CMS Energy (NYSE:CMS) Releases Quarterly Earnings Results, Beats Expectations By $0.01 EPS

CMS Energy (NYSE:CMS) issued its quarterly earnings results on Thursday. The utilities provider reported $0.95 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.94 by $0.01, FiscalAI reports. The business had revenue of $2.23 billion for the quarter, compared to analyst estimates of $2.13 billion. CMS Energy had a net margin of 12.62% and a return on equity of 12.10%. The business’s revenue was up 12.3% compared to the same quarter last year. During the same period in the previous year, the business posted $0.87 earnings per share. CMS Energy updated its FY 2026 guidance to 3.830-3.900 EPS.

Here are the key takeaways from CMS Energy’s conference call:

• CMS won regulatory approvals that could drive growth — the Large Load Tariff (for data centers) was approved and a 20-year renewable energy plan was authorized, creating roughly a $14 billion customer investment opportunity and protections intended to keep existing customers whole.
• Financial beat and raised guidance — CMS delivered 2025 adjusted EPS of $3.61 (up ~8% YoY), exceeded guidance, and raised 2026 EPS guidance to $3.83–$3.90 while reaffirming long‑term 6%–8% growth and a dividend payout target (~55% over the plan).
• Bigger capital plan with mixed funding implications — management increased the five‑year utility customer investment plan to $24 billion (up $4B) supporting ~10.5% rate‑base growth, while planning ~$700M of parent equity issuance in 2026 and ~$1.7B of utility financings.
• Regulatory uncertainty in the electric rate case — the ALJ’s proposal recommended a low (~8.2%) ROE, which could be earnings‑negative if sustained, though management expects the commission to set an ROE around 9.9% or higher and notes the MPSC staff’s position is more constructive.
• Data‑center pipeline could add incremental upside — CMS says the pipeline has grown, it’s in advanced talks on at least one site with agreements near final and a potential online date as early as 2028, though that load is not yet included in the current plan.

CMS Energy Stock Performance

Shares of CMS stock traded up $1.43 on Thursday, hitting $73.03. The company had a trading volume of 3,737,083 shares, compared to its average volume of 3,057,516. The company has a quick ratio of 0.60, a current ratio of 0.90 and a debt-to-equity ratio of 1.84. The company has a 50-day moving average price of $70.90 and a 200-day moving average price of $72.22. The firm has a market cap of $22.22 billion, a P/E ratio of 21.09, a price-to-earnings-growth ratio of 2.55 and a beta of 0.47. CMS Energy has a twelve month low of $66.53 and a twelve month high of $76.45.

Institutional Investors Weigh In On CMS Energy

A number of hedge funds and other institutional investors have recently modified their holdings of CMS. Cim LLC grew its holdings in shares of CMS Energy by 0.8% during the third quarter. Cim LLC now owns 19,038 shares of the utilities provider’s stock worth $1,395,000 after buying an additional 152 shares during the last quarter. Norinchukin Bank The raised its holdings in shares of CMS Energy by 0.9% in the third quarter. Norinchukin Bank The now owns 18,258 shares of the utilities provider’s stock worth $1,338,000 after acquiring an additional 156 shares during the last quarter. Kestra Private Wealth Services LLC grew its position in shares of CMS Energy by 4.6% in the third quarter. Kestra Private Wealth Services LLC now owns 4,659 shares of the utilities provider’s stock valued at $341,000 after purchasing an additional 206 shares during the period. Ossiam grew its holdings in CMS Energy by 4.4% in the third quarter. Ossiam now owns 5,245 shares of the utilities provider’s stock valued at $384,000 after purchasing an additional 220 shares during the period. Finally, Quadrant Capital Group LLC boosted its holdings in CMS Energy by 5.9% in the third quarter. Quadrant Capital Group LLC now owns 4,122 shares of the utilities provider’s stock valued at $302,000 after acquiring an additional 231 shares during the last quarter. 93.57% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the stock. BMO Capital Markets reiterated an “outperform” rating on shares of CMS Energy in a report on Monday. Weiss Ratings reissued a “buy (b-)” rating on shares of CMS Energy in a report on Wednesday, January 21st. UBS Group set a $79.00 price target on shares of CMS Energy in a report on Monday. Barclays decreased their price objective on CMS Energy from $82.00 to $74.00 and set an “overweight” rating for the company in a report on Wednesday, January 14th. Finally, Morgan Stanley upped their price target on shares of CMS Energy from $74.00 to $75.00 and gave the company an “equal weight” rating in a research note on Monday. Eight research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, CMS Energy presently has a consensus rating of “Moderate Buy” and a consensus target price of $77.69.

Key Stories Impacting CMS Energy

Here are the key news stories impacting CMS Energy this week:

• Positive Sentiment: Q4 results beat estimates — CMS reported $0.95 EPS vs. $0.94 consensus and revenue of $2.23B (up ~12% y/y), driven by strong clean-energy performance and higher power demand. This is the primary catalyst for the stock strength. CMS Energy Q4 Earnings Surpass Estimates, Revenues Increase Y/Y
• Positive Sentiment: Raised FY-2026 guidance — management lifted adjusted EPS guidance to $3.830–3.900 and said 2026 profit outlook improved on stronger power demand, supporting forward earnings expectations. CMS Energy raises 2026 profit forecast on strong power demand, raises dividend
• Positive Sentiment: Board raised quarterly dividend to $0.57 from $0.5425 — a cash-return signal that reinforces the company’s cash-flow strength and is supportive for income-oriented investors. CMS Energy’s Board of Directors Increases Quarterly Dividend on Common Stock to 57 Cents Per Share
• Positive Sentiment: Full-year 2025 outperformance — CMS reported 2025 diluted EPS of $3.53 (up from $3.30), showing year-over-year earnings improvement and that management exceeded prior guidance. CMS Energy Exceeds Earnings Guidance in 2025, Raises 2026 Adjusted EPS Guidance
• Neutral Sentiment: FY-2026 guidance roughly in line with street — the company’s $3.830–3.900 range is centered near consensus (3.85), so upside is modest and already partially priced in. CMS Energy (CMS) Q4 Earnings and Revenues Beat Estimates
• Negative Sentiment: Regulatory/rate-case risk — analysts had flagged a rate-case ruling that could cloud earnings visibility; this remains a potential headwind investors should monitor. CMS Energy earnings on deck as rate case ruling clouds outlook

About CMS Energy

CMS Energy (NYSE: CMS) is an energy company based in Jackson, Michigan, whose principal business is the regulated utility operations of its subsidiary, Consumers Energy. The company is primarily focused on providing electric and natural gas service to customers in Michigan, operating the generation, transmission and distribution infrastructure necessary to deliver energy to residential, commercial and industrial customers. Headquartered in Jackson, CMS Energy conducts its core activities within the state and is regulated by state utility authorities.

Through Consumers Energy and related subsidiaries, CMS Energy develops, owns and operates a portfolio of generation assets and delivers a range of customer-facing services, including electricity and natural gas supply, grid management, energy efficiency programs and demand-response offerings.