PPL (PPL) AI Stock Analysis

• Market Cap: $27.23B
• Dividend Yield: 3.13%
• Average Volume (3M): 8.68M
• Price to Earnings (P/E): 25.0
• 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: 739,739,200
• 10 Day Avg. Volume: 10,326,771
• 30 Day Avg. Volume: 8,677,025
• 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: 1.65
• Enterprise Value/Revenue: 4.97
• Enterprise Value/Gross Profit: 12.73
• Enterprise Value/Ebitda: 12.40
• 1Y Price Target: $40.27
• Price Target Upside: 8.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $40.00 ▲(7.35% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is driven primarily by improved profitability but tempered by weaker cash-flow consistency and rising leverage. Technicals are supportive with a clear uptrend and healthy momentum. The latest earnings call adds confidence via raised multi-year investment and growth plans, while valuation remains only fair for a utility given the ~25 P/E and a mid-range dividend yield.

Positive Factors

Large multi-year capital plan & EPS targets

A $23B investment program expanding rate base at ~10.3% CAGR materially increases regulated asset returns and creates a durable earnings runway. Combined with an explicit 6%–8% EPS growth target, this supports predictable long-term cash generation and reinvestment capacity tied to utility economics.

Data-center load pipeline momentum

A large, growing data-center pipeline yields durable incremental load and long-term contracted revenues via ESAs, improving utilization of transmission assets. Serving hyperscalers drives multi-year T&D investment needs that translate into rate-base growth and stable contracted cash flows for the utility platform.

Favorable Kentucky regulatory outcomes

Regulatory approvals that raise allowed revenue and ROEs strengthen recovery of invested capital and underpin returns on new generation and grid projects. Clear regulatory outcomes reduce execution risk for capex and support long-term rate recovery and predictable regulated earnings growth.

Negative Factors

Rising leverage

Material increase in leverage reduces financial flexibility and raises sensitivity to higher interest costs, limiting room to absorb shocks or accelerate investment without more external financing. For a capital-intensive utility, higher debt-to-equity pressures credit metrics and could force more costly funding or constrain shareholder returns.

Volatile operating cash generation

A sharp drop and multi-year inconsistency in operating cash flow undermines the company’s ability to self-fund roughly half of planned capex. Volatile cash generation increases reliance on external financing, elevates execution risk on the capital program, and weakens the reliability of dividend and investment commitments.

Ongoing equity funding and dilution risk

Significant remaining equity issuance introduces dilution risk and signals reliance on capital markets to fund growth. Ongoing equity programs can limit per-share EPS and constrain dividend upside, and raise execution/timing risk if market conditions shift, reducing financial predictability during the multi-year buildout.

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

Earnings and revenue trends have improved meaningfully since 2021, with stronger net margins in 2024–2025. Offsetting this, leverage has trended higher and cash-flow quality is the key weak spot—operating cash flow fell sharply in 2025 and free cash flow has been inconsistent.

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	3.63B	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	1.07B	306.00M	331.00M	356.00M	3.57B
Total Debt	18.45B	16.81B	15.60B	14.23B	11.21B
Total Liabilities	23.62B	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: 37.26
• 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 37.26 is above the 20-day moving average (MA) of 36.44, above the 50-day MA of 35.59, and above the 200-day MA of 35.33, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 59.18 is Neutral, neither overbought nor oversold. The STOCH value of 66.53 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	68 Neutral	$27.23B	25.05	8.15%	3.13%	8.42%	32.48%
AEE	68 Neutral	$29.30B	20.25	11.41%	2.86%	22.71%	22.86%
CMS	66 Neutral	$23.02B	21.31	12.33%	3.10%	10.96%	-0.77%
ES	66 Neutral	$26.93B	15.72	10.84%	4.54%	13.12%	―
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
FE	64 Neutral	$28.27B	27.73	8.17%	3.94%	7.64%	48.61%
DTE	62 Neutral	$29.64B	20.23	12.16%	3.45%	19.42%	-9.68%

PPL Corporate Events

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.

Rhode Island Energy Proposes Rate Increase for 2026

On November 26, 2025, Rhode Island Energy announced its filing for a rate increase with the Rhode Island Public Utilities Commission, effective September 1, 2026. This is the first comprehensive rate review since 2017, aimed at aligning electric and gas distribution rates with operational costs and supporting infrastructure upgrades, customer service improvements, and affordability programs. The proposed rate plan seeks to collect additional revenue of $180.7 million in the first year and $49.4 million in the second year, with a focus on system reliability, customer experience enhancements, and affordability measures. The company cites inflation and increased costs as reasons for the proposal, which could impact residential customers’ bills significantly.

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 Issues $1.15 Billion in Exchangeable Notes

On November 24, 2025, PPL Capital Funding, Inc., a subsidiary of PPL Corporation, issued $1.15 billion in 3.000% Exchangeable Senior Notes due 2030. The issuance was conducted through a private placement aimed at qualified institutional buyers under Rule 144A of the Securities Act of 1933. The net proceeds of $1.14 billion from the sale are intended for repaying short-term debt and general corporate purposes. These senior, unsecured notes are guaranteed by PPL Corporation and are exchangeable for the company’s common stock under specified conditions. The issuance strengthens PPL’s financial positioning by addressing short-term liabilities and potentially enhancing liquidity, while offering investors a structured opportunity to engage with PPL’s equity through the exchangeable feature of the notes.

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.