XCEL ENERGY INC (XEL): THIRD QUARTER 2026 EARNINGS REPORT
XCEL ENERGY INC (XEL) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.01 414 Nicollet Mall October 29, 2026 Minneapolis, MN 55401 XCEL ENERGY THIRD QUARTER 2026 EARNINGS REPORT • Third quarter diluted GAAP and ongoing earnings per share were $1.52 in 2026 compared with GAAP earnings of $0.88 and ongoing earnings of $1.24 in 2025. • Year-
How this was made
The 30-second read
Why it matters
The earnings beat and revised guidance provide fresh material for traders to adjust positions ahead of the earnings call.
Market read
First‑report earnings and guidance update for a large‑cap utility, likely to move the stock in pre‑market trading.
What to watch
Higher financing costs and warm weather could pressure future margins despite the earnings beat.
Third quarter diluted GAAP and ongoing earnings per share were $1.52; Xcel Energy narrowed 2026 ongoing EPS guidance to $4.10 to $4.16 and initiated 2027 guidance of $4.48 to $4.62.
Third-quarter GAAP net income rose to $960 million from $524 million and ongoing diluted EPS rose to $1.52 from $1.24. Higher electric infrastructure recovery, equity-method investment earnings and warm weather supported results, while financing costs, higher O&M and share issuance remained offsets.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total operating revenues, three months ended Sept. 30GAAP | $4.17B | – | – |
| Electric operating revenues, three months ended Sept. 30GAAP | $3.89B | – | Total increase $ 250 million |
| Natural gas operating revenues, three months ended Sept. 30GAAP | $272M | – | Total increase (decrease) $ 8 million |
| Other operating revenues, three months ended Sept. 30GAAP | $12M | – | – |
| Electric fuel and purchased power expense, three months ended Sept. 30GAAP | $1.07B | – | decreased $31 million |
| Cost of natural gas sold and transported, three months ended Sept. 30GAAP | $58M | – | decreased $3 million |
| Cost of sales — other, three months ended Sept. 30GAAP | $2M | – | – |
| Operating and maintenance expenses, three months ended Sept. 30GAAP | $759M | – | increased $67 million |
| Conservation and demand side management expenses, three months ended Sept. 30GAAP | $125M | – | – |
| Depreciation and amortization, three months ended Sept. 30GAAP | $791M | – | increased $41 million |
| Taxes other than income taxes, three months ended Sept. 30GAAP | $178M | – | – |
| Marshall Wildfire litigation, three months ended Sept. 30GAAP | $1M | – | – |
| Total operating expenses, three months ended Sept. 30GAAP | $2.98B | – | – |
| Operating income, three months ended Sept. 30GAAP | $1.19B | – | – |
| Other income, net, three months ended Sept. 30GAAP | $62M | – | – |
| Earnings from equity method investments, three months ended Sept. 30GAAP | $77M | – | increased $71 million |
| Allowance for funds used during construction — equity, three months ended Sept. 30GAAP | $131M | – | – |
| Total interest charges and financing costs, three months ended Sept. 30GAAP | $432M | – | – |
| Income before income taxes, three months ended Sept. 30GAAP | $1.03B | – | – |
| Income tax expense, three months ended Sept. 30GAAP | $69M | – | – |
| Effective income tax rate, three months ended Sept. 30GAAP | 6.7 % | – | 5.2 % |
| Net income, three months ended Sept. 30GAAP | $960M | – | – |
| Diluted EPS, three months ended Sept. 30GAAP | $ 1.52 | – | – |
| Ongoing earnings, three months ended Sept. 30non-GAAP | $961M | – | – |
| Ongoing diluted EPS, three months ended Sept. 30non-GAAP | $ 1.52 | – | – |
| Total operating revenues, nine months ended Sept. 30GAAP | $11.31B | – | – |
| Electric operating revenues, nine months ended Sept. 30GAAP | $9.60B | – | Total increase $ 253 million |
| Natural gas operating revenues, nine months ended Sept. 30GAAP | $1.67B | – | Total increase (decrease) $ (48) million |
| Other operating revenues, nine months ended Sept. 30GAAP | $41M | – | – |
| Operating and maintenance expenses, nine months ended Sept. 30GAAP | $2.13B | – | increased $72 million |
| Operating income, nine months ended Sept. 30GAAP | $2.65B | – | – |
| Earnings from equity method investments, nine months ended Sept. 30GAAP | $166M | – | increased $169 million |
| Net income, nine months ended Sept. 30GAAP | $2.10B | – | – |
| Diluted EPS, nine months ended Sept. 30GAAP | $ 3.34 | – | – |
| Ongoing earnings, nine months ended Sept. 30non-GAAP | $2.12B | – | – |
| Ongoing diluted EPS, nine months ended Sept. 30non-GAAP | $ 3.37 | – | – |
| Effective income tax rate, nine months ended Sept. 30GAAP | (1.8) % | – | 6.6 % |
| Book value per share, Sept. 30GAAP | $ 40.32 | – | – |
| Cash dividends declared per common share, three months ended Sept. 30other | 0.5925 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Electric operating revenues, three months ended Sept. 30Regulatory rate outcomes, non-fuel riders, sales and demand, wholesale transmission and the estimated impact of weather, partly offset by PTCs flowed back to customers and lower wholesale generation. | $3.89B | – | Total increase $ 250 million |
| Natural gas operating revenues, three months ended Sept. 30Regulatory rate outcomes and other items more than offset recovery of lower cost of natural gas and the estimated impact of weather. | $272M | – | Total increase (decrease) $ 8 million |
| Electric operating revenues, nine months ended Sept. 30Non-fuel riders, sales and demand, wholesale transmission and regulatory rate outcomes were partly offset by lower fuel and purchased power recovery, PTCs flowed back to customers, wholesale generation and Prairie Island outage refunds. | $9.60B | – | Total increase $ 253 million |
| Natural gas operating revenues, nine months ended Sept. 30The estimated impact of weather and lower natural-gas cost recovery more than offset regulatory rate outcomes and other items. | $1.67B | – | Total increase (decrease) $ (48) million |
2026 and 2027 outlook
- Operating expenses2026: O&M expenses are projected to increase ~5%. 2027: O&M expenses are projected to increase ~4%.
- Note2026 ongoing earnings guidance: $4.10 to $4.16 per share.
- Note2027 ongoing earnings guidance: $4.48 to $4.62 per share.
- Note2026 weather-normalized retail electric sales are projected to increase ~3%.
- Note2026 weather-normalized retail firm natural gas sales are projected to be flat.
- Note2026 capital rider revenue is projected to increase $370 million to $380 million.
- Note2026 depreciation expense is projected to increase approximately $100 million to $110 million.
- Note2026 property taxes are projected to increase $30 million to $40 million.
- Note2026 interest expense (net of AFUDC - debt) is projected to increase $290 million to $300 million, net of interest income.
- Note2026 AFUDC - equity is projected to increase $180 million to $190 million.
- Note2027 weather-normalized retail electric sales are projected to increase ~5%.
- Note2027 weather-normalized retail firm natural gas sales are projected to increase ~1%.
- Note2027 capital rider revenue is projected to increase $560 million to $570 million.
- Note2027 depreciation expense is projected to increase approximately $460 million to $470 million.
- Note2027 property taxes are projected to increase $30 million to $40 million.
- Note2027 interest expense (net of AFUDC - debt) is projected to increase $320 million to $330 million, net of interest income.
- Note2027 AFUDC - equity is projected to increase $250 million to $260 million.
- NoteLong-term annual EPS growth objective: 6% to 8+%.
- NoteAnnual dividend increase objective: 4% to 6%.
- NoteTarget dividend payout ratio: 45% to 55%.
Capital returns
- Cash dividends declared per common share were 0.5925 for the three months ended Sept. 30, 2026, compared with 0.57 in 2025.
- Cash dividends declared per common share were 1.7775 for the nine months ended Sept. 30, 2026, compared with 1.71 in 2025.
- Xcel Energy targets annual dividend increases of 4% to 6% and a dividend payout ratio of 45% to 55%.
- In the third quarter of 2026, 10.5 million shares were issued, with net proceeds of $819 million, in settlements of forward sale agreements or in at-the-market cash transactions.
- During the nine months ended Sept. 30, 2026, Xcel Energy Inc. entered forward sale agreements totaling 62.1 million shares with minimum expected proceeds of $4.1 billion.
What drove it
- The change in third-quarter EPS was primarily driven by increased recovery of electric infrastructure investments, earnings on equity method investments and unseasonably warm weather, partially offset by higher financing costs.
- Weather-normalized total retail electric sales grew 3.0 % in the third quarter and 2.5 % year-to-date for Xcel Energy.
- Year-to-date weather-normalized residential electric sales growth reflected customer growth and higher use per customer across jurisdictions.
- Year-to-date weather-normalized C&I sales growth reflected higher use per customer in SPS and NSP-Minnesota and customer growth in NSP-Wisconsin; increased activity in the energy sector in SPS and the manufacturing sector in all jurisdictions contributed.
- The year-to-date increase in O&M expenses was primarily due to increased generation, wildfire mitigation and gas system costs.
- Year-to-date higher interest charges were primarily due to higher debt levels.
- Year-to-date earnings from equity method investments increased primarily due to unrealized gains on investment funds’ interests in energy technology companies.
- Year-to-date AFUDC increased primarily due to system investment.
Concerns
- Interest charges increased $100 million in the third quarter and $274 million year-to-date, primarily due to higher debt levels.
- O&M expenses increased $67 million in the third quarter and $72 million year-to-date.
- The estimated remaining probable losses for Smokehouse Creek Fire Complex complaints and claims represent the low end of the range for remaining reasonably estimable losses and are subject to change.
- Resolution of remaining Smokehouse Creek Fire Complex claims could exceed insurance coverage of $525 million and could have a material adverse effect on financial condition, results of operations or cash flows.
- The Texas Attorney General's claims regarding the Smokehouse Creek Fire are in discovery, which is anticipated to continue into 2027.
- The 2026 and 2027 guidance assumptions include constructive outcomes in all pending rate case and regulatory proceedings.
What to watch
- A MPUC decision on NSP-Minnesota's proposed Electric Customer Rate Stability Plan has been requested by January 2027; if not approved, NSP-Minnesota expects to file an electric rate case in early 2027.
- Final rates from the Minnesota electric rate case will take effect in the first quarter of 2027.
- A MPUC decision on the NSP-Minnesota natural gas rate case is expected in the fourth quarter of 2026.
- The MPUC decision on the Pine Island Data Center electric service agreement is expected in early 2027.
- An NMPRC decision on the SPS 2025 New Mexico electric rate case is anticipated in the fourth quarter of 2026, with implementation of rates expected in December 2026.
- Xcel Energy's 2027-2031 base capital expenditure forecast is $ 70,000 million, and the plan excludes potential incremental generation from current RFPs, investments to serve future large-load customers and additional transmission investment from future planning processes.
- The company expects to seek rehearing after the PUCT approved the SPS self-build portfolio except for the Plant X battery storage project.
Balance sheet and cash flow
- Total debt was $ 40,598 million as of Sept. 30, 2026, compared with $ 33,883 million as of Dec. 31, 2025.
- Common equity was $ 25,501 million as of Sept. 30, 2026, compared with $ 23,609 million as of Dec. 31, 2025.
- Total capitalization was $ 66,099 million as of Sept. 30, 2026, compared with $ 57,492 million as of Dec. 31, 2025.
- Total committed credit facility liquidity was $ 5,043 million as of October 27, 2026, including $ 1,725 million of cash.
- Xcel Energy Inc.'s $1.5 billion term loan matures in January 2027.
- As of Sept. 30, 2026, 79.4 million shares remained unsettled on forward sale agreements, with minimum expected proceeds of $5.8 billion.
- Base capital expenditures for 2027 through 2031 are forecast at $ 70,000 million.
- Current estimated financing plans for 2027-2031 include $ 35,810 million of cash from operations, $ 26,190 million of new debt and $ 8,000 million of equity issuances to fund $ 70,000 million of base capital expenditures, plus $ 5,630 million of maturing debt.
Analysis
Xcel Energy reported a materially stronger third quarter. GAAP net income was $960 million, or $1.52 per diluted share, compared with $524 million, or $0.88 per share, in the same period in 2025. Ongoing earnings were $961 million, or $1.52 per share, compared with $737 million, or $1.24 per share. Management attributed the ongoing EPS improvement primarily to increased recovery of electric infrastructure investments, earnings on equity method investments and unseasonably warm weather, partly offset by higher financing costs.
Revenue growth was concentrated in electricity. Third-quarter electric operating revenues were $3,888 million compared with $3,638 million, while natural gas operating revenues were $272 million compared with $264 million. The electric revenue increase reflected regulatory rate outcomes, non-fuel riders, sales and demand, wholesale transmission and weather, with offsets from PTCs flowed back to customers and wholesale generation. Xcel Energy reported weather-normalized total retail electric sales growth of 3.0 % for the quarter and 2.5 % year-to-date. Weather-normalized firm natural gas sales declined (2.2) % in the quarter and (1.6) % year-to-date.
Operating income rose to $1,191 million from $749 million. The comparison included a sharply reduced Marshall Wildfire litigation charge, $1 million in the 2026 quarter versus $287 million in the 2025 quarter. O&M expense increased $67 million to $759 million, depreciation and amortization increased $41 million to $791 million, and interest charges increased $100 million to $484 million. Earnings from equity method investments increased to $77 million from $6 million, while AFUDC equity rose to $131 million from $79 million. The third-quarter effective income tax rate was 6.7 % compared with 1.5 %.
The balance sheet is supporting an expanded investment program but carries higher leverage and further equity financing. Total debt was $40,598 million at Sept. 30, 2026, versus $33,883 million at Dec. 31, 2025. The company forecast $70,000 million of base capital expenditures for 2027 through 2031 and estimated funding from $35,810 million of cash from operations, $26,190 million of new debt and $8,000 million of equity issuances. In the third quarter, Xcel issued 10.5 million shares for net proceeds of $819 million. The company also retained $5,043 million of total liquidity as of October 27, 2026.
Management narrowed 2026 ongoing EPS guidance to $4.10 to $4.16 from the original $4.04 to $4.16 range and initiated 2027 ongoing EPS guidance of $4.48 to $4.62. The 2026 outlook assumes approximately ~3% weather-normalized retail electric sales growth, ~5% O&M growth and $290 million to $300 million of higher interest expense net of interest income. The 2027 outlook assumes approximately ~5% weather-normalized retail electric sales growth, ~4% O&M growth, $560 million to $570 million of capital rider revenue growth and $320 million to $330 million of higher interest expense net of interest income. Regulatory outcomes, planned capital investment, financing execution and wildfire exposure remain central variables for results.
Management, verbatim
As one of the nation’s largest builders of clean generation and high-voltage transmission, Xcel Energy continues to make critical investments in the infrastructure our customers and communities need, while staying focused on delivering safe, clean, reliable and affordable energy. We’ve made considerable progress on our priorities this quarter and our updated five-year investment plan gives us a clear path to extend this growth cycle and continue to deliver affordable and reliable energy our customers need well into the next decade.
Bob Frenzel, chairman, president and CEO of Xcel Energy
Not in the filing
stated, not guessed- Gross margin was not reported.
- Free cash flow was not reported.
- Operating cash flow was not reported.
- Cash flow from investing was not reported.
- Share repurchases were not reported.
- A standalone cash balance as of Sept. 30, 2026 was not reported.
- No prior-quarter financial comparisons were reported for the income-statement metrics.
- No prior earnings release outlook section was provided for formal actual-versus-prior-guidance comparisons.
- A quantitative reconciliation from ongoing EPS guidance to GAAP EPS was not provided because management stated it was unable to quantify impacts of potential additional adjustments.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is an SEC Form 8‑K Item 2.02 earnings release for Xcel Energy, a Nasdaq‑listed utility.
Ticker impact
Xcel Energy reported Q3 2026 GAAP EPS of $1.52 and updated its 2026 ongoing EPS guidance to $4.10‑$4.16, providing fresh earnings data and revised guidance.
likely modest upside as investors price in stronger earnings and revised guidance
The 8‑K filing is the first public disclosure of the quarter's results and guidance; the earnings beat prior year and the guidance range is higher than the previous outlook, which typically supports a positive price reaction.
Market effects
Utility sector may see a slight lift as a large utility reports stronger earnings and raises guidance.
Midwest utility investors could experience buying pressure.
Limited; primarily affects US utility and energy investors.
Counterpoint
If the market had already priced in a strong quarter, the modest guidance range could be seen as a ceiling, limiting upside.
Key entities
- ExecutiveBob Frenzel
Chairman, President and CEO of Xcel Energy, quoted in the filing.
