How Higher Revenue and Rising Short Interest at Alliant Energy (LNT) Have Changed Its Investment Story

• Alliant Energy Corporation recently announced its third-quarter 2025 earnings, reporting year-over-year revenue growth to US$1.21 billion, but a decrease in quarterly net income to US$281 million, alongside a narrowed 2025 earnings forecast and an increase in 2026 dividend guidance.
• An interesting insight is that despite higher revenues and a raised dividend target, a sharp increase in short interest suggests heightened investor scrutiny and mixed expectations about the company’s future performance.
• We'll explore how rising short interest, amid newly released earnings and dividend guidance, could influence Alliant Energy's investment narrative and future outlook.

Find companies with promising cash flow potential yet trading below their fair value.

Alliant Energy Investment Narrative Recap

To be a shareholder in Alliant Energy, you need to believe in the company’s ability to capture sustained electricity demand growth from the Midwest data center boom while steadily expanding its regulated asset base and maintaining constructive regulatory relationships. The recent earnings report, showing higher year-over-year revenue but a dip in quarterly net income and a sharp rise in short interest, does not appear to materially impact the key catalysts or the largest risks; broad drivers and pressure points remain unchanged in the short term.

Among the latest announcements, the increase in Alliant’s 2026 annual dividend target to US$2.14 per share stands out. This move signals continued confidence in the company’s cash generation and regulatory stability, both of which are core to supporting incremental capital expenditures needed for anticipated load growth, even as near-term earnings guidance has tightened.

However, the surge in short interest reveals mixed views and may point to underlying concerns about potential concentration risks tied to data center projects that investors should be aware of if...

Read the full narrative on Alliant Energy (it's free!)

Alliant Energy's outlook anticipates $4.9 billion in revenue and $1.1 billion in earnings by 2028. This is based on a 5.4% average annual revenue growth and a $268 million increase in earnings from the current $832 million.

Uncover how Alliant Energy's forecasts yield a $71.50 fair value, a 5% upside to its current price.

Exploring Other Perspectives

Two fair value estimates from the Simply Wall St Community span from US$60.53 to US$71.50 per share. While views differ widely, many are watching whether Alliant’s reliance on data center projects could heighten risk if project execution slows.

Explore 2 other fair value estimates on Alliant Energy - why the stock might be worth 11% less than the current price!

Build Your Own Alliant Energy Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Alliant Energy research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Alliant Energy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Alliant Energy's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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