How Wisconsin Rate Hikes Could Shape Xcel Energy’s (XEL) Earnings Outlook and Investment Case

• In November 2025, Xcel Energy's subsidiary, Northern States Power Company-Wisconsin, received verbal approval from the Public Service Commission of Wisconsin for an estimated US$126 million electric rate increase and US$22 million gas rate increase over 2026 and 2027, with a final decision expected in December and new rates effective January 2026.
• This regulatory milestone highlights the company's ongoing ability to secure favorable outcomes that directly support stable revenue streams and future earnings potential.
• We'll look at how the approved Wisconsin rate hikes influence Xcel Energy's earnings outlook and long-term investment case.

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Xcel Energy Investment Narrative Recap

To be a shareholder in Xcel Energy, you need to believe in the company's ability to execute large-scale infrastructure investments and secure consistent regulatory outcomes, supporting steady long-term growth. The recently approved Wisconsin rate increases reinforce the outlook for stable revenues and near-term earnings, but do not materially change the most important short-term catalyst, successful capital deployment, nor the biggest risk, which remains balance sheet pressure from ongoing investments and funding needs.

Most relevant to this rate case, Xcel Energy recently reaffirmed its 2025 earnings guidance and introduced 2026 guidance, reflecting confidence in future cash flows as regulatory approvals fall into place. These updates show management’s focus on stability amid capital allocation decisions, with regulatory momentum central to upcoming earnings performance.

However, investors should also be aware that, despite a constructive regulatory environment in Wisconsin, persistent high interest rates and additional equity issuances could...

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

Xcel Energy is projected to reach $17.4 billion in revenue and $2.9 billion in earnings by 2028. This outlook assumes annual revenue growth of 7.6% and an increase in earnings of about $0.8 billion from the current $2.1 billion.

Uncover how Xcel Energy's forecasts yield a $88.35 fair value, a 9% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members produced three different fair value estimates for Xcel Energy, spanning a range from US$65.94 to US$88.35 per share. Against this backdrop of widely varying perspectives, keep in mind that ongoing regulatory approvals remain a crucial factor in supporting future revenue and earnings for the company.

Explore 3 other fair value estimates on Xcel Energy - why the stock might be worth 19% less than the current price!

Build Your Own Xcel 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 Xcel Energy research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Xcel Energy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Xcel 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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