Xcel Energy Inc. XEL reported third-quarter 2026 ongoing earnings of $1.52 per share, which surpassed the Zacks Consensus Estimate of $1.39 by 9.4%. The bottom line also increased 22.6% from $1.24 in the year-ago quarter.
Higher recovery of electric infrastructure investments, earnings from equity method investments and unseasonably warm weather supported quarterly performance.
Total Revenues of XEL
Revenues of $4.17 billion topped the Zacks Consensus Estimate of $4.15 billion by 0.6%. The figure also increased 6.6% from the year-ago quarter's $3.92 billion.
Xcel Energy Inc. Price, Consensus and EPS Surprise
Xcel Energy Inc. price-consensus-eps-surprise-chart | Xcel Energy Inc. Quote
XEL’s Segmental Results
Electric: This segment's revenues totaled $3.89 billion, up 6.9% from $3.64 billion in the year-ago quarter. The increase was supported by higher non-fuel rider revenues, regulatory rate outcomes and favorable weather conditions.
Natural Gas: Revenues in this segment rose 3% to $272 million from $264 million in the prior-year quarter. Higher regulatory rate revenues and other favorable items supported the improvement.
Other: Revenues amounted to $12 million, down 7.7% from $13 million in the year-ago quarter.
Highlights of XEL’s Earnings Release
Total operating expenses in the third quarter decreased 5.8% year over year to $2.98 billion. The decline was primarily driven by lower Marshall Wildfire litigation expenses and reduced electric fuel and purchased power costs.
Operating income in the third quarter increased 59% year over year to $1.19 billion from $0.75 billion.
Total interest charges and financing costs rose 24.1% from the prior-year quarter's $348 million to $432 million.
Xcel Energy's Sales Performance
In third-quarter 2026, Xcel Energy registered an 11.7% year-over-year increase in residential electric sales volumes. Commercial and industrial electric sales volumes jumped 5.4%.
Weather-normalized retail electric sales increased 3% year over year, reflecting underlying demand growth. Weather-normalized residential electric sales improved 3.2%, while commercial and industrial sales increased 2.9%.
Firm natural gas sales volumes declined 3.8% year over year. On a weather-normalized basis, natural gas sales decreased 2.2%.
Xcel Energy's 2026 and 2027 Guidance
Xcel Energy narrowed its 2026 ongoing earnings guidance to $4.10-$4.16 per share from the earlier range of $4.04-$4.16. The Zacks Consensus Estimate is pegged at $4.13 per share, which is at the midpoint of the company’s guided range.
XEL expects weather-normalized retail electric sales to increase approximately 3% during 2026.
The company introduced 2027 ongoing earnings guidance of $4.48-$4.62 per share. The Zacks Consensus Estimate is pegged at $4.51 per share, which is lower than the midpoint of the company’s guided range.
Weather-normalized retail electric sales are expected to increase nearly 5% in 2027, while natural gas sales are projected to improve nearly 1%.
Xcel Energy expects long-term annual earnings per share growth of 6-8% or more and dividend growth of 4-6%. The company also targets a dividend payout ratio of 45-55%.
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.
Recent Releases
CenterPoint Energy, Inc. CNP reported third-quarter 2026 adjusted earnings of 53 cents per share, which surpassed the Zacks Consensus Estimate of 50 cents by 6%. The bottom line also increased 6% from the year-ago quarter’s figure of 50 cents.
CNP generated revenues of $2.19 billion, which beat the Zacks Consensus Estimate by 1.9%. The top line also came in 10.2% higher than the year-ago quarter’s reported figure of $1.99 billion.
PG&E Corporation PCG reported third-quarter 2026 adjusted earnings per share (EPS) of 41 cents, which missed the Zacks Consensus Estimate of 42 cents by 2.4%. The bottom line also declined 18% from the year-ago quarter’s figure of 50 cents.
PCG reported third-quarter total revenues of $6.19 billion, down 1% from $6.25 billion registered in the year-ago period. The top line also missed the Zacks Consensus Estimate of $6.59 billion by 6%.
CMS Energy Corporation CMS reported third-quarter 2026 adjusted earnings of $1.44 per share, which surpassed the Zacks Consensus Estimate of $1.34 by 7.5%. The bottom line increased 54.8% from 93 cents in the year-ago quarter.
Operating revenues totaled $2.183 billion, which beat the Zacks Consensus Estimate of $2.178 billion by 0.2%. The top line also rose 8% from $2.02 billion in the prior-year quarter.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners UpWant 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
Pacific Gas & Electric Co. (PCG): Free Stock Analysis Report
CMS Energy Corporation (CMS): Free Stock Analysis Report
CenterPoint Energy, Inc. (CNP): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).