PPL sees 2026 ongoing EPS $1.90 to $1.98, est. $1.95

PPL sees 2026 ongoing EPS $1.90 to $1.98, est. $1.95

PPL Corporation Updates 2026 Earnings Outlook Amid Infrastructure Investments and Market Dynamics

PPL Corporation (NYSE: PPL) has updated its 2026 earnings per share (EPS) guidance, projecting a range of $1.90 to $1.98, with a midpoint estimate of $1.95. This revision reflects ongoing capital investments, rising demand for electricity, and cost-reduction initiatives, according to recent analyst reports.

The utility company's Q4 2025 results, scheduled for release on February 20, 2026, are expected to show EPS of $0.41 and revenue of $2.34 billion, based on current analyst forecasts. These quarterly figures will contribute to the broader 2026 outlook, which incorporates a projected 8.07% year-over-year earnings growth compared to 2025's estimated $1.84 EPS according to recent analysis.

PPL's financial trajectory is supported by increased load growth, particularly from data center expansion in Pennsylvania and Kentucky. The company is positioning itself to capitalize on nearly 20.5 gigawatts of potential data center demand in Pennsylvania alone, which could drive significant transmission investment. Additionally, PPL plans to invest $20 billion from 2025 to 2028 to upgrade infrastructure, with over 60% of these costs subject to "contemporaneous recovery," reducing regulatory lag risks.

Market dynamics also favor PPL's outlook. The Federal Reserve's rate cuts—reducing borrowing costs—benefit capital-intensive utilities like PPL, enhancing profit margins. However, the stock currently trades at a forward P/E of 17.4X, a premium to the Zacks Utilities sector average of 15.45X. Analysts note this valuation reflects confidence in PPL's operational resilience but caution that returns have lagged the industry in recent months.

Institutional investors have adjusted holdings, with firms like Rossby Financial and EverSource Wealth Advisors increasing stakes in Q4 2025. Meanwhile, analyst price targets remain mixed, ranging from $36 to $43, with a consensus "Buy" rating and $40.50 price target.

PPL's dividend policy, with a 3.21% yield and plans for 6-8% annual increases through 2028, further supports shareholder value. However, challenges such as competitive pressures in transmission projects and regulatory compliance remain key risks.

As the company prepares to report Q4 2025 results, investors will scrutinize performance against these updated 2026 expectations, balancing growth potential with valuation concerns.