Exelon Affirms Long-Term Growth Goals on Data Center Demand and Grid Investment

Exelon Corporation reaffirmed its earnings projections while spotlighting approximately 11 gigawatts of data center-related grid initiatives. These projects are supported by more than US$1 billion in customer collateral as the utility company moves forward with its broader US$41.7 billion capital deployment plan.

For the third quarter of 2026, Exelon generated revenue of US$7,319 million, up from US$6,705 million in the prior-year period. However, net income fell to US$729 million from US$875 million, and basic earnings per share decreased to US$0.70 compared to US$0.87 a year earlier. Adjusted operating earnings reached US$0.87 per share, supported by approved distribution and transmission rate updates alongside cost reductions.

Management reaffirmed full-year 2026 adjusted operating earnings guidance at a narrowed range of US$2.85 to US$2.91 per share. The company also reiterated its expectation for compounded annual operating earnings per share growth near the upper boundary of its 5% to 7% target from 2025 to 2029. In addition, the board declared a regular quarterly dividend of US$0.42 per share, which is scheduled for payment on December 15, 2026.

The utility's growth strategy centers on shifting US$1.5 billion into higher-earning transmission projects while postponing US$1.1 billion in lower-priority distribution upgrades to pursue 7.9% rate base expansion. Even so, regulatory challenges persist. Exelon previously withdrew electric and gas rate requests for PECO following affordability concerns, underlining the ongoing risk that regulatory decisions could affect rate recovery.

Wall Street opinions on the utility remain mixed. Goldman Sachs analyst Carly Davenport maintained a Sell rating with a $45.00 price target, while the overall consensus on the stock sits at a Hold with an average target of $45.75, according to a report published by The Globe and Mail.