Assessing Dominion Energy (D) Valuation As Earnings Near And Analyst Estimates Turn Cautious

Why Dominion Energy’s earnings report is in focus

Dominion Energy (D) heads into its February 23, 2026 earnings release with investors watching how the expected $0.66 EPS and revenue figures line up against recently reduced analyst expectations and earlier cautious trading.

See our latest analysis for Dominion Energy.

Dominion Energy’s recent moves capture that tension, with a 10.67% 1 month share price return and 7.08% 3 month share price return contrasting with a stronger 20.32% 1 year total shareholder return as investors weigh earnings risks against the broader utilities backdrop.

If this earnings update has you thinking more broadly about power and infrastructure, it could be a good moment to see what else is on the grid through our 23 power grid technology and infrastructure stocks.

With Dominion Energy trading around $65.96, close to an average analyst target of $64.06 despite a 20.32% 1 year total return and solid recent earnings expectations, is there still a buying opportunity here, or is the market already pricing in future growth?

Most Popular Narrative: 3% Overvalued

With Dominion Energy last closing at $65.96 against a narrative fair value of $64.06, the widely followed view sees the shares a touch ahead of that estimate, and it all hinges on how long term growth and regulated returns play out.

Large scale investments in regulated renewables, especially the Coastal Virginia Offshore Wind (CVOW) project, position Dominion to benefit from the accelerating energy transition, earning stable regulated returns and expanding rate base, with a positive impact on long term earnings.

Read the complete narrative.

For readers curious about what kind of revenue trajectory and margin profile need to line up to support this fair value, and how much earnings power that implies by the late 2020s, the full narrative lays out a detailed blueprint of growth, profitability and valuation assumptions that go well beyond a simple P/E comparison.

Result: Fair Value of $64.06 (OVERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, that earnings blueprint still faces pressure if CVOW costs climb without full regulatory recovery or if capital needs force equity raises that dilute future EPS.

Find out about the key risks to this Dominion Energy narrative.

Another View: Market Ratio Sends a Different Signal

While the narrative fair value of $64.06 points to Dominion Energy looking about 3% overvalued at $65.96, the market’s own P/E ratio tells a different story. At 21.6x, it sits below the peer average of 23.2x and under the fair ratio of 24.2x, which hints at less valuation pressure than the first model suggests. So which signal do you weigh more heavily when you think about risk and return?

See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

If this mix of signals feels finely balanced, it is worth acting soon to check the numbers and form your own view. You can start with 2 key rewards and 2 important warning signs.

Looking for more investment ideas?

If Dominon Energy has sharpened your focus, do not stop here. Broaden your watchlist now so you are not the one hearing about the best ideas after they move.

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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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