Stock Markets February 12, 2026

Exelon Raises Four-Year Capital Plan, Tops Quarterly Estimates on Strong Rates and Demand

Utility cites higher electricity rates and growing power needs as it lifts 4-year capex to $41.3 billion and forecasts 2026 adjusted earnings above street estimates

By Derek Hwang
Exelon Raises Four-Year Capital Plan, Tops Quarterly Estimates on Strong Rates and Demand

Exelon reported fourth-quarter adjusted earnings above analyst expectations and raised its four-year capital expenditure plan to $41.3 billion from $38 billion. The Chicago-based utility said higher electricity rates and accelerating power demand supported the results and that it expects 2026 adjusted earnings of $2.81 to $2.91 per share, slightly above the LSEG consensus of $2.84.

Key Points

  • Exelon raised its four-year capital expenditure plan to $41.3 billion from $38 billion to support grid investments.
  • The company forecast 2026 adjusted earnings of $2.81 to $2.91 per share, slightly above the LSEG consensus of $2.84.
  • Utilities are raising rates and increasing infrastructure spending to keep pace with rising power demand from large data center buildouts; Exelon serves over 10.9 million customers through six regulated utilities.

Exelon on Thursday updated investors with a stronger outlook after reporting fourth-quarter results that topped consensus estimates, driven by higher retail electricity rates and rising power consumption. The company raised its planned capital investment over the next four years to $41.3 billion, up from a prior projection of $38 billion.

The utility, which serves more than 10.9 million customers through six fully regulated transmission and distribution utilities, said the larger capital program and projected 7.9% rate base growth position it to target annualized earnings growth near the top of a 5% to 7% range through 2029. Jeanne Jones, Exelon’s chief financial officer, framed the company’s plan as a foundation for delivering that level of growth.

Exelon provided a 2026 adjusted profit forecast of $2.81 to $2.91 per share. That range sits slightly above the analysts’ average estimate of $2.84 per share compiled by LSEG.


The company pointed to an industry-wide trend of utilities increasing prices and accelerating infrastructure spending to meet a surge in electricity demand. That demand growth is being driven in part by large technology companies that are expanding data center capacity to run advanced and computationally intensive artificial intelligence workloads, which in turn requires more power and supporting grid investments.

On a unit level, net income at Commonwealth Edison, Exelon’s largest Illinois electric utility commonly known as ComEd, increased modestly to $244 million in the fourth quarter. By contrast, results at PECO, the largest electric and natural gas utility in Pennsylvania, declined by nearly 17% to $162 million, a drop the company attributed to higher taxes and elevated costs.

For the three months ended December 31, Exelon reported an adjusted profit of $0.59 per share, compared with the analysts’ average estimate of $0.55 per share.

Exelon’s guidance and increased capital plan reflect management’s response to evolving demand patterns and the need to invest in transmission and distribution infrastructure. The company emphasized that the updated spending trajectory and projected rate base expansion underpin its medium-term earnings target through 2029.

Risks

  • Higher taxes and rising costs can materially affect individual utility unit earnings, as illustrated by PECO’s nearly 17% decline in quarterly income; this impacts the regulated utilities sector.
  • Execution risk tied to a larger capital program and the ability to translate increased spending into rate base growth and earnings; affects investors in Exelon and broader utility infrastructure markets.
  • Demand and rate dynamics may shift, and the company’s forecast depends on sustained higher electricity rates and continued power consumption growth; this is a risk for regulated power providers and energy markets.

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