Exelon Q4 Earnings Beat Expectations with 2026 Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy EXC?
Source: seekingalpha
- Earnings Highlights: Exelon's Q4 non-GAAP EPS of $0.59 exceeded expectations by $0.04, demonstrating resilience in profitability, although revenue of $5.41 billion fell 1.1% year-over-year and missed estimates, reflecting increased market competition pressures.
- 2026 Earnings Guidance: The company introduced its first adjusted EPS guidance for 2026 in the range of $2.81-$2.91, representing over 6% growth from 2025 guidance and surpassing the $2.83 consensus, indicating management's confidence in future earnings growth.
- Capital Expenditure Plans: Exelon plans to invest $41.3 billion over the next four years to support customer needs and grid reliability, which is expected to drive a 7.9% rate base growth and position operating EPS for a compounded annual growth rate near the top end of 5-7% from 2025 to 2029.
- Updated Financing Strategy: The company updated its four-year financing plan to include $3.4 billion in equity to fund capital expenditures, aligning with a balanced funding strategy that utilizes approximately 40% equity, implying an annualized equity need of $850 million, with 82% of 2026 needs priced under forwards, ensuring funding stability.
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Analyst Views on EXC
Wall Street analysts forecast EXC stock price to rise
15 Analyst Rating
7 Buy
6 Hold
2 Sell
Moderate Buy
Current: 47.550
Low
39.00
Averages
49.46
High
57.00
Current: 47.550
Low
39.00
Averages
49.46
High
57.00
About EXC
Exelon Corporation is a utility services holding company engaged in the energy transmission and distribution businesses through its subsidiaries, Commonwealth Edison Company (ComEd), PECO Energy Company (PECO), Baltimore Gas and Electric Company (BGE), Potomac Electric Power Company (Pepco), Delmarva Power & Light Company (DPL) and Atlantic City Electric Company (ACE). Its segments include ComEd, PECO, BGE, Pepco, DPL and ACE. ComEd segment is engaged in purchasing and regulating the retail sale of electricity. PECO segment is engaged in purchasing and regulating the retail sale of electricity and natural gas. Through its business services subsidiary, Exelon Business Services Company, LLC (BSC), it provides its subsidiaries with a variety of support services at cost, including legal, human resources, finance, information technology and supply management services. BGE segment is focused on transmission and distribution of electricity and distribution of natural gas to retail customers.
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.
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- Stable Future Guidance: Exelon issued in-line guidance for FY 2026 adjusted EPS of $2.81-$2.91, closely aligning with the FactSet analyst consensus of $2.83, indicating confidence in future performance.
- Increased Capital Spending: The company projected $41.3 billion in capital spending over the next four years, up from $38 billion previously, with a 7.9% rate base growth expected, positioning Exelon to achieve annualized earnings growth near the upper end of its 5%-7% guidance range through 2029.
See More
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- Expanded Investment Plan: The company plans to invest $41.3 billion over the next four years, with 70% of the increase directed towards transmission, which is expected to drive future earnings growth and meet rising demand for high-voltage investments.
- Leading Reliability Metrics: Exelon maintained top-quartile reliability metrics in 2024, with less than 1% of customers experiencing outages during extreme weather, showcasing its robust response capabilities and further solidifying its market position.
- Positive Future Outlook: Management anticipates operating earnings guidance of $2.81 to $2.91 per share for 2026, and with strong cost management and completed rate cases, expects annualized earnings growth of 5% to 7% in the coming years.
See More
