Track market-moving stories before they get noisy

Allianz Asset Management GmbH grew its holdings in Xcel Energy Inc. (NASDAQ:XEL – Free Report) by 10,366.0% during the second quarter, according to the company in its most recent filing with the SEC. The fund owned 316,702 shares of the company’s stock after acquiring an additional 313,676 shares during the quarter. Allianz Asset Management GmbH owned about 0.05% of Xcel Energy worth $25,431,000 at the end of the most recent reporting period.

Several other institutional investors have also recently added to or reduced their stakes in XEL. Quadrant Capital Group LLC boosted its stake in Xcel Energy by 1.7% during the 3rd quarter. Quadrant Capital Group LLC now owns 7,358 shares of the company’s stock valued at $593,000 after purchasing an additional 125 shares during the period. Bleakley Financial Group LLC raised its stake in Xcel Energy by 0.5% during the 4th quarter. Bleakley Financial Group LLC now owns 28,949 shares of the company’s stock valued at $2,138,000 after acquiring an additional 131 shares in the last quarter. Hills Bank & Trust Co boosted its position in Xcel Energy by 2.2% during the 4th quarter. Hills Bank & Trust Co now owns 6,184 shares of the company’s stock worth $457,000 after acquiring an additional 133 shares during the period. Keel Point LLC boosted its position in Xcel Energy by 2.6% during the 4th quarter. Keel Point LLC now owns 5,485 shares of the company’s stock worth $405,000 after acquiring an additional 137 shares during the period. Finally, KCM Investment Advisors LLC grew its stake in shares of Xcel Energy by 1.9% in the first quarter. KCM Investment Advisors LLC now owns 7,549 shares of the company’s stock worth $600,000 after purchasing an additional 140 shares in the last quarter. Hedge funds and other institutional investors own 78.38% of the company’s stock.

Xcel Energy Price Performance XEL stock opened at $75.72 on Tuesday. Xcel Energy Inc. has a 12 month low of $71.29 and a 12 month high of $84.23. The firm has a market cap of $47.30 billion, a PE ratio of 20.75, a P/E/G ratio of 2.56 and a beta of 0.39. The firm has a 50 day simple moving average of $78.62 and a 200 day simple moving average of $79.61. The company has a debt-to-equity ratio of 1.49, a current ratio of 0.70 and a quick ratio of 0.62.

Xcel Energy (NASDAQ:XEL – Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The company reported $0.93 earnings per share for the quarter, topping the consensus estimate of $0.79 by $0.14. The business had revenue of $3.12 billion during the quarter, compared to analyst estimates of $3.54 billion. Xcel Energy had a return on equity of 10.65% and a net margin of 15.28%.The company’s revenue was down 5.1% compared to the same quarter last year. During the same period last year, the company posted $1.59 EPS. Equities research analysts forecast that Xcel Energy Inc. will post 4.11 earnings per share for the current fiscal year. Xcel Energy Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Tuesday, October 20th. Investors of record on Tuesday, September 15th will be given a $0.5925 dividend. The ex-dividend date is Tuesday, September 15th. This represents a $2.37 dividend on an annualized basis and a dividend yield of 3.1%. Xcel Energy’s dividend payout ratio (DPR) is 64.93%.

Analyst Upgrades and Downgrades A number of research analysts have recently commented on XEL shares. Weiss Ratings reissued a “buy (b-)” rating on shares of Xcel Energy in a report on Wednesday, June 17th. JPMorgan Chase & Co. upped their price objective on shares of Xcel Energy from $91.00 to $102.00 and gave the stock an “overweight” rating in a report on Thursday, July 16th. BTIG Research reiterated a “buy” rating and issued a $99.00 target price on shares of Xcel Energy in a research report on Friday, July 31st. Barclays raised their target price on shares of Xcel Energy from $87.00 to $90.00 and gave the company an “overweight” rating in a research note on Thursday, July 9th. Finally, KeyCorp restated an “overweight” rating on shares of Xcel Energy in a research report on Monday, June 8th. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Buy” and a consensus price target of $92.41.

Read Our Latest Report on Xcel Energy

Xcel Energy Profile (Free Report)

Xcel Energy (NASDAQ: XEL) is a Minneapolis-based, publicly traded utility holding company that develops, owns and operates regulated electricity and natural gas delivery systems. The company’s core activities include generation, transmission and distribution of electricity, the delivery of natural gas to customers, and related customer service operations. Xcel provides a mix of utility services to residential, commercial and industrial customers and participates in wholesale energy markets where appropriate.

Its generation portfolio combines nuclear, natural gas, coal and a growing share of renewable resources such as wind and solar.

Featured Articles Five stocks we like better than Xcel Energy 3 Under-the-Radar Defense Stocks With Record Backlogs This Korea ETF Has Soared, But the Rally May Not Be Over Why Guidewire’s Post-Earnings Plunge May Not Last Ride-Share Reckoning: Tesla Drives Into Uber’s Lane Want to see what other hedge funds are holding XEL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Xcel Energy Inc. (NASDAQ:XEL – Free Report).

Receive News & Ratings for Xcel Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Xcel Energy and related companies with MarketBeat.com's FREE daily email newsletter.

Xcel Energy hands retirees a quarterly check that has grown every single year, but wildfire lawsuits, a $60 billion spending plan, and a 10-Year Treasury above 4% raise fair questions about whether that streak holds.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Xcel Energy’s board put a concrete number in front of income investors this quarter. The company declared a quarterly cash dividend of $0.5925 per share on July 29, 2026, with an ex-dividend date of September 15, 2026 and a payment date of October 20, 2026. The trailing twelve month payout now stands at $2.325 per share. At a recent price of $76.34, Xcel Energy (NASDAQ:XEL | XEL Price Prediction) carries a dividend yield of 3.06%. For a retiree deciding whether to lean on this check, the more useful question is whether the payout is dependable. That is what this scorecard is built to answer.

Dividend Raise Record: Every Year, Inside Policy Xcel Energy has walked the quarterly payout higher every year in the confirmed record. The declared quarterly amount was $0.52 in 2023, $0.5475 in 2024, $0.57 in 2025, and $0.5925 in 2026. That cadence matches management’s stated dividend policy of annual dividend increases of 4% to 6%. For an income investor, the consistency of the raise itself is the signal, and it lands inside the policy range every year.

Why a Regulated Utility Dividend Behaves Differently Xcel Energy is a regulated electric and natural gas utility with subsidiaries in eight states. Its revenue is not won or lost in an open market. State regulators approve the rates that customers pay through periodic rate cases, and those rates are structured to give the utility a return on the capital it invests in generation, transmission, and distribution. Management noted the company advanced settlements and or reached decisions in six active rate cases while keeping long-term bill growth at or below the rate of inflation. Cash flows are more predictable than at an industrial company, and dividends are correspondingly more durable, provided the regulatory compact holds.

Payout Coverage Xcel Energy reaffirmed 2026 ongoing EPS guidance of $4.04 to $4.16. Against a trailing dividend of $2.325, that sits inside the company’s target payout ratio of 45% to 55%. Q2 2026 ongoing EPS came in at $0.93, versus $0.75 per share in the prior-year quarter. The trailing diluted EPS is 3.63, and the forward P/E multiple is 17. Earnings coverage of the dividend is comfortable and inside policy.

Free Cash Flow Versus Capital Spending This is where a regulated utility scorecard diverges from a consumer staple. Xcel Energy generated $4.083 billion in operating cash flow in fiscal 2025 while spending $10.908 billion in capital expenditures. Common-stock dividends paid were $1.282 billion. The gap between operating cash flow and capex is bridged through a mix of debt and equity issuance in the capital markets, which is standard for a capital-intensive rate-regulated utility. Management laid out a $60 billion five-year base capital expenditure plan for 2026-2030, and on the Q2 call said the company has line of sight to the $70-plus billion of total investments. This spending is what grows the rate base that supports future earnings and future dividend raises.

Balance Sheet and Leverage Short and long term debt combined stood at $40.323 billion at the end of Q2 2026, against total shareholder equity of $24.057 billion. Total debt represents 61% of total capitalization. Equity issuance is doing real work here: management said Xcel is already in front of approximately $6 billion, or 85% of its $7 billion equity need in the base five-year plan. Diluted share count has risen alongside, with 627 million shares outstanding at quarter-end versus 563 million at the end of 2024. This dilution is the price of the growth capex and it does dampen per-share earnings growth relative to rate base growth.

Yield Versus the Alternative The 10-Year Treasury yield closed at 4.79% on September 2, 2026, its high in the trailing twelve months. Xcel’s 3.06% equity yield sits below that. The trade for owning the utility is the raise. If Xcel keeps growing the payout at its stated 4% to 6% pace, the yield-on-cost compounds while a Treasury coupon stays fixed. Total return over the last year was 8.62%, with a ten-year gain of 148.71%.

Risks That Deserve Room Capital intensity: the $60 billion plan requires continuous access to debt and equity markets. Any dislocation raises the cost of funding growth. Regulatory outcomes: rates are set by state commissions. An unfavorable order on allowed return on equity or cost recovery would compress the earned return that supports the dividend. Rates versus bonds: with the 10-Year at 4.79%, income competition is real, and higher interest charges hit Xcel directly. Interest expense rose by $174M YTD. Wildfire and storm exposure: estimated losses from the Smokehouse Creek Fire Complex sit at ~$503M with only ~$80M insurance coverage remaining, and Marshall Wildfire settlements total $640M. Moody’s carries a negative outlook on Xcel Energy Inc. unsecured debt. Scorecard Verdict: How Dependable Is the Check? Grade: B+. The dividend is dependable. Coverage is inside the 45% to 55% target payout range, earnings are guided to $4.04 to $4.16 for the year, the raise cadence has held in every declared year on the record, and revenue is set through regulated rate cases rather than exposed to the market cycle. Wildfire liability and heavy equity issuance keep this from an A. For an income investor at or near retirement who needs a check that shows up and gets larger every year, Xcel’s $0.5925 quarterly payout does the job (a utility check like this is exactly the kind of rung we use to build a dividend ladder you never have to sell out of, something we walked through in a free guide here: Never Touch the Principal).

Contact [email protected] for any questions or corrections.

Xcel Energy Inc. is positioned for accelerated growth via its SPS utility, with a ~$19.03B investment planned for Texas and New Mexico through 2030. SPS's weather-adjusted electric sales grew 4.8%, outpacing XEL's average, and its proposed 2,623 MW generation portfolio could drive future rate-base and earnings expansion. Regulatory approval, project execution, and financing risks remain; SPS's earnings contribution depends on allowed returns and timely cost recovery.

The Xcel Energy Foundation today announced it has invested nearly $160 million over the past quarter of a century to strengthen communities, according to a new

Iberdrola (OTCMKTS:IBDRY – Get Free Report) and Xcel Energy (NASDAQ:XEL – Get Free Report) are both large-cap utilities companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Insider & Institutional Ownership 0.0% of Iberdrola shares are owned by institutional investors. Comparatively, 78.4% of Xcel Energy shares are owned by institutional investors. 0.2% of Xcel Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability This table compares Iberdrola and Xcel Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Iberdrola 15.59% 9.88% 3.83% Xcel Energy 15.28% 10.65% 2.97% Earnings & Valuation This table compares Iberdrola and Xcel Energy”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Iberdrola $51.52 billion 3.11 $7.11 billion $4.72 20.10 Xcel Energy $14.67 billion 3.31 $2.02 billion $3.65 21.28 Iberdrola has higher revenue and earnings than Xcel Energy. Iberdrola is trading at a lower price-to-earnings ratio than Xcel Energy, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings This is a breakdown of current ratings for Iberdrola and Xcel Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Iberdrola 1 6 2 0 2.11 Xcel Energy 1 0 14 2 3.00 Xcel Energy has a consensus price target of $92.76, suggesting a potential upside of 19.40%. Given Xcel Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Xcel Energy is more favorable than Iberdrola.

Volatility and Risk Iberdrola has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, Xcel Energy has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500.

Dividends Iberdrola pays an annual dividend of $3.00 per share and has a dividend yield of 3.2%. Xcel Energy pays an annual dividend of $2.37 per share and has a dividend yield of 3.1%. Iberdrola pays out 63.6% of its earnings in the form of a dividend. Xcel Energy pays out 64.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Xcel Energy has increased its dividend for 22 consecutive years. Iberdrola is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary Xcel Energy beats Iberdrola on 10 of the 18 factors compared between the two stocks.

About Iberdrola (Get Free Report)

Iberdrola, S.A. engages in the generation, transmission, distribution, and supply of electricity in Spain, the United Kingdom, the United States, Mexico, Brazil, Germany, France, and Australia. It generates electricity from renewable sources, such as onshore and offshore wind, hydro, photovoltaic, combined cycle gas, and conventional nuclear, as well as through batteries. The company is also involved in the purchase and sale of electricity and gas on wholesale markets; energy retail supply activities, such as gas and electricity, and other products and services, including hydrogen, as well as non-renewable generation; and production of green hydrogen. It has a total installed capacity of 62,871 MW. In addition, the company offers heat pumps, self-consumption, electric mobility, solar, etc. services to residential customers; and management of energy facilities, as well as supplies green H2, industrial heat, etc. to industrial customers. Iberdrola, S.A. was founded in 1840 and is based in Bilbao, Spain.

About Xcel Energy (Get Free Report)

Xcel Energy Inc., through its subsidiaries, engages in the generation, purchasing, transmission, distribution, and sale of electricity. It operates through Regulated Electric Utility, Regulated Natural Gas Utility, and All Other segments. The company generates electricity through wind, nuclear, hydroelectric, biomass, and solar energy sources, as well as coal, natural gas, oil, wood, and refuse-derived fuels. It also purchases, transports, distributes, and sells natural gas to retail customers, as well as transports customer-owned natural gas. In addition, the company develops and leases natural gas pipelines, and storage and compression facilities; and invests in rental housing projects and nonregulated assets, as well as procures equipment for the construction of renewable generation facilities. It serves residential, commercial, and industrial customers in the portions of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin. The company was incorporated in 1909 and is headquartered in Minneapolis, Minnesota.

Receive News & Ratings for Iberdrola Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Iberdrola and related companies with MarketBeat.com's FREE daily email newsletter.

MarketBeat Week in Review – 06/29 - 07/03Xcel Energy NASDAQ: XEL reported second-quarter 2026 earnings of $0.93 per share, up from $0.75 per share a year earlier, as higher electric revenues, allowance for funds used during construction (AFUDC), and lower depreciation and amortization more than offset increased financing costs.

The utility reaffirmed its 2026 ongoing earnings guidance of $4.04 to $4.16 per share and said it remains confident in delivering long-term earnings growth of 6% to 8% or more. The company also said it expects average EPS growth of more than 9% through 2030, supported by a growing pipeline of investment opportunities beyond its base capital plan.

Get Xcel Energy alerts:

Infrastructure investment and generation pipeline Xcel Energy Stock Offers Stability as Electricity Demand BuildsChairman, President and Chief Executive Officer Bob Frenzel said Xcel invested $3 billion during the second quarter and more than $6 billion year to date in generation, transmission and distribution infrastructure across its eight-state service territory.

During the quarter, the company placed Group 2 of Colorado’s Power Pathway transmission project into commercial operation, began construction on a 150-mile, 345-kilovolt transmission project in the Upper Midwest, and completed Phase III of the Sherco Solar facility. The latter brought Sherco Solar’s total capacity to 710 megawatts, which Frenzel said makes it one of the country’s largest utility-scale solar facilities.

3 Utility Stocks With Strong Dividends and Room to Run HigherXcel also highlighted an independent monitor’s report related to its SPS competitive request for proposals in Texas and New Mexico. The company was selected to provide 2,400 megawatts of renewable generation and 200 megawatts of natural gas-fired generation, representing about 70% of the recommended portfolio and approximately $6 billion in potential investment.

Chief Financial Officer Brian Van Abel said the company now has line of sight to more than $10 billion in investments beyond its base plan, though some of those opportunities are expected to extend into the early 2030s. The company’s five-year portfolio includes nearly 13 gigawatts of renewable generation and battery storage, more than 3 gigawatts of new natural-gas generation, and nearly 2,000 miles of high-voltage transmission.

Management said it has sought to support project execution by deepening partnerships with major suppliers and engineering, procurement and construction firms, while consolidating project planning and execution under one organization. Frenzel said the approach is intended to improve capital efficiency, lower execution risk and provide greater schedule certainty.

Financial drivers and financing plan Van Abel said higher electric revenues from non-fuel riders and sales growth increased second-quarter earnings by $0.17 per share. Higher AFUDC added $0.08 per share, while lower depreciation and amortization also contributed $0.08 per share. Other items contributed $0.03 per share, primarily due to positive returns from venture capital portfolios.

These gains were partly offset by a $0.12-per-share impact from higher interest expense and a $0.06-per-share impact from common equity financing. Van Abel said the financing costs reflect the company’s efforts to fund infrastructure investment while maintaining a strong balance sheet.

Weather-adjusted electric sales rose 2.1% year to date, driven by activity in the energy sector at Southwestern Public Service and manufacturing growth across operating companies. Xcel continues to expect weather-adjusted electric sales to increase 3% for the full year.

The company said it has addressed approximately $6 billion, or 85%, of the $7 billion equity need associated with its base five-year plan through equity forward and collar contracts, its at-the-market program and junior subordinated note issuances.

Van Abel said Xcel still expects a long-term difference of roughly 200 to 250 basis points between rate-base growth and EPS growth. He said the company plans to provide an updated five-year capital plan, financing plan and 2027-2031 outlook during its third-quarter update.

Data centers, tariffs and customer affordability Xcel said it has 1 gigawatt of data-center load either operating or under construction and another 1 gigawatt under signed electric service agreements. The company expects to secure an additional 4 gigawatts of data-center load by the end of 2027, including at least 1 gigawatt by the end of 2026.

Frenzel said the company’s high-probability data-center pipeline exceeds 20 gigawatts, with near-term interest concentrated in the Upper Midwest and Southwest. The pipeline includes projects ranging from smaller urban facilities to campuses of roughly 1,000 megawatts.

Management said future investments tied to data centers are generally part of its upside plan rather than its base plan. Frenzel said that in Xcel’s resource-rich regions, a gigawatt of data-center demand could require roughly $5 billion to $6 billion, or more, of generation investment when supported by wind, solar, storage and natural-gas backup.

Xcel received approval for a large-load tariff in Minnesota and has filed similar tariffs in Colorado and Wisconsin. The company also expects to file a tariff in Texas during the third quarter and is working on one in New Mexico. Management said the tariffs are designed to ensure large-load customers pay their full and fair share of generation and interconnection costs while allowing existing customers to benefit from greater use of grid assets.

Regulatory progress and wildfire mitigation Frenzel said Xcel advanced settlements or decisions in six active rate cases, including commission decisions in Minnesota’s electric rate case and a South Dakota electric rate-case settlement. The company also cited proposed settlements in Colorado electric and natural-gas cases, as well as New Mexico electric and Minnesota natural-gas cases.

The company said its Colorado settlement would provide a path to nearly double the size and participation in energy-assistance programs, while its Minnesota electric rate case expanded access to and funding for customer assistance programs.

In Colorado, Frenzel said Xcel has intensified wildfire-mitigation work amid drought conditions and a low snowpack year. The company has installed more than 50 artificial-intelligence-enabled cameras and nearly 300 weather stations in the state, while also using enhanced power-safety settings, public-safety power shutoffs, system hardening and customer communication measures.

Xcel expects to file its next Colorado wildfire mitigation plan in early 2027 and said it will also pursue state-level wildfire legislation during the 2027 legislative session.

About Xcel Energy (NASDAQ:XEL)Xcel Energy NASDAQ: XEL is a Minneapolis-based, publicly traded utility holding company that develops, owns and operates regulated electricity and natural gas delivery systems. The company's core activities include generation, transmission and distribution of electricity, the delivery of natural gas to customers, and related customer service operations. Xcel provides a mix of utility services to residential, commercial and industrial customers and participates in wholesale energy markets where appropriate.

Its generation portfolio combines nuclear, natural gas, coal and a growing share of renewable resources such as wind and solar.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in Xcel Energy Right Now?Before you consider Xcel Energy, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Xcel Energy wasn't on the list.

While Xcel Energy currently has a Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Looking to profit from the electric vehicle mega-trend? Click the link to see our list of which EV stocks show the most long-term potential.

Get This Free Report

Xcel Energy Inc. (XEL) Q2 2026 Earnings Call Transcript

MINNEAPOLIS--(BUSINESS WIRE)--Xcel Energy Inc. (NASDAQ: XEL) today reported 2026 second quarter GAAP earnings of $586 million, or $0.93 per share, compared with $444 million, or $0.75 per share in the same period in 2025 and ongoing earnings of $589 million, or $0.93 per share compared with $444 million or $0.75 per share in the same period in 2025. See Note 6 for reconciliation from GAAP to ongoing earnings. The change in earnings per share was primarily driven by increased recovery of electri.

MINNEAPOLIS--(BUSINESS WIRE)--Xcel Energy (NASDAQ: XEL) announced that Peter Carter has been elected to its board of directors, effective today. Carter serves as the president of Delta Air Lines, where he drives the company's enterprise strategy, global policy matters and global market position. He plays a central role in shaping and protecting Delta's ability to compete, grow and innovate. Under Peter's leadership, Delta collaborates with industry stakeholders to deliver a more sustainable fut.

Xcel Energy (XEL - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis utility is expected to post quarterly earnings of $0.79 per share in its upcoming report, which represents a year-over-year change of +5.3%.

Revenues are expected to be $3.58 billion, up 9% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.58% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Xcel?For Xcel, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.32%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Xcel will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Xcel would post earnings of $0.91 per share when it actually produced earnings of $0.91, delivering no surprise.

Over the last four quarters, the company has beaten consensus EPS estimates just once.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Xcel doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Xcel Energy Today

$82.20 +0.45 (+0.55%)

As of 12:26 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$66.56▼

$84.23Dividend Yield2.88%

P/E Ratio23.70

Price Target$91.06

Xcel Energy NASDAQ: XEL is dependable, predictable, and steady. In other words, it’s generally boring—yet analysts rate it a solid Buy.

Xcel is the kind of stock that income-oriented investors often overlook because it does not make headlines, and growth investors skip because it sounds like a bond substitute. Both groups might be missing something. The Minneapolis-based company is posting solid earnings growth, predictable guidance, and a steady long-term outlook.

Get Xcel Energy alerts:

But with a well-valued price/earnings ratio, the stock is not for everyone. Investors should balance its dependable dividends and stability against its current valuation, execution risks, and limited near-term upside.

Xcel Thrives After Decades of InvestmentsXcel’s regional dominance has been built over decades. The current company was formed in 2000 through the merger of New Century Energies and Northern States Power, bringing together utility operations in the upper Midwest and Rocky Mountain West. Before the merger, Xcel operated as a classic regulated utility. It had steady dividends, predictable low single-digit growth, and a stock moved mostly by interest rate changes.

That picture began to change when the industry shifted in approach, and electricity demand surged. Xcel had been an early mover in renewable energy, turning to wind and solar alternatives ahead of many peers. The investments positioned the company well in states such as Colorado and Minnesota, where regulators began mandating decarbonization of electricity supply.

At the same time, the development of large-scale data centers in the company's service areas pushed new load growth to levels not seen in decades.

Today, the company serves 3.7 million electric customers and 2.1 million natural gas customers across eight states, including Minnesota, Michigan, Colorado, Texas, New Mexico, and the Dakotas. Importantly, that geographic breadth also helps reduce the risk that a single statewide rate case could materially hit the overall business.

Capital Spending Planned for Long-Term GrowthThe push for additional energy generation in the region continues to spur the company’s growth.

Xcel has announced plans to pursue a $60 billion capital investment program through 2030, driven by electrification demand, data center growth, and the ongoing transition away from fossil fuels. The company has said it is targeting, among other things, electric grid expansion, renewables expansion, new generation capacity, and transmission infrastructure.

If approved by regulators, the build-out could significantly expand Xcel’s rate base and provide a strong path for earnings growth well beyond the current year. The company has set an earnings-per-share growth objective of 6% to 8% or above annually, an aggressive level for a regulated utility. The company’s compound annual growth rate already sits at 6.2% for its ongoing earnings per share since 2005.

The company also expects its dividend, currently paying approximately 59 cents per share each quarter, to continue yielding about 3% going forward. Given its projected earnings growth, the company said it expects annual dividend increases of 4% to 6%, continuing a 22-year trend of dividend hikes.

Strong Financial Results Support OutlookThe financial results have been tracking that plan.

First-quarter 2026 ongoing earnings were $567 million, or 91 cents per share, up 17% from $483 million, or 84 cents per share, in the same quarter a year earlier. GAAP earnings came in at $556 million, or 89 cents per share. The quarterly increase was driven by higher electric revenue and continued recovery of electric infrastructure investment through rates, the company said.

The company also updated its full-year 2026 earnings guidance to a range of $4.04 to $4.16, compared with $3.80 in 2025.

Overall, with electric generation providing three-quarters of its revenue, Xcel reported $4 billion in operating revenue in the first quarter this year, compared with $3.9 billion a year earlier.

Analysts See Limited But Steady UpsideOverall MarketRank™75th Percentile

Analyst RatingBuy

Upside/Downside10.4% Upside

Short Interest LevelBearish

Dividend StrengthStrong

News Sentiment0.77 Insider TradingN/A

Proj. Earnings Growth9.25%

See Full Analysis

That combination of income stability and visible earnings growth has impressed most analysts. The company currently has a solid Buy rating. Of the 17 analysts tracking the stock, 16 rate Xcel as a Buy, while one labels the stock as a Sell.

The 12-month average price target is around $91 per share, within a range of targets from $96 to $84. With a current price of about $80, the predictability of the company is clearly baked into the price range.

In fact, the stock’s steady climb is also evident in its history. Shares are currently trading approximately 5% higher than three months ago, 10% higher than the start of the year, and more than 20% higher than one year ago.

Investors Should Weigh the RisksDespite the current predictability and steadiness of Xcel, utility companies are never without risk. In the market, the utility sector competes with bonds for many investors, and interest rate hikes can hit valuations as well as borrowing costs for major projects.

In addition, Xcel's capital program is ambitious by any measure, and large capital programs are never guaranteed. Cost overruns, supply chain delays, or adverse regulatory decisions can lead to less recovery than management expects.

Wildfire liability is also a risk, especially with exposure in Colorado and other western states. Xcel has recognized this risk and formed a partnership with the National Forest Foundation in May this year, specifically to support wildfire mitigation and forest restoration.

Stability Remains Xcel’s Biggest StrengthXcel has a lot to recommend it. It’s a well-positioned, regulated utility with a reliable dividend yielding 3%, projected annual earnings growth of 6-8%, and a roughly 12% upside target from current levels.

For conservative investors, it also delivers a business aligned with long-term trends in electricity demand and a clean energy buildout. But it is well-priced, and appreciation could be slow.

In many ways, the company might be boring. But with steady accumulation and a multi-year horizon, Xcel’s income, growth, and its delivery of an increasingly essential product might be exciting enough.

Should You Invest $1,000 in Xcel Energy Right Now?Before you consider Xcel Energy, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Xcel Energy wasn't on the list.

While Xcel Energy currently has a Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Learn the basics of options trading and how to use them to boost returns and manage risk with this free report from MarketBeat. Click the link below to get your free copy.

Get This Free Report

Key Takeaways XEL offers a higher 2.99% dividend yield, while ETR's yield is 2.30%; both top the S&P 500's 1.41%. ETR plans $57B in 2026-2029 investments; XEL targets $60B during 2026-2030 for grid upgrades. Rising power demand, data centers and grid upgrades are shaping growth prospects for both utilities. The companies belonging to the Zacks Utility- Electric Power industry, supported by its regulated structure, are engaged in producing and delivering electricity to a vast customer base throughout the United States. The regulated structure enables these utilities to recover investments while earning predictable returns. They enhance shareholder value through consistent dividend payments and planned share buybacks, making them a reliable choice for investors. Utilities are actively advancing the energy transition by rapidly increasing their reliance on cleaner energy sources to lower emissions.

Electricity demand in the United States is rising, fueled by data center growth, AI workloads, transportation electrification, higher residential usage and industrial reshoring. Companies operating in this industry are making strategic investments in renewable energy, grid modernization and distribution network upgrades to meet rising electricity demand.

Amid the rising importance of transmission and distribution companies, let us discuss Entergy Corporation (ETR - Free Report) and Xcel Energy Inc. (XEL - Free Report) . These two electric utilities have major investments in infrastructure development and grid modernization, making them comparable in the utility space.

Entergy, with its regulated structure, is engaged in electric power production and retail distribution of power. The company operates 25,000 MW of generating capacity, of which more than 5,000 MW is nuclear, supporting millions of customers throughout the United States. It is aided by contracted industrial growth and long-term service agreements supporting revenues and future growth. The company’s strategic investments in infrastructure development and renewable energy expansion enhance service reliability and support long-term growth.

Xcel Energy stands out with its regulated structure that operates through four regulated utility subsidiaries and serves millions of electricity and natural gas customers across the United States. XEL benefits from expanding customer base and a rise in data center demand, supporting revenues and earnings growth. The company invests systematically to expand renewable assets and infrastructure development, which enhances operational efficiency and strengthens long term financial performance.

Entergy and Xcel Energy are among the leading utilities. Comparing their fundamentals side by side can reveal which stock presents the most attractive investment opportunity.

ETR & XEL’s Earnings Growth ProjectionsThe Zacks Consensus Estimate for ETR’s earnings per share is pegged at $4.40 in 2026 and $5.03 in 2027, suggesting year-over-year growth of 12.53% and 14.39%, respectively.  ETR’s long-term (three to five years) earnings growth is currently pinned at 13.32%.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for XEL’s earnings per share is pegged at $4.11 in 2026 and $4.49 in 2027, suggesting year-over-year growth of 8.16% and 9.17%, respectively.  XEL’s long-term earnings growth is currently pinned at 9.36%.

Image Source: Zacks Investment Research

ETR & XEL’s Return on EquityReturn on Equity (ROE) plays a significant role in measuring a company’s management efficiency in utilizing shareholders’ funds to generate profit. A higher ROE generally signifies that a company is using its shareholder funds efficiently to create value and drive earnings growth.

Entergy’s current ROE is 10.75%, outperforming Xcel Energy, which reports a lower ROE of 10.37%. ETR utilizes shareholder capital more efficiently than XEL.

ETR & XEL’s Dividend YieldDividends are regular payments distributed by a utility company to reward its shareholders, reflecting a commitment to delivering consistent returns on invested capital. It reflects the company’s earnings stability and strong cash flow.

Currently, the dividend yield for Xcel Energy is 2.99%, while that for Entergy is 2.30%. The dividend yields of both companies are higher than the S&P 500’s yield of 1.41%.

Image Source: Zacks Investment Research

Capital Investment PlansThe Utilities sector requires continuous investments in infrastructure upgrades and maintenance to ensure operational efficiency and support growing demand.  These investments ensure service reliability and help avoid outages even during extreme weather conditions.

Xcel Energy aims to invest $60 billion during 2026-2030 for grid modernization, expand renewable generation and deploy advanced technologies. Entergy plans to invest $57 billion during 2026-2029 to serve rising customer needs and expand the generation, transmission and distribution network.

Price PerformanceEntergy shares have gained 19.4% in the past six months compared with Xcel Energy’s rally of 6.7%.

Image Source: Zacks Investment Research

Overall AssessmentEntergy and Xcel Energy both gain from a rise in demand for service, expanding customer base and robust capital spending to reliably serve millions across the United States.

ETR, supported by stable earnings per share growth, stronger ROE and better price performance, appears to be a more attractive choice in the utility sector.

Based on the above discussion, Entergy currently has an edge over Xcel Energy, though both presently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Xcel Energy (XEL - Free Report) came out with quarterly earnings of $0.91 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.84 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +0.44%. A quarter ago, it was expected that this utility would post earnings of $0.97 per share when it actually produced earnings of $0.96, delivering a surprise of -1.03%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

Xcel, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $4.02 billion for the quarter ended March 2026, missing the Zacks Consensus Estimate by 4.34%. This compares to year-ago revenues of $3.91 billion. The company has not been able to beat consensus revenue estimates over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Xcel shares have added about 6.7% since the beginning of the year versus the S&P 500's gain of 4.2%.

What's Next for Xcel?While Xcel has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Xcel was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.74 on $3.62 billion in revenues for the coming quarter and $4.11 on $15.91 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Fortis (FTS - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 6.

This electric and gas utility is expected to post quarterly earnings of $0.70 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.2% higher over the last 30 days to the current level.

Fortis' revenues are expected to be $2.44 billion, up 5.1% from the year-ago quarter.

Key Takeaways Xcel Energy posted Q1 operating EPS of 91 cents in line with estimates; revenues were $4.02B.EL's electric segment revenues rose 4.9% to $2.98B, while natural gas fell 2.4% to $1.03BXEL reaffirmed 2026 EPS $4.04-$4.16 and plans $60B spend in 2026-2030 to add renewables, gas, storage. Xcel Energy Inc. (XEL - Free Report) reported first-quarter 2026 operating earnings of 91 cents per share, which matched the Zacks Consensus Estimate. The bottom line also surpassed the year-ago quarter’s figure by 8.3%.

 It reported GAAP earnings of 89 cents per share compared with 84 cents in the year-ago quarter.

Total Revenues of XELRevenues of $4.02 billion missed the Zacks Consensus Estimate of $4.22 billion by 4.8%. However, the figure increased 2.9% from the year-ago quarter’s $3.9 billion.

XEL’s Segmental ResultsElectric: This segment’s revenues totaled $2.98 billion, up 4.9% from $2.83 billion in the year-ago quarter.

Natural Gas: Revenues in this segment decreased 2.4% to $1.03 billion from $1.05 billion in the year-ago quarter.

Other: Revenues amounted to $15 million, down 6.3% from the prior-year quarter.

Highlights of XEL’s Earnings ReleaseTotal operating expenses in the first quarter increased 1.2% year over year to $3.27 billion. The increase in operating expenses was due to the higher cost of natural gas sold and transported, and taxes other than income tax.

Operating income in the first quarter increased 11.4% year over year to $754 million.

Total interest charges and financing costs increased 20.4% from the prior-year quarter’s $309 million to $372 million.

In first-quarter 2026, Xcel Energy registered 0.7% growth in electric customer volume and a 0.8% increase in natural gas customer volume. During the quarter, natural gas sales volume improved 0.1% year over year, and electric sales volume increased 2.8%.

Courtesy of efficient management of services, Xcel Energy electric and natural gas residential bills are 29% and 11%, respectively, lower than the national average.

XEL’s GuidanceXcel Energy reaffirms its 2026 earnings per share in the range of $4.04-$4.16. The Zacks Consensus Estimate is pegged at $4.11 per share, a tad higher than the midpoint of the company’s guided range.

XEL expects retail electric sales to increase 3% in 2026. Natural gas sales volumes are anticipated to increase 1% in 2026 from the year-ago level.

Xcel Energy expects long-term annual earnings per share growth of 6-8% and dividend growth of 4-6%.

The company plans to invest $60 billion in 2026-2030 to further strengthen its infrastructure. Xcel Energy plans to add 7,500 megawatts (“MW”) of renewable generation, 3,000 MW of natural gas generation and 1,900 MW of energy storage through the planned investment.

XEL’s Zacks RankXEL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming ReleasesWEC Energy Group, Inc. (WEC - Free Report) is scheduled to report first-quarter results on May 5. The Zacks Consensus Estimate for earnings is pegged at $2.31 per share, which implies an increase of 1.76% year over year.

The consensus estimate for WEC’s first-quarter sales is pinned at $3.21 billion, which indicates year-over-year growth of 1.91%.

Exelon Corporation (EXC - Free Report) is scheduled to report first-quarter results on May 6. The Zacks Consensus Estimate for earnings is pegged at 89 cents per share, which implies a decline of 3.26% year over year.

The consensus estimate for EXC’s first-quarter sales is pinned at $6.91 billion, which indicates year-over-year growth of 2.93%.

Eversource Energy (ES - Free Report) is scheduled to report first-quarter results on May 6. The Zacks Consensus Estimate for earnings is pegged at $1.59 per share, which implies an increase of 6% year over year.

The consensus estimate for ES’ first-quarter sales is pinned at $4.21 billion, which indicates year-over-year growth of 2.31%.

The Rose Income Garden (RIG) portfolio, with 73 dividend-paying holdings, yields 6% and is up 8.21% YTD, outperforming SPY. I view KO, WPC, and XEL as quality income holdings but consider KO and WPC overvalued, maintaining them as holds, while XEL is a buy on dips. GPC and KMB are undervalued with attractive yields; I have added to both, expecting future capital gains and reliable dividends.

On May 13, 2026, we delve into the DCF analysis for Xcel Energy Inc XEL , a company that has shown a price performance of +20.7% over the past year, despite a modest decline of -0.8% in the last week. This analysis will provide insights into the intrinsic value of XEL based on earnings and free cash flow (FCF) models.

DCF Earnings-based intrinsic value of $48.47 vs current price of $79.90 (margin of safety: -64.8%) DCF FCF-based intrinsic value of $-138.39 vs current price (second opinion) GF Score™ of 82/100 indicates a reliable DCF input What Is XEL Worth? DCF Earnings-Based Model The DCF earnings-based model evaluates Xcel Energy's potential future earnings growth over a 10-year period, followed by a terminal growth phase. The model assumes a current EPS of $3.86 and a growth rate of 6.3% for the first ten years, followed by a terminal growth rate of 4% for the subsequent ten years.

Parameter Value Current EPS (TTM, excl. non-recurring) $3.86 10-Year Growth Rate 6.3% 10-Year Treasury Rate 4.33% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The two-stage model consists of a growth phase where EPS grows at 6.3% annually for the first ten years, discounted at 11%, followed by a terminal phase with a 4% growth rate for the next ten years, also discounted at 11%.

Stage Description Value Growth Stage (Years 1-10) EPS growing at 6.3%, discounted at 11% $30.66 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $17.81 Intrinsic Value Growth + Terminal $48.47 With the current price at $79.90, the intrinsic value of $48.47 indicates that XEL is modestly overvalued, presenting a margin of safety of -64.8%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research shows stock prices correlate more closely with earnings than free cash flow. For further details, visit the XEL DCF Calculator.

What Does the Free Cash Flow DCF Say? The FCF-based intrinsic value for Xcel Energy is calculated at $-138.39. This starkly contrasts with the earnings-based valuation, indicating a significant discrepancy between the two models. The FCF model suggests that XEL is significantly overvalued, with a margin of safety of -100.0%.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for Xcel Energy is $66.93, providing a third perspective on valuation. GF Value™ is GuruFocus' proprietary measure that considers historical trading multiples, past business growth, and future performance estimates. When comparing the three models, both DCF models indicate overvaluation, while GF Value™ also suggests that the stock is overvalued, aligning with the overall consensus. For more information, visit the GF Value™ page.

What Does XEL's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021).

Metric Rating GF Score™ 82/100 Financial Strength 4/10 Profitability 7/10 Growth 7/10 Valuation 6/10 Momentum 10/10 With a predictability rank of 0/5 stars, it suggests that the DCF model may be less reliable for this stock. For further insights, visit the XEL stock page.

Key Assumptions and Limitations It is crucial to note that DCF models are highly sensitive to growth rate and discount rate assumptions. Stocks with low predictability ratings tend to produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not reflect future economic conditions accurately.

What This Means for Investors In conclusion, the DCF earnings model indicates that XEL is overvalued at its current price of $79.90, with an intrinsic value of $48.47. The FCF model further supports this view, showing a significantly overvalued position with an intrinsic value of $-138.39. The GF Value™ of $66.93 aligns with these findings, suggesting a consensus of overvaluation.

For the full DCF analysis, visit the XEL DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.

Frequently Asked Questions What is XEL's intrinsic value based on DCF?

earnings-based $48.47, FCF-based $-138.39

Is XEL overvalued or undervalued?

Based on the DCF and GF Value™ consensus, XEL is overvalued.

How reliable is the DCF model for XEL?

The predictability rank of 0/5 indicates that the DCF model may be less reliable for XEL.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

The Board of Directors of Xcel Energy Inc. (NASDAQ: XEL) today declared a quarterly dividend on its common stock of 59.25 cents per share. The dividends are payable July 20, 2026, to shareholders of record on June 15, 2026.

Xcel Energy is a major U.S. electricity and natural gas company, with operations in 8 Western and Midwestern states. Xcel Energy provides a comprehensive portfolio of energy-related products and services to 3.9 million electricity customers and 2.2 million natural gas customers through its regulated operating companies. Company headquarters are located in Minneapolis. More information is available at www.xcelenergy.com.

This information is not given in connection with any sale or offer for sale or offer to buy any securities.

Statements in this press release regarding Xcel Energy’s business which are not historical facts are “forward-looking statements” that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in the Company's Annual Report on Form 10-K for the most recently ended fiscal year.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260520928682/en/

On June 01, 2026, Xcel Energy Inc XEL shares fell 3.9% to a current price of $76.41. Over the past week, the stock has declined by 5.8%, and it has also seen a significant drop of 7.5% in the last month. The shares are trading within a 52-week range of $65.21 to $84.23.

GF Value™ verdict: Current price is $76.41, compared to GF Value of $67.04, indicating the stock is 14.0% overvalued. GF Score™ of 80/100, which reflects a strong overall score based on key performance metrics. Notable signal: Insiders sold $1.4M in shares over the last 3 months, with no buying activity. Is XEL Overvalued or Undervalued? The current market price of Xcel Energy Inc XEL at $76.41 is significantly above its GF Value™ estimate of $67.04, suggesting that the stock is overvalued by approximately 14.0%. This overvaluation indicates a potential risk for investors looking for entry points, as the margin of safety is absent. The GF Valuation label categorizes XEL as "Modestly Overvalued," highlighting that the current share price does not adequately reflect the company's intrinsic value.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the current valuation, investors may want to proceed with caution, as the market may correct itself in the future, leading to potential declines in share price.

How Does XEL's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 22.0x 21.2x Forward P/E 18.6x - The current P/E (TTM) ratio of 22.0x is 4% above its 5-year median P/E of 21.2x, indicating that XEL is trading at a premium compared to its historical averages. The forward P/E of 18.6x suggests expectations of better earnings in the future, yet the P/E analysis aligns with the GF Value™ verdict of being overvalued. This could indicate a mispricing in the market, which may warrant further scrutiny for potential investment decisions.

What Does XEL's GF Score™ Tell Us? Metric Rating GF Score™ 80/100 Financial Strength 4/10 Profitability 7/10 Growth 7/10 Valuation 6/10 Momentum 8/10 The GF Score™ of 80/100 indicates a strong overall performance across various metrics. The strongest areas are in profitability and growth, both rated at 7/10, demonstrating that the company has a solid capacity for earnings generation and expansion. However, the financial strength score of 4/10 signals potential vulnerabilities in the company's balance sheet. The valuation score of 6/10 further emphasizes the need for caution given the current overvaluation.

What Are Insiders Doing with XEL Stock? Recent insider activity shows that insiders sold $1.4 million worth of shares in the last three months without any buying activity. This pattern may suggest a lack of confidence among insiders regarding the company's share price or future prospects. Typically, insider selling can be viewed negatively by the market, particularly if there are no corresponding purchases to signal continued confidence in the stock.

What This Means for Investors Based on the GF Value™ assessment, Xcel Energy Inc XEL appears overvalued at its current price of $76.41 compared to the intrinsic value estimate of $67.04. Investors may need to be cautious of the current market pricing, as it may not accurately reflect the company's underlying performance, especially given the recent insider selling and modest financial strength indicators.

For the complete analysis, visit the Xcel Energy Inc XEL stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is XEL's GF Score™?

XEL's GF Score™ is 80/100, indicating that the stock has strong performance across key metrics relative to its peers.

Is XEL overvalued or undervalued?

XEL is currently overvalued, with a GF Value™ estimate of $67.04 compared to its market price of $76.41.

What is XEL's P/E ratio?

XEL's P/E (TTM) ratio is 22.0x, which is above its 5-year median of 21.2x, indicating that it is trading at a premium relative to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

© IM Imagery / Shutterstock.com

Utility deals rarely make investors lean forward. This one should. Xcel Energy (NASDAQ:XEL | XEL Price Prediction) just struck an electric service agreement with Google that rewrites who pays for the AI buildout, and it could become the template every hyperscaler and regulated utility copies for the next decade.

The headline: residential and small-business customers in Minnesota are projected to save approximately $1.10 billion over the life of the deal, with savings running up to $1.5 billion over 15 years. Google, not ratepayers, foots the bill for the new generation and transmission needed to power its 750-megawatt Minnesota campus.

The cost model just flipped In the traditional setup, a giant new industrial customer shows up, the utility builds wires and power plants, and everyone’s bill drifts higher to pay for it. CEO Bob Frenzel’s Google arrangement inverts that. Google pays all infrastructure costs, full transmission rates without economic development discounts, and funds all new generation including wind, solar, and large-scale batteries. The deal includes a proposed Clean Energy Accelerator Charge covering 1,900 MW of clean energy resources, with Xcel also partnering with privately held Form Energy to build “the largest long-duration energy storage project” as part of the package.

Frenzel framed the partnership this way on the Q1 call: “Our data center agreement in the Upper Midwest with Google in the quarter sets a high bar for ongoing community development and investment for data centers – protecting residential bills, advancing sustainability goals, and preserving precious water resources in the local community.”

Xcel grows its rate base aggressively without the political backlash that comes when ratepayers subsidize a hyperscaler. Residential transmission costs actually fall by 1 to 2% over 15 years.

A $60 billion capital plan looking for a thesis Xcel raised its five-year capital plan by 33% to $60 billion, funded by $30.2 billion from cash from operations, $22.8 billion in new debt, and $7 billion in equity issuances. The allocation skews toward exactly the assets data centers need: $15.4 billion for electric transmission, $13.9 billion for renewables, $13.7 billion for distribution, and $9.5 billion for generation.

The demand signal is visible in the income statement. Q1 2026 ongoing EPS came in at $0.91 versus $0.84 versus a year prior, on revenue of $4.021 billion, with weather-normalized C&I sales growth of 4.3% and SPS C&I growth of 10.8% driven by Permian Basin oil and gas activity. Management reaffirmed 2026 guidance of $4.04 to $4.16 and a long-term EPS growth target of 6% to 8%+ off a $3.80 base. The details are in the Q1 earnings release.

XEL trades around $77.77, up 17% over the past year, at a forward P/E near 19 with a 2.96% dividend yield. The analyst target sits at $91.39.

What this does for Google Alphabet (NASDAQ:GOOGL) is on a different scale of buildout. Q1 2026 capex hit $35.67 billion, with full-year guidance of $175B-$185B. Google Cloud revenue grew 63% YoY to $20.03B, with backlog approaching $460B.

Locking in clean power on terms regulators and local communities will accept is now a strategic moat. Every quarter spent fighting siting battles is a quarter NVIDIA chips sit on a loading dock instead of training Gemini. GOOGL has run up 122% over the past year to $372.19, and our composite sentiment read on the stock is bullish at 72.

I’ve held Alphabet since April 2012, and the pattern that keeps mattering is the company’s willingness to write big infrastructure checks while everyone else debates AI ROI. Frenzel’s deal turns the most contentious externality of that buildout, ratepayer pain, into a community win.

What to watch next The Minnesota Public Utilities Commission still has to bless the Clean Energy Accelerator Charge. Frenzel hinted more deals are coming: “Our partnership with Google took a strong step forward in the quarter, and we look forward to advancing more projects in the near future.” If this template gets replicated across Colorado, Texas, and the other six states Xcel serves, the $60 billion capital plan is just the floor. For utility investors hunting AI exposure without paying NVIDIA multiples, that is the trade worth studying.

Xcel Energy (XEL) is well-positioned to benefit from surging U.S. electrical demand, driven by data centers, industrial growth, and electrification trends. XEL's $60 billion capex plan (2026–2030) targets 11% annual rate base growth, supporting a projected 9.6% annual EPS growth through 2028. Trading at a forward PE of 19.3, XEL is seen as a quality utility at a fair price, with 20% upside potential by 2027 and 11% annual returns through 2031.