PPL Corporation’s PPL expanding revenues are helping the company offset higher costs and strengthen its operating performance. This revenue growth can help strengthen margins and support PPL’s overall financial performance.
In the second quarter of 2026, PPL’s operating revenues increased 4.2% year over year to $2.11 billion from $2.03 billion. The improvement was supported by stronger rate recovery and transmission revenues. Rate recovery provided a 5-cent benefit, while transmission revenues added 1 cent, helping offset operating costs, depreciation and interest expenses.
PPL’s operating income increased 17% year over year to $475 million in the second quarter, up from $406 million. This indicates that revenue growth translated into higher operating income despite increased depreciation and other expenses.
Revenue growth is also important for PPL’s long-term prospects as the company invests heavily in its regulated operations. The company plans nearly $5.1 billion of capital investments in 2026 and $23 billion through 2029, supporting average annual rate-base growth of 10.3%. PPL expects improved rate recovery and capital-tracking mechanisms to support stronger earnings growth in the second half of 2026. The company also projects 2026 ongoing earnings per share (EPS) of $1.90-$1.98 and annual EPS growth of 6-8% through 2029.
Overall, rising revenues, combined with regulatory recovery and capital investment, provide PPL with a supportive foundation for sustainable earnings growth.
Rising Utility Revenues Ease Cost Pressures
Rising utility revenues can help absorb higher operating, maintenance and financing costs, supporting earnings stability. Stronger revenues also preserve financial flexibility for infrastructure upgrades and other essential capital investments.
FirstEnergy FE: Revenues increased 8.8% to $3.68 billion from $3.38 billion, outpacing growth in operating costs and lifting operating income about 4.8% to $677 million.
Evergy EVRG: In the second quarter of 2026, revenues increased 4.4% to $1.50 billion, while operating income rose 10.7% to $380.6 million, helping absorb higher operations and maintenance and depreciation.
The Zacks Rundown on PPL
PPL’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 EPS indicates a year-over-year increase of 7.18% and 8.32%, respectively.
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Debt to Capital
PPL's debt-to-capital ratio currently stands at 57.46%, lower than the electric power industry’s 61.32%.
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PPL’s Stock Price Performance
In the past month, the company’s shares have plunged 3.9% compared with the industry’s 7.1% decline.
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PPL’s Zacks Rank
PPL currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).