Xcel Energy Narrows 2026 Outlook Higher, Sets 2027 Guidance and $70 Billion Capital Plan

Xcel Energy narrowed its 2026 profit outlook toward the top of its range and gave its first look at 2027, guiding for ongoing earnings of $4.48 to $4.62 per share, after third-quarter ongoing EPS rose to $1.52 from $1.24 a year earlier.

The Minneapolis-based utility now expects 2026 ongoing earnings of $4.10 to $4.16 per share, up from the low end of its original $4.04 to $4.16 range, according to the earnings release it filed with an 8-K on Wednesday. It also laid out a $70 billion base capital spending plan for 2027 through 2031.

GAAP net income rose to $960 million, or $1.52 per share, from $524 million, or $0.88 per share. The year-ago GAAP figure included a Marshall Wildfire litigation charge worth $0.36 per share, which is excluded from ongoing earnings.

What drove the quarter

Xcel said the earnings gain 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.

Higher electric revenues added $0.32 per share and earnings from equity method investments added $0.09, while higher interest charges cut $0.13 and common equity financing reduced EPS by $0.10, the company said. Weather lifted results by an estimated $0.063 per share versus last year's third quarter.

Total operating revenues rose to $4,172 million from $3,915 million. Weather-normalized retail electric sales grew 3.0% in the quarter.

A bigger build-out

Chairman, President and CEO Bob Frenzel said in the release that the company's "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."

The plan includes $21.36 billion for renewables and $18.56 billion for electric transmission. Xcel expects to fund the $70 billion with $35.81 billion of cash from operations, $26.19 billion of new debt and $8 billion of equity issuances.

Next year's assumptions

The 2027 guidance assumes weather-normalized retail electric sales rise about 5%, capital rider revenue increases $560 million to $570 million, and operating and maintenance expenses grow about 4%. Depreciation expense is projected to rise roughly $460 million to $470 million.

Xcel reiterated long-term objectives of annual EPS growth of 6% to 8+% and annual dividend increases of 4% to 6%, with a targeted payout ratio of 45% to 55%.

The company also disclosed that NSP-Wisconsin agreed in October to sell about $150 million of Michigan electric and gas assets to Upper Peninsula Power Company and SEMCO ENERGY Gas Company, with closing anticipated in 2027 pending regulatory approvals.

Year-to-date ongoing EPS reached $3.37, compared with $2.84 a year earlier.

Sources

1. Xcel Energy Form 8-K with third-quarter 2026 earnings release (Exhibit 99.01), filed Oct. 28, 2026 (accession 0000072903-26-000178)

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