The Zacks Utilities sector’s third-quarter 2026 earnings are expected to have benefited from rising electricity demand, fueled by the rapid expansion of AI-driven data centers, hyperscale facilities and reshoring of manufacturing activities. Favorable regulatory rate approvals and increased investments in grid modernization and transmission infrastructure are likely to have supported earnings growth.

According to the latest Earnings Preview, the utility sector’s earnings are projected to increase 8.3% on revenue growth of 5.5%.

A few companies like Evergy Inc. (EVRG Quick QuoteEVRG - Free Report) , Ameren Corporation (AEE Quick QuoteAEE - Free Report) , Sempra Energy (SRE Quick QuoteSRE - Free Report) , DTE Energy (DTE Quick QuoteDTE - Free Report) and Consolidated Edison (ED Quick QuoteED - Free Report) are set to report third-quarter earnings on Nov. 5. These announcements will provide insight into how things have shaped up for utilities this earnings season.

Factors That Are Driving Q3 Earnings

The rapid expansion of AI applications and hyperscale data centers is driving electricity demand, creating significant growth opportunities for utilities. Rising power consumption is expected to boost electricity sales, encourage infrastructure investments and support long-term earnings growth, enhancing the investment appeal of utility stocks. Expanding power supply agreements with technology companies are also likely to have created additional revenue opportunities.

Warmer-than-normal temperatures across several U.S. regions during late summer are likely to have increased air-conditioning usage and cooling requirements, resulting in higher electricity consumption. The subsequent rise in electricity sales volumes is expected to have supported utility revenues and contributed positively to third-quarter 2026 earnings.

U.S. utilities are expected to have benefited from rising electricity demand across commercial and industrial sectors, driven by expanding economic activities and higher power consumption. The revival of domestic manufacturing, supported by reshoring initiatives, is further strengthening electricity demand and creating additional revenue opportunities.
 
These favorable trends are likely to encourage investments in grid modernization and infrastructure expansion, supporting rate-base growth and long-term earnings prospects.

What Our Model Predicts

According to the Zacks model, a company needs the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Evergy's third-quarter earnings are expected to have benefited from customer growth and rising electricity demand across its service territories. Residential customer additions, along with continued economic development, are likely to have supported higher electricity consumption and load growth. Evergy's investments in generation, transmission and distribution infrastructure are also expected to support third-quarter performance. However, higher operations and maintenance expenses are expected to have partially offset these positive factors in the third quarter. ( Read More: Evergy to Report Q3 Earnings: What to Expect From the Stock?)

Our proven model predicts a likely earnings beat for Evergy this time around. EVRG has an Earnings ESP of +2.90% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Ameren Corporation’s continued investments in regulated electric and natural gas infrastructure might have aided third-quarter earnings. Increasing electricity demand from data centers, driven by Artificial Intelligence workloads, is expected to have provided additional support to the company’s quarterly earnings. Rising operations and maintenance expenses might have affected Ameren's profitability in the third quarter.  (Read more: Ameren to Post Q3 Earnings: Here's What to Expect From the Stock)

Our proven model does not conclusively predict an earnings beat for Ameren this time around. AEE has an Earnings ESP of -0.47% and a Zacks Rank #3 at present.

DTE Energy’s third-quarter earnings are expected to have benefited from continued investments in grid modernization, distribution infrastructure and reliability improvements. Rising electricity demand from commercial and industrial customers, particularly data centers, is likely to have supported revenues. However, higher interest expenses and financing costs associated with its extensive capital investment program may have partially offset these gains.

Our proven model does not conclusively predict an earnings beat for DTE Energy this time around. DTE has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.

Sempra’s third-quarter earnings are likely to have benefited from continued rate-base growth across its regulated utility operations. The full-quarter contribution from Oncor’s recently approved base rate review, along with higher invested capital, customer growth and benefits from the UTM mechanism, is expected to have supported regulated earnings. 

Our proven model does not conclusively predict an earnings beat for Sempra this time around.  SRE has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.

Consolidated Edison’s third-quarter 2026 earnings are expected to have benefited from higher electric and gas rate bases, supported by approved rate increases and continued infrastructure investments. The implementation of Rockland Electric’s new rates, effective July 2026, is likely to have provided additional support. Investments in grid modernization, reliability improvements and system resilience are expected to have strengthened operational performance. However, higher interest expenses, property taxes and operating costs may have partially offset these gains. (Read more: Consolidated Edison to Report Q3 Results: What’s in the Cards?)

Our proven model does not conclusively predict an earnings beat for Consolidated Edison this time around. ED has an Earnings ESP of -1.09% and a Zacks Rank #2 at present.