PPL Corporation (NYSE: PPLC) reported third-quarter 2026 earnings per share of 0.54 on Nov. 6, 2026, above the analyst estimate of 0.531, on revenue of $2.50B against an estimate of $2.41B. Revenue was higher than the $2.24B a year earlier. The company also raised its long-term earnings growth target, but it expects to sell new shares to pay for it. Figures are current as of Nov. 6-8, 2026 and cover the quarter ended Sept. 30, 2026.
Key facts
- Nov. 6, 2026, EPS: 0.54 reported vs. an analyst estimate of 0.531, a difference of +$0.01 (1.7%).
- Nov. 6, 2026, revenue: $2.50B vs. an analyst estimate of $2.41B, a difference of +$84.5M (3.5%).
- Year-ago comparison (quarter ended Sept. 30, 2025): revenue was $2.24B. Revenue grew 11.5% and net income grew 15.4%.
- Net income and diluted EPS, quarter ended Sept. 30, 2026: net income was $367.0M and diluted EPS was 0.49, vs. $318.0M and 0.43 a year earlier.
- Share price, Nov. 6, 2026: $46.16, down 1.18% on the day. The 52-week range is $43.74 to $52.57.
| Metric | Q3 FY2026 (ended Sept. 30, 2026) | Comparison |
|---|---|---|
| Adjusted EPS | 0.54 | Estimate 0.531 |
| Diluted EPS | 0.49 | Year-ago 0.43 |
| Revenue | $2.50B | Estimate $2.41B; year-ago $2.24B |
| Operating income | $665.0M | Year-ago $569.0M |
| Net income | $367.0M | Year-ago $318.0M |
Two EPS figures appear above. The 0.54 is the figure compared with analyst estimates. The 0.49 is the diluted per-share profit from the financial statements. The year-ago comparison of 0.43 is for the diluted figure. The call attributes the gap between them to $0.05 per share of special items, primarily system and other integration-related costs and PPL's Rhode Island hold harmless commitment.
What happened
PPL is a regulated utility. Regulators set the rates it charges customers, and it earns a return on the money it invests in its network. All of its reported revenue in the quarter came from three regulated areas:
- Kentucky Regulated: $1.05B
- Pennsylvania Regulated: $921.0M
- Rhode Island Regulated: $530.0M
The headline event. CEO Vincent Sorgi announced that Invitium, PPL's 51%-owned power generation venture, signed a letter of intent with data center developer QTS to be its generation provider for about 2 gigawatts at QTS's Salem Township, Pennsylvania project, with a 20-year initial term. Management put the total investment at an estimated $5 billion to $7 billion, with PPL's share at approximately $2.5 billion to $3.5 billion. Fuel cells and batteries could come online as early as 2029, and two combined-cycle gas plants are expected in 2032 and 2033. A cost reimbursement agreement also provides reimbursement for specified development costs if certain approvals are not achieved. Management said its updated plan excludes any financial impact from Invitium.
Guidance. On the call, management narrowed its 2026 ongoing EPS forecast to a range of $1.92 to $1.96 and said it is on track to reach at least the midpoint of $1.94. For 2027 it forecast $2.06 to $2.14. It raised its long-term EPS growth target to 7% to 9% through at least 2030.
The capital plan is $25 billion from 2027 through 2030, which management said would lift the asset base used to set rates by about 10% a year. Sorgi opened the call by summarizing its key takeaways as "Strong execution, a stronger base growth outlook and clear path to meaningful upside, including today's Invitium QTS announcement."
The upside case. Management said additional regulated generation in Kentucky could push growth above 9% through 2030. Separately, management sized total potential Invitium investment at $6 billion to $9 billion through 2032 for PPL's 51% share, based on 5 gigawatts of turbine reservations. That is not in the base plan. Sorgi said the incremental regulated investment, including the Kentucky generation, should be paid for primarily by the large customers driving the demand, not existing customers. Invitium is paid through its contracts with data center customers. He declined to give Invitium's returns, saying only that they are above typical utility returns and below pure power-producer returns.
Why it matters for investors
Profit margins bounced back, but the trend is uneven. Operating margin, which is operating income as a share of revenue, over the last five quarters was:
| Quarter ended | Revenue | Operating margin | Net income |
|---|---|---|---|
| Sept. 30, 2025 | $2.24B | 25.4% | $318.0M |
| Dec. 31, 2025 | $2.27B | 21.0% | $266.0M |
| Mar. 31, 2026 | $2.77B | 26.6% | $452.0M |
| June 30, 2026 | $2.11B | 22.5% | $230.0M |
| Sept. 30, 2026 | $2.50B | 26.6% | $367.0M |
The pattern shows seasonality. Winter and summer quarters tend to differ in demand, so the year-ago quarter is a better comparison than the previous one. On that basis the latest quarter's operating margin was higher than a year earlier.
Cash flow is the pressure point. Operating cash flow in the latest quarter was $916.0M, against $966.0M a year earlier. Capital spending was about $1.19B. Free cash flow, which is cash from operations minus investment, was negative $275.0M, versus negative $179.0M a year earlier. Dividends paid were $214.0M, and the company made no buybacks. A utility that builds heavily often spends more than it generates and fills the gap with debt and new shares. Management said it needs about $3 billion in new equity through 2030, mostly through an at-the-market program (selling shares gradually on the open market), beyond more than $1.5 billion already arranged through forward sale agreements. CFO Joe Bergstein said about $2 billion of the $3 billion supports the updated capital plan, and the rest covers unissued equity from the prior plan. That dilutes existing shareholders, meaning each share represents a smaller slice of the company.
Balance sheet. At Sept. 30, 2026, PPL had $393.0M in cash and short-term investments, $20.89B in total debt and $20.50B in net debt. Shareholders' equity was $15.21B, and debt/equity was 1.37. The Altman Z score, a rough bankruptcy-risk gauge, was 1.29, and the Piotroski score, a 0-to-9 measure of financial health, was 5. Both readings are weak.
Valuation versus peers.
| Company | P/E (trailing 12 months) | Net margin |
|---|---|---|
| PPL (PPLC) | 20.34 | 13.6% |
| CenterPoint Energy (CNP) | 23.23 | 11.8% |
| Duke Energy (DUK) | 18.68 | 15.9% |
| Eversource Energy (ES) | 18.43 | 10.4% |
| Entergy (ETR) | 25.07 | 14.7% |
PPL sits in the middle of this group on both price-to-earnings and profit margin. Its dividend yield is 3.1%. Its price-to-free-cash-flow ratio is 107.34, which is high because free cash flow is thin. FMP's discounted cash flow model returns a negative value of -22.65 USD per share. That reflects the heavy spending in the model and says little on its own about a regulated utility's earnings power.
Our MoonshotScore. A MoonshotScore for PPLC was not available in the data used for this article, so we are not reporting one.
What could go wrong. Risks raised on the call included:
- Kentucky regulators did not approve the sharing mechanism that would have let LG&E and KU avoid a new rate case through 2028, so the utilities expect to file new base rate cases in the coming months.
- Rhode Island did not approve the requested second-year rate increase, and a new case is planned as early as next year.
- Supply-chain constraints and cost pressures raise the price of new generation. Sorgi said the original Kentucky certificate of public convenience and necessity (CPCN) filing "didn't get everything approved" and "the second one was about $1 billion more than the first one," adding that "conservatism is not cost free."
- Invitium has unresolved conditions. The QTS agreement is a letter of intent, not a binding contract, pending the long-form agreement, and the financing structure and a different cash flow profile from a regulated utility are also open. Bergstein said, "I wouldn't expect any earnings before the units come online."
- Analyst Steven Fleishman of Wolfe Research asked about the Pennsylvania GRID plan and possible legislation next year after the elections. Sorgi said he has "no overarching concern" and that the new legislative session "may actually provide a more receptive environment" for PPL's affordability ideas.
What to watch next
- Next earnings: expected Feb. 12, 2027, with an EPS estimate of 0.4623 and a revenue estimate of $2.48B.
- Kentucky and Rhode Island rate cases: filings and outcomes will show how much of the plan regulators accept.
- Equity issuance: how quickly the planned share sales happen.
- Invitium: Sorgi said another announcement by year-end is "certainly possible," with no firm timeline. Bergstein said "rate base math doesn't necessarily work for deals like this," which signals a different financial profile from the core utility.
- Financial guidance on the venture: management said it would likely come around final notice to proceed.
What our data could not verify
We did not have a MoonshotScore, an analyst price-target range, or a clean quarter-by-quarter free cash flow history (one quarter in the source data looked inconsistent, so we left it out). The consensus estimates for 2030 periods came from a single analyst, so we did not rely on them. Management guidance and quotes come from the Nov. 6, 2026 earnings call. Market data, financial statements and peer figures come from Financial Modeling Prep (FMP). Both are third-party sources, separate from any Stock Expert AI analysis.
Frequently asked questions
Q: Did PPL beat earnings estimates in the third quarter of 2026?
Yes. For the quarter ended Sept. 30, 2026, PPL reported EPS of 0.54 against an analyst estimate of 0.531, and revenue of $2.50B against an estimate of $2.41B. Diluted EPS was 0.49, versus 0.43 in the year-ago quarter.
Q: What is PPL's earnings guidance for 2026 and 2027?
According to the company's Nov. 6, 2026 call, PPL narrowed its 2026 ongoing EPS guidance to $1.92 to $1.96 and said it expects at least the $1.94 midpoint. For 2027 it forecast $2.06 to $2.14 and raised its long-term EPS growth target to 7% to 9% through at least 2030.
Q: Is PPL's growth plan fully funded?
Not from internal cash alone. In the quarter ended Sept. 30, 2026, PPL's free cash flow was negative $275.0M after about $1.19B in capital spending; the company also paid $214.0M in dividends. Management said it expects to raise roughly $3 billion in new equity through 2030, mainly by selling shares gradually, along with taking on debt.
This is educational content, not investment advice. Past performance does not guarantee future results.