Can EXC’s Rising Revenues Support Sustainable Earnings Growth?
Exelon EXC is benefiting from stronger revenues, which are helping offset higher operating expenses and support overall financial performance. Revenue growth, supported by rate recovery and utility operations, is strengthening Exelon’s operating results.
In the second quarter of 2026, total operating revenues increased 10% year over year to $5.97 billion, supported by higher electric operating revenues of $5.71 billion, up from $5.37 billion a year ago. For the first six months, total operating revenues reached $13.21 billion, up 8.8% from $12.14 billion a year earlier.
Higher revenues helped EXC expand profitability despite an increase in operating costs. The company’s second-quarter operating income reached $979 million, up 5.6%, while adjusted operating earnings increased 10.3% to 43 cents per share, reflecting improved utility rate-related earnings.
Exelon is pursuing additional rate recovery through its regulated utilities. In July, EXC’s unit Baltimore Gas and Electric filed an electric distribution rate case with the Maryland Public Service Commission, seeking recovery of investments and operating costs needed to maintain a safe and reliable system.
Exelon plans to invest nearly $41.7 billion through 2029, supporting 7.9% average annual rate-base growth and adjusted operating earnings growth near the upper end of its 5-7% target range. Thus, rising utility revenues, rate recovery and ongoing grid investments could provide a durable foundation for earnings growth.
Higher Utility Revenues Offset Cost Pressures
Growth in utility revenues can help manage rising operating, maintenance and financing expenses while supporting consistent earnings. Additional revenues can provide greater flexibility for investing in infrastructure modernization and other essential projects.
FirstEnergy FE second-quarter 2026 revenues rose 8.8% to $3.68 billion from $3.38 billion, while operating income increased 4.8% to $677 million, supported by stronger revenue growth.
NextEra Energy NEE second-quarter 2026 revenues increased 12.4% to $7.53 billion, while operating income grew 17.1%, reflecting stronger performance across its utility and energy businesses.
The Zacks Rundown on EXC
EXC’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 EPS indicates a year-over-year increase of 3.25% and 6.60%, respectively.
Image Source: Zacks Investment Research
EXC’s Dividend Yield
Exelon currently offers a 3.84% dividend yield, exceeding the Electric Power industry’s 3.06% average over the past year.
