Xcel Energy reported third quarter 2026 results that exceeded analyst expectations for both revenue and earnings. Performance was primarily driven by the recovery of electric infrastructure investments, higher earnings from equity method investments, and unseasonably warm weather, which were partially offset by rising financing costs. The company narrowed its 2026 ongoing EPS guidance and initiated a positive outlook for 2027, backed by an updated $70 billion five-year capital investment plan.
Key Highlights
- Ongoing EPS of $1.52 beat the $1.39 consensus estimate, representing a 22.6% increase over the $1.24 reported in the prior year period.
- Weather-normalized retail electric sales growth reached 3.0% in the third quarter, meeting the target driven by manufacturing and energy sector activity.
- The company narrowed its 2026 ongoing EPS guidance to $4.10 to $4.16 and initiated 2027 ongoing EPS guidance of $4.48 to $4.62.
- An updated 2027-2031 base capital forecast of $70 billion was announced, focusing heavily on renewables ($21.4B) and electric transmission ($18.6B).
- Regarding wildfire litigation, the company has recorded $525 million in total estimated losses and costs for the Smokehouse Creek Fire, which currently aligns with its $525 million insurance coverage limit.