Fortis Inc. (FTS) AI Stock Analysis

Fortis Inc. operates electric and gas utilities across Canada, the United States, and several Caribbean nations. Its operations include electricity generation, transmission, and distribution, alongside natural gas distribution. The company serves approximately 438,000 retail electric customers in southeastern Arizona and another 100,000 in Mohave and Santa Cruz counties, backed by 3,485 megawatts of generating capacity. It also distributes natural gas to about 1,065,000 customers in British Columbia and delivers electricity to roughly 577,000 customers in Alberta. Additional electric utility operations span Ontario, Prince Edward Island, Newfoundland and Labrador, Grand Cayman, and the Turks and Caicos Islands.

Fortis generated $12.35B in revenue over the trailing twelve months ending June 30, 2026, delivering an operating margin of 28.3% and a profit margin of 14.7%. In the latest quarter, revenue rose 4.1% year-over-year, while quarterly earnings expanded 2.2%. Looking at annual trends, revenue advanced from $9.45B in FY2021 to $12.17B in FY2025, reflecting a 5-year revenue compound annual growth rate of 6.4%. Net income steadily increased over this period, climbing from $1.29B in FY2021 to $1.80B in FY2025 as gross margin improved from 68.8% to 72.3%. Diluted earnings per share rose from $2.08 in FY2021 to $2.56 in FY2025.

As of June 30, 2026, Fortis held $384.0M in cash and short-term investments against $36.33B in total debt, resulting in net debt of $35.94B. Total assets stood at $78.76B, and shareholders' equity was $25.30B, translating to a debt-to-equity ratio of 1.44 and a current ratio of 0.56. In FY2025, operating cash flow reached $4.06B, but capital expenditures of $6.23B led to free cash flow of -$2.17B. The company also returned $873.0M to shareholders through dividends during FY2025.

At a share price of $55.76, Fortis has a market capitalization of $28.49B and an enterprise value of $54.01B. The stock trades at a trailing price-to-earnings ratio of 22.7x and a forward ratio of 19.5x, both above the median of its US-listed Utilities peers of 20.6x and 17.2x, respectively. Its enterprise value-to-EBITDA multiple of 12.8x also sits higher than the peer median of 12.1x. Over the past year, Fortis gained 12.1%, trailing the 16.8% return of the S&P 500 benchmark (SPY). Over five years, the stock returned 47.9% compared to 83.0% for the benchmark.

Fortis pays a quarterly dividend totaling $1.85 per share annually, providing a forward dividend yield of 3.32% against its last close of $55.76. The dividend payout ratio stands at 72.0%. The company has paid dividends for 25 consecutive years, with an annualized 5-year dividend growth rate of 4.2%. Its most recent ex-dividend date was August 19, 2026.

Wall Street coverage includes 3 Strong Buy, 3 Buy, 7 Hold, 1 Sell, and 1 Strong Sell ratings. The mean price target of $53.00 is 4.9% below the last close of $55.76. For the current fiscal year ending December 31, 2026, analysts estimate revenue of $13.16B and earnings per share of $2.57. For the next fiscal year, 14 analysts expect revenue to rise 6.7% to $14.03B with earnings per share growing 7.2% to $2.76. Fortis has beaten earnings estimates in 3 of the last 4 quarters, with its next earnings date scheduled for November 3, 2026.

This page is an AI-written research summary of Fortis Inc. (FTS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: FTS income statement, FTS balance sheet, FTS key metrics, FTS analyst forecast, FTS chart. See the FTS stock overview for the latest quote and news.