Xcel Narrows 2026 Guidance After Third-Quarter Earnings

The Tip Desk · October 29, 2026 · 3 min read

Diluted GAAP and ongoing earnings were $1.52 a share, and the company set 2027 ongoing earnings guidance of $4.48 to $4.62.

Xcel Energy Inc. (XEL) reported third-quarter diluted GAAP earnings of $1.52 a share, matching ongoing earnings, compared with GAAP earnings of $0.88 a share and ongoing earnings of $1.24 a share a year earlier.

The electric and natural gas utility said the year-over-year increase 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.

GAAP net income was $960 million, or $1.52 a share, versus $524 million, or $0.88 a share, in the year-ago quarter. Ongoing earnings were $961 million. Sequentially, diluted GAAP and ongoing earnings were $0.93 a share in the second quarter.

Total operating revenues were $4.172 billion, up from $3.915 billion a year earlier, with electric revenues of $3.888 billion. Operating income was $1.191 billion. Electric revenues increased $250 million versus 2025, led by non-fuel riders of $93 million, regulatory rate outcomes of $88 million, weather net of sales true-up of $50 million, sales and demand of $42 million, partially offset by PTCs flowed back to customers of $55 million and wholesale generation of $41 million. Natural gas revenues increased $8 million.

Earnings from equity method investments were $77 million, up from $6 million a year earlier. Interest charges and financing costs were $432 million, versus $348 million a year earlier; interest charges rose $100 million. AFUDC equity and debt increased $68 million.

O&M expenses were $759 million, up from $692 million. Depreciation and amortization was $791 million. Electric fuel and purchased power expenses were $1.067 billion, down $31 million.

By subsidiary, PSCo GAAP earnings rose $0.49 a share and ongoing earnings rose $0.13 a share. NSP-Minnesota GAAP and ongoing earnings fell $0.02 a share. SPS GAAP and ongoing earnings rose $0.07 a share, and NSP-Wisconsin GAAP and ongoing earnings rose $0.01 a share.

Actual total retail electric sales grew 7.3% at Xcel Energy versus 2025, with residential up 11.7% and commercial and industrial up 5.4%; weather-normalized total retail electric sales grew 3.0%. Firm natural gas sales declined 3.8% actual and 2.2% weather-normalized. The company said increased activity in the energy sector in SPS and the manufacturing sector in all jurisdictions contributed to sales growth.

The effective income tax rate was 6.7% in the third quarter, versus 1.5% a year earlier.

Total debt was $40.598 billion at Sept. 30, 2026, versus $33.883 billion at Dec. 31, 2025. Long-term debt was $36.539 billion and common equity was $25.501 billion.

Xcel Energy narrowed its 2026 ongoing earnings per share guidance to $4.10 to $4.16 from the $4.04 to $4.16 range it reaffirmed after the second quarter, and initiated 2027 ongoing earnings per share guidance of $4.48 to $4.62. Long-term annual growth objectives remain earnings per share growth of 6-8+% and dividend growth of 4-6%.

Base capital expenditures for 2027 through 2031 total $70.0 billion, with SPS at $25.82 billion, NSP-Minnesota at $24.84 billion, PSCo at $16.10 billion and NSP-Wisconsin at $3.60 billion. Chairman, president and CEO Bob Frenzel said the updated five-year investment plan gives the company a path to extend the growth cycle.