Xcel Energy XEL is benefiting from rising electricity demand from data centers, manufacturing, energy development and electrification. This demand supports additional infrastructure investments, transmission upgrades and rate-base expansion.
In the second quarter of 2026, weather-adjusted year-to-date electric sales increased 2.1%, driven by higher activity in the energy sector in Southwestern Public Service and manufacturing across its operating companies. XEL expects full-year 2026 weather-adjusted electric sales to increase about 3% and retail firm natural gas sales to rise 1%.
The company sees strong large-load demand, with 1 gigawatt (GW) of data centers operating or under construction and 1 GW under signed agreements. It expects 4 GW more by the end of 2027, including 1 GW in 2026, while its pipeline exceeds 20 GW.
The company is pursuing a strategic capital investment plan to develop infrastructure and maintain service reliability, supporting rising customer demand. Xcel Energy expects to invest $70 billion in total capital through 2030, comprising $60 billion in base capital expenditures and more than $10 billion in incremental investments.
XEL targets more than 6-8% long-term earnings growth and 9% average annual EPS growth through 2030. Thus, sustained load expansion and strategic infrastructure development could strengthen XEL’s financial performance and enhance shareholder value over time.
Increasing Customer Demand Boosts Utility Growth
Rising electricity demand from data centers, manufacturing and electrification is creating new growth opportunities for utilities. Higher customer loads encourage investments in generation and grid infrastructure, expanding regulated asset bases.
Alliant Energy’s LNT growth is supported by rising customer demand, as temperature-normalized retail electric and gas sales increased in the second quarter of 2026. Expected 60% load growth by 2031 supports additional generation and infrastructure investments.
NextEra Energy’s NEE subsidiary Florida Power & Light benefited from continued customer growth in second-quarter 2026, as customer growth and mix contributed 1.4%, while retail electricity sales increased 0.4% year over year overall.
The Zacks Rundown on XEL
XEL’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 EPS indicates a year-over-year increase of 8.42% and 9.32%, respectively.
Image Source: Zacks Investment Research
Debt to Capital
XEL's debt-to-capital currently stands at 62.12%, lower than the Zacks Utility - Electric Power industry’s 62.33%.
Image Source: Zacks Investment Research
XEL’s Stock Price Performance
In the past six months, the company’s shares have plunged 12% compared with the industry’s 14.8% decline.
Image Source: Zacks Investment Research
XEL’s Zacks Rank
XEL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power .
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Xcel Energy Inc. (XEL): Free Stock Analysis Report
NextEra Energy, Inc. (NEE): Free Stock Analysis Report
Alliant Energy Corporation (LNT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).