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Research Alert: Duke Energy: Strong Q1 Beat On Rates & Weather, Cost Pressures Mount

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Duke Energy reported Q1 2026 adjusted EPS of $1.93, up 9.7% and $0.13 above consensus, driven by regulatory recovery of infrastructure investments and favorable weather, though partially offset by elevated operating expenses. Revenue rose 11.3% to $9.178B with regulated electric revenues growing $739M, though weather-normalized retail electric sales declined 0.5% indicating underlying demand softness. We believe the company's completion of $5.3B in strategic transactions during the quarter supports balance sheet optimization and its long-term growth trajectory. Management reaffirmed 2026 adjusted EPS guidance of $6.55-$6.80 and expressed confidence in earning in the top half of the range beginning in 2028. The company's 7.6 GW of newly secured economic development projects under Electric Service Agreements reinforces the 5%-7% long-term growth rate through 2030, which we believe supports the investment thesis despite near-term demand headwinds.

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