Wall Street Forecasters' Predicted Valuation for PPL Equity
PPL Corporation: Moderate Earnings Growth and Strong Revenue Expansion Ahead
PPL Corporation, a utility company serving approximately 3.5 million electricity and natural gas customers, is poised for moderate earnings growth and strong revenue expansion in the next fiscal year. This optimistic outlook is backed by a substantial capital investment plan and a positive analyst consensus.
In the second quarter of 2025, PPL reported earnings per share (EPS) of $0.32, missing the consensus estimate of $0.38. The shortfall was primarily due to elevated operating costs from adverse weather and increased interest expenses linked to capital investments. However, revenues reached $2.03 billion, exceeding expectations by about 2.15% and showing a 7.7% year-over-year growth.
PPL has announced a $20 billion investment from 2025 through 2028 aimed at modernizing the electricity grid, enhancing resilience, and supporting the clean energy transition. This includes significant infrastructure upgrades, expected to drive longer-term earnings growth and operational improvements.
Despite the Q2 earnings miss, PPL reaffirmed full-year EPS guidance between $1.75 and $1.87, supported by expected reductions in operations and maintenance expenses in the latter half of 2025 and improved returns on capital investments.
Analysts expect PPL's EPS to grow from about $1.83 in the current fiscal year to approximately $1.97 in fiscal 2026, an increase of roughly 8.2% year-over-year. The consensus estimates have a positive outlook, with EPS expected to rise 7.7% from $1.69 in fiscal 2024 to $1.82 in fiscal 2025 and further to $1.97 in fiscal 2026.
PPL’s stock has demonstrated strong performance relative to sector benchmarks, outperforming the S&P 500 and Utilities Select Sector Fund over the past year. As of writing, the stock is trading below the mean price target of $38.64.
It's important to note that PPL's earnings surprise history is mixed, with two quarters where it beat the consensus estimates and two quarters where it missed. The Street-high price target of $42 implies a potential upside of 16.1%. BofA raised its price target on PPL to $33 while maintaining a "Buy" rating.
Investors should exercise caution as the utility sector is subject to regulatory and weather-related risks. For more information, please view the website Disclosure Policy here.
Disclaimer: Sohini Mondal did not have positions in any of the securities mentioned in the article.
Shares of PPL fell nearly 1% on Jul. 31 after the company reported Q2 2025 adjusted EPS of $0.32, missing the consensus estimate. The consensus rating among analysts covering PPL stock is a "Moderate Buy."
Over the past 52 weeks, PPL stock has returned 19.1%, while the broader S&P 500 Index has rallied 22.1%. Over the past 52 weeks, the Utilities Select Sector SPDR Fund has returned 18.1%.
In conclusion, the financial outlook for PPL Corporation indicates steady earnings growth and revenue expansion in 2025-2026, driven by large-scale infrastructure investments and operational improvements, albeit with some near-term earnings pressure from weather and costs related to their modernization efforts.
Investors looking to explore the business sector may find interest in PPL Corporation, as it is projected to experience growth in earnings and revenue due to substantial investments in modernizing its electricity grid. Analysts expect PPL's earnings per share (EPS) to increase by around 8.2% year-over-year, with growth continuing into fiscal 2026. Those interested in investing in this utility company should keep in mind the potential regulatory and weather-related risks associated with the utility sector.
