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.
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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.
8. Edison International (NYSE:EIX)
On May 1, 2026, JPMorgan analyst Aidan Kelly raised the firm’s price target on Edison International (NYSE:EIX) to $75 from $74 previously while maintaining a Neutral rating on the shares.
On April 29, 2026, Barclays lowered its price target on Edison International (NYSE:EIX) to $77 from $78 and kept an Overweight rating. The firm said the company delivered a Q1 core earnings beat and maintained all components of its financial plan.
On April 28, 2026, Edison International (NYSE:EIX) reported Q1 EPS of $1.42, ahead of the $1.33 consensus estimate, while revenue totaled $4.10B compared to expectations of $4.13B. President and CEO Pedro Pizarro said the company was encouraged by its start to the year and continued momentum across the business. He added that Edison’s performance reflects operational execution and ongoing efforts to improve community safety and resilience, including wildfire mitigation and rebuilding initiatives. Pizarro also said Southern California Edison continues to focus on supporting communities affected by wildfires through the Wildfire Recovery Compensation Program, which the company said is intended to provide transparent, responsive, and timely compensation.
Edison International (NYSE:EIX) maintained its FY26 EPS outlook of $5.90-$6.20, compared to consensus estimates of $6.11.
Edison International (NYSE:EIX), through its subsidiaries, generates and distributes electric power in the United States.
7. Eversource Energy (NYSE:ES)
On May 6, 2026, Eversource Energy (NYSE:ES) reported Q1 non-GAAP EPS of $1.73, ahead of the $1.63 consensus estimate, while revenue totaled $4.5B compared to expectations of $4.33B. CEO Joe Nolan said first-quarter performance was highlighted by the company’s response to a historic Nor’easter that brought blizzard conditions, record snowfall, and widespread power outages across its service territory. Nolan also criticized FERC’s recent return on equity reduction decision, calling it arbitrary and flawed at a time when New England requires significant transmission investment to support additional power generation and lower customer costs. Nolan added that Eversource plans to continue pursuing actions against regulatory decisions that the company believes could impair its ability to complete critical transmission projects.
On May 1, 2026, BofA raised its price target on Eversource Energy (NYSE:ES) to $75 from $72 while maintaining a Buy rating. The firm said Eversource retains meaningful earnings optionality and noted that even conservative scenarios imply upside relative to current return on equity assumptions.
Last month, Wells Fargo lowered its price target on Eversource Energy (NYSE:ES) to $74 from $78 while maintaining an Overweight rating. The firm said FERC’s decision to reduce New England transmission ROE to 9.57% represents a negative development for the company and could pressure its long-term growth trajectory.
Eversource Energy (NYSE:ES) operates as a public utility holding company focused on electric distribution, electric transmission, natural gas distribution, and water distribution services.
6. Atmos Energy Corporation (NYSE:ATO)
On May 6, 2026, Atmos Energy Corporation (NYSE:ATO) reported results for its fiscal second quarter ended March 31, 2026. The company posted net income of $984.9M. During the quarter, capital expenditures totaled $2.0B, with more than 85% allocated toward safety and reliability-related investments. Atmos Energy also reported a strong financial position, including an equity capitalization ratio of 60.9% and approximately $4.1B in available liquidity.
Atmos Energy Corporation (NYSE:ATO) raised its FY26 earnings per diluted share guidance to a range of $8.40-$8.50 from its prior outlook of $8.15-$8.35. The company also said FY26 capital expenditures are expected to total approximately $4.2B.
The board of directors declared a quarterly dividend of $1.00 per common share. Atmos Energy said the indicated annual dividend for fiscal 2026 is now $4.00 per share, representing a 14.9% increase from fiscal 2025.
Last month, Morgan Stanley lowered its price target on Atmos Energy Corporation (NYSE:ATO) to $195 from $197 while maintaining an Overweight rating. The firm said it updated price targets across the regulated and diversified utilities and independent power producer sectors in North America.
Atmos Energy Corporation (NYSE:ATO) operates regulated natural gas distribution, pipeline, and storage businesses across the United States.
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