NiSource Inc

Hedge funds and mutual funds took sharply different approaches to individual AI stocks during the second quarter, according to Goldman Sachs. Hedge funds bought Microsoft and Amazon while mutual funds reduced positions in both, and hedge funds cut exposure to Alphabet, Meta Platforms, Nvidia, Broadcom, Lam Research, Marvell Technology, Cisco Systems, Hewlett Packard Enterprise and Applied Materials. Mutual funds bought Advanced Micro Devices, Micron Technology and Sandisk while hedge funds reduced exposure to those stocks. Goldman identified 12 AI infrastructure stocks purchased by both groups, including American Electric Power, Bloom Energy, CoreWeave, Flex, NiSource, Seagate Technology, Talen Energy and Xcel Energy. The analysis covers 991 hedge funds with $5.4 trillion of gross equity positions and 504 large-cap active mutual funds with $4.6 trillion in equity assets.

NiSource Inc. reported second-quarter adjusted EPS of $0.16, down from $0.22 a year earlier, yet reaffirmed its 2026 adjusted EPS guidance of $2.02 to $2.07 and long-term growth rate of 6% to 8% through 2030. The company attributed the earnings decline to higher operations and maintenance spending tied to an unusually active storm season, calling 2026 a record year for tornadoes across its service territory, along with elevated costs to keep its workforce steady during ongoing union negotiations. NiSource also received a third federal order in June requiring it to keep running the Schahfer coal plant, and is seeking to recover those compliance costs through a FERC filing within 60 days. The company's growth story increasingly runs through data centers, with the Indiana Utility Regulatory Commission approving the original Amazon special contract in June and the Alphabet partnership in July, with load expected to ramp toward full capacity by 2030. Those two agreements alone are projected to return about $1.4 billion in bill reductions to existing NIPSCO electric customers over the life of the contracts, or up to $124 a year for an average residential bill, with savings starting as early as the fourth quarter of 2026.

NiSource Inc. declared a quarterly common stock dividend of $0.30 per share, payable November 20, 2026, to stockholders of record on October 30, 2026. The announcement was made by the company's board of directors on August 11, 2026. NiSource is a fully-regulated utility serving approximately 3.3 million natural gas and 500,000 electric customers across six states.

NiSource reported second-quarter 2026 adjusted earnings of $0.16 per share, down from $0.22 a year earlier, while reaffirming its full-year adjusted EPS guidance of $2.02 to $2.07 and long-term growth targets. The company maintained its five-year capital plan, which includes $21 billion in base-business investment, up to $2 billion in additional opportunities, and $7.6 billion in planned GenCo investment tied to data-center agreements with Amazon and Alphabet. Those agreements represent 4 gigawatts of signed load and are expected to reduce NIPSCO customers' bills by approximately $1.4 billion, with savings potentially beginning in the fourth quarter of 2026. Management said a recent Indiana regulatory order on gas modernization investments did not alter its capital spending, earnings outlook, or rate-case timing.

NiSource Inc announced a quarterly cash dividend of $0.3 per share, with the ex-dividend date set for July 31, 2026, and payment on August 20, 2026. The company has maintained a consistent dividend payment record since 1989 and has increased its dividend each year since 2016, earning status as a dividend achiever. As of today, NiSource's 12-month trailing dividend yield is 2.59% and its forward yield is 2.68%, while its dividend payout ratio stands at 0.58, indicating a prudent balance between shareholder returns and retained earnings. Over the past five years, the annual dividend growth rate averaged 6.10%, and the 5-year EBITDA growth rate reached 10.60%, outperforming roughly 68.56% of global competitors. The company's profitability rank is 6 out of 10, with net profit reported in eight of the past ten years, supporting the sustainability of future dividend payments.

NiSource Inc. is gaining from its regulated structure, rising electricity and natural gas demand, and cost-saving efforts under Project Apollo, supporting revenue and earnings growth. The Zacks Consensus Estimate for 2026 and 2027 EPS is $2.05 and $2.26, indicating year-over-year growth of 7.89% and 10.10%, respectively, while sales estimates are $6.94 billion and $7.28 billion. The company plans to invest $28.6 billion between 2026 and 2030, including $21.0 billion in base investments and $7.6 billion in data center infrastructure, supporting a 9-11% consolidated rate base growth through 2033. NiSource has consistently increased its quarterly dividend since 2021, currently paying 30 cents per share for an annualized $1.20 and a 2.57% yield, and targets 11-12% long-term annual shareholder returns. Its total debt-to-capital ratio of 58.43% is lower than the industry's 60.71%, and its times interest earned ratio stood at 2.8 at the end of the first quarter of 2026.

RBC Capital initiated coverage on NiSource with an Outperform rating and a $52 price target, calling the utility a rare combination of above-peer EPS growth and a uniquely favorable data center setup in Indiana that is not yet fully reflected in the stock. Analyst Stephen D'Ambrisi sees NiSource's 7% to 8% premium on his fiscal 2030 earnings estimates expanding, driven by a roughly 200 basis point EPS growth advantage over peers, Indiana's position as one of the most attractive data center markets in the Midwest, and a GenCo structure that helps insulate NIPSCO from affordability pressures weighing on regional peers. Despite NiSource's premium ranking relative to large-cap peers, the analyst sees room for further multiple expansion as the data center opportunity becomes better understood and management executes on near-term announcements. RBC also launched coverage on Public Service Enterprise Group with a Sector Perform rating and an $81 price target, noting that the New Jersey regulatory overhang that has pressured the stock over the past year may be alleviating, but the analyst still needs more clarity on the path forward.

Indiana has cleared the full legal and regulatory framework for Amazon's data center expansion in the state. The Indiana Utility Regulatory Commission approved key agreements on June 17, including Amazon's special electric service contract, a power purchase agreement, and a broader settlement between the parties. The regulator also approved NiSource's proposed generation resources to supply the additional power capacity needed for Amazon's demand while maintaining grid reliability. This follows an April 16 expansion of the agreement between NiSource and Amazon Data Services, with NiSource adding another 400 megawatts of capacity by June 5 to serve Amazon sites.

NiSource has received approval from the Indiana Utility Regulatory Commission for key agreements supporting its partnership with Amazon to power new data center developments in northern Indiana. In a separate order, the IURC also cleared NiSource’s proposed power generation projects, including combined-cycle gas turbine plants and battery energy storage systems, to help meet growing electricity demand from large-scale data centers while maintaining grid reliability. The approvals advance NiSource’s strategy to accommodate large-load growth while shielding existing customers from the costs of serving new data center demand. As part of the settlement, parties committed to supporting expedited review processes for future agreements, aiming to strengthen the partnership model’s speed-to-market advantage and attract further technology investments. NiSource shares were down 1.30 percent at $47.00 in pre-market trading on the New York Stock Exchange.