Xcel Energy Inc

MYR Group reported second-quarter revenue of $1.08 billion, up 20.1% year on year and 8.3% above analyst estimates, while adjusted earnings per share of $3.17 beat expectations by 19.9%. Operating margin improved to 6.3% from 4.4% a year earlier, driven by strong execution and favorable project closeouts in both transmission and distribution and commercial and industrial segments. The commercial and industrial segment posted its highest-ever quarterly revenue, fueled by data center and advanced manufacturing activity, and the company secured significant new transmission awards including two large projects for Xcel Energy. Backlog reached a record $3.16 billion, up 19.7% year on year, supported by a mix of new wins and repeat business from long-term clients. Management expects the recently acquired Valley Electric and Comet Electric to contribute approximately $250 million in revenue for the remainder of the year, with near-term earnings impact muted by amortization but longer-term accretion anticipated.

Xcel Energy now has line of sight to the $70-plus billion of total investments described in its five-year plan from last November. The company reported second-quarter earnings of $0.93 per share, up from $0.75 a year ago, and reaffirmed its 2026 guidance of $4.04 to $4.16 per share. It invested $3 billion in the second quarter and $6 billion year-to-date in generation, transmission, and distribution infrastructure. The Southwestern Public Service Company subsidiary was selected to provide 2,600 megawatts of new generation, including 2,400 megawatts of renewables and 200 megawatts of natural gas, representing a $6 billion investment in Texas and New Mexico. Xcel Energy has addressed approximately $6 billion, or 85%, of its $7 billion base five-year equity need, and expects to deliver 9-plus percent EPS growth on average through 2030 based on $10-plus billion of incremental opportunities beyond the base plan.

Xcel Energy reported second-quarter earnings of $0.93 per share, surpassing the Zacks Consensus Estimate of $0.79 per share by 17.72%. The utility posted revenues of $3.12 billion, missing the consensus estimate by 13.48% and down from $3.29 billion a year ago. Over the last four quarters, the company has beaten consensus EPS estimates only once and has not topped revenue estimates in that period. Xcel shares have gained about 6.6% year to date, slightly trailing the S&P 500's 6.9% advance. The current Zacks Rank for the stock is 3, or Hold, with consensus EPS estimates of $1.40 for the coming quarter and $4.11 for the fiscal year.

Xcel Energy's board declared a quarterly dividend of 59.25 cents per share on its common stock. The dividend is payable on October 20, 2026, to shareholders of record as of September 15, 2026. Xcel Energy is a major U.S. electricity and natural gas company serving 3.9 million electricity customers and 2.2 million natural gas customers across eight Western and Midwestern states.

Goldman Sachs has raised its forecast for worldwide data center capacity to 217 gigawatts by 2030, up from a prior estimate of 168 gigawatts and more than double the 101 gigawatts expected in 2025. The additional 116 gigawatts of capacity would require roughly $6 trillion in capital spending, a level the bank believes can be supported by current hyperscaler investment plans. Goldman favors utilities including FirstEnergy, Xcel Energy, Duke Energy and Sempra, as well as independent power producers Talen Energy, Vistra and NRG Energy, which it expects to benefit from rising power prices and growing data center-related power contracts. Among data center operators, Goldman maintained a Buy rating on Digital Realty, citing persistent supply-demand tightness and AI infrastructure spending. The bank estimates data center capacity will grow at a 17% compound annual rate between 2025 and 2030, with 60% to 70% of new capacity additions located in the United States, and projects global data center power consumption will rise 170% by 2030 compared with 2025 levels.

Xcel Energy's participation in the Yotta 2026 conference on AI and energy infrastructure highlights its role in powering data center and digital load growth, but does not materially change the near-term focus on funding its US$60.00 billion capital program or wildfire liability overhang. The recent Google data center power agreement in Minnesota links Xcel's clean generation buildout and grid upgrades directly to large AI and data center demand, supporting rate base growth and the case for multi-decade clean infrastructure spending. Xcel's narrative projects US$19.1 billion revenue and US$3.4 billion earnings by 2029, requiring 8.8% yearly revenue growth and about a US$1.3 billion earnings increase from US$2.1 billion today. Three fair value estimates from the Simply Wall St Community span roughly US$71 to US$91 per share, reflecting divergent views on Xcel's worth against the scale of its capital program and associated risks.

MYR Group was removed from the Russell 2000 Dynamic Index on June 27, a change that can trigger portfolio rebalancing by funds. The stock last closed at $419.78, with a 7-day return of -9.36%, a year-to-date return of 85.15%, and a one-year total shareholder return of 127.87%. One narrative fair value estimate places the stock at $455, suggesting it is 7.7% undervalued, supported by significant multi-year utility contracts including a new 5-year master service agreement with Xcel Energy. However, the current price-to-earnings ratio of 46.1x sits above the US Construction industry average of 39.8x, the peer average of 27.3x, and a fair ratio of 32.2x, indicating investors are already paying a premium for its earnings power.

NextEra Energy is positioned for sustainable earnings growth, driven by its expanding portfolio of long-term power purchase agreements and strategic partnerships. The company has a 33-gigawatt backlog of signed projects, providing strong earnings visibility, while agreements with Google Cloud and Meta are expanding demand for its wind, solar and battery storage projects. NextEra's subsidiary has also entered into a memorandum of understanding with Xcel Energy to accelerate power generation development for large electricity consumers, including data centers. The Zacks Consensus Estimate for NextEra's 2026 and 2027 earnings per share indicates year-over-year increases of 8.09% and 8.68%, respectively. Shares of NextEra have gained 6.2% in the past six months, and the company's trailing 12-month return on equity of 12.25% exceeds the industry average of 11.21%.

Mizuho lowered its price target on Xcel Energy to $91 from $94 while maintaining an Outperform rating. The revised target still implies nearly 12% upside from current levels. The firm cited continued regulatory execution, including resolved rate cases in Colorado, New Mexico, and Minnesota, and a verbal order on the Minnesota electric rate case. Mizuho sees regulatory de-risking and the end of wildfire season as potential catalysts for a re-rating. Xcel targets 2026 earnings of $4.04 to $4.16 per share and expects 9% average annual EPS growth through 2030.

Morgan Stanley raised its price target on Xcel Energy to $89 from $87 while maintaining an Equal Weight rating, implying nearly 9% upside. The revision followed the firm's updated price objectives for North American regulated and diversified utilities, a sector that fell 5.5% in May against a 5.1% gain for the S&P 500. Xcel Energy has increased its dividend for 23 consecutive years, targeting annual growth of 4–6% and a payout ratio of 45–55%, with the stock currently yielding 2.90%.