Start here if you're new
what it is
PPL is a regulated utility that gets paid to deliver electricity to 3.7 million customers across four states.
how it gets paid
Last year Ppl made $9.2B in revenue. residential electricity was the main engine at $4.4B, or 48% of sales.
why it's growing
Revenue grew 8.6% last year. Data center demand remains a key driver, particularly in pennsylvania, where the largeload pipeline expanded.
what just happened
Revenue hit $6.8B and EPS reached $1.23, both far above last year.
At a glance
A+ balance sheet — rock-solid finances — built to survive anything
50/100 earnings predictability — expect surprises
20.3x trailing p/e — priced about right
6.5% return on capital — nothing to write home about
xvary composite: 62/100 — average
What they do
PPL is a regulated utility that gets paid to deliver electricity to 3.7 million customers across four states.
Your power bill is the moat. PPL serves 3.7 million customers, and most of them are not comparison-shopping for new wires on Tuesday. Regulated utility model (state-approved returns on grid spending → the company earns on invested infrastructure → so what: the more approved projects it builds, the more predictable your earnings stream becomes) is boring by design.
How they make money
$9.2B
annual revenue · their business grew +8.6% last year
residential electricity
$4.4B
commercial electricity
$2.0B
industrial electricity
$0.9B
other utility revenue
$1.8B
The products that matter
regulated electric and gas utility
Kentucky Utilities
$4.1B · 44.6% of revenue
This is the largest segment at $4.1B in revenue, or 44.6% of the total business. If capital spending gets approved here, earnings visibility improves.
largest segment
regulated electric distribution
PPL Electric Utilities
$3.8B · 41.3% of revenue
This $3.8B segment carries the recent $275M rate settlement and much of the Pennsylvania load-growth narrative. That's why it matters more than its label suggests.
rate case leverage
holding company and other operations
Corporate & Other
$1.3B · 14.1% of revenue
At $1.3B, this is the smallest bucket. It matters mainly because it reminds you almost all of the business is still the regulated utility core.
supporting role
Key numbers
20.3x
trailing p/e
P/E → stock price divided by past earnings → so what: you are paying 20.3 times last year's profit for a utility expected to grow earnings 7.5% annually.
$20B
capital plan
Capital investment plan → money spent on poles, wires, and grid upgrades → so what: this is the machine management says will support 6%-8% annual earnings and dividend growth through 2028.
23.2%
operating margin
Operating margin → percent of revenue left after running the business → so what: PPL keeps about 23 cents from every revenue dollar before interest and taxes.
$16.9B
long-term debt
Long-term debt → money owed over many years → so what: the balance sheet is strong for a utility at 38% of capital, but debt still matters when you are funding a $20 billion buildout.
Financial health
A+
strength
- balance sheet grade A+ — near the highest rating possible
- risk rank 1 — safer than 95% of stocks
- price stability 100 / 100
- long-term debt $16.9B (38% of capital)
- return on equity 10% — $0.10 profit for every $1 investors have put in
A+ — among the top-rated companies for balance sheet quality.
Total return vs. market
You invested $10,000 in PPL 3 years ago → it's now worth $13,630.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Revenue hit $6.8B and EPS reached $1.23, both far above last year.
The company posted a small earnings beat, with $0.41 actual EPS versus a $0.40 estimate in the latest reported release. On the hard reported quarter, revenue rose 205% vs. prior year and EPS rose 186% vs. prior year.
$6.8B
revenue
$1.23
eps
23.2%
gross margin
the number that mattered
The number that mattered was $1.23 in quarterly EPS, because it shows how fast earnings can move when rate recovery and utility economics line up.
-
management reaffirmed its long-term target of 6%-8% annual earnings and dividends growth through at least 2028, with expectations skewed toward the upper end of that range.improved weather-normal demand and favorable regulatory mechanisms also contributed to stronger vs. prior year comparisons.
-
the company continues to advance its $20 billion infrastructure investment plan through 2028, supporting nearly 10% annual rate base growth.data center demand remains a key driver, particularly in pennsylvania, where the largeload pipeline expanded. regulatory progress in kentucky and pennsylvania has improved visibility around future returns, while capital allocation remains disciplined. management continues to emphasize customer protections and tariff structures designed to limit earnings volatility as large-load projects ramp.
-
shares are down about 3% in value since our last november report, despite improved earnings momentum.
-
the stock still remains up about 10% in value over the past 12 months.operating fundamentals remain solid, supported by regulated rate recovery, infrastructure spending, and expanding load demand.
-
execution around permitting, cost recovery, and conversion of the data center pipeline into contracted load will remain key swing factors.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
The #1 risk is regulators refusing full recovery on PPL's $20B–$23B capital build — this stock is priced like that spending will translate into earnings with minimal friction.
high
capital plan execution
A roughly $20B–$23B multi-year grid build is the entire growth story. Delays, cost overruns, or project slippage would pressure the promised 6%–8% earnings growth.
directly threatens the premium valuation
high
pennsylvania and kentucky rate recovery
PPL can spend the money. Regulators still decide how much of it earns a return. The recent $275M settlement helps, but future cases remain the gatekeeper.
slower recovery means lower earnings visibility
med
data center load conversion
Large-load demand is a real part of the bull case, especially in Pennsylvania. But pipeline is not the same thing as contracted load. If those customers do not convert, growth expectations cool fast.
weakens the case for upper-end growth
med
equity funding needs
PPL projects roughly $3B of equity needs from 2026 through 2029. That is manageable, but not free. Existing shareholders will care a lot about the price and timing.
share issuance can dilute per-share growth
A premium 20.3x P/E and roughly $3B of expected equity needs from 2026–2029 leave less room for execution mistakes than most utility stocks get.
source: institutional data · regulatory filings · risk analysis
Pay attention to
regulatory
2026 rate case outcomes
The $275M PPL Electric settlement is the current proof point. Future approvals in Pennsylvania and Kentucky tell you whether regulators are still on board with the growth plan.
execution
capex pace versus plan
Monitor quarterly spending against the roughly $20B–$23B multi-year build. Utilities win by boring consistency. Missed milestones are the opposite of boring.
demand
data center load conversion
The Pennsylvania large-load pipeline sounds good on calls. What matters is signed load showing up in the rate base story.
funding
equity issuance timing
Roughly $3B of equity needs through 2029 is not trivial. If shares are issued at weak prices, per-share upside gets thinner.
Analyst rankings
earnings predictability
50 / 100
Middle of the pack. In human-speak, analysts see a steady utility business with enough regulatory and project moving parts to keep the forecast from feeling automatic.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 445 buyers vs. 362 sellers in 3q2025. total institutional holdings: 0.6B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$32
$45
$36
current price
$39
target midpoint · +7% from current · 3-5yr high: $50 (+35% · 10% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive