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PPL raised its EPS growth target to 7-9% and plans $25B in investments through 2030.
PPL Corporation (PPL - Free Report) reported third-quarter 2026 earnings from ongoing operations of 54 cents per share, which beat the Zacks Consensus Estimate of 53 cents by 1.9%. Earnings increased 12.5% from 48 cents in the year-ago quarter, driven by higher rate recovery, transmission revenues and electricity sales volumes.
On a GAAP basis, PPL reported earnings of 49 cents per share compared with 43 cents a year ago. The difference between reported and ongoing earnings reflected special-item charges of 5 cents per share, primarily related to integration costs and Rhode Island commitments.
PPL's Revenues
Total revenues of $2.50 billion surpassed the Zacks Consensus Estimate of $2.44 billion by 2.4%. The top line increased 11.5% from $2.24 billion in the year-ago quarter. Higher retail rates, transmission revenues and electricity sales volumes supported the company's quarterly performance.
Total operating expenses were $1.83 billion, up 9.7% from $1.67 billion in the year-ago quarter. The increase reflected higher fuel costs, energy purchases and depreciation expenses.
Operating income totaled $665 million, up 16.9% from $569 million in the year-ago quarter.
Interest expenses amounted to $234 million, up 11.4% from $210 million a year ago.
During the quarter, PPL sold 18,509 gigawatt-hours of electricity in Pennsylvania and Kentucky, reflecting a year-over-year increase of 3.1%. Pennsylvania retail electricity deliveries increased 3%, while Kentucky retail deliveries rose 3.7%.
PPL's Regulated Units Deliver Improved Results
Kentucky Regulated: Ongoing earnings increased to 30 cents per share from 26 cents a year ago. Higher retail rates effective Jan. 1, 2026, and increased sales volumes supported results, partially offset by higher operating costs and depreciation expenses.
Pennsylvania Regulated: Ongoing earnings improved to 25 cents per share from 21 cents. Higher distribution base rates effective July 1, 2026, and increased transmission revenues from capital investments supported earnings. Higher depreciation, operating costs and interest expenses partially offset these gains.
Rhode Island Regulated: Ongoing earnings remained unchanged at 5 cents per share. Higher revenues from new distribution rates and rider revenues were offset by increased operating costs and depreciation.
Corporate and Other: The segment incurred a loss of 6 cents per share compared with a loss of 4 cents a year ago, primarily reflecting higher interest expenses.
PPL Sees Data Center Demand Expanding
PPL Electric Utilities' Pennsylvania data center pipeline reached 35.3 gigawatts (GW) in advanced stages, up from 31.8 GW in the preceding quarter. Signed electric service agreements totaled 11.4 GW, with approximately 8.5 GW under construction.
In Kentucky, the economic development pipeline expanded to 14.7 GW through 2032, including 12.8 GW of data center-related opportunities. Projects under signed reimbursement agreements increased to 2.3 GW from 1.3 GW in the previous quarter.
PPL's Invitium Energy joint venture with Blackstone Infrastructure also agreed to key commercial terms with QTS for approximately 2 GW of generation capacity in Pennsylvania. The proposed arrangement includes an initial 20-year term and remains subject to customary conditions.
PPL's Balance Sheet and Cash Flow
As of Sept. 30, 2026, PPL had cash and cash equivalents of $393 million compared with $1.07 billion as of Dec. 31, 2025.
Long-term debt stood at $19.85 billion compared with $17.99 billion at the end of 2025.
Net cash provided by operating activities during the first nine months of 2026 was $2.06 billion compared with $2.08 billion in the year-ago period.
PPL spent $3.53 billion on property, plant and equipment during the first nine months, up 23.1% from $2.87 billion a year earlier.
PPL Raises Long-Term Growth Targets
PPL narrowed its 2026 ongoing earnings guidance to $1.92-$1.96 per share. The company also introduced its 2027 earnings forecast in the range of $2.06-$2.14 per share. PPL raised its annual EPS growth target to 7-9% through at least 2030 from the previous 6-8% range. It expects annual growth in the upper half of the updated range.
The Zacks Consensus Estimates for 2026 and 2027 earnings are pegged at $1.94 and $2.11 per share, respectively. While the 2026 estimate aligns with the midpoint of the company's guided range, the 2027 estimate stands slightly above the midpoint of its guidance.
The company announced a $25 billion capital investment plan for 2027-2030, supporting approximately 10% annual rate base growth. Additional generation opportunities in Kentucky and through Invitium Energy represent potential investments of $12-$16 billion through 2032.
PPL continues to target annual dividend growth of 4-6%, with increases expected near the lower end of that range.
NRG Energy, Inc. (NRG - Free Report) is set to report third-quarter 2026 results on Nov. 9, before the market opens. The Zacks Consensus Estimate for earnings is pegged at $3.44 per share, which implies year-over-year growth of 25.09%.
NRG’s dividend yield is 2.36%. The Zacks Consensus Estimate for third-quarter 2026 sales is pinned at $6.73 billion, which implies a year-over-year decline of 11.84%.
Consolidated Water (CWCO - Free Report) is scheduled to report third-quarter 2026 results on Nov. 9, after market close. The Zacks Consensus Estimate for earnings is pegged at 24 cents per share, which implies a year-over-year decline of 29.41%.
CWCO’s dividend yield is 2.11%. The Zacks Consensus Estimate for third-quarter 2026 sales is pinned at $32.62 million, which implies a year-over-year decrease of 7.12%.
Spire (SR - Free Report) is set to report fourth-quarter fiscal 2026 earnings results on Nov. 17, before the market opens. The Zacks Consensus Estimate for the loss is pegged at $1.01 per share, which implies a year-over-year decline of 114.89%.
SR’sdividend yield is 3.70%. The Zacks Consensus Estimate for fourth-quarter 2026 sales is pinned at $313.09 million, which implies a year-over-year decline of 6.29%.
View the Zacks #1 Rank List
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PPL Q3 Earnings Beat Estimates on Higher Rates, Sales Volumes
Key Takeaways
PPL Corporation (PPL - Free Report) reported third-quarter 2026 earnings from ongoing operations of 54 cents per share, which beat the Zacks Consensus Estimate of 53 cents by 1.9%. Earnings increased 12.5% from 48 cents in the year-ago quarter, driven by higher rate recovery, transmission revenues and electricity sales volumes.
On a GAAP basis, PPL reported earnings of 49 cents per share compared with 43 cents a year ago. The difference between reported and ongoing earnings reflected special-item charges of 5 cents per share, primarily related to integration costs and Rhode Island commitments.
PPL's Revenues
Total revenues of $2.50 billion surpassed the Zacks Consensus Estimate of $2.44 billion by 2.4%. The top line increased 11.5% from $2.24 billion in the year-ago quarter. Higher retail rates, transmission revenues and electricity sales volumes supported the company's quarterly performance.
PPL Corporation Price, Consensus and EPS Surprise
PPL Corporation price-consensus-eps-surprise-chart | PPL Corporation Quote
Highlights of PPL's Q3 Release
Total operating expenses were $1.83 billion, up 9.7% from $1.67 billion in the year-ago quarter. The increase reflected higher fuel costs, energy purchases and depreciation expenses.
Operating income totaled $665 million, up 16.9% from $569 million in the year-ago quarter.
Interest expenses amounted to $234 million, up 11.4% from $210 million a year ago.
During the quarter, PPL sold 18,509 gigawatt-hours of electricity in Pennsylvania and Kentucky, reflecting a year-over-year increase of 3.1%. Pennsylvania retail electricity deliveries increased 3%, while Kentucky retail deliveries rose 3.7%.
PPL's Regulated Units Deliver Improved Results
Kentucky Regulated: Ongoing earnings increased to 30 cents per share from 26 cents a year ago. Higher retail rates effective Jan. 1, 2026, and increased sales volumes supported results, partially offset by higher operating costs and depreciation expenses.
Pennsylvania Regulated: Ongoing earnings improved to 25 cents per share from 21 cents. Higher distribution base rates effective July 1, 2026, and increased transmission revenues from capital investments supported earnings. Higher depreciation, operating costs and interest expenses partially offset these gains.
Rhode Island Regulated: Ongoing earnings remained unchanged at 5 cents per share. Higher revenues from new distribution rates and rider revenues were offset by increased operating costs and depreciation.
Corporate and Other: The segment incurred a loss of 6 cents per share compared with a loss of 4 cents a year ago, primarily reflecting higher interest expenses.
PPL Sees Data Center Demand Expanding
PPL Electric Utilities' Pennsylvania data center pipeline reached 35.3 gigawatts (GW) in advanced stages, up from 31.8 GW in the preceding quarter. Signed electric service agreements totaled 11.4 GW, with approximately 8.5 GW under construction.
In Kentucky, the economic development pipeline expanded to 14.7 GW through 2032, including 12.8 GW of data center-related opportunities. Projects under signed reimbursement agreements increased to 2.3 GW from 1.3 GW in the previous quarter.
PPL's Invitium Energy joint venture with Blackstone Infrastructure also agreed to key commercial terms with QTS for approximately 2 GW of generation capacity in Pennsylvania. The proposed arrangement includes an initial 20-year term and remains subject to customary conditions.
PPL's Balance Sheet and Cash Flow
As of Sept. 30, 2026, PPL had cash and cash equivalents of $393 million compared with $1.07 billion as of Dec. 31, 2025.
Long-term debt stood at $19.85 billion compared with $17.99 billion at the end of 2025.
Net cash provided by operating activities during the first nine months of 2026 was $2.06 billion compared with $2.08 billion in the year-ago period.
PPL spent $3.53 billion on property, plant and equipment during the first nine months, up 23.1% from $2.87 billion a year earlier.
PPL Raises Long-Term Growth Targets
PPL narrowed its 2026 ongoing earnings guidance to $1.92-$1.96 per share. The company also introduced its 2027 earnings forecast in the range of $2.06-$2.14 per share. PPL raised its annual EPS growth target to 7-9% through at least 2030 from the previous 6-8% range. It expects annual growth in the upper half of the updated range.
The Zacks Consensus Estimates for 2026 and 2027 earnings are pegged at $1.94 and $2.11 per share, respectively. While the 2026 estimate aligns with the midpoint of the company's guided range, the 2027 estimate stands slightly above the midpoint of its guidance.
The company announced a $25 billion capital investment plan for 2027-2030, supporting approximately 10% annual rate base growth. Additional generation opportunities in Kentucky and through Invitium Energy represent potential investments of $12-$16 billion through 2032.
PPL continues to target annual dividend growth of 4-6%, with increases expected near the lower end of that range.
PPL’s Zacks Rank
The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Utility Releases
NRG Energy, Inc. (NRG - Free Report) is set to report third-quarter 2026 results on Nov. 9, before the market opens. The Zacks Consensus Estimate for earnings is pegged at $3.44 per share, which implies year-over-year growth of 25.09%.
NRG’s dividend yield is 2.36%. The Zacks Consensus Estimate for third-quarter 2026 sales is pinned at $6.73 billion, which implies a year-over-year decline of 11.84%.
Consolidated Water (CWCO - Free Report) is scheduled to report third-quarter 2026 results on Nov. 9, after market close. The Zacks Consensus Estimate for earnings is pegged at 24 cents per share, which implies a year-over-year decline of 29.41%.
CWCO’s dividend yield is 2.11%. The Zacks Consensus Estimate for third-quarter 2026 sales is pinned at $32.62 million, which implies a year-over-year decrease of 7.12%.
Spire (SR - Free Report) is set to report fourth-quarter fiscal 2026 earnings results on Nov. 17, before the market opens. The Zacks Consensus Estimate for the loss is pegged at $1.01 per share, which implies a year-over-year decline of 114.89%.
SR’sdividend yield is 3.70%. The Zacks Consensus Estimate for fourth-quarter 2026 sales is pinned at $313.09 million, which implies a year-over-year decline of 6.29%.