Xcel Energy (XEL) Q3 2026 Earnings Report

The call was strongly positive. Xcel reported higher earnings, narrowed 2026 guidance, initiated 2027 guidance, extended its 9%+ long-term EPS growth outlook, and announced a $70 billion capital plan supported by substantial incremental opportunities in transmission, generation, and data centers. Customer affordability, regulatory progress, sales growth, and balance-sheet metrics were also presented favorably. The main negatives were higher interest expense, equity financing costs, higher O&M expense, and pending regulatory approvals, but these were outweighed by the company's operating performance and growth outlook.

Xcel Energy narrowed 2026 ongoing earnings guidance to $4.10 to $4.16 per share, initiated 2027 earnings guidance of $4.48 to $4.62 per share, expects full-year 2026 weather-adjusted electric sales to increase 3%, and expects 2027 weather-normalized electric sales growth of 5%; its updated $70 billion five-year investment plan extends approximately 11% annualized rate base growth into 2031, including more than 9 GW of renewable generation, more than 3 GW of natural gas-fired generation, more than 2 GW of energy storage, 2,400 new high voltage transmission line miles, and approximately $4 billion of distribution and transmission investments, while its pipeline of additional investment opportunities exceeds $10 billion. The company expects, on average, 9%+ EPS growth through 2031 and 10%+ EPS growth from 2027 to 2030, maintains a dividend growth objective of 4%-6%, with the expectation to be at the low end of the range, expects its dividend payout ratio to trend downward in its payout ratio range of 45%-55%, plans to sign ESAs for an additional 1 GW of data centers by the end of 2026 and another 3 GW by the end of 2027, and expects cash from ops to have a 13%-14% CAGR while funding about 65% of overall capital in its five-year plan.