PPL (PPL) AI Stock Analysis

• Market Cap: $28.96B
• Dividend Yield: 3.13%
• Average Volume (3M): 11.10M
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.15
• Revenue Growth: 8.42%
• EPS Growth: 32.48%
• Country: US
• Employees: 6,653
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.41
• Shares Outstanding: 751,306,760
• 10 Day Avg. Volume: 13,675,781
• 30 Day Avg. Volume: 11,103,346
• PEG Ratio: 0.66
• Price to Book (P/B): 1.74
• Price to Sales (P/S): 2.87
• P/FCF Ratio: -18.50
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 5.20
• Enterprise Value/Gross Profit: 13.32
• Enterprise Value/Ebitda: 12.77
• 1Y Price Target: $41.55
• Price Target Upside: 7.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 1.95
• Revenue Forecast (FY): $9.56B

• Rating: 67 Neutral
• Price Target: $42.00 ▲(8.95% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by solid but not top-tier financial quality: improving earnings and revenue are offset by rising leverage and uneven cash flows. Technicals are supportive with the stock trading above major moving averages, while valuation is only moderate given the ~24 P/E and a ~2.85% dividend yield. The latest earnings call adds a positive catalyst via raised multi-year growth visibility and stronger capex/rate-base plans, partially tempered by financing and regulatory risks.

Positive Factors

Material Multi-year CapEx & Rate Base Growth

A $23B 2026–2029 capex plan driving an estimated ~10.3% rate-base CAGR provides durable, regulated earning power. Expanding rate base in a regulated framework supports predictable revenue and underpins the company’s multi-year EPS targets and long-term cash-generating profile.

Large Data-center Demand Pipeline

A 25.2 GW advanced-stage data-center pipeline (with ≥10 GW expected under ESAs) represents structural load growth locked to long-term contracts. This drives sustained incremental rate base, utilization, and contract-backed cash flows that reduce merchant exposure and bolster long-term revenue visibility.

Strengthened Liquidity & Capital Access

Completion of a corporate unit offering (hybrid equity/debt structure) enhances funding flexibility and provides hybrid capital while remarketable notes and extended revolvers support committed liquidity. This durable access to markets mitigates refinancing risk amid large capex needs.

Negative Factors

Rising Leverage

Leverage increasing to roughly 1.24x by 2025 reduces balance-sheet flexibility and raises interest burden sensitivity. With sizable upcoming capex, higher leverage constrains financial optionality, limits buffer for shocks, and can pressure credit metrics and future rate-case positioning.

Inconsistent Cash Generation

A sharp drop in operating cash flow to about $0.6B and multi-year negative free cash flow history show cash-generation volatility. This undermines the ability to self-fund capex and dividends, increasing reliance on external financing and elevating execution and funding risk over the planning horizon.

Ongoing Equity Issuance & Dilution Risk

Approximately $2B of remaining planned equity raises to help fund the 2026–2029 plan introduces dilution risk and constrains per-share returns. Ongoing issuances can cap dividend upside and weigh on EPS even as assets are added, affecting long-term shareholder remuneration dynamics.

PPL Business Overview & Revenue Model

Company Description

PPL Corporation, a utility holding company, delivers electricity and natural gas in the United States and the United Kingdom. The company operates through two segments: Kentucky Regulated and Pennsylvania Regulated. It serves approximately 429,000 electric and 333,000 natural gas customers in Louisville and adjacent areas in Kentucky; 538,000 electric customers in central, southeastern, and western Kentucky; and 28,000 electric customers in five counties in southwestern Virginia. The company also provides electric services to approximately 1.4 million customers in Pennsylvania; and generates electricity from coal, gas, hydro, and solar sources in Kentucky; and sells wholesale electricity to two municipalities in Kentucky. PPL Corporation was founded in 1920 and is headquartered in Allentown, Pennsylvania.

How the Company Makes Money

PPL generates revenue through several key streams: regulated utility operations, which involve the transmission and distribution of electricity to consumers; wholesale power generation, where PPL sells electricity produced from its power plants to other utilities or energy markets; and renewable energy projects, which contribute to its earnings through the sale of power and renewable energy credits. Additionally, PPL benefits from significant partnerships, including agreements with local governments and organizations for large-scale energy projects, as well as regulatory frameworks that allow for stable returns on investments in infrastructure. The company's earnings are also influenced by energy market conditions and regulatory decisions affecting pricing and operations.

PPL Financial Statement Overview

Summary

Income statement strength (steady revenue growth and improved profitability with ~13.1% net margin in 2025) is tempered by balance-sheet leverage trending higher (debt-to-equity rising to ~1.24 by 2025) and a key weakness in cash-flow consistency (operating cash flow falling sharply in 2025 and multiple years of negative free cash flow).

Income Statement

Revenue has grown steadily from 2022–2025 (including a sharp step-up in 2022 and further gains through 2025), and profitability has recovered meaningfully from the 2021 loss to solid positive earnings in 2022–2025. Net margin improved to ~13.1% in 2025 from ~10.5% in 2024 and ~8.9% in 2023, indicating better earnings efficiency. Offsetting these positives, profitability is somewhat uneven over the cycle (notably the 2021 net loss), and operating profitability metrics show some inconsistency across years (e.g., 2025 margin disclosures look less internally consistent versus prior years), which adds uncertainty around the underlying run-rate.

Balance Sheet

The balance sheet reflects typical utility-style leverage, with debt-to-equity moving higher over time (about 0.82 in 2021 to ~1.24 in 2025) as total debt increased. Equity has also risen, helping support the capital structure, but leverage remains material and trending in the wrong direction. Returns on equity were positive in 2022–2024 (roughly mid-single digits) after a negative 2021, suggesting stabilization, but overall balance-sheet flexibility looks moderate given the steady debt build.

Cash Flow

Cash generation is volatile. Operating cash flow was strong in 2022–2024 (about $1.7B–$2.3B) but dropped sharply in 2025 to ~$0.6B, which pressures internally funded investment and dividend capacity. Free cash flow has been negative in 2022–2024, turned positive in 2025, but that 2025 swing comes alongside the operating cash flow decline, making the improvement less reassuring. Overall, cash flow consistency is the key weakness despite periods of solid operating cash production.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.04B	8.46B	8.31B	7.90B	5.78B
Gross Profit	3.53B	3.39B	3.28B	2.89B	2.71B
EBITDA	3.68B	3.21B	2.92B	2.66B	2.56B
Net Income	1.18B	888.00M	740.00M	756.00M	-1.48B
Balance Sheet
Total Assets	45.24B	41.07B	39.24B	37.84B	33.22B
Cash, Cash Equivalents and Short-Term Investments	1.09B	306.00M	331.00M	356.00M	3.57B
Total Debt	19.35B	16.81B	15.60B	14.23B	11.21B
Total Liabilities	30.36B	26.99B	25.30B	23.92B	19.50B
Stockholders Equity	14.88B	14.08B	13.93B	13.91B	13.72B
Cash Flow
Free Cash Flow	-1.40B	-465.00M	-632.00M	-425.00M	297.00M
Operating Cash Flow	2.63B	2.34B	1.76B	1.73B	2.27B
Investing Cash Flow	-4.00B	-2.82B	-2.38B	-5.65B	7.96B
Financing Cash Flow	2.12B	435.00M	650.00M	709.00M	-7.39B

PPL Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPL, the sentiment is Positive. The current price of 38.55 is above the 20-day moving average (MA) of 37.51, above the 50-day MA of 36.37, and above the 200-day MA of 35.53, indicating a bullish trend. The MACD of 0.66 indicates Negative momentum. The RSI at 60.92 is Neutral, neither overbought nor oversold. The STOCH value of 70.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PPL.

PPL Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPL	67 Neutral	$28.96B	21.95	8.16%	3.13%	8.42%	32.48%
AEE	67 Neutral	$30.83B	18.55	11.48%	2.86%	22.71%	22.86%
CMS	66 Neutral	$23.64B	19.63	12.33%	3.10%	10.96%	-0.77%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
FE	64 Neutral	$29.38B	25.33	8.04%	3.94%	7.64%	48.61%
ES	63 Neutral	$27.95B	14.75	10.84%	4.54%	13.12%	―
DTE	62 Neutral	$31.20B	18.26	12.16%	3.45%	19.42%	-9.68%

PPL Corporate Events

PPL Completes Corporate Unit Offering to Raise Capital

On February 23, 2026, PPL Corporation and PPL Capital Funding entered into an underwriting agreement for an equity unit offering, and on February 26, 2026 they completed the sale of 23,000,000 corporate units, including the full exercise of the underwriters’ over-allotment option. Each $50 corporate unit consists of a stock purchase contract requiring investors to buy PPL common shares by February 15, 2029, plus fractional interests in PPL Capital Funding’s 4.02% remarketable senior notes due 2034 and 2039, delivering a 7.00% annual distribution and reinforcing PPL’s access to hybrid capital while pledging the notes as collateral to secure investors’ share purchase obligations.

The remarketable senior notes, fully and unconditionally guaranteed by PPL, were issued under an existing indenture and related supplemental indentures dated February 26, 2026, and the stock purchase contracts were established under a contemporaneous purchase contract and pledge agreement that governs the collateral structure and planned remarketing of the notes. By structuring the units as a combination of equity purchase obligations and guaranteed debt interests registered under an existing shelf registration, PPL enhances its financial flexibility and capital-raising capacity, while offering investors a defined income stream and a path to future equity ownership in the company.

The most recent analyst rating on (PPL) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on PPL stock, see the PPL Stock Forecast page.

PPL Schedules Webcast to Review 2025 Financial Results

On February 20, 2026, at 11:00 a.m. Eastern, PPL’s senior management will host a teleconference and webcast with financial analysts to review the company’s financial results for the year ended December 31, 2025, and to address other business matters. The audio event and accompanying slides will be streamed live via the company’s investor website, with a replay available online for 90 days, underscoring PPL’s efforts to maintain ongoing access to its financial disclosures for market participants.

The most recent analyst rating on (PPL) stock is a Hold with a $39.00 price target. To see the full list of analyst forecasts on PPL stock, see the PPL Stock Forecast page.

PPL wins approval for LG&E and KU rate increases

On February 16, 2026, the Kentucky Public Service Commission approved with modifications LG&E and KU’s requests for higher base rates, authorizing annual electricity revenue increases of $59 million for LG&E and $128 million for KU and a $46 million gas revenue increase for LG&E, with returns on equity set just under 9.8%. The orders also retroactively made the rate changes effective January 1, 2026 and require customer refunds of amounts collected above the final approved rates within 60 days.

Regulators approved several new or revised rate mechanisms, including a temporary Pilot Generation Recovery Adjustment Clause that allows cost recovery and returns on certain new generation and storage projects, as well as potential life-extension costs for LG&E’s Mill Creek Unit 2. The commission also endorsed an Extremely High Load Factor Tariff aimed at large users such as data centers to ensure long-term contracts and collateral protections, while denying an earnings-sharing mechanism and giving the companies and intervenors the right to seek rehearing, appeal, or withdrawal from the stipulation, leaving some regulatory and financial outcomes still uncertain.

The most recent analyst rating on (PPL) stock is a Hold with a $37.00 price target. To see the full list of analyst forecasts on PPL stock, see the PPL Stock Forecast page.

PPL Extends Revolving Credit Facilities to Bolster Liquidity

On January 29, 2026, PPL Capital Funding, Inc., with PPL Corporation as guarantor and The Narragansett Electric Company as a designated borrower, amended a $1.5 billion revolving credit facility with Wells Fargo and a syndicate of lenders, extending certain commitment termination dates by one year to December 6, 2030 and implementing additional technical changes. On the same date, PPL Electric Utilities, Louisville Gas and Electric Company, and Kentucky Utilities Company each amended their respective $750 million, $600 million and $600 million revolving credit facilities on similar terms, likewise extending key commitment maturities to December 6, 2030; collectively, these moves reinforce the group’s access to committed bank liquidity, underpin their commercial paper backstops, and strengthen the utilities’ financial flexibility and funding certainty for stakeholders over the medium term.

The most recent analyst rating on (PPL) stock is a Hold with a $37.00 price target. To see the full list of analyst forecasts on PPL stock, see the PPL Stock Forecast page.

PPL Settles Portion of Ongoing Multi-Year Equity Program

On February 14, 2025, PPL Corporation entered into an Equity Distribution Agreement and related master forward confirmations with a syndicate of major banks to facilitate the offering and sale of its common stock through forward sale agreements, totaling approximately 38.7 million shares or about $1.4 billion to be settled by August 11, 2027. On December 29, 2025, PPL physically settled a portion of these 2025 forward agreements scheduled for settlement on or before December 30, 2025 by delivering about 11.3 million shares of common stock, generating approximately $400 million in net proceeds, while approximately 27.4 million shares tied to roughly $1.0 billion in remaining forward commitments must still be settled by December 30, 2026 and August 11, 2027, respectively, underscoring an ongoing multi-year equity-raising program that will continue to affect PPL’s capital structure and shareholder base.

The most recent analyst rating on (PPL) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on PPL stock, see the PPL Stock Forecast page.