prior-year quarter.