PPL Q2 Earnings Miss Estimates on Higher Costs, Revenues Increase Y/Y

PPL Corporation PPL posted second-quarter 2026 ongoing earnings of 33 cents, which missed the Zacks Consensus Estimate of 35 cents by 5.7%. Earnings increased 3.1% from 32 cents in the year-ago quarter.

On a GAAP basis, PPL recorded earnings per share (EPS) of 30 cents compared with 25 cents in the year-ago quarter. The difference between GAAP and operating EPS in the second quarter was due to the impacts of 3 cents from special items.

PPL’s Revenues

Total revenues of $2.11 billion lagged the Zacks Consensus Estimate of $2.18 billion by 3%. The top line increased 4.2% from the year-ago figure of $2.03 billion.

Highlights of PPL’s Q2 Release

In the second quarter, the company sold 15,491 gigawatt hours of electricity to its customers in Pennsylvania and Kentucky, reflecting a year-over-year decrease of 1.6%.

Total operating expenses were $1.64 billion, up 1.1% from $1.62 billion in the year-ago quarter. The increase was primarily attributable to higher fuel expenses, increased energy purchases and higher depreciation expense.

Operating income totaled $475 million, up 17% from the year-ago figure of $406 million.

Interest expenses amounted to $232 million, up 16.6% from $199 million in the year-ago quarter.

PPL Corporation's Regulated Units Deliver Mixed Results

Pennsylvania Regulated: Adjusted earnings declined to 18 cents per share from 19 cents a year ago, as higher depreciation and interest expenses more than offset increased transmission revenues from capital investments.

Kentucky Regulated: Adjusted earnings were 18 cents per share, unchanged year over year. Higher income from retail rates effective Jan. 1, 2026, was offset by increased operating costs, depreciation and interest expense.

Rhode Island Regulated: Adjusted earnings improved to 3 cents from 1 cent, aided by lower operating costs and higher rider revenues. 

Corporate and Other: The segment incurred a loss of 6 cents per share, in line with the year-ago figure.

PPL Sees Data Center Demand Expanding

PPL Electric Utilities' Pennsylvania data center pipeline reached 31.8 GW in advanced stages during the second quarter. More than 11 GW was under signed electric service agreements, while more than 6.5 GW was under construction, up from 5 GW in the first quarter. Two data centers began receiving utility service during the quarter. 

Invitium Energy, PPL's joint venture with Blackstone Infrastructure, has secured sites capable of supporting 8-14 GW of new generation. More than 5 GW of projects have entered PJM's interconnection queue, while turbine reservation agreements covering more than 5 GW could support $12.5-$15.0 billion of potential joint-venture investment through 2032.

PPL’s Balance Sheet and Cash Flow

As of June 30, 2026, PPL had cash and cash equivalents of $332 million compared with $1.07 billion as of Dec. 31, 2025.

As of June 30, 2026, the long-term debt was $19.79 billion compared with $17.99 billion as of Dec. 31, 2025.

Net cash provided by operating activities in the first six months of 2026 was $1.14 billion compared with $1.12 billion in the year-ago period.

PPL spent $2.34 billion on property, plant and equipment during the first six months of 2026, up 35.8% from $1.72 billion a year earlier.

PPL’s Earnings and Capital Investment Outlook

PPL expects 2026 earnings to be in the range of $1.90-$1.98 per share. The Zacks Consensus Estimate is pegged at $1.94, in line with the midpoint of the company’s guided range. PPL expects a long-term annual earnings growth rate of 6-8% through 2029.

PPL remains on track to complete about $5.1 billion of capital investments in 2026 and projects $23 billion through 2029.

PPL’s Zacks Rank

The company currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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