In this article, we will look at the 10 Best Utility Stocks that Beat Earnings Estimates.
Utility stocks that beat earnings estimates are getting more attention because the sector is no longer being treated only as a defensive bond proxy. Rising electricity demand, data center growth, grid upgrades, and higher capital spending are changing the earnings conversation around utilities. Capital Group says “Power demand is growing for the first time in close to 20 years” and notes that “Various utility firms are positioning themselves to benefit from the data center boom.” The firm also argues that “the large investments needed to upgrade and expand grid infrastructure may drive earnings higher.”
First Sentier Investors says “the growing demand for electricity was likely to provide a significant uplift to utility earnings growth” and expects “US utilities’ earnings growth rate will rise materially, from around 4% per year to around 8% per year.” In summary, the utility earnings story is being lifted by a structural demand shift rather than a short-lived rate-cycle trade. AllianceBernstein adds the earnings-beat angle, noting that “Historically, when US companies delivered a positive earnings surprise, their stocks outperformed.”
Against this backdrop, utility stocks that beat earnings estimates deserve a closer look. With that in mind, let’s take a look at the 10 Best Utility Stocks that Beat Earnings Estimates.
Our Methodology
We used the Finviz screener to identify utility stocks that beat earnings estimates. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. TransAlta Corporation (NYSE:TAC)
On May 7, 2026, BMO Capital analyst Ben Pham lowered the firm’s price target on TransAlta Corporation (NYSE:TAC) to C$25 from C$27 previously while maintaining an Outperform rating on the shares.
TD Securities analyst John Mould also lowered the firm’s price target on TransAlta Corporation (NYSE:TAC) to C$26 from C$27 and kept a Buy rating on the shares.
On May 6, 2026, TransAlta Corporation (NYSE:TAC) reported Q1 adjusted EPS of C$0.60 compared to C$0.10 a year earlier. Revenue totaled C$565M versus C$758M last year, while free cash flow came in at C$102M compared to C$139M in the prior-year period. By segment, Q1 adjusted EBITDA from hydro operations was C$35M versus C$47M last year, wind and solar adjusted EBITDA was C$95M versus C$102M, gas adjusted EBITDA totaled C$93M versus C$104M, and energy transition adjusted EBITDA declined to C$1M from C$37M a year ago. CEO Joel Hunter said the company’s hedging strategy and contracted portfolio continued to support underlying performance despite what he described as a challenging pricing environment.
TransAlta Corporation (NYSE:TAC) also maintained its 2026 outlook, with management saying the company continues to see significant long-term opportunities despite near-term headwinds in Alberta. Hunter added that the company’s assets continue to perform well and said management remains confident in its 2026 expectations.
TransAlta Corporation (NYSE:TAC) develops, produces, and sells electric energy through its Hydro, Wind and Solar, Gas, Energy Transition, and Energy Marketing segments.
9. Vistra Corp. (NYSE:VST)
On May 7, 2026, Vistra Corp. (NYSE:VST) reported Q1 revenue of $5.64B, ahead of the $5.24B consensus estimate, while ongoing operations adjusted EBITDA totaled $1.49B. President and CEO Jim Burke said the company entered 2026 with momentum driven by its workforce, generation portfolio, customer operations, and strategic growth initiatives. Burke pointed to Vistra’s planned acquisition of the 5,500-MW Cogentrix natural gas generation portfolio, which the company still expects to close during the second half of the year, as well as recently signed long-term power purchase agreements with Meta Platforms at its PJM nuclear facilities.
Burke also said Vistra’s generation fleet performed well during a period of volatile weather conditions, including Winter Storm Fern, while the retail business operated through one of the mildest first quarters in Texas history. He added that Fitch’s recent upgrade of Vistra’s corporate credit rating to investment grade reflects the company’s progress in strengthening its balance sheet and improving visibility into long-term earnings power.
Before the earnings release, TD Cowen analyst Shelby Tucker lowered the firm’s price target on Vistra Corp. (NYSE:VST) to $230 from $253 while maintaining a Buy rating. The firm said it expected a relatively quiet quarter, with earnings modestly higher year over year due to capacity pricing.
Last month, Raymond James also lowered its price target on Vistra Corp. (NYSE:VST) to $208 from $240 while maintaining a Strong Buy rating. The firm said results across the independent power producer group were expected to be mixed, with Vistra likely facing softer near-term results due to milder ERCOT weather, lower load, and weaker power prices.
Vistra Corp. (NYSE:VST) operates as an integrated retail electricity and power generation company across the United States.
