PPL (PPL) is back on investors’ radar after its second quarter 2026 earnings release and reaffirmed full year guidance, putting fresh financial detail around the utility’s recent share price performance.
The company reported Q2 2026 sales of US$2.11b and net income of US$230m, with basic earnings per share from continuing operations of US$0.31. Diluted earnings per share from continuing operations were US$0.30.
For the first half of 2026, PPL posted sales of US$4.89b and net income of US$682m. Basic earnings per share from continuing operations were US$0.91 and diluted earnings per share from continuing operations were US$0.90.
Alongside these results, PPL reaffirmed its 2026 ongoing earnings forecast in a range of US$1.90 to US$1.98 per share, with a midpoint of US$1.94. That guidance now sits against a stock that is up about 1% year to date but slightly down over the past month and the past three months.
PPL’s latest earnings and reaffirmed guidance come against a share price that has inched higher year to date, while the 3 year total shareholder return of 49.82% and 5 year total shareholder return of 44.15% point to steadier long term compounding than the recent 30 and 90 day share price returns, where momentum has faded slightly.
If you are comparing PPL with other utilities that may benefit from grid upgrades and electrification, it can help to scan the wider power sector through our 36 power grid technology and infrastructure stocks
After a modest year to date gain and a softer recent pullback, PPL’s earnings guidance and long term return record set up a simple question: Does the current price still leave enough upside to outweigh the risks?
Most Popular Narrative: 13.9% Undervalued
Against PPL’s last close of $35.46, the most widely followed narrative pegs fair value at $41.20, framing the current debate around future grid growth and regulation.
The accelerating growth in data center construction and new economic development (particularly in Pennsylvania and Kentucky) is driving unprecedented electricity demand, positioning PPL for outsized long-term rate base and revenue growth as it invests to serve these large new loads.
Major planned grid infrastructure upgrades and generation capacity expansions, totaling $20B through 2028 (with upside from potential data center driven transmission and new generation projects), set the stage for nearly 10% average annual rate base growth directly supporting higher regulated revenues and future earnings.
Want to see what underpins that $41.20 figure for PPL? The narrative leans on steady expansion, rising profitability, and a richer earnings multiple anchored by long term capital deployment and cash flow assumptions.
However, the PPL narrative still hinges on smooth regulatory outcomes and accurate data center demand forecasts, both of which could disappoint and quickly change sentiment.
The PPL narrative points to a fair value of $41.20 and describes the stock as undervalued. Our SWS DCF model suggests a different outcome. It indicates a future cash flow value of $19.75, which would make PPL appear expensive relative to today’s $35.46 price. Which story do you think fits better?
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out PPL for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.
Next Steps
Given the mix of optimism and caution in the PPL story, it makes sense to review the numbers, stress test the assumptions and decide where you stand. To weigh the upside against the issues that have investors concerned, start with the 2 key rewards and 2 important warning signs.
Looking for more investment ideas beyond PPL?
If PPL has sharpened your focus on where to put fresh capital, do not stop here. Broader ideas can help you stress test and refine your approach.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
