PPL Corporation (PPL)
NYSE:PPL
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PPL
(NYSE:PPL)
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Rating:61Neutral
Price Target:
$37.00
â–¼(-5.18% Downside)
Action:Reiterated
Date:05/19/26
The score is supported by stable underlying financial performance and a constructive earnings outlook with reaffirmed guidance and multi-year rate-base growth visibility, plus reasonable valuation and dividend yield. It is held back primarily by persistent negative free cash flow (funding reliance) and very weak technicals, with additional downside risk from highlighted regulatory exposures.
Positive Factors
Visible multi-year capital plan & rate-base growth
A large, committed capital program that drives a 10.3% average annual rate-base increase creates durable earnings visibility for a regulated utility. Rate-base expansion under commission-approved mechanisms supports recurring, regulated returns and long-term EPS growth if project execution and approvals hold.
Negative Factors
Persistent negative free cash flow
Sustained negative free cash flow amid a multiyear capex program increases reliance on external financing. That dynamic reduces financial flexibility, raises funding costs sensitivity, and creates execution risk if capital markets tighten or if regulatory recoveries lag spending.
Read all positive and negative factors
Positive Factors
Negative Factors
Visible multi-year capital plan & rate-base growth
A large, committed capital program that drives a 10.3% average annual rate-base increase creates durable earnings visibility for a regulated utility. Rate-base expansion under commission-approved mechanisms supports recurring, regulated returns and long-term EPS growth if project execution and approvals hold.
Read all positive factors
PPL Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyPPL (PPL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.66B
Dividend Yield3.13%
Average Volume (3M)8.39M
Price to Earnings (P/E)15.9
Beta (1Y)0.12
Revenue Growth7.52%
EPS Growth21.81%
CountryUS
Employees6,653
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)1.64
Shares Outstanding752,350,340
10 Day Avg. Volume8,384,717
30 Day Avg. Volume8,385,989
Financial Highlights & Ratios
PEG Ratio0.66
Price to Book (P/B)1.74
Price to Sales (P/S)2.87
P/FCF Ratio-18.50
Enterprise Value/Market Cap1.73
Enterprise Value/Revenue4.96
Enterprise Value/Gross Profit14.09
Enterprise Value/Ebitda12.27
Forecast
1Y Price Target
$42.04Price Target Upside7.74% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)1.95
Revenue Forecast (FY)$9.71B
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...
How the Company Makes Money
PPL primarily makes money through regulated utility operations, earning revenue by delivering electricity over its transmission and distribution networks and charging customers regulated rates approved by state utility commissions. Its key revenue...
PPL Earnings Call Summary
Earnings Call Date:May 08, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call highlights a strong operational and financial start to 2026: Q1 EPS beat versus last year on an ongoing basis, reaffirmed full-year guidance, a large and growing data center demand pipeline, disciplined capital program ($5.1B in 2026 and $23B through 2029), constructive regulatory developments in Pennsylvania and Rhode Island, and meaningful progress on the Blackstone joint venture and financing de-risking. Offsetting these positives are material regulatory exposures (notably an approximately $2.526B potential New England ROE refund), higher depreciation and financing costs, ongoing regulatory uncertainty in Kentucky and PJM market design, and some near-term volume pressures in Kentucky. Overall, the positives on execution, demand momentum, investment visibility, and financing strength outweigh the notable risks described, though those risks remain meaningful and warrant monitoring.Positive Updates
Quarterly Earnings and Guidance Reaffirmed
Q1 2026 GAAP EPS of $0.60 vs $0.56 in Q1 2025 (+7.1%). Ongoing EPS of $0.63 (adjusted for $0.03 of special items), an increase of $0.03 vs prior year (+5%). Reaffirmed 2026 ongoing earnings guidance of $1.90–$1.98 (midpoint $1.94).
Negative Updates
Large Potential FERC ROE Refund Exposure
Management cited a New England ROE refund exposure of approximately $2.526 billion. While the company plans to coordinate refunds with rate filings and hold-harmless mechanisms, this represents a material regulatory cash flow/liability risk.
Read all updates
Q1-2026 Updates
Positive
Negative
Quarterly Earnings and Guidance Reaffirmed
Q1 2026 GAAP EPS of $0.60 vs $0.56 in Q1 2025 (+7.1%). Ongoing EPS of $0.63 (adjusted for $0.03 of special items), an increase of $0.03 vs prior year (+5%). Reaffirmed 2026 ongoing earnings guidance of $1.90–$1.98 (midpoint $1.94).
Read all positive updates
Company Guidance
Management reaffirmed 2026 ongoing earnings guidance of $1.90–$1.98 per share (midpoint $1.94), reported Q1 GAAP EPS of $0.60 and ongoing EPS of $0.63 (up $0.03 vs. Q1 2025), and said it is on track to complete about $5.1 billion of planned investments in 2026 and roughly $23 billion of capital investment through 2029 (driving ~10.3% average annual rate base growth); it reiterated long‑term targets of 6%–8% annual EPS growth through at least 2029 (CAGR near the top end), 4%–6% annual dividend growth, maintaining strong credit metrics, and noted it has de‑risked about two‑thirds of required equity with a $1.15 billion equity‑units offering (remainder via ATM/other equity‑like financings).PPL Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.31B | 9.04B | 8.46B | 8.31B | 7.90B | 5.78B |
| Gross Profit | 3.28B | 3.53B | 3.39B | 3.28B | 2.89B | 2.71B |
| EBITDA | 3.77B | 3.68B | 3.21B | 2.92B | 2.66B | 2.56B |
| Net Income | 1.22B | 1.18B | 888.00M | 740.00M | 756.00M | -1.48B |
Balance Sheet | ||||||
| Total Assets | 46.30B | 45.24B | 41.07B | 39.24B | 37.84B | 33.22B |
| Cash, Cash Equivalents and Short-Term Investments | 1.25B | 1.09B | 306.00M | 331.00M | 356.00M | 3.57B |
| Total Debt | 20.24B | 19.35B | 16.81B | 15.60B | 14.23B | 11.21B |
| Total Liabilities | 31.29B | 30.36B | 26.99B | 25.30B | 23.92B | 19.50B |
| Stockholders Equity | 15.02B | 14.88B | 14.08B | 13.93B | 13.91B | 13.72B |
Cash Flow | ||||||
| Free Cash Flow | -1.62B | -1.40B | -465.00M | -632.00M | -425.00M | 297.00M |
| Operating Cash Flow | 2.67B | 2.63B | 2.34B | 1.76B | 1.73B | 2.27B |
| Investing Cash Flow | -4.27B | -4.00B | -2.82B | -2.38B | -5.65B | 7.96B |
| Financing Cash Flow | 2.50B | 2.12B | 435.00M | 650.00M | 709.00M | -7.39B |
PPL Technical Analysis
Negative
39.02
Price Trends
37.75
Negative
37.02
Negative
36.31
Negative
Market Momentum
-0.76
Positive
43.48
Neutral
43.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPL, the sentiment is Negative. The current price of 39.02 is above the 20-day moving average (MA) of 36.78, above the 50-day MA of 37.75, and above the 200-day MA of 36.31, indicating a bearish trend. The MACD of -0.76 indicates Positive momentum. The RSI at 43.48 is Neutral, neither overbought nor oversold. The STOCH value of 43.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PPL.
PPL Risk Analysis
PPL disclosed 9 risk factors in its most recent earnings report. PPL reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
PPL Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $30.08B | 21.28 | 11.71% | 2.86% | 12.32% | 23.95% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
61 Neutral | $26.66B | 15.88 | 8.32% | 3.13% | 7.52% | 21.81% | |
61 Neutral | $22.54B | 17.15 | 12.35% | 3.10% | 13.31% | 6.97% | |
61 Neutral | $26.28B | 18.07 | 8.38% | 3.94% | 11.30% | -1.99% | |
60 Neutral | $25.97B | 10.73 | 10.86% | 4.54% | 9.83% | 101.90% | |
58 Neutral | $29.70B | 30.64 | 10.43% | 3.45% | 22.33% | -17.75% |
* Utilities Sector Average
PPL
PPL
36.17
2.85
8.55%
AEE
Ameren
109.84
17.12
18.47%
CMS
CMS Energy
73.64
6.33
9.41%
DTE
DTE Energy
143.75
13.49
10.36%
FE
FirstEnergy
45.50
5.15
12.76%
ES
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69.63
9.33
15.47%
PPL Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Rhode Island Energy Issues $400 Million Senior Notes
Positive
May 18, 2026
On May 18, 2026, Rhode Island Energy issued $400 million of 6.000% senior unsecured notes due May 15, 2056, in a private placement to institutional investors in the U.S. and certain non-U.S. markets. The notes, which are not guaranteed by PPL, car...
Business Operations and StrategyPrivate Placements and Financing
PPL Electric Issues Long-Term First Mortgage Bonds
Positive
May 15, 2026
On May 12, 2026, PPL Electric Utilities Corporation entered into an underwriting agreement to offer $500 million of First Mortgage Bonds, 5.75% Series due 2056, which were issued on May 15, 2026 under an existing indenture with The Bank of New Yor...
Executive/Board ChangesShareholder Meetings
PPL shareowners back board, pay plans and auditor
Positive
May 13, 2026
At PPL’s Annual Meeting of Shareowners held on May 13, 2026, investors elected all nine nominees to the board of directors, including Arthur P. Beattie, Raja Rajamannar, and CEO Vincent Sorgi, with each director receiving a substantial major...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
PPL Posts Strong Q1 Results, Reaffirms 2026 Outlook
Positive
May 8, 2026
PPL Corporation reported solid first-quarter 2026 results on May 8, 2026, posting GAAP earnings of $452 million, or $0.60 per share, up from $414 million, or $0.56 per share, a year earlier, and ongoing earnings of $0.63 per share versus $0.60 in ...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
PPL Assesses FERC ROE Order, Reaffirms 2026 Outlook
Neutral
Mar 24, 2026
On March 19, 2026, the Federal Energy Regulatory Commission issued Opinion No. 594, setting a new methodology for determining the return on equity for New England transmission owners under the ISO New England tariff and establishing a base ROE of ...
Business Operations and StrategyRegulatory Filings and Compliance
PPL Electric Seeks Rate Increase to Fund Grid Upgrades
Neutral
Mar 13, 2026
On March 13, 2026, PPL Electric Utilities said it had filed a joint petition with the Pennsylvania Public Utility Commission for approval of a non-unanimous settlement that would raise annual electric base distribution revenues by $275 million, it...
Business Operations and StrategyLegal ProceedingsRegulatory Filings and Compliance
PPL Reaches Key Settlement in Pennsylvania Rate Case
Neutral
Mar 6, 2026
On March 5, 2026, PPL Electric Utilities reached a non-unanimous settlement in principle in its Pennsylvania distribution rate case filed on September 30, 2025, representing a key step in the ongoing regulatory process. The agreement, posted to th...
Business Operations and StrategyPrivate Placements and Financing
PPL Completes Corporate Unit Offering to Raise Capital
Positive
Feb 26, 2026
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 un...
Financial Disclosures
PPL Schedules Webcast to Review 2025 Financial Results
Neutral
Feb 20, 2026
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 bu...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.