Title

Earning Preview: PPL Corp this quarter’s revenue is expected to increase by 18.19%, and institutional views are bullish

Abstract

PPL Corp will report quarterly results Pre-Market on February 20, 2026; this preview consolidates the latest financial forecasts, last-quarter performance metrics, business mix, and analyst perspectives to frame expectations for revenue, margins, and adjusted EPS.

Market Forecast

Based on the latest projections, PPL Corp’s current quarter revenue is estimated at 2.42 billion, up 18.19% year over year, and adjusted EPS is forecast at 0.42, up 10.87% year over year. No formal guidance was observed for gross profit margin or net profit margin in the current quarter, though EBIT is forecast at 527.00 million, up 7.88% year over year. The regulated operations are expected to remain the primary driver of consolidated results, with continuing investment returns and cost recovery underpinning revenue stability and earnings visibility. Within the portfolio, the Kentucky regulated business stands out for scale, anchored by 944.00 million of last-quarter revenue and ongoing rate structures that support reinvestment.

Last Quarter Review

PPL Corp delivered last-quarter revenue of 2.24 billion, a gross profit margin of 45.51%, GAAP net profit attributable to the parent company of 318.00 million, a net profit margin of 14.20%, and adjusted EPS of 0.48, which rose 14.29% year over year. The quarter’s net profit accelerated quarter on quarter with 73.77% growth, highlighting both operational discipline and supportive regulatory outcomes. Main business revenues were led by Kentucky regulated operations at 944.00 million, Pennsylvania regulated operations at 786.00 million, and Rhode Island regulated operations at 509.00 million, against an overall revenue growth of 8.37% year over year.

Current Quarter Outlook

Regulated Operations: Core Drivers and Near-Term Setup

For the coming quarter, regulated utility operations remain the backbone of PPL Corp’s financial profile, and the forecasted company-level revenue growth of 18.19% suggests constructive pricing and recovery frameworks are in place. A key driver is the continuity of rate structures across territories, which provide mechanisms for recovering prudent investments in reliability, grid modernization, and customer service enhancements. This quarter’s earnings trajectory will also reflect how O&M savings, customer usage trends, and the timing of approved capital programs balance input costs that typically flow through regulated constructs. Earnings cadence can be affected by weather normalization and seasonal load patterns; the degree to which usage aligns with planning assumptions will influence realized margins even where decoupling or riders partially mitigate volume swings. From a cash flow perspective, execution against approved capital plans and the pace of asset placements into rate base are central to sustaining the earnings path implied by the 10.87% forecast EPS growth, while any one-off items and storm-cost recoveries influence the conversion of operating performance into reported EPS within quarter-specific windows.

Kentucky: Most Promising Business and Earnings Contribution

Kentucky is the largest revenue contributor in the portfolio, posting 944.00 million last quarter, and it continues to anchor consolidated earnings through scale and established recovery mechanisms. The segment’s visibility is bolstered by the breadth of sanctioned investment programs and the established regulatory timeline that supports rate base growth, creating a foundation for durable earnings contribution. In the current quarter, the drivers to watch include the pace of construction and in-service dates for reliability and modernization projects, the alignment of approved depreciation schedules with actual asset placements, and the smooth pass-through of eligible costs. The breadth and maturity of Kentucky operations also provide scope to integrate incremental systems upgrades, where capital efficiencies and process optimization can temper O&M inflation. While quarter-specific weather can alter short-term load profiles, the combination of cost-recovery tools and structured rates should limit volatility in realized margins relative to the consolidated forecast.

Pennsylvania and Rhode Island: Complementary Mix and Margin Dynamics

Pennsylvania and Rhode Island add depth and diversification to PPL Corp’s consolidated revenue base, contributing 786.00 million and 509.00 million, respectively, last quarter. These operations support earnings stability through frameworks designed to recover prudent investments and service improvements, with riders and trackers helping align cost flows with revenue recognition. This quarter’s margin profile across these jurisdictions will reflect the interplay between approved rate designs, the timing of maintenance and upgrade programs, and realized load in commercial and residential customer classes. Where utilities are deploying grid modernization or service enhancements, disciplined project management tends to preserve the gross margin trajectory even as input costs fluctuate. The visibility in these segments complements Kentucky’s scale, and together they provide a more balanced earnings stream that matches the consolidated forecast for revenue growth and EPS expansion.

Margin Outlook and Earnings Quality: Bridging to EPS

While no formal guidance was observed for gross or net margins in the current quarter, last-quarter results provide a reference point for earnings throughput amid revenue growth. The 45.51% gross profit margin and 14.20% net profit margin illustrate that cost recovery and disciplined operations can translate revenue gains into EPS, subject to quarter-specific load and cost timing. Stock-price sensitivity this quarter will pivot on how close realized margins sit to those historical markers, given revenue upticks forecast at 18.19% and EPS growth forecast at 10.87%. The market will be looking for signs that operational execution, cost containment, and regulatory alignment preserve earnings quality alongside growth—particularly in the context of forecast EBIT of 527.00 million. Delivering on these elements will frame the debate around valuation sustainability as investors parse the bridge from revenue strength to reported EPS.

Capital Program Execution and Rate Base Growth: Key Earnings Lever

The capital program’s execution pace remains central to quarterly earnings, as project in-service timing directly influences rate base growth and thus earnings accretion. PPL Corp’s ability to place assets on schedule underpins the consolidated outlook for revenue expansion and supports the company’s capacity to meet or exceed the 10.87% forecast EPS growth. Elements such as supply-chain readiness, contractor availability, and permitting schedules can marginally affect recognized earnings in the quarter, even if these are smoothed by multi-year plans. A well-sequenced pipeline helps maintain visibility across quarters, and in the current period, progress checkpoints and regulatory updates will be watched closely as indicators of the durability of the upward earnings path. Any improvements in efficiency or cost-to-complete metrics contribute to margin preservation and enhance the probability that forecast EPS translates into reported performance.

Operational Costs, Load, and Weather: Quarter-Specific Sensitivities

Operating expenses, customer load patterns, and weather dynamics introduce short-run variability around otherwise stable regulated constructs. This quarter’s realized margins will depend on how actual usage compares with planning assumptions and whether cost trajectories—such as maintenance schedules or incremental reliability spend—align with rate-recovery timing. The load mix across residential, commercial, and industrial classes also affects earnings composition, as different classes carry different rate structures and elasticity considerations. While pass-through mechanisms mitigate commodity-price exposure, the timing of true-ups and riders can shift recognition across reporting periods and influence quarter-specific EPS. Monitoring service metrics and outage performance remains relevant for both regulatory optics and cost containment, tying back to the gross margin profile as the company advances grid resiliency programs.

Cash Flow and Balance Sheet Considerations: Supporting Valuation

Quarterly cash flow conversion complements earnings delivery in reinforcing investor confidence. Capital discipline within regulated frameworks allows the company to sustain investment levels while maintaining balance-sheet flexibility. In the current quarter, the balance between funding growth and preserving liquidity will matter for how investors frame valuation against forecast performance. Consistency in cash generation from operations provides the platform for continued investment recovery and supports the ability to absorb quarter-specific variances in load or costs. The bridge from EBIT to EPS is also informed by interest and tax profiles in the period; stability here supports the consolidation of forecast outcomes into reported figures.

What Will Move the Stock This Quarter

The key swing factors for PPL Corp’s stock price around the February 20, 2026 report will be the degree to which reported revenue aligns with the 2.42 billion forecast and whether adjusted EPS lands close to the 0.42 estimate with the indicated 10.87% year-over-year growth. Margin commentary will be closely parsed for signals that gross and net profitability are tracking near last-quarter levels, particularly given the forecast EBIT of 527.00 million. Updates on regulated project execution and the cadence of rate base additions will help investors assess the durability of growth beyond the quarter. Any outperformance or underperformance on load and weather normalization—alongside clarity on cost recovery timing—can sway near-term sentiment. Finally, qualitative guidance about program milestones and capital efficiency will shape how investors extrapolate the quarter’s numbers into full-year expectations.

Analyst Opinions

The balance of opinions collected within the permitted window indicates a bullish majority. Wells Fargo maintained an Overweight stance on PPL Corp and adjusted its price target to 41.00 from 45.00, signaling continued confidence in the company’s regulated earnings trajectory and capital program execution despite a modest recalibration. Surveys of analyst recommendations also point to an average rating skewing Overweight with mean targets around 40.00, which aligns with the forecasted improvement in revenue and EPS this quarter. On this majority-bullish view, institutions emphasize visible drivers: supportive rate structures across key jurisdictions, disciplined capital deployment feeding rate base growth, and earnings quality evidenced by last-quarter margin and EPS performance. The expectation is that PPL Corp can translate the 18.19% revenue growth forecast and 10.87% EPS growth forecast into reported figures near consensus, while maintaining constructive commentary on the underlying programs that fuel multi-quarter visibility. This camp also highlights the role of Kentucky’s scale and programmatic execution as anchors for consolidated results, with Pennsylvania and Rhode Island providing balance that mitigates quarter-specific variability. The bullish case thus centers on earnings deliverability within regulated frameworks, the resilience of margins amid operational variability, and the continued pathway for EPS accretion implied by the forecast EBIT and revenue outlook. Institutions with favorable views see incremental upside if reported performance comes in at or above these forecasts and if the company reinforces confidence in project timelines and cost recovery cadence for upcoming periods, supporting both near-term sentiment and the evaluation of longer-term earnings glide paths.