Xcel Energy Q3 profit rises on electric infrastructure recovery, narrows outlook

Overview

• U.S. regulated utility's Q3 revenue missed analyst expectations, ongoing EPS rose yr/yr

• Company narrows 2026 ongoing EPS guidance, initiates 2027 guidance

• Q3 results driven by electric infrastructure recovery, equity investments, and warm weather

Outlook

• Xcel Energy narrows 2026 ongoing EPS guidance to $4.10-$4.16

• Company initiates 2027 ongoing EPS guidance of $4.48-$4.62

• Xcel Energy targets long-term annual EPS growth of 6-8% and dividend growth of 4-6%

Result Drivers

• ELECTRIC INFRASTRUCTURE RECOVERY - Co said increased recovery of electric infrastructure investments drove higher ongoing EPS

• EQUITY INVESTMENTS - Higher earnings from equity method investments contributed to EPS growth

• UNSEASONABLY WARM WEATHER - Co said warm weather increased electric sales and contributed to earnings growth

• HIGHER FINANCING COSTS - Increased interest charges partially offset earnings growth

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electric utilities peer group is "buy"

• Wall Street's median 12-month price target for Xcel Energy Inc is $91.00, about 17.9% above its October 28 closing price of $77.18

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads

• Oct 27 - CenterPoint Energy Q3 adjusted EPS beats estimates, raises 2026 outlook

• Oct 28 - American Electric Power Q3 revenue rises 13.7%, beats estimates

• Oct 27 - ONEOK Q3 results beat estimates on higher product volumes; raises 2026 outlook

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)