PPL Corporation (PPL) AI Stock Analysis

Established in 1920 and based in Allentown, Pennsylvania, PPL Corporation delivers electricity and natural gas services through two primary segments: Kentucky Regulated and Pennsylvania Regulated. In Pennsylvania, PPL serves approximately 1.4 million electric customers. In Kentucky, the company serves roughly 429,000 electric and 333,000 natural gas customers in the Louisville area, over 538,000 electric customers across central, southeastern, and western Kentucky, and 28,000 electric customers in southwestern Virginia. Its generation portfolio in Kentucky includes coal, natural gas, hydroelectric, and solar sources. PPL also sells wholesale electricity to Kentucky municipalities and focuses on modernizing grid infrastructure.

PPL Corporation expanded revenue from $5.78B in FY2021 to $9.04B in FY2025, producing a five-year revenue CAGR of 10.6% from FY2020 to FY2025. After recording net income of -$1.48B in FY2021, net income recovered to $756.0M in FY2022, $740.0M in FY2023, $888.0M in FY2024, and $1.18B in FY2025. Operating margin rose to 23.5% in FY2025 and reached 23.6% over the trailing twelve months. In the latest quarter ended June 30, 2026, quarterly revenue grew 4.2% year-over-year, while quarterly earnings grew 21.2% year-over-year, lifting trailing twelve months EPS to $1.69.

As of June 30, 2026, PPL held $332.0M in cash and short-term investments against $19.85B in total debt, resulting in net debt of $19.52B. Shareholders' equity stood at $15.04B, leading to a debt-to-equity ratio of 1.32 and a current ratio of 0.91. Operating cash flow reached $2.63B in FY2025, but capital expenditures of $4.03B caused free cash flow to register at -$1.40B. Cash flow allocations in FY2025 included $794.0M in dividends paid, while share issuance contributed $401.0M.

PPL trades at a trailing P/E of 20.8x and a forward P/E of 15.4x, compared to the median of its S&P 500 Utilities peers of 21.0x and 16.0x, respectively. Its enterprise value of $44.26B yields an EV/EBITDA of 11.2x, below the peer group median of 12.2x, and a price-to-sales multiple of 2.8x versus the peer median of 2.9x. Over the past year, PPL delivered a return of -2.7% compared to 16.8% for the S&P 500 benchmark SPY, and its five-year return of 45.0% trailed the index return of 83.0%.

PPL pays a quarterly dividend with an annualized forward payout of $1.14 per share, translating to a dividend yield of 3.24% as of October 16, 2026. The company has paid consecutive dividends for 43 years and maintains a payout ratio of 61.0%. Its five-year annualized dividend growth stands at -8.0%, and its most recent ex-dividend date was September 10, 2026.

Wall Street coverage includes 9 Strong Buy, 4 Buy, and 4 Hold ratings, with 0 Sell or Strong Sell recommendations. The mean price target of $39.81 represents a 13.2% premium over the last close of $35.17. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $1.95 on revenue of $9.65B. Analysts forecast FY2027 EPS of $2.12 on revenue of $10.21B. Over the last four quarters, PPL beat EPS estimates twice, and its next earnings report is scheduled for November 4, 2026.

This page is an AI-written research summary of PPL Corporation (PPL). 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.

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