PPL Corporation (PPL), with a market capitalization of approximately $26 billion, is an energy utility company that delivers electricity and natural gas through its regulated utility businesses. Based in Allentown, Pennsylvania, the company focuses on modernizing power grids, improving reliability and resilience, supporting cleaner energy solutions, and investing in infrastructure to drive long-term growth.
PPL is set to report its Q3 earnings soon. Ahead of the release, analysts expect the company to report diluted EPS of $0.53, up 10.4% from $0.48 in the year-ago quarter. However, PPL has surpassed Wall Street’s EPS estimates in only two of the past four quarters, while missing expectations in the other two.
For fiscal 2026, analysts expect the company to report EPS of $1.94, up 7.2% from $1.81 in fiscal 2025. Additionally, its EPS is projected to increase another 8.8% year over year to $2.11 in fiscal 2027.
Over the past 52 weeks, PPL stock has declined 6.4%, lagging the S&P 500 Index ($SPX), which gained 14.4%, as well as the State Street Utilities Select Sector SPDR ETF (XLU), which fell 5.2% over the same period.
PPL’s underperformance over the past year comes amid expense pressures in parts of its regulated utility business, as higher operating, depreciation, and interest expenses have weighed on segment earnings.
On September 24, PPL announced that its subsidiary, PPL Electric Utilities, had been selected to receive up to $71.5 million in U.S. Department of Energy funding for a project to modernize 29.3 miles of existing transmission infrastructure in Pennsylvania. The project will use advanced conductors and distributed acoustic sensing technology to expand grid capacity, improve reliability and resilience, and accommodate growing electricity demand. The funding could help PPL reduce the financial burden of infrastructure upgrades while supporting long-term grid modernization, although the award’s terms remain subject to finalization with the DOE. Following the announcement, PPL shares rose marginally in the next trading session.
Analysts remain bullish on PPL, assigning the stock a consensus “Strong Buy” rating. Of the 17 analysts covering the stock, 12 recommend a “Strong Buy,” one recommends a “Moderate Buy,” and four suggest a “Hold.” Meanwhile, the average price target of $39.65 suggests potential upside of 12.2% from the current share price.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.