Xcel Energy Inc
Q2 2026 Earnings
Market Reaction
Did XEL Beat Earnings? Q2 2026 Results
Xcel Energy Inc. delivered a stronger-than-expected second quarter, posting earnings per share of $0.93 against analyst expectations closer to $0.78, as the Minneapolis-based utility continued to benefit from expanded infrastructure investment recovery across its operating subsidiaries. Total revenues came in at $3.12 billion, down 5.1% from a year ago, though the decline reflected lower electric fuel and purchased power pass-through costs rather than any erosion in the underlying business. Operating income climbed to $706.00 million from $577.00 million, supported by a $60.00 million reduction in depreciation tied to nuclear life extensions approved in NSP-Minnesota's rate case and $240.00 million in lower fuel costs, partially offset by $94.00 million in higher interest charges as the company carries greater debt to fund its capital program. All four operating subsidiaries posted year-over-year EPS gains, with NSP-Minnesota and PSCo leading contributions at $0.37 and $0.32 per share, respectively. Management reaffirmed its full-year 2026 ongoing EPS guidance of $4.04 to $4.16, with long-term annual EPS growth targeted at 6% to 8% or better off a $3.80 base.
- Increased recovery of electric infrastructure investments
- Lower electric fuel and purchased power costs
- Lower depreciation and amortization due to nuclear life extensions
- Higher AFUDC equity and debt from expanded system investment
- Unrealized gains on equity method investment funds' interests in energy technology companies
- Partially offset by higher financing costs from increased debt levels
“Xcel Energy has been at the center of transformations and infrastructure shifts in our industry for more than 100 years. Our second quarter results demonstrate strong and consistent execution across all our key priorities: customer satisfaction and affordability, system reliability and resiliency, meeting the clean energy aspirations of our communities and ensuring financial discipline.”
Xcel Energy CEO, on the earnings call
Forward Guidance & Outlook
Xcel Energy reaffirmed its 2026 ongoing EPS guidance range of $4.04 to $4.16 per share. Key assumptions include constructive outcomes in all pending rate case and regulatory proceedings, normal weather patterns for the remainder of the year, weather-normalized retail electric sales growth of approximately 3%, weather-normalized retail firm natural gas sales growth of approximately 1%, capital rider revenue increases of $480 million to $490 million, O&M expense increases of approximately 3%, depreciation expense increases of approximately $140 million to $150 million, interest expense increases of $240 million to $250 million (net of AFUDC-debt and interest income), and AFUDC-equity increases of $150 million to $160 million. Long-term objectives include annual EPS growth of 6% to 8+% based off $3.80 per share, annual dividend increases of 4% to 6%, and a target dividend payout ratio of 45% to 55%.
XEL YoY Financials
XEL Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.