Xcel Energy NASDAQ: XEL reported third-quarter 2026 ongoing earnings of $1.52 per share, up from $1.24 per share a year earlier, as higher electric revenue, allowance for funds used during construction, and lower fuel and purchased-power costs more than offset higher interest expense, equity financing and operating costs.
Chairman, President and Chief Executive Officer Bob Frenzel said the company invested $3.5 billion during the quarter and $10 billion year to date, with more than $14 billion of infrastructure investment planned for 2026. Xcel narrowed its 2026 ongoing earnings guidance to $4.10 to $4.16 per share and initiated 2027 guidance of $4.48 to $4.62 per share.
“The build-out and modernization of our U.S. energy system is well underway,” Frenzel said, citing expanding electricity demand from existing customers, industrial activity, electrification and data infrastructure.
Capital plan expands to $70 billion
Xcel introduced a $70 billion capital investment plan for 2027 through 2031, which management said extends its expected annualized rate-base growth of about 11% through 2031. The plan includes more than 9 gigawatts of renewable generation, over 3 gigawatts of natural gas-fired generation, more than 2 gigawatts of energy storage and 2,400 miles of high-voltage transmission lines.
The company also plans approximately $4 billion of distribution and transmission investments intended to improve grid resilience and reduce wildfire risk. Frenzel said the base plan is primarily tied to existing customer needs, including growth in the company’s Southwestern Public Service territory, beneficial electrification, network upgrades and modernization of its generation fleet.
Executive Vice President and Chief Financial Officer Brian Van Abel said the plan includes approximately $26 billion of additional debt and $8 billion of equity content. More than 40% of the anticipated equity requirement has already been contracted, he said.
Management also identified more than $10 billion of potential incremental investment opportunities extending into the early 2030s. Those opportunities include generation requests for proposals across its regions, transmission projects and infrastructure to serve 4 gigawatts of potential data-center demand.
- More than 9 GW of renewable generation
- More than 3 GW of natural gas generation
- More than 2 GW of energy storage
- 2,400 miles of high-voltage transmission
- More than $10 billion of potential investments beyond the base plan
Data centers remain an incremental growth opportunity
Frenzel said Xcel’s $70 billion base plan does not depend on signing new data-center customers. However, the company expects to sign energy service agreements for an additional 1 GW of data-center load by the end of 2026 and another 3 GW by the end of 2027.
Van Abel said the largest current opportunities are in the Upper Midwest and SPS regions, while Colorado may develop later as the company works through its large-load tariff proceeding. The company has filed large-load tariffs designed to ensure existing customers do not subsidize major new loads, incorporating incremental-cost tests, long-term commitments, minimum bills, credit support and exit protections.
Management said data-center infrastructure could require substantial generation and transmission investment but could also improve affordability for existing customers by increasing utilization of grid assets. Van Abel said minimum-bill obligations generally begin when a data-center customer is energized, although contract terms can vary.
Sales growth and regulatory activity
Weather-adjusted electric sales rose 2.5% year to date, driven by activity in the energy sector in SPS, manufacturing across operating companies and higher residential usage per customer. Xcel continues to expect full-year weather-adjusted electric sales growth of 3% in 2026.
For 2027, management expects weather-normalized electric sales growth of 5%, primarily reflecting SPS load growth. Van Abel said that growth includes the ramp of recently energized large loads and annualization of oil-and-gas demand, with additional contributions from a Minnesota data center and sales growth in Colorado.
The company said it reached constructive decisions or settlements in rate cases representing 90% of its rate base. In Minnesota, Xcel filed a proposed electric Rate Stabilization Plan that would keep customer base rates flat in 2027 and 2028 while supporting system investments. A commission decision has been requested in January 2027.
Xcel also expects to make a recommendation filing for a 4,100-MW renewable and storage request for proposals in the Upper Midwest within the next several months. In Colorado, bids for the Phase II Just Transition request for proposals are due in December, with a commission decision expected around the middle of next year.
Financial outlook and customer affordability
Van Abel said Xcel expects average earnings-per-share growth of more than 9% through 2031 and average growth of more than 10% from 2027 through 2030, calculated from the midpoint of 2026 guidance. The company maintained its dividend-growth objective of 4% to 6%, while expecting to operate toward the low end of that range.
The company expects its payout ratio to trend downward within its 45% to 55% target range over the 2027-to-2031 period. Management said cash from operations is expected to grow at a 13% to 14% compound annual rate during the plan period, supported by major generation projects entering service.
Frenzel emphasized affordability, stating that Xcel’s residential electric and natural-gas bills over the past five years were 29% and 11%, respectively, below national averages. He also said the company’s Steel for Fuel program is expected to save customers about $18 billion through 2031 through production tax credits and avoided fuel costs.
About Xcel Energy (NASDAQ:XEL)
Xcel Energy Inc is a public utility holding company that provides electricity and natural gas services to residential, commercial, and industrial customers. Its operations include the generation, transmission, distribution, and sale of electricity, as well as the distribution and sale of natural gas.
The company serves customers across Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin through operating companies including Northern States Power, Public Service Company of Colorado, Southwestern Public Service Company, and NSP-Wisconsin.
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