How Strong Q3 Results and Upgraded Outlook at PPL (PPL) Have Changed Its Investment Story

• PPL Corporation recently reported strong third-quarter and nine-month 2025 results, with sales rising to US$2.24 billion and net income reaching US$318 million for the quarter, and the company reaffirmed its narrowed 2025 earnings guidance while outlining expectations for 6% to 8% annual EPS and dividend growth through at least 2028.
• This combination of higher sales, increased net income, and a sustained long-term growth outlook highlights PPL's continued operational momentum and management's confidence in its ability to deliver on future earnings targets.
• We'll examine how PPL's robust quarterly earnings and long-term growth outlook strengthen its investment narrative amid rising demand and industry shifts.

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

PPL Investment Narrative Recap

To be a shareholder in PPL, you need to believe that the company can capitalize on rising demand from data center and economic growth, all while navigating regulatory and capital recovery challenges. The latest results show operational progress and confidence in long-term growth, but the news does not materially shift the main short-term catalyst, which remains executing on large infrastructure investments, nor does it meaningfully alter the key risk of regulatory lag or adverse rate decisions for cost recovery.

PPL's confirmation of its narrowed 2025 earnings guidance, with a midpoint of US$1.81 per share and maintained EPS and dividend growth targets through 2028, is the most relevant announcement. This supports management’s view that capital projects and revenue growth remain on track, directly linking to the catalyst of robust infrastructure investment and the expectation for higher regulated earnings, as long as regulatory recovery stays favorable.

However, investors should be mindful that if regulatory timelines slip or cost recovery proves less favorable than anticipated...

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

PPL's outlook projects $9.6 billion in revenue and $1.7 billion in earnings by 2028. This is based on an expected 2.8% annual revenue growth rate and an earnings increase of approximately $714 million from the current earnings of $986 million.

Uncover how PPL's forecasts yield a $40.60 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members pegged PPL's fair value estimates between US$40.60 and US$41.09, with just 2 analyses included. With major grid upgrades planned, the true impact will hinge on future regulatory outcomes, so check multiple viewpoints before deciding.

Explore 2 other fair value estimates on PPL - why the stock might be worth just $40.60!

Build Your Own PPL 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 PPL research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free PPL research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate PPL's overall financial health at a glance.

Interested In Other Possibilities?

These stocks are moving-our analysis flagged them today. Act fast before the price catches up:

• AI is about to change healthcare. These 31 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.
• The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 27 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.
• These 12 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com