PPL (NYSE:PPL) Announces Quarterly Earnings Results, Misses Expectations By $0.01 EPS

PPL (NYSE:PPL) posted its quarterly earnings results on Friday. The utilities provider reported $0.41 EPS for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.01), FiscalAI reports. The business had revenue of $2.27 billion for the quarter, compared to the consensus estimate of $2.34 billion. PPL had a return on equity of 9.08% and a net margin of 12.16%.The company’s revenue for the quarter was up 2.8% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.34 EPS. PPL updated its FY 2026 guidance to 1.900-1.980 EPS.

Here are the key takeaways from PPL’s conference call:

• Updated business plan and 2026 guidance: PPL issued 2026 ongoing EPS guidance of $1.90–$1.98 (midpoint $1.94), extended its 6%–8% annual EPS growth target through at least 2029 and projects a $23 billion capital plan for 2026–2029 supporting a ~10.3% rate‑base CAGR.
• Kentucky rate case wins enable recovery — regulators approved ~ $233 million in annual electric and gas revenue increases, higher allowed ROEs and a pilot generation recovery mechanism (including keeping Mill Creek Unit Two online), supporting near‑term returns and generation build recovery.
• Large data center opportunity and Blackstone JV upside: Pennsylvania now has ~25.2 GW of advanced data‑center projects (with at least 10 GW expected under ESAs soon), Kentucky pipeline ~9 GW, and the JV with Blackstone is positioned to supply new generation to hyperscalers — JV earnings are not assumed in the base plan but could contribute in the back half of the planning horizon.
• Higher capex and financing plan: CapEx needs rose to $23 billion (up $3 billion), with about $3 billion of equity required through 2029 (roughly $1B already issued), a continued focus on maintaining 16%–18% FFO/debt, and a temporary dividend growth target of 4%–6% while equity is issued.
• Efficiency and affordability progress: PPL achieved ~$170 million in run‑rate O&M savings (about a year ahead of target), expects ~1% annual O&M growth, and highlighted digital/AI initiatives and customer assistance programs to limit bill impacts.

PPL Stock Up 1.2%

PPL opened at $37.43 on Friday. The stock has a fifty day moving average of $35.73 and a 200-day moving average of $36.14. The company has a market capitalization of $27.69 billion, a P/E ratio of 23.40, a P/E/G ratio of 2.61 and a beta of 0.70. PPL has a fifty-two week low of $32.50 and a fifty-two week high of $38.26. The company has a debt-to-equity ratio of 1.18, a quick ratio of 0.66 and a current ratio of 0.77.

Key Headlines Impacting PPL

Here are the key news stories impacting PPL this week:

• Positive Sentiment: PPL raised its dividend and emphasized growing demand from data centers, signaling stronger cash-return focus and higher long-term growth opportunities for its regulated and non‑regulated businesses. PPL Lifts Dividend, Bets Big On Data Center Demand
• Positive Sentiment: PPL boosted its multi‑year infrastructure/capital plan (now ~$23B) and extended EPS growth targets through 2029, which supports longer‑term earnings power and rate-base growth expectations. PPL reports 2025 results; business plan update
• Positive Sentiment: Unusually large call‑option buying suggests some traders are positioning for upside in the near term, which can add upward pressure on the stock. (Options flow reported intraday.)
• Neutral Sentiment: PPL provided FY‑2026 EPS guidance of $1.90–$1.98, roughly in line with consensus — offering clarity but not a clear beat to drive an outsized rally. PPL Earnings Miss Estimates in Q4, Revenues Increase Y/Y
• Neutral Sentiment: Operationally mixed quarter: revenue rose ~2.8% year‑over‑year to $2.27B, and EPS was $0.41 versus a $0.42 consensus — a small miss that tempers enthusiasm but isn’t a large shock. Q4 2025 Earnings Call Transcript
• Negative Sentiment: Reuters and other outlets flagged that PPL’s 2026 profit outlook comes in below some analyst estimates even as the company expands spending — raising concerns about near‑term earnings pressure and capital intensity. That commentary helped trigger intraday selling. Utility PPL forecasts 2026 profit below estimates, lifts spending plan
• Negative Sentiment: News outlets noted the stock “slipped” after results and the capital plan update, reflecting investor caution about increased capex and near‑term margin impact. PPL slips nearly 4% after Q4 results meet estimates and $23B capital plan update

Institutional Trading of PPL

Hedge funds and other institutional investors have recently bought and sold shares of the business. Rossby Financial LCC boosted its holdings in PPL by 70.0% in the 4th quarter. Rossby Financial LCC now owns 3,012 shares of the utilities provider’s stock valued at $105,000 after purchasing an additional 1,240 shares during the period. EverSource Wealth Advisors LLC raised its position in shares of PPL by 64.9% in the second quarter. EverSource Wealth Advisors LLC now owns 4,695 shares of the utilities provider’s stock valued at $159,000 after buying an additional 1,848 shares in the last quarter. Triumph Capital Management bought a new stake in shares of PPL in the third quarter valued at approximately $173,000. Cary Street Partners Financial LLC boosted its stake in shares of PPL by 6.9% in the second quarter. Cary Street Partners Financial LLC now owns 5,299 shares of the utilities provider’s stock valued at $180,000 after buying an additional 343 shares during the period. Finally, von Borstel & Associates Inc. acquired a new stake in PPL during the third quarter worth approximately $235,000. Institutional investors and hedge funds own 76.99% of the company’s stock.

Wall Street Analyst Weigh In

Several brokerages have recently commented on PPL. Barclays reduced their target price on PPL from $40.00 to $37.00 and set an “equal weight” rating for the company in a research note on Thursday, January 22nd. JPMorgan Chase & Co. reduced their price objective on shares of PPL from $43.00 to $40.00 and set an “overweight” rating for the company in a research report on Thursday, December 11th. UBS Group decreased their price objective on shares of PPL from $38.00 to $36.00 and set a “neutral” rating on the stock in a report on Wednesday, December 17th. BMO Capital Markets increased their price objective on shares of PPL from $40.00 to $41.00 and gave the company an “outperform” rating in a research report on Wednesday. Finally, Mizuho set a $39.00 target price on shares of PPL in a report on Wednesday. Two investment analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Buy” and an average price target of $40.55.

PPL Company Profile

PPL Corporation is an energy company that owns and operates electric transmission and distribution infrastructure and provides related customer services. The company’s core business centers on delivering electricity to residential, commercial and industrial customers through regulated utility operations, maintaining grid reliability, responding to outages and managing customer billing and account services.

PPL’s activities include construction and maintenance of distribution and transmission lines, meter and grid management, and programs to support energy efficiency and the interconnection of distributed resources.