PPL Corporation Delivers Strong Third-Quarter 2026 Earnings
PPL Corp (PPL) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 news release www.pplnewsroom.com Contacts: For news media: Ryan Hill, 610-774-4033 For financial analysts: Andy Ludwig, 610-774-3389 PPL Corporation Delivers Strong Third-Quarter 2026 Earnings; Raises Long‑Term EPS Growth Outlook • Announces 2026 third-quarter report
How this was made
The 30-second read
Why it matters
The earnings beat and narrowed guidance provide fresh, material data that can influence short‑term price action and investor sentiment.
Market read
The filing delivers primary earnings and guidance information for a large‑cap utility, making it a high‑value trading catalyst.
What to watch
Potential execution risk on the $25 billion capital plan and the large‑load tariff structure could temper upside.
PPL Corporation Delivers Strong Third-Quarter 2026 Earnings; Raises Long-Term EPS Growth Outlook
Third-quarter reported earnings increased 15% to $367 million and ongoing earnings per share increased 13% to $0.54. PPL narrowed its 2026 ongoing EPS range while retaining its $1.94 per share midpoint, introduced a 2027 forecast of $2.06 to $2.14 per share, raised its long-term EPS growth target to 7% to 9%, and expanded its capital plan to $25 billion for 2027-2030.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Operating Revenues, three months ended September 30, 2026GAAP | $2.50B | – | – |
| Operating Revenues, nine months ended September 30, 2026GAAP | $7.38B | – | – |
| Total Operating Expenses, three months ended September 30, 2026GAAP | $1.83B | – | – |
| Operating Income, three months ended September 30, 2026GAAP | $665M | – | – |
| Operating Income, nine months ended September 30, 2026GAAP | $1.89B | – | – |
| Interest Expense, three months ended September 30, 2026GAAP | $234M | – | – |
| Interest Expense, nine months ended September 30, 2026GAAP | $690M | – | – |
| Income Before Income Taxes, three months ended September 30, 2026GAAP | $453M | – | – |
| Income Taxes, three months ended September 30, 2026GAAP | $86M | – | – |
| Reported earnings, third quarter 2026GAAP | $367M | – | 15% |
| Reported earnings per share, third quarter 2026GAAP | $0.49 per share | – | 14% |
| Diluted EPS, third quarter 2026GAAP | $0.49 | – | – |
| Reported earnings, first nine months of 2026GAAP | $1.05B | – | 15% |
| Reported earnings per share, first nine months of 2026GAAP | $1.38 per share | – | 12% |
| Diluted EPS, nine months ended September 30, 2026GAAP | $1.38 | – | – |
| Earnings from ongoing operations, third quarter 2026non-GAAP | $411M | – | 16% |
| Earnings from ongoing operations per share, third quarter 2026non-GAAP | $0.54 per share | – | 13% |
| Earnings from ongoing operations, first nine months of 2026non-GAAP | $1.14B | – | 9% |
| Earnings from ongoing operations per share, first nine months of 2026non-GAAP | $1.50 per share | – | 7% |
| Kentucky Regulated reported earnings per share, third quarter 2026GAAP | $0.30 | – | – |
| Pennsylvania Regulated reported earnings per share, third quarter 2026GAAP | $0.25 | – | – |
| Rhode Island Regulated reported earnings per share, third quarter 2026GAAP | — | – | – |
| Corporate and Other reported earnings per share, third quarter 2026GAAP | ($0.06) | – | – |
| Kentucky Regulated ongoing earnings per share, third quarter 2026non-GAAP | $0.30 | – | – |
| Pennsylvania Regulated ongoing earnings per share, third quarter 2026non-GAAP | $0.25 | – | – |
| Rhode Island Regulated ongoing earnings per share, third quarter 2026non-GAAP | $0.05 | – | – |
| Corporate and Other ongoing earnings per share, third quarter 2026non-GAAP | ($0.06) | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $2.06B | – | – |
| Expenditures for property, plant and equipment, nine months ended September 30, 2026GAAP | ($3,530 million) | – | – |
| Net cash used in investing activities, nine months ended September 30, 2026GAAP | ($3,616 million) | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $393M | – | – |
| Short-term debt, September 30, 2026GAAP | $679M | – | – |
| Long-term debt, September 30, 2026GAAP | $19.85B | – | – |
| Total electricity sales, three months ended September 30, 2026other | 18,509 GWh | – | 3.1% |
| Total electricity sales, nine months ended September 30, 2026other | 52,267 GWh | – | 0.4% |
2026 and 2027 earnings forecasts; 2027-2030 business plan outlook
- Note2026 earnings from ongoing operations forecast range: $1.92 to $1.96 per share
- Note2026 earnings from ongoing operations forecast midpoint: $1.94 per share
- Note2027 earnings forecast range: $2.06 to $2.14 per share
- Note2027 earnings forecast midpoint: $2.10 per share
- NoteLong-term annual EPS growth target: 7% to 9% through at least 2030 off of the company’s 2026 ongoing earnings forecast midpoint
- NoteAnnual EPS growth expected in the top half of the targeted range
- Note$25 billion capital plan for 2027-2030
- NoteAverage annual rate base growth of 10% from 2026 through 2030
- NoteApproximately $3.0 billion of equity financing needs in addition to the more than $1.5 billion already executed through forward sales agreements during 2025 and 2026
- NoteFFO/CFO to debt ratio target: 16% to 18%
- NoteAnnual dividend per share growth target: about 4% to 6%, with growth expected to be at the low end of the range
Capital returns
- Payment of common stock dividends: $630 million for the nine months ended September 30, 2026, compared with $593 million for the nine months ended September 30, 2025.
- PPL continues to target annual dividend per share growth of about 4% to 6%, with growth expected to be at the low end of the range.
What drove it
- Kentucky ongoing earnings increased $0.04 per share in the third quarter, driven primarily by higher retail rates effective January 1, 2026 and higher sales volumes, partly offset by higher operating costs and depreciation expense.
- Pennsylvania reported and ongoing earnings each increased $0.04 per share in the third quarter, driven primarily by new distribution base rates effective July 1, 2026 and higher transmission revenue from additional capital investments.
- Rhode Island ongoing earnings per share were flat in the third quarter as higher gas and electric distribution base rates effective Sept. 1, 2026 and higher rider revenue were offset by higher operating costs and depreciation expense.
- PPL reported 3.1% growth in total electricity sales for the third quarter. Pennsylvania retail delivered electricity sales grew 3.0%, while Kentucky retail delivered electricity sales grew 3.7%.
- The Kentucky economic-development pipeline reached approximately 14.7 GW through 2032, including 12.8 GW associated with data center opportunities. Approximately 2.3 GW of load was under signed reimbursement agreements.
- PPL Electric Utilities’ data center pipeline reached approximately 35.3 GW in advanced stages of planning, including 11.4 GW under signed electric service agreements and 8.5 GW under construction.
Concerns
- Third-quarter 2026 reported earnings included net special-item after-tax charges of $44 million, or $0.05 per share, primarily attributable to system and other integration-related impacts and PPL’s Rhode Island hold harmless commitment.
- Operating expenses rose to $1,832 million from $1,670 million in the third quarter, while interest expense increased to $234 million from $210 million.
- Net cash provided by operating activities declined to $2,056 million for the first nine months from $2,081 million, while expenditures for property, plant and equipment increased to $3,530 million from $2,868 million.
- The QTS term sheet is nonbinding and subject to customary conditions precedent.
- The additional Kentucky generation investments are subject to the execution and timing of customer agreements and regulatory approval.
- PPL expects approximately $3.0 billion of equity financing needs beyond forward sales agreements already executed during 2025 and 2026.
What to watch
- Achievement of the narrowed 2026 ongoing earnings forecast range of $1.92 to $1.96 per share and the stated objective to meet or exceed the $1.94 per share midpoint.
- Execution of the $25 billion 2027-2030 capital plan and the projected 10% average annual rate base growth.
- Progress toward the 2027 earnings forecast midpoint of $2.10 per share and management’s expectation for annual EPS growth in the top half of the 7% to 9% target range.
- Conversion of Kentucky large-load opportunities, including approximately 4 GW of additional peak demand represented by projects with a probability of success of 50% or greater.
- Execution of the QTS arrangement for approximately 2 GW of Pennsylvania generation capacity, including the potential timing of fuel cells and battery storage as early as 2029 and combined-cycle units in 2032 and 2033.
- Progress toward the 16% to 18% FFO/CFO-to-debt target and the stated improvement toward the midpoint over the plan period.
Balance sheet and cash flow
- Cash and cash equivalents were $393 million at September 30, 2026, compared with $1,071 million at December 31, 2025.
- Short-term debt was $679 million and long-term debt was $19,853 million at September 30, 2026.
- Net cash provided by operating activities was $2,056 million for the nine months ended September 30, 2026, compared with $2,081 million for the nine months ended September 30, 2025.
- Expenditures for property, plant and equipment were $3,530 million for the nine months ended September 30, 2026, compared with $2,868 million for the nine months ended September 30, 2025.
- Issuance of long-term debt was $2,046 million and retirement of long-term debt was $718 million for the nine months ended September 30, 2026.
- Net increase in cash, cash equivalents and restricted cash was ($690 million) for the nine months ended September 30, 2026.
- PPL projects approximately $3.0 billion of equity financing needs in addition to the more than $1.5 billion already executed through forward sales agreements during 2025 and 2026.
Analysis
PPL delivered stronger third-quarter earnings, with GAAP reported earnings increasing 15% to $367 million and diluted EPS increasing 14% to $0.49. Earnings from ongoing operations increased 16% to $411 million, while ongoing EPS increased 13% to $0.54. For the first nine months, reported earnings increased 15% to $1.05 billion and ongoing earnings increased 9% to $1.14 billion. Third-quarter operating revenues were $2,497 million, compared with $2,239 million, and operating income was $665 million, compared with $569 million.
The regulated operating businesses supplied the quarter’s earnings growth. Kentucky ongoing EPS increased to $0.30 from $0.26 on higher retail rates and sales volumes. Pennsylvania ongoing EPS increased to $0.25 from $0.21, supported by new distribution base rates and additional transmission revenue from capital investments. Rhode Island ongoing EPS held at $0.05 as new gas and electric distribution base rates and rider revenue were offset by higher operating costs and depreciation. Corporate and Other ongoing EPS moved to ($0.06) from ($0.04), with higher interest expense cited as a factor.
Costs and financing remain important offsets. Total operating expenses rose to $1,832 million from $1,670 million, and third-quarter interest expense increased to $234 million from $210 million. The quarter also included $44 million, or $0.05 per share, of net special-item after-tax charges. Cash generation was lower over the first nine months, with operating cash flow of $2,056 million versus $2,081 million, while property, plant and equipment expenditures rose to $3,530 million from $2,868 million. Cash and cash equivalents declined to $393 million at September 30, 2026 from $1,071 million at December 31, 2025, while long-term debt increased to $19,853 million from $17,990 million.
Management narrowed its 2026 ongoing EPS forecast to $1.92 to $1.96 per share while maintaining the $1.94 midpoint, and it introduced 2027 guidance of $2.06 to $2.14 per share, with a $2.10 midpoint. The updated business plan raises the long-term annual EPS growth target to 7% to 9% through at least 2030 and increases the capital plan to $25 billion for 2027-2030. The plan is built around projected 10% average annual rate base growth, but it also calls for approximately $3.0 billion of equity financing needs beyond more than $1.5 billion already executed through forward sales agreements.
The incremental upside is tied to large-load demand and generation development. In Kentucky, PPL identified approximately $6.0 billion to $7.0 billion of potential incremental generation investment need between 2027 and 2032 for the remaining 1.6 GW of demand beyond capacity in the updated plan. In Pennsylvania, Invitium agreed to key commercial terms with QTS for approximately 2 GW of generation capacity, although the term sheet is nonbinding and subject to customary conditions precedent. PPL stated that realization of the Kentucky incremental investment could raise projected compound annual EPS growth to 9%+ from 2026 to 2030.
Management, verbatim
Our strong third-quarter results reflect continued execution across PPL and keep us on track to meet or exceed the $1.94 per share midpoint of our 2026 ongoing earnings forecast range.
Vincent Sorgi, PPL President and Chief Executive Officer
We remain focused on executing this growth responsibly and efficiently, with affordability at the forefront.
Vincent Sorgi, PPL President and Chief Executive Officer
This represents a significant milestone for Invitium Energy and an important step toward converting strong customer demand into tangible generation projects.
Vincent Sorgi, PPL President and Chief Executive Officer
Not in the filing
stated, not guessed- Segment revenue was not reported for Kentucky Regulated, Pennsylvania Regulated, Rhode Island Regulated, or Corporate and Other.
- Gross margin was not reported.
- Free cash flow was not reported.
- Share repurchases were not reported.
- A prior-quarter comparison for the reported financial metrics was not reported.
- A prior earnings-release outlook section was not provided, so no actual-versus-prior-guidance comparisons are included.
- Revenue, gross margin, operating expense, and tax-rate guidance were not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. 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
PPL Corporation, a US‑listed utility (NYSE:PPL), filed an 8‑K reporting its Q3 2026 earnings and revised guidance.
Ticker impact
PPL reported Q3 2026 earnings of $0.49 EPS and updated its ongoing earnings forecast to $1.92‑$1.96 per share, narrowing guidance and raising long‑term EPS growth outlook.
likely upward pressure as the market prices in the earnings beat and raised long‑term outlook
The earnings beat and narrowed guidance range provide fresh, material information that can move the share price in the short term.
Market effects
Utility sector may see a modest lift as PPL's strong results highlight demand for regulated electricity and data‑center load growth.
Mid‑Atlantic utility markets could benefit from increased investor confidence in regional power providers.
Limited; primarily a US utility‑specific event.
Counterpoint
If the market has already priced in the earnings beat, the stock could face a short‑term pullback on profit‑taking.
Key entities
- companyPPL Corporation
US utility reporting Q3 2026 earnings and updated guidance.
- partnerInvitium Energy
Agreed to supply ~2 GW of generation capacity for a data‑center project.
