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PPL
(NYSE:PPL)
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Rating:63Neutral
Price Target:
$39.00
â–¼(-0.05% Downside)
Action:Reiterated
Date:07/01/26
The score is supported most by constructive earnings-call guidance and multi-year regulated investment visibility, alongside improving profitability and healthier leverage trends in TTM. Offsetting this are persistent negative free cash flow (funding reliance during heavy capex), a relatively high P/E for a regulated utility, and only mixed technical trend signals.
Positive Factors
Multi‑year capital plan & rate‑base growth
A large, multi‑year capital program that drives ~10.3% annual rate‑base growth supports durable regulated revenue and earnings visibility. In regulated utilities, predictable recovery of prudently incurred investments through rates underpins sustainable EPS growth and funds grid modernization over several years.
Negative Factors
Persistent negative free cash flow
Sustained negative free cash flow during the investment cycle increases reliance on external financing and equity issuance. Over multiple years this can compress financial flexibility, raise effective funding costs, and amplify sensitivity to capital‑market conditions or higher interest rates, risking program pacing or returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi‑year capital plan & rate‑base growth
A large, multi‑year capital program that drives ~10.3% annual rate‑base growth supports durable regulated revenue and earnings visibility. In regulated utilities, predictable recovery of prudently incurred investments through rates underpins sustainable EPS growth and funds grid modernization over several years.
Read all positive factors
PPL Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyPPL (PPL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.75B
Dividend Yield3.13%
Average Volume (3M)9.19M
Price to Earnings (P/E)30.0
Beta (1Y)0.10
Revenue Growth7.52%
EPS Growth21.81%
CountryUS
Employees6,546
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)1.64
Shares Outstanding752,350,340
10 Day Avg. Volume10,827,657
30 Day Avg. Volume9,192,425
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)2.53
Price to Sales (P/S)4.16
P/FCF Ratio-26.86
Enterprise Value/Market Cap1.64
Enterprise Value/Revenue4.89
Enterprise Value/Gross Profit13.86
Enterprise Value/Ebitda11.92
Forecast
1Y Price Target
$41.70Price Target Upside6.87% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)1.95
Revenue Forecast (FY)$9.74B
PPL Business Overview & Revenue Model
Company Description
PPL Corporation provides electricity and natural gas to approximately 3.6 million customers in the United States. It operates in three segments: Kentucky Regulated, Pennsylvania Regulated, and Rhode Island Regulated. The company engages in the tra...
How the Company Makes Money
PPL primarily makes money through regulated utility operations. Its main revenue stream is retail electricity distribution service: customers are billed for delivering electricity over PPL’s distribution network (and, where applicable, related reg...
PPL Earnings Call Summary
Earnings Call Date:May 08, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call highlights a strong operational and financial start to 2026: Q1 EPS beat versus last year on an ongoing basis, reaffirmed full-year guidance, a large and growing data center demand pipeline, disciplined capital program ($5.1B in 2026 and $23B through 2029), constructive regulatory developments in Pennsylvania and Rhode Island, and meaningful progress on the Blackstone joint venture and financing de-risking. Offsetting these positives are material regulatory exposures (notably an approximately $2.526B potential New England ROE refund), higher depreciation and financing costs, ongoing regulatory uncertainty in Kentucky and PJM market design, and some near-term volume pressures in Kentucky. Overall, the positives on execution, demand momentum, investment visibility, and financing strength outweigh the notable risks described, though those risks remain meaningful and warrant monitoring.Positive Updates
Quarterly Earnings and Guidance Reaffirmed
Q1 2026 GAAP EPS of $0.60 vs $0.56 in Q1 2025 (+7.1%). Ongoing EPS of $0.63 (adjusted for $0.03 of special items), an increase of $0.03 vs prior year (+5%). Reaffirmed 2026 ongoing earnings guidance of $1.90–$1.98 (midpoint $1.94).
Negative Updates
Large Potential FERC ROE Refund Exposure
Management cited a New England ROE refund exposure of approximately $2.526 billion. While the company plans to coordinate refunds with rate filings and hold-harmless mechanisms, this represents a material regulatory cash flow/liability risk.
Read all updates
Q1-2026 Updates
Positive
Negative
Quarterly Earnings and Guidance Reaffirmed
Q1 2026 GAAP EPS of $0.60 vs $0.56 in Q1 2025 (+7.1%). Ongoing EPS of $0.63 (adjusted for $0.03 of special items), an increase of $0.03 vs prior year (+5%). Reaffirmed 2026 ongoing earnings guidance of $1.90–$1.98 (midpoint $1.94).
Read all positive updates
Company Guidance
Management reaffirmed 2026 ongoing earnings guidance of $1.90–$1.98 per share (midpoint $1.94), reported Q1 GAAP EPS of $0.60 and ongoing EPS of $0.63 (up $0.03 vs. Q1 2025), and said it is on track to complete about $5.1 billion of planned investments in 2026 and roughly $23 billion of capital investment through 2029 (driving ~10.3% average annual rate base growth); it reiterated long‑term targets of 6%–8% annual EPS growth through at least 2029 (CAGR near the top end), 4%–6% annual dividend growth, maintaining strong credit metrics, and noted it has de‑risked about two‑thirds of required equity with a $1.15 billion equity‑units offering (remainder via ATM/other equity‑like financings).PPL Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.31B | 9.04B | 8.46B | 8.31B | 7.90B | 5.78B |
| Gross Profit | 3.29B | 3.86B | 3.39B | 3.28B | 2.89B | 2.71B |
| EBITDA | 3.82B | 3.70B | 3.21B | 2.92B | 2.66B | 2.56B |
| Net Income | 1.22B | 1.18B | 888.00M | 740.00M | 756.00M | -1.48B |
Balance Sheet | ||||||
| Total Assets | 46.30B | 45.24B | 41.07B | 39.24B | 37.84B | 33.22B |
| Cash, Cash Equivalents and Short-Term Investments | 1.25B | 1.07B | 306.00M | 331.00M | 356.00M | 3.57B |
| Total Debt | 20.24B | 19.35B | 16.81B | 15.60B | 14.23B | 11.21B |
| Total Liabilities | 31.29B | 30.36B | 26.99B | 25.30B | 23.92B | 19.50B |
| Stockholders Equity | 15.02B | 14.88B | 14.08B | 13.93B | 13.91B | 13.72B |
Cash Flow | ||||||
| Free Cash Flow | -1.62B | -1.40B | -465.00M | -632.00M | -425.00M | 297.00M |
| Operating Cash Flow | 2.67B | 2.63B | 2.34B | 1.76B | 1.73B | 2.27B |
| Investing Cash Flow | -4.27B | -4.00B | -2.82B | -2.38B | -5.65B | 7.96B |
| Financing Cash Flow | 2.50B | 2.12B | 435.00M | 650.00M | 709.00M | -7.39B |
PPL Technical Analysis
Positive
39.02
Price Trends
36.12
Positive
36.89
Positive
36.08
Positive
Market Momentum
0.20
Negative
57.09
Neutral
52.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPL, the sentiment is Positive. The current price of 39.02 is above the 20-day moving average (MA) of 35.97, above the 50-day MA of 36.12, and above the 200-day MA of 36.08, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 57.09 is Neutral, neither overbought nor oversold. The STOCH value of 52.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PPL.
PPL Risk Analysis
PPL disclosed 9 risk factors in its most recent earnings report. PPL reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
PPL Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $31.83B | 20.50 | 11.71% | 2.86% | 12.32% | 23.95% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $32.05B | 25.21 | 10.43% | 3.45% | 22.33% | -17.75% | |
63 Neutral | $27.75B | 30.01 | 8.32% | 3.13% | 7.52% | 21.81% | |
63 Neutral | $28.00B | 15.91 | 10.86% | 4.54% | 9.83% | 101.90% | |
61 Neutral | $28.07B | 26.43 | 8.38% | 3.94% | 11.30% | -1.99% | |
58 Neutral | $24.01B | 21.30 | 12.35% | 3.10% | 13.31% | 6.97% |
* Utilities Sector Average
PPL
PPL
36.89
4.25
13.01%
AEE
Ameren
115.02
21.75
23.32%
CMS
CMS Energy
77.73
10.16
15.04%
DTE
DTE Energy
154.06
27.16
21.40%
FE
FirstEnergy
48.53
10.25
26.76%
ES
Eversource Energy
74.44
12.87
20.90%
PPL Corporate Events
Business Operations and StrategyExecutive/Board Changes
PPL adds veteran energy leader to board of directors
Positive
Jun 30, 2026
On June 30, 2026, PPL Corporation announced that veteran energy executive Kenneth M. Hartwick, former president and CEO of Ontario Power Generation, was elected to its Board of Directors, effective July 1, 2026. Hartwick will serve on the People a...
Business Operations and StrategyRegulatory Filings and Compliance
PPL Wins Approval for Major Pennsylvania Rate Increase
Positive
Jun 4, 2026
On June 4, 2026, PPL Electric Utilities announced that the Pennsylvania Public Utility Commission approved a settlement granting a $275 million annual increase in base distribution revenues, effective July 1, 2026, after a comprehensive review and...
Business Operations and StrategyPrivate Placements and Financing
Rhode Island Energy Issues $400 Million Senior Notes
Positive
May 18, 2026
On May 18, 2026, Rhode Island Energy issued $400 million of 6.000% senior unsecured notes due May 15, 2056, in a private placement to institutional investors in the U.S. and certain non-U.S. markets. The notes, which are not guaranteed by PPL, car...
Business Operations and StrategyPrivate Placements and Financing
PPL Electric Issues Long-Term First Mortgage Bonds
Positive
May 15, 2026
On May 12, 2026, PPL Electric Utilities Corporation entered into an underwriting agreement to offer $500 million of First Mortgage Bonds, 5.75% Series due 2056, which were issued on May 15, 2026 under an existing indenture with The Bank of New Yor...
Executive/Board ChangesShareholder Meetings
PPL shareowners back board, pay plans and auditor
Positive
May 13, 2026
At PPL’s Annual Meeting of Shareowners held on May 13, 2026, investors elected all nine nominees to the board of directors, including Arthur P. Beattie, Raja Rajamannar, and CEO Vincent Sorgi, with each director receiving a substantial major...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
PPL Posts Strong Q1 Results, Reaffirms 2026 Outlook
Positive
May 8, 2026
PPL Corporation reported solid first-quarter 2026 results on May 8, 2026, posting GAAP earnings of $452 million, or $0.60 per share, up from $414 million, or $0.56 per share, a year earlier, and ongoing earnings of $0.63 per share versus $0.60 in ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.