Vistra (NYSE:VST) Posts Quarterly Earnings Results, Misses Expectations By $0.85 EPS

Vistra (NYSE:VST) issued its earnings results on Friday. The company reported $0.76 EPS for the quarter, missing the consensus estimate of $1.61 by ($0.85), FiscalAI reports. The firm had revenue of $4.02 billion during the quarter, compared to analyst estimates of $5.46 billion. Vistra had a net margin of 11.52% and a return on equity of 105.64%.

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

• Positive Sentiment: Vistra reported second-quarter Adjusted EBITDA of $1.767 billion, up more than 30% year over year, driven by stronger generation results, favorable hedging, higher PJM capacity revenue, asset contributions, and solid retail performance.
• Positive Sentiment: Management reaffirmed 2026 Adjusted EBITDA guidance of $6.8 billion–$7.6 billion and Adjusted Free Cash Flow before Growth of $3.925 billion–$4.725 billion, expressing confidence in achieving at least the midpoint.
• Positive Sentiment: Vistra sees sustained power-demand growth in ERCOT and PJM, including record summer peaks and continued data-center, industrial reshoring, electrification, and population-growth opportunities. The company also committed up to $1 billion to Helix Digital Infrastructure and will serve as its preferred power partner.
• Negative Sentiment: Lower ERCOT forward prices are creating a headwind for 2027, and management said the current outlook trends toward the lower end of its $7.4 billion–$7.8 billion Adjusted EBITDA midpoint opportunity range, although PJM strength, hedging, and nuclear production tax credits provide offsets.
• Positive Sentiment: Vistra expects more than $10 billion of available cash in 2026–2027, with approximately $3 billion allocated to shareholder returns and $4.5 billion–$5 billion earmarked for growth investments. Management retains flexibility to expand buybacks beyond the remaining $1.2 billion authorization and is pursuing additional investment-grade credit upgrades.

Vistra Trading Down 0.5%

Shares of NYSE VST opened at $140.65 on Friday. Vistra has a 1-year low of $132.66 and a 1-year high of $219.82. The company has a market cap of $47.42 billion, a PE ratio of 23.56 and a beta of 1.41. The company has a current ratio of 0.90, a quick ratio of 0.79 and a debt-to-equity ratio of 5.51. The company has a 50-day moving average of $154.94 and a two-hundred day moving average of $157.09.

Vistra Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st will be paid a $0.23 dividend. This is a boost from Vistra’s previous quarterly dividend of $0.23. This represents a $0.92 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Monday, September 21st. Vistra’s payout ratio is presently 15.41%.

Key Vistra News

Here are the key news stories impacting Vistra this week:

• Positive Sentiment: Ongoing-operations adjusted EBITDA increased more than 30% year over year to $1.767 billion, supported by strong power-generation performance and elevated demand during periods of extreme heat. Management reaffirmed its full-year financial guidance. Vistra Reports Second Quarter 2026 Results
• Positive Sentiment: Analysts continue to view Vistra as a potential beneficiary of rising electricity consumption from artificial-intelligence infrastructure and data centers, including potential large-scale projects in the United States. Its generation fleet, nuclear assets and clean-power investments could support longer-term demand. Vistra Is Seen As A Beneficiary Of Rising AI Power Demand
• Positive Sentiment: Vistra declared a quarterly common dividend of $0.23 per share and a semiannual dividend on its Series A preferred stock, reinforcing the company’s income-return strategy. Is Vistra’s Bigger Dividend and AI Power Demand Story Altering The Investment Case
• Neutral Sentiment: Before the release, expectations were elevated because estimates called for sharply higher revenue and EPS, driven by clean-power demand, hedging activity, nuclear generation and contributions from the Lotus business. Vistra to Report Q2 Earnings
• Negative Sentiment: Second-quarter EPS was $0.76 versus the $2.43 analyst consensus, while revenue of $4.02 billion fell well short of the $5.46 billion estimate. Vistra Earnings Data
• Negative Sentiment: GAAP net income was $305 million and included a $472 million unrealized loss on commodity hedges that are expected to settle in future years. The hedge-related loss caused quarterly profit to slip even as the underlying power business strengthened. Vistra Quarterly Profit Slips on Hedging Losses

Insider Activity at Vistra

In other Vistra news, Director Scott B. Helm sold 25,000 shares of the company’s stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $160.00, for a total transaction of $4,000,000.00. Following the transaction, the director owned 232,200 shares of the company’s stock, valued at approximately $37,152,000. This represents a 9.72% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director John R. Sult sold 6,500 shares of the stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $170.00, for a total value of $1,105,000.00. Following the completion of the transaction, the director owned 70,714 shares in the company, valued at $12,021,380. The trade was a 8.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 41,588 shares of company stock valued at $6,739,227 over the last three months. 0.92% of the stock is owned by company insiders.

Hedge Funds Weigh In On Vistra

Large investors have recently made changes to their positions in the company. Empowered Funds LLC lifted its position in Vistra by 24.1% during the 1st quarter. Empowered Funds LLC now owns 20,190 shares of the company’s stock valued at $2,371,000 after purchasing an additional 3,920 shares during the period. Woodline Partners LP grew its position in shares of Vistra by 40.7% during the 1st quarter. Woodline Partners LP now owns 28,744 shares of the company’s stock worth $3,376,000 after buying an additional 8,312 shares during the period. Focus Partners Wealth raised its stake in shares of Vistra by 37.3% during the first quarter. Focus Partners Wealth now owns 7,828 shares of the company’s stock worth $920,000 after buying an additional 2,125 shares during the last quarter. Sivia Capital Partners LLC acquired a new position in Vistra in the second quarter valued at approximately $269,000. Finally, Slocum Gordon & Co LLP lifted its holdings in Vistra by 20.0% in the second quarter. Slocum Gordon & Co LLP now owns 1,200 shares of the company’s stock valued at $233,000 after buying an additional 200 shares during the period. Institutional investors and hedge funds own 90.88% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on VST shares. Zacks Research raised shares of Vistra from a “hold” rating to a “strong-buy” rating in a report on Monday, July 20th. Seaport Research Partners reaffirmed a “buy” rating and set a $230.00 price objective on shares of Vistra in a research note on Monday, June 15th. Weiss Ratings raised shares of Vistra from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, July 31st. UBS Group cut their target price on shares of Vistra from $233.00 to $227.00 and set a “buy” rating for the company in a research note on Tuesday, July 28th. Finally, Morgan Stanley boosted their target price on Vistra from $208.00 to $212.00 and gave the stock an “overweight” rating in a report on Tuesday, July 28th. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and an average price target of $229.88.

Vistra Company Profile

Vistra (NYSE: VST) is an integrated power company that develops, owns and operates electricity generation and retail businesses in the United States. The company’s operations span wholesale power production—through a diversified fleet of thermal and lower‑carbon generation assets—and retail electricity supply to residential, commercial and industrial customers. Vistra serves organized wholesale markets and competitive retail markets, with a notable presence in Texas and other regional U.S. power markets.

Vistra’s core activities include the ownership and operation of generation facilities, the commercial dispatch and optimization of those assets into wholesale markets, and the sale of electricity and related services to end-use customers through its retail brands.