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PPL
(NYSE:PPL)
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Rating:61Neutral
Price Target:
$37.00
â–²(2.15% Upside)
Action:Reiterated
Date:08/07/26
The score is anchored by improving earnings and constructive guidance/regulatory momentum, which support a solid fundamental outlook. This is offset by the weakest factor—cash flow quality (volatile/mostly negative free cash flow)—along with elevated leverage. Technically, the stock trends weak (below major moving averages with negative MACD), and valuation is mixed due to a high P/E despite a supportive dividend yield.
Positive Factors
Constructive regulatory outcomes
Authorized rate relief (PA $275M) and multi-year stay-out provisions provide durable cash recovery for grid investment. Timely cost recovery lowers regulatory lag, supports credit metrics and funds ongoing modernization, improving long-term earnings predictability and rate-base growth visibility.
Negative Factors
Elevated and rising leverage
Rapid debt growth and a materially higher debt-to-equity ratio increase refinancing, interest‑rate and covenant sensitivity. Higher leverage reduces financial flexibility for opportunistic investments, raises ongoing interest expense and amplifies credit risk if cash generation weakens or costs surprise regulators.
Read all positive and negative factors
Positive Factors
Negative Factors
Constructive regulatory outcomes
Authorized rate relief (PA $275M) and multi-year stay-out provisions provide durable cash recovery for grid investment. Timely cost recovery lowers regulatory lag, supports credit metrics and funds ongoing modernization, improving long-term earnings predictability and rate-base growth visibility.
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
$26.49B
Dividend Yield3.17%
Average Volume (3M)8.95M
Price to Earnings (P/E)28.6
Beta (1Y)0.09
Revenue Growth7.52%
EPS Growth21.81%
CountryUS
Employees6,546
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)1.70
Shares Outstanding752,350,340
10 Day Avg. Volume6,734,551
30 Day Avg. Volume8,954,578
Financial Highlights & Ratios
PEG Ratio0.98
Price to Book (P/B)2.53
Price to Sales (P/S)4.16
P/FCF Ratio-26.86
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$41.44Price Target Upside14.42% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)1.95
Revenue Forecast (FY)$9.77B
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:Aug 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call emphasized disciplined execution and constructive regulatory outcomes that support the reaffirmed 2026 guidance and strengthen long-term growth visibility. Material operational and strategic positives include strong data center demand (32 GW pipeline, >11 GW ESAs), accelerated capital deployment (approx. $2.3B YTD, ~30% YoY increase), constructive Pennsylvania rate case ($275M, <4% increase, delivery rates ~20% below state average) and meaningful progress on the Invitium JV with potential multi‑billion dollar upside. Offsetting risks include near-term special charges ($0.03/share), segment-level expense pressures (depreciation/interest), regulatory/timing uncertainty in Kentucky and PJM/FERC processes, and the long lead time before JV earnings become material (post-2030). On balance, the positive items — reaffirmed guidance, regulatory wins, expanding demand pipeline and clear capital deployment/execution — outweigh the challenges, though notable execution and timing risks remain.Positive Updates
Ongoing and GAAP Earnings Beat
Ongoing earnings of $0.33 per share in Q2 2026 (adjusting for $0.03 per share of special items). GAAP earnings were $0.30 per share vs $0.25 in Q2 2025, an increase of approximately 20%. Management reaffirmed 2026 ongoing earnings guidance of $1.90–$1.98 (midpoint $1.94) and expects stronger H2 supported by recent rate case outcomes.
Negative Updates
Special Charges and IT/System Integration Costs
Second-quarter special items of $0.03 per share primarily related to IT transformation costs and system integration impacts, which reduced GAAP ongoing earnings contribution.
Read all updates
Q2-2026 Updates
Positive
Negative
Ongoing and GAAP Earnings Beat
Ongoing earnings of $0.33 per share in Q2 2026 (adjusting for $0.03 per share of special items). GAAP earnings were $0.30 per share vs $0.25 in Q2 2025, an increase of approximately 20%. Management reaffirmed 2026 ongoing earnings guidance of $1.90–$1.98 (midpoint $1.94) and expects stronger H2 supported by recent rate case outcomes.
Read all positive updates
Company Guidance
Management reaffirmed 2026 ongoing earnings guidance of $1.90–$1.98 per share (midpoint $1.94) after reporting Q2 ongoing earnings of $0.33 (GAAP $0.30; $0.03 special items) and said it is on pace to achieve at least the midpoint with stronger H2 supported by Pennsylvania (rate increase $275M effective July 1) and Rhode Island (rates expected Sept. 1) outcomes. The company expects to deploy ~ $5.0 billion of capital in 2026 (≈$2.3 billion deployed through Q2, ~30% above prior year), projects $23 billion of capital needs through 2029 supporting >10% average annual rate base growth, and reaffirmed long‑term targets of 6–8% annual EPS growth through at least 2029 (CAGR near the top end), 4–6% annual dividend growth and FFO/debt of 16–18%. Management highlighted sizable upside: about 32 GW of signed data‑center agreements (+3.5 GW q/q) with >11 GW under ESAs, >6.5 GW under construction and two sites beginning service (ramping to ~2 GW by 2031); the Invitium JV with 8–14 GW of developable sites, >5 GW of CCGT in the PJM queue and >5 GW of CCGT reservations (5 GW ≈ $12.5–$15.0 billion at $2,500–$3,000/kW with PPL’s 51% share), batteries possibly contributing earnings in 2029–2030 and CCGTs by 2031–2032; and a Kentucky pipeline of 13.7 GW (11.6 GW data center, 2.1 GW other) with ~1.3 GW of reimbursement agreements (up from ~0.9 GW) and a 3.7 GW probability‑weighted expected new load by 2032—together with Kentucky/Invitium upsides that could drive an incremental $10–$12 billion (and incremental KY projects of ~$3.5–$4.0 billion) of investment through 2032.PPL Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
64
Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.40B | 9.04B | 8.46B | 8.31B | 7.90B | 5.78B |
| Gross Profit | 5.18B | 3.86B | 3.39B | 3.28B | 2.89B | 2.71B |
| EBITDA | 3.17B | 3.70B | 3.21B | 2.92B | 2.66B | 2.56B |
| Net Income | 1.27B | 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 | 332.00M | 1.07B | 306.00M | 331.00M | 356.00M | 3.57B |
| Total Debt | 19.85B | 19.35B | 16.81B | 15.60B | 14.23B | 11.21B |
| Total Liabilities | 24.99B | 30.36B | 26.99B | 25.30B | 23.92B | 19.50B |
| Stockholders Equity | 21.31B | 14.88B | 14.08B | 13.93B | 13.91B | 13.72B |
Cash Flow | ||||||
| Free Cash Flow | 347.00M | -1.40B | -465.00M | -632.00M | -425.00M | 297.00M |
| Operating Cash Flow | 2.65B | 2.63B | 2.34B | 1.76B | 1.73B | 2.27B |
| Investing Cash Flow | -4.70B | -4.00B | -2.82B | -2.38B | -5.65B | 7.96B |
| Financing Cash Flow | 2.06B | 2.12B | 435.00M | 650.00M | 709.00M | -7.39B |
PPL Technical Analysis
Negative
36.22
Price Trends
35.74
Negative
36.55
Negative
36.06
Negative
Market Momentum
-0.27
Positive
36.49
Neutral
15.16
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPL, the sentiment is Negative. The current price of 36.22 is above the 20-day moving average (MA) of 35.70, above the 50-day MA of 35.74, and above the 200-day MA of 36.06, indicating a bearish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 36.49 is Neutral, neither overbought nor oversold. The STOCH value of 15.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
62 Neutral | $22.57B | 21.30 | 11.02% | 2.98% | 9.93% | -1.74% | |
62 Neutral | $27.95B | 25.76 | 8.53% | 3.61% | 12.63% | -17.19% | |
62 Neutral | $26.92B | 18.55 | 8.91% | 4.11% | 7.75% | 66.25% | |
61 Neutral | $26.49B | 28.65 | 8.32% | 3.08% | 7.52% | 21.81% | |
60 Neutral | $30.33B | 19.13 | 11.70% | 2.57% | 3.76% | 25.15% | |
60 Neutral | $29.52B | 22.27 | 10.78% | 3.07% | 17.53% | -8.86% |
* Utilities Sector Average
PPL
PPL
35.46
0.23
0.65%
AEE
Ameren
108.84
10.26
10.41%
CMS
CMS Energy
71.03
-0.22
-0.31%
DTE
DTE Energy
139.87
4.13
3.04%
FE
FirstEnergy
47.47
5.88
14.14%
ES
Eversource Energy
72.33
10.14
16.30%
PPL Corporate Events
Business Operations and StrategyFinancial Disclosures
PPL Posts Strong Q2 Results, Reaffirms Long-Term Growth
Positive
Aug 7, 2026
On August 7, 2026, PPL Corp. reported solid second-quarter 2026 results, with GAAP earnings rising to $230 million, or $0.30 per share, from $183 million, or $0.25 per share, a year earlier, and ongoing EPS inching up to $0.33 from $0.32. For the ...
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.