Xcel Energy (XEL) Q1 2026 earnings summary

Executive summary

• Q1 2026 ongoing EPS was $0.91, up from $0.84 in Q1 2025, with GAAP EPS at $0.89, driven by higher electric revenues, infrastructure investment, and AFUDC, partially offset by higher interest, equity financing, and depreciation.

• Net income for Q1 2026 was $556 million, up from $483 million in Q1 2025; revenue rose to $4.02 billion from $3.91 billion, supported by electric sales and infrastructure recovery.

• Over $3 billion invested in new infrastructure in Q1, including nearly 500 MW of new solar and battery storage.

• Announced a landmark 15-year agreement with Google for a new data center, including 1,900 MW of renewables and long-duration storage, projected to save customers $1–1.5 billion.

• Dividend raised by 4%, marking the 23rd consecutive annual increase.

Financial highlights

• Ongoing EPS for Q1 2026 was $0.91; GAAP EPS was $0.89, with adjustments for Prairie Island outage refunds and Marshall Wildfire litigation.

• Operating income rose to $754 million from $677 million year-over-year.

• Electric revenues increased by $141 million, while natural gas revenues decreased by $25 million due to mild weather.

• O&M expenses decreased by $11 million, while depreciation and amortization increased by $40 million year-over-year.

• Cash provided by operating activities was $1.70 billion, up $669 million from Q1 2025, mainly due to insurance reimbursement and regulatory recovery timing.

Outlook and guidance

• 2026 ongoing EPS guidance reaffirmed at $4.04–$4.16, with long-term annual EPS growth targeted at 6–8%+ and annual dividend increases of 4–6%.

• Full-year weather-adjusted electric sales expected to increase 3% and retail firm natural gas sales by ~1% in 2026.

• Capital rider revenue is expected to increase by $505–$515 million, with O&M and depreciation expenses projected to rise by ~3% and $330–$340 million, respectively.

• Total shareholder return target of 10%+, with a dividend payout ratio of 45–55%.

• Line of sight to $7+ billion of $10+ billion incremental investment opportunities.