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EXC Q3 Earnings Beat Estimates on Higher Utility Rates, Sales Up Y/Y
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Key Takeaways
EXC's Q3 earnings rose 1.2% to 87 cents, beating estimates; revenues grew 9.2% to $7.32B.
Higher utility rates aided EXC, but rising costs drove an 8.1% drop in operating income.
EXC narrowed 2026 EPS guidance to $2.85-$2.91, backed by a $41.7B capital plan and 7.9% rate-base growth.
Exelon Corporation (EXC - Free Report) reported third-quarter 2026 adjusted operating earnings of 87 cents per share, beating the Zacks Consensus Estimate of 80 cents by 8.75%. Earnings increased 1.2% from 86 cents in the year-ago quarter. Higher distribution and transmission rates across several utilities supported results.
Total Revenues of Exelon
Revenues of $7.32 billion surpassed the Zacks Consensus Estimate of $6.87 billion by 6.60%. The top line increased 9.2% from the year-ago figure of $6.71 billion.
The improvement reflected higher revenues across Exelon's regulated utilities, supported by updated distribution and transmission recovery rates associated with infrastructure investments.
Exelon Corporation Price, Consensus and EPS Surprise
Total operating expenses increased 14.1% year over year to $5.94 billion. Purchased power and fuel expenses rose 8.4% to $2.92 billion, while operating and maintenance expenses increased 33.4% to $1.56 billion.
Operating income declined 8.1% to $1.38 billion from $1.50 billion in the year-ago quarter.
Interest expenses totaled $593 million, increasing 10.2% year over year.
Adjusted operating net income rose 2.6% to $897 million from $874 million, reflecting higher utility earnings despite increased costs.
EXC Posts Mixed Results Across Utilities
Commonwealth Edison Company (ComEd): Adjusted operating earnings rose 10.5% to $412 million from $373 million. Higher distribution and transmission rate bases, supported by incremental customer-focused investments and increased allowance for funds used during construction (AFUDC), drove the improvement.
PECO Energy Company (PECO): Adjusted operating earnings declined 33.2% to $167 million. Higher storm costs, unfavorable tax-repair-related income taxes, contracting costs, depreciation and interest expenses weighed on results. Favorable weather and the absence of customer surcharge credits provided partial offsets.
Baltimore Gas and Electric Company (BGE): Adjusted operating earnings advanced 45.1% to $119 million from $82 million. Approved distribution rates and lower contracting costs supported the improvement.
Pepco Holdings LLC (PHI): Adjusted operating earnings improved 10.3% to $320 million from $290 million. Approved distribution rates supported growth, partially offset by higher storm costs, depreciation and interest expenses.
EXC's Cash Flow Rises as Capital Spending Increases
Cash and cash equivalents totaled $1.47 billion as of Sept. 30, 2026 compared with $626 million at the end of 2025.
As of Sept. 30, 2026, long-term debt, excluding amounts due within one year and financing trusts, increased to $50.79 billion from $47.41 billion as of Dec. 31, 2025.
Exelon generated $5.40 billion in operating cash flow during the first nine months of 2026, up 7.9% from $5.01 billion in the year-ago period. Capital expenditures for the first nine months increased 11.6% to $6.80 billion from $6.10 billion, reflecting continued infrastructure investments.
EXC's Earnings Outlook and Growth Plans
Exelon narrowed its 2026 adjusted operating earnings guidance to $2.85-$2.91 per share from the previous range of $2.81-$2.91.
Management reaffirmed its expectation for annualized adjusted operating earnings growth near the upper end of its 5-7% target through 2029.
The outlook is supported by a $41.7 billion capital investment plan and projected rate-base growth of 7.9%. Exelon identified $12-$17 billion in potential transmission investments and $3-$7 billion in storage opportunities beyond its existing capital plan.
Pinnacle West Capital Corporation (PNW - Free Report) is scheduled to release third-quarter 2026 results on Nov. 3, before the market opens. The Zacks Consensus Estimate for earnings is pegged at $3.40 per share, which implies year-over-year growth of 0.29%.
PNW’s long-term (three to five years) earnings growth rate is 5.81%. The Zacks Consensus Estimate for third-quarter 2026 sales is pinned at $1.94 billion, which implies a year-over-year improvement of 6.61%.
Evergy (EVRG - Free Report) is set to report third-quarter 2026 results on Nov. 5, before the market opens. The Zacks Consensus Estimate for earnings is pegged at $2.30 per share, which implies year-over-year growth of 13.30%.
EVRG’s long-term earnings growth rate is 9.07%. The Zacks Consensus Estimate for third-quarter 2026 sales is pinned at $1.90 billion, which implies a year-over-year improvement of 4.71%.
PPL Corporation (PPL - Free Report) is scheduled to report third-quarter 2026 results on Nov. 6, before the market opens. The Zacks Consensus Estimate for earnings is pegged at 53 cents per share, which implies year-over-year growth of 10.42%.
PPL’s long-term earnings growth rate is 5.26%. The Zacks Consensus Estimate for third-quarter 2026 sales is pinned at $2.44 billion, which implies a year-over-year improvement of 8.91%.
View the Zacks #1 Rank List
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EXC Q3 Earnings Beat Estimates on Higher Utility Rates, Sales Up Y/Y
Key Takeaways
Exelon Corporation (EXC - Free Report) reported third-quarter 2026 adjusted operating earnings of 87 cents per share, beating the Zacks Consensus Estimate of 80 cents by 8.75%. Earnings increased 1.2% from 86 cents in the year-ago quarter. Higher distribution and transmission rates across several utilities supported results.
Total Revenues of Exelon
Revenues of $7.32 billion surpassed the Zacks Consensus Estimate of $6.87 billion by 6.60%. The top line increased 9.2% from the year-ago figure of $6.71 billion.
The improvement reflected higher revenues across Exelon's regulated utilities, supported by updated distribution and transmission recovery rates associated with infrastructure investments.
Exelon Corporation Price, Consensus and EPS Surprise
Exelon Corporation price-consensus-eps-surprise-chart | Exelon Corporation Quote
Exelon's Operating Costs and Profitability Trends
Total operating expenses increased 14.1% year over year to $5.94 billion. Purchased power and fuel expenses rose 8.4% to $2.92 billion, while operating and maintenance expenses increased 33.4% to $1.56 billion.
Operating income declined 8.1% to $1.38 billion from $1.50 billion in the year-ago quarter.
Interest expenses totaled $593 million, increasing 10.2% year over year.
Adjusted operating net income rose 2.6% to $897 million from $874 million, reflecting higher utility earnings despite increased costs.
EXC Posts Mixed Results Across Utilities
Commonwealth Edison Company (ComEd): Adjusted operating earnings rose 10.5% to $412 million from $373 million. Higher distribution and transmission rate bases, supported by incremental customer-focused investments and increased allowance for funds used during construction (AFUDC), drove the improvement.
PECO Energy Company (PECO): Adjusted operating earnings declined 33.2% to $167 million. Higher storm costs, unfavorable tax-repair-related income taxes, contracting costs, depreciation and interest expenses weighed on results. Favorable weather and the absence of customer surcharge credits provided partial offsets.
Baltimore Gas and Electric Company (BGE): Adjusted operating earnings advanced 45.1% to $119 million from $82 million. Approved distribution rates and lower contracting costs supported the improvement.
Pepco Holdings LLC (PHI): Adjusted operating earnings improved 10.3% to $320 million from $290 million. Approved distribution rates supported growth, partially offset by higher storm costs, depreciation and interest expenses.
EXC's Cash Flow Rises as Capital Spending Increases
Cash and cash equivalents totaled $1.47 billion as of Sept. 30, 2026 compared with $626 million at the end of 2025.
As of Sept. 30, 2026, long-term debt, excluding amounts due within one year and financing trusts, increased to $50.79 billion from $47.41 billion as of Dec. 31, 2025.
Exelon generated $5.40 billion in operating cash flow during the first nine months of 2026, up 7.9% from $5.01 billion in the year-ago period. Capital expenditures for the first nine months increased 11.6% to $6.80 billion from $6.10 billion, reflecting continued infrastructure investments.
EXC's Earnings Outlook and Growth Plans
Exelon narrowed its 2026 adjusted operating earnings guidance to $2.85-$2.91 per share from the previous range of $2.81-$2.91.
Management reaffirmed its expectation for annualized adjusted operating earnings growth near the upper end of its 5-7% target through 2029.
The outlook is supported by a $41.7 billion capital investment plan and projected rate-base growth of 7.9%. Exelon identified $12-$17 billion in potential transmission investments and $3-$7 billion in storage opportunities beyond its existing capital plan.
EXC's Zacks Rank
Exelon carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Pinnacle West Capital Corporation (PNW - Free Report) is scheduled to release third-quarter 2026 results on Nov. 3, before the market opens. The Zacks Consensus Estimate for earnings is pegged at $3.40 per share, which implies year-over-year growth of 0.29%.
PNW’s long-term (three to five years) earnings growth rate is 5.81%. The Zacks Consensus Estimate for third-quarter 2026 sales is pinned at $1.94 billion, which implies a year-over-year improvement of 6.61%.
Evergy (EVRG - Free Report) is set to report third-quarter 2026 results on Nov. 5, before the market opens. The Zacks Consensus Estimate for earnings is pegged at $2.30 per share, which implies year-over-year growth of 13.30%.
EVRG’s long-term earnings growth rate is 9.07%. The Zacks Consensus Estimate for third-quarter 2026 sales is pinned at $1.90 billion, which implies a year-over-year improvement of 4.71%.
PPL Corporation (PPL - Free Report) is scheduled to report third-quarter 2026 results on Nov. 6, before the market opens. The Zacks Consensus Estimate for earnings is pegged at 53 cents per share, which implies year-over-year growth of 10.42%.
PPL’s long-term earnings growth rate is 5.26%. The Zacks Consensus Estimate for third-quarter 2026 sales is pinned at $2.44 billion, which implies a year-over-year improvement of 8.91%.