The Bull Case for Dominion Energy (D) Could Change Following Strong Q2 Results and Raised Earnings

• Dominion Energy recently reported its second-quarter 2025 results, showing US$3.81 billion in revenue and net income up to US$760 million, both notably higher than the same period last year, and reaffirmed its full-year operating earnings guidance.
• An interesting insight is that strong performance in Dominion's regulated Virginia and South Carolina utility segments was the core driver behind the earnings beat, underpinned by robust customer and load growth from high-demand sectors like data centers.
• We'll examine how the reaffirmed full-year guidance, backed by strong regulated segment growth, impacts Dominion Energy's overall investment narrative.

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Dominion Energy Investment Narrative Recap

To be a Dominion Energy shareholder, you have to believe in the long-term growth of its regulated utility business, anchored by major projects like the Coastal Virginia Offshore Wind initiative and robust demand from high-capacity customers such as data centers. The latest earnings beat and reaffirmed guidance support confidence in near-term execution, though the most important catalyst, regulatory approval for the company’s base rate increase, remains unchanged, while the risk of unforeseen regulatory or tariff challenges continues to loom large. Based on this news, the impact on these core issues does not appear material for now.

One announcement that stands out is Dominion’s confirmation of its full-year 2025 operating earnings guidance of US$3.28 to US$3.52 per share. This affirmation carries particular weight after stronger-than-expected second-quarter results, helping to reinforce the market’s focus on steady earnings delivery and ongoing investment in growth projects, especially as regulatory outcomes and cost pressures remain in focus for the company.

But despite Dominion’s recent momentum, investors should also be aware that if ongoing regulatory or political support were to shift...

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

Dominion Energy's narrative projects $17.8 billion in revenue and $3.4 billion in earnings by 2028. This requires 6.1% annual revenue growth and a $1.2 billion increase in earnings from the current $2.2 billion.

Uncover how Dominion Energy's forecasts yield a $59.71 fair value, in line with its current price.

Exploring Other Perspectives

Retail investors in the Simply Wall St Community provided three separate fair value estimates for Dominion Energy, spanning from US$38.84 up to US$59.71 per share. With regulatory outcomes still uncertain, these varied perspectives highlight just how differently market participants weigh risks and catalysts for future performance. Explore more perspectives and decide where you stand.

Explore 3 other fair value estimates on Dominion Energy - why the stock might be worth as much as $59.71!

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