The companies operating in the Zacks Utilities sector’s third-quarter 2026 earnings are likely to have benefited from surging electricity demand driven by AI-powered data centers, hyperscale facilities and manufacturing reshoring. Favorable regulatory rate approvals, increased capital investments in grid modernization and transmission infrastructure are expected to have supported earnings growth. Additionally, warmer-than-normal late-summer temperatures likely boosted cooling demand and electricity sales, while expanding power agreements with technology companies created additional revenue opportunities. According to the latest Earnings Preview, the utility sector’s earnings are projected to increase 8.3% on revenue growth of 5.5%.

With the assistance of the Zacks Stock Screener, we have identified four utilities, namely PPL Corporation (PPL Quick QuotePPL - Free Report) , Evergy, Inc. (EVRG Quick QuoteEVRG - Free Report) , The Southern Company (SO Quick QuoteSO - Free Report) and Duke Energy (DUK Quick QuoteDUK - 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.

Key Catalysts Influencing Utility Stocks' Q3 Performance

Utilities are expected to have benefited from the rapid expansion of artificial intelligence applications and hyperscale data centers, which is driving substantial growth in electricity demand, creating significant opportunities for utilities. Increasing power requirements are expected to boost electricity sales, accelerate infrastructure investments and support long-term earnings growth, strengthening the investment appeal of utility stocks.

Utility companies are expected to have benefited from favorable electricity rates, strategic acquisitions, effective cost-control measures and expanding energy-efficiency initiatives. Continued investments in grid modernization and resilience to mitigate the impact of extreme weather events, along with the growing integration of cost-efficient renewable energy sources, are also likely to have strengthened operational efficiency and supported overall financial performance.

U.S. utilities are gaining from growing electricity demand across commercial and industrial sectors, supported by expanding economic activities and rising power consumption. The resurgence of domestic manufacturing, driven by reshoring initiatives, is further increasing electricity requirements and boosting utility revenues. These developments are expected to stimulate grid infrastructure investments, drive rate-base growth and support sustained long-term earnings expansion.

In addition, warmer-than-normal temperatures across several U.S. regions during late summer led to increased demand for air conditioning and cooling services, driving higher electricity consumption. The resulting rise in power sales volumes is likely to have boosted utility revenues and supported earnings growth during the third quarter of 2026.

Ongoing investment to upgrade the utility infrastructure and favorable rate approvals from the commission have also aided the performance of the utilities in the third quarter.

Utility Stocks Positioned for Upbeat Quarterly Earnings

PPL Corporation is a diversified utility holding company based in Allentown, PA. PPL generates electricity and distributes electricity and natural gas to more than 3.6 million utility customers in the United States. PPL's $23 billion 2026-2029 capital plan provides a strong foundation for rate-base growth, with investments expected to drive approximately 10.3% average annual rate-base growth through 2029.

The Zacks Consensus Estimate for its third-quarter earnings is pegged at 53 cents per share, indicating an increase of 10.42% from the year-ago reported figure. PPL currently has an Earnings ESP of +0.38% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Evergy, Inc., along with its subsidiaries, has nearly 15.8 gigawatts (GWs) of owned generating capacity and renewable power purchase agreements. The company owns, operates and maintains approximately 10,200 circuit miles of transmission lines, 44,600 circuit miles of overhead distribution lines and 16,700 circuit miles of underground distribution lines, respectively, in Missouri and Kansas. Evergy plans to invest $21.6 billion during 2026-2030 in transmission, distribution upgrades and customer-focused platforms to enhance reliability.
 
The Zacks Consensus Estimate for its third-quarter earnings is pegged at $2.30 per share, indicating an increase of 13.3% from the year-ago reported figure. EVRG currently has an Earnings ESP of +2.90% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Southern Company deals with the generation, transmission and distribution of electricity.  The company's less-volatile, recession-proof business model presents a unique opportunity to earn high returns. The company added about 6 gigawatts of large-load contracts since the first quarter of 2026, lifting contracted demand to more than 17 gigawatts by the mid-2030s. The Southern Company’s prospective pipeline exceeds 75 gigawatts of potential large-load projects.

The Zacks Consensus Estimate for its third-quarter earnings is pegged at $1.71 per share, indicating an increase of 6.88% from the year-ago reported figure. SO currently has an Earnings ESP of +0.84% and a Zacks Rank #3.

Duke Energy offers attractive long-term growth opportunities, supported by its substantial nuclear generation fleet and expanding investments in cleaner energy infrastructure. Duke Energy benefits from relatively predictable earnings and cash flows, supported by ongoing infrastructure investments and rate-base expansion. DUK has reported nearly 7.6 GW of data center Electric Service Agreements, which could support higher electricity sales and additional capital investments over the long term.

The Zacks Consensus Estimate for its third-quarter earnings is pegged at $1.87 per share, indicating an increase of 3.31% from the year-ago reported figure. DUK currently has an Earnings ESP of +1.07% and a Zacks Rank #3.