Xcel Energy Q4 2025 Earnings Call Insights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy XEL?
Source: seekingalpha
- Investment Plan: Xcel Energy plans to invest over $60 billion in the next five years to modernize and expand the grid, adding advanced transmission and distribution infrastructure, new natural gas and renewable generation, thereby enhancing overall operational efficiency and supporting sustainability goals.
- Profitability Improvement: The ongoing earnings per share for 2025 reached $3.80, up from $3.50 in 2024, primarily driven by increased electric and natural gas revenues, indicating strong performance and sustained profitability in the market.
- Data Center Expansion: The company has raised its contracted capacity target for data centers from 3 gigawatts to 6 gigawatts by the end of 2026, which is expected to drive significant sales growth in the coming years, further solidifying its position in the rapidly growing data center market.
- Strategic Partnerships: Xcel Energy signed an MOU with NextEra Energy to co-develop generation, storage, and interconnection projects, demonstrating the company's strategic commitment to advancing renewable energy initiatives and laying the groundwork for future growth.
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Analyst Views on XEL
Wall Street analysts forecast XEL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for XEL is 88.86 USD with a low forecast of 79.00 USD and a high forecast of 97.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
12 Buy
2 Hold
0 Sell
Strong Buy
Current: 76.120
Low
79.00
Averages
88.86
High
97.00
Current: 76.120
Low
79.00
Averages
88.86
High
97.00
About XEL
Xcel Energy Inc. is an electric and natural gas delivery company. The Company provides a comprehensive portfolio of energy-related products and services to approximately 3.9 million electric customers and 2.2 million natural gas customers through four utility subsidiaries, NSP-Minnesota, NSP-Wisconsin, PSCo and SPS. The Company operates through two segments. Its regulated electric utility segment generates, purchases, transmits, distributes and sells electricity in Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas and Wisconsin. In addition, this segment includes sales for resale and provides wholesale transmission service to various entities in the United States. The regulated electric utility segment also includes wholesale commodity and trading operations. Its regulated natural gas utility segment purchases, transports, stores, distributes and sells natural gas primarily in portions of Colorado, Michigan, Minnesota, North Dakota and Wisconsin.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Xcel Energy Q4 2025 Earnings Call Insights
- Investment Plan: Xcel Energy plans to invest over $60 billion in the next five years to modernize and expand the grid, adding advanced transmission and distribution infrastructure, new natural gas and renewable generation, thereby enhancing overall operational efficiency and supporting sustainability goals.
- Profitability Improvement: The ongoing earnings per share for 2025 reached $3.80, up from $3.50 in 2024, primarily driven by increased electric and natural gas revenues, indicating strong performance and sustained profitability in the market.
- Data Center Expansion: The company has raised its contracted capacity target for data centers from 3 gigawatts to 6 gigawatts by the end of 2026, which is expected to drive significant sales growth in the coming years, further solidifying its position in the rapidly growing data center market.
- Strategic Partnerships: Xcel Energy signed an MOU with NextEra Energy to co-develop generation, storage, and interconnection projects, demonstrating the company's strategic commitment to advancing renewable energy initiatives and laying the groundwork for future growth.
See More
Xcel Energy Reports Q4 Earnings and 2026 Guidance
- Earnings Performance: Xcel Energy reported a Q4 GAAP EPS of $0.95, aligning with expectations, while revenue reached $3.56 billion, reflecting a 14.1% year-over-year increase but missing estimates by $220 million, indicating challenges in revenue growth.
- Future Earnings Guidance: The company projects ongoing earnings for 2026 to be between $4.04 and $4.16 per share, providing investors with a forward-looking profitability outlook, although current performance fell short of market expectations.
- Dividend Appeal: Xcel Energy is positioned as an upcoming Dividend Aristocrat, attracting investors seeking stable cash flows and dividend growth, thereby enhancing its investment appeal in the utilities sector.
- Strategic Partnership: Xcel Energy signed a memorandum of understanding with NextEra Energy to boost the delivery of generation resources, which will aid the company's expansion in the renewable energy sector and strengthen its competitive position in the market.
See More
Xcel Energy Reports 2025 Earnings: Slight Decline in EPS
- Earnings Performance: Xcel Energy's 2025 GAAP diluted earnings per share (EPS) stood at $3.42, a slight decrease from $3.44 in 2024, reflecting the impact of infrastructure investment recovery and electric sales growth, partially offset by rising interest, depreciation, and operating maintenance expenses.
- Ongoing Profitability Improvement: The ongoing diluted EPS for 2025 was $3.80, significantly up from $3.50 in 2024, primarily driven by growth in electric sales and recovery of infrastructure investments, showcasing the company's effective strategies in enhancing profitability.
- 2026 Outlook: Xcel Energy reaffirmed its EPS guidance for 2026 in the range of $4.04 to $4.16, indicating confidence in future performance, and plans to support critical system investments through strategic alliances with industry-leading development and supply chain partners.
- Infrastructure Investments: In 2025, the company invested in critical infrastructure, including Phase 2 of the Sherco solar facility and the conversion of the Harrington coal plant to natural gas, aimed at enhancing customer service capabilities while maintaining its competitive edge in a low energy cost market.
See More
NextEra Energy and Xcel Energy Sign MOU to Enhance Resource Delivery
- MOU Signing: NextEra Energy signed a memorandum of understanding with Xcel Energy to accelerate the delivery of generation resources for large load customers, including data centers, resulting in a 1.4% stock price increase on Wednesday, reaching its highest level in over three years.
- Resource Delivery Enhancement: The companies expect improved collaboration on generation, storage, and transmission investments will enable them to better anticipate system needs and quickly assess where large customer demand intersects with available grid and power assets, enhancing market responsiveness.
- Data Center Demand Growth: Xcel Energy stated that the agreement will allow it to increase the data center demand it can serve through the 2030s, reflecting a positive outlook on future market potential and further solidifying its position in the energy market.
- Formal Agreement Upcoming: Key commercial terms have been agreed upon in the MOU, with a formal joint development agreement expected to be executed in the coming months, marking a significant step in the deepening collaboration between the two companies in the energy sector.
See More
Xcel Energy Set to Announce Q4 Earnings on February 5th
- Earnings Announcement Date: Xcel Energy is set to announce its Q4 earnings on February 5th before market open, with a consensus EPS estimate of $0.96, reflecting an 18.5% year-over-year increase, indicating ongoing improvements in profitability that could positively impact stock prices.
- Revenue Growth Expectations: The expected revenue for Q4 is $3.78 billion, representing a 21.2% year-over-year growth, which highlights the company's success in meeting electricity demand and expanding services, potentially boosting investor confidence and attracting more capital inflows.
- Historical Performance Review: Over the past two years, Xcel Energy has only beaten EPS estimates 13% of the time, and has not exceeded revenue estimates, indicating challenges in revenue forecasting that may affect market expectations for future performance.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 7 upward revisions and 3 downward revisions, while revenue estimates have experienced 2 upward revisions and 1 downward revision, reflecting differing analyst views on the company's future performance and influencing investor decisions.
See More
XCEL ENERGY AND NEXTERA ENERGY PARTNER TO PROVIDE GENERATION SOLUTIONS AND SUPPORT LARGE LOAD IN XCEL ENERGY’S SERVICE AREAS
Partnership Announcement: Xcel Energy and NEXTERA Energy have agreed to collaborate on delivering generation solutions.
Focus on Renewable Energy: The partnership aims to enhance the provision of renewable energy across Xcel Energy's service territories.
See More
Xcel Energy Q4 2025 Earnings Call Insights
- Investment Plan: Xcel Energy plans to invest over $60 billion in the next five years to modernize and expand the grid, adding advanced transmission and distribution infrastructure, new natural gas and renewable generation, thereby enhancing overall operational efficiency and supporting sustainability goals.
- Profitability Improvement: The ongoing earnings per share for 2025 reached $3.80, up from $3.50 in 2024, primarily driven by increased electric and natural gas revenues, indicating strong performance and sustained profitability in the market.
- Data Center Expansion: The company has raised its contracted capacity target for data centers from 3 gigawatts to 6 gigawatts by the end of 2026, which is expected to drive significant sales growth in the coming years, further solidifying its position in the rapidly growing data center market.
- Strategic Partnerships: Xcel Energy signed an MOU with NextEra Energy to co-develop generation, storage, and interconnection projects, demonstrating the company's strategic commitment to advancing renewable energy initiatives and laying the groundwork for future growth.
See More
Xcel Energy Reports Q4 Earnings and 2026 Guidance
- Earnings Performance: Xcel Energy reported a Q4 GAAP EPS of $0.95, aligning with expectations, while revenue reached $3.56 billion, reflecting a 14.1% year-over-year increase but missing estimates by $220 million, indicating challenges in revenue growth.
- Future Earnings Guidance: The company projects ongoing earnings for 2026 to be between $4.04 and $4.16 per share, providing investors with a forward-looking profitability outlook, although current performance fell short of market expectations.
- Dividend Appeal: Xcel Energy is positioned as an upcoming Dividend Aristocrat, attracting investors seeking stable cash flows and dividend growth, thereby enhancing its investment appeal in the utilities sector.
- Strategic Partnership: Xcel Energy signed a memorandum of understanding with NextEra Energy to boost the delivery of generation resources, which will aid the company's expansion in the renewable energy sector and strengthen its competitive position in the market.
See More
Xcel Energy Reports 2025 Earnings: Slight Decline in EPS
- Earnings Performance: Xcel Energy's 2025 GAAP diluted earnings per share (EPS) stood at $3.42, a slight decrease from $3.44 in 2024, reflecting the impact of infrastructure investment recovery and electric sales growth, partially offset by rising interest, depreciation, and operating maintenance expenses.
- Ongoing Profitability Improvement: The ongoing diluted EPS for 2025 was $3.80, significantly up from $3.50 in 2024, primarily driven by growth in electric sales and recovery of infrastructure investments, showcasing the company's effective strategies in enhancing profitability.
- 2026 Outlook: Xcel Energy reaffirmed its EPS guidance for 2026 in the range of $4.04 to $4.16, indicating confidence in future performance, and plans to support critical system investments through strategic alliances with industry-leading development and supply chain partners.
- Infrastructure Investments: In 2025, the company invested in critical infrastructure, including Phase 2 of the Sherco solar facility and the conversion of the Harrington coal plant to natural gas, aimed at enhancing customer service capabilities while maintaining its competitive edge in a low energy cost market.
See More
NextEra Energy and Xcel Energy Sign MOU to Enhance Resource Delivery
- MOU Signing: NextEra Energy signed a memorandum of understanding with Xcel Energy to accelerate the delivery of generation resources for large load customers, including data centers, resulting in a 1.4% stock price increase on Wednesday, reaching its highest level in over three years.
- Resource Delivery Enhancement: The companies expect improved collaboration on generation, storage, and transmission investments will enable them to better anticipate system needs and quickly assess where large customer demand intersects with available grid and power assets, enhancing market responsiveness.
- Data Center Demand Growth: Xcel Energy stated that the agreement will allow it to increase the data center demand it can serve through the 2030s, reflecting a positive outlook on future market potential and further solidifying its position in the energy market.
- Formal Agreement Upcoming: Key commercial terms have been agreed upon in the MOU, with a formal joint development agreement expected to be executed in the coming months, marking a significant step in the deepening collaboration between the two companies in the energy sector.
See More
Xcel Energy Set to Announce Q4 Earnings on February 5th
- Earnings Announcement Date: Xcel Energy is set to announce its Q4 earnings on February 5th before market open, with a consensus EPS estimate of $0.96, reflecting an 18.5% year-over-year increase, indicating ongoing improvements in profitability that could positively impact stock prices.
- Revenue Growth Expectations: The expected revenue for Q4 is $3.78 billion, representing a 21.2% year-over-year growth, which highlights the company's success in meeting electricity demand and expanding services, potentially boosting investor confidence and attracting more capital inflows.
- Historical Performance Review: Over the past two years, Xcel Energy has only beaten EPS estimates 13% of the time, and has not exceeded revenue estimates, indicating challenges in revenue forecasting that may affect market expectations for future performance.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 7 upward revisions and 3 downward revisions, while revenue estimates have experienced 2 upward revisions and 1 downward revision, reflecting differing analyst views on the company's future performance and influencing investor decisions.
See More
XCEL ENERGY AND NEXTERA ENERGY PARTNER TO PROVIDE GENERATION SOLUTIONS AND SUPPORT LARGE LOAD IN XCEL ENERGY’S SERVICE AREAS
Partnership Announcement: Xcel Energy and NEXTERA Energy have agreed to collaborate on delivering generation solutions.
Focus on Renewable Energy: The partnership aims to enhance the provision of renewable energy across Xcel Energy's service territories.
See More
