FirstEnergy Corp., through its subsidiaries, generates, transmits, and distributes electricity in the United States. It operates through Regulated Distribution and Regulated Transmission segments. The company owns and operates coal-fired, nuclear, hydroelectric, wind, and solar power generating facilities. It operates 24,080 circuit miles of overhead and underground transmission lines; and electric distribution systems, including 274,518 miles of overhead pole line and underground conduit carrying primary, secondary, and street lighting circuits. The company serves approximately 6 million customers in Ohio, Pennsylvania, West Virginia, Maryland, New Jersey, and New York. FirstEnergy Corp. was incorporated in 1996 and is headquartered in Akron, Ohio.

FirstEnergy looks like a typical defensive utility business, but with a notable balance sheet burden and not the cheapest valuation. Its P/E ratio of 26.98 is almost 30% above the industry median, and its P/B of 2.04 is also above the market, which limits the potential for re-rating. At the same time, P/S is below the median, which partly supports the idea that revenue is not priced too expensively. The weakest signal is the debt burden: debt/equity of 1.87 is significantly above the industry level and continues to rise year by year, as does long-term debt, which increases risk for a capital-intensive utility company and puts pressure on fair value. Liquidity is also weak: a current ratio of 0.52 and a quick ratio of 0.42 are below comfortable levels and worse than the industry median, so the margin of safety in working capital is limited. Profitability is generally average or weaker than the market: ROE, ROA, and ROI are below the industry median, and net margin and operating margin also lag, although gross margin remains around the industry level. On the other hand, gross profit, revenue, and net income in absolute terms look stable, while equity and assets are growing, which suggests that the scale of the business is being maintained. Return on tangible equity is above the median, meaning the company earns a decent return on its tangible base, but this is still not enough to fully offset the weak ROA/ROE figures and the debt burden. The dividend yield currently does not support the valuation, since it is absent in the provided data, whereas in the past it was around 1%, so for an investor this is a negative for the income component. Overall, the fundamentals are rather neutral to negative: the business remains stable and large, but it is somewhat expensive on earnings, burdened by debt, and does not show sufficient improvement in efficiency. For the target valuation, this implies a moderate reduction versus the current operational forecast, without an aggressive downward re-rating, since the sector is defensive and utility cash flows are usually more stable than the market.

FirstEnergy Corp.

Сильный индекс, незначительно упал. Быки в растерянности.

Strong index, slightly down. The bulls are confused.

Слабый индекс, значительно упал. Рынок на стороне быков.

Weak index, significantly down. The market is on the bulls' side.

Слабый индекс, незначительно упал

FE remains a defensive utility story, but high debt load, weak liquidity, and an expensive earnings valuation outweigh moderately resilient revenue and capital.

FirstEnergy FE reported second-quarter 2026 adjusted earnings of 50 cents per share, which beat the Zacks Consensus Estimate of 49 cents by 2.04%. In the year-ago quarter, the company reported earnings of 52 cents per share.
FE’s reported GAAP earnings of 50 cents per share in the second quarter of 2026 compared with 46 cents in the year-ago quarter.
Core earnings in the Distribution segment declined 6 cents in the second quarter of 2026 due to higher maintenance expenses, while the Stand-Alone Transmission segment benefited from an 11% increase in transmission rate base, boosting earnings by 4 cents.
Total Revenues of FE
Operating revenues of $3.68 billion beat the Zacks Consensus Estimate of $3.56 billion by 3.43%. The top line increased 8.82% from $3.38 billion recorded in the year-ago quarter.
FirstEnergy Corporation Price, Consensus and EPS Surprise
FE's Revenue Mix Supports Growth
Distribution: Revenues from this segment totaled $1.71 billion, up 2.3% from the prior-year quarter’s level. Electric revenues increased $44 million, while other revenues declined $5 million.
Integrated: Revenues from this segment amounted to $1.43 billion, up 13.7% from the prior-year quarter. The increase was driven by a $130 million rise in revenues from contracts with customers and a $43 million increase in other revenues unrelated to contracts with customers.
Stand-Alone Transmission: Revenues from this segment amounted to $544 million, up 19.30% from the prior-year quarter’s level, driven by rate base growth, the recovery of transmission operating costs and annual formula-rate true-ups.
FE's Costs Rise With the Investment Cycle
Total operating expenses were $3 billion, up 9.77% from the year-ago quarter's level of $2.73 billion. Purchased-power costs rose to $1.16 billion from $953 million, while other operating expenses increased to $1.17 billion from $995 million.
Operating income nevertheless increased 4.8% to $677 million as revenue growth exceeded the rise in operating costs.
Interest expense climbed to $337 million from $299 million due to new long-term debt and convertible note issuances, net of repayments.
FirstEnergy's Demand Pipeline Expands
Total contracted and pipeline data center demand reached 24.8 gigawatts (GW), up about 30% from the first quarter. West Virginia demand increased 137% to 4.3 GW, supporting the company's evaluation of additional generation, transmission and distribution investments.
FE expects another 1.5 GW of demand to be contracted shortly. Management is also advancing the proposed 1.2-GW Maidsville Energy Center and 70 megawatts of solar generation in West Virginia.
FE's Capital Spending Strengthens Rate Base
FirstEnergy deployed $2.9 billion of capital through the first half of 2026, up 19% year over year. Total transmission rate base grew 14%, including increases of 22% in Integrated and 11% in Stand-Alone Transmission.
Cash and cash equivalents as of June 30, 2026, were $63 million compared with $57 million as of Dec. 31, 2025.
Long-term debt increased to $27.1 billion as of June 30, 2026, from $25.51 billion at year-end 2025. Short-term borrowings also climbed to $1.38 billion from $325 million.
FE and its subsidiaries maintain investment-grade ratings across all three major credit rating agencies.
FE’s 2026 Guidance
FirstEnergy reaffirmed its 2026 core earnings guidance of $2.62 to $2.82 per share.
The Zacks Consensus Estimate for 2026 is currently pegged at $2.73 per share.
FirstEnergy remains on track to invest $6 billion in 2026 under its Energize365 program. The company also maintained its $36 billion capital plan for 2026-2030 and continues to expect core earnings growth near the top end of its 6-8% target range through 2030.
FE’s Zacks Rank
FirstEnergy currently has a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Duke Energy DUK is scheduled to report second-quarter results on Aug. 4, before the market opens. The Zacks Consensus Estimate for earnings is pegged at $1.29 per share, which suggests a year-over-year increase of 3.20%.
DUK’s long-term (three to five years) earnings growth rate is 6.76%. The Zacks Consensus Estimate for 2026 earnings is pinned at $6.72 per share, which implies a year-over-year improvement of 6.50%.
Consolidated Edison ED is slated to report second-quarter results on Aug. 6, after market close. The Zacks Consensus Estimate for earnings is pegged at 74 cents per share, which implies a year-over-year increase of 10.45%.
ED’s long-term earnings growth rate is 6.32%. The Zacks Consensus Estimate for 2026 earnings is pinned at $6.09 per share, which implies a year-over-year improvement of 6.84%.
PPL Corporation PPL is scheduled to report second-quarter results on Aug. 7, before the market opens. The Zacks Consensus Estimate for earnings is pegged at 35 cents per share, which implies a year-over-year growth of 9.38%.
PPL’s long-term earnings growth rate is 7.52%. The Zacks Consensus Estimate for 2026 earnings is pinned at $1.94 per share, which implies a year-over-year improvement of 7.18%.
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FirstEnergy Q2 Earnings Beat Estimates on Strong Transmission Growth

(RTTNews) - FirstEnergy Corp. (FE) will host a conference call at 9:00 AM ET on July 29, 2026, to discuss Q2 26 earnings results.
To access the live webcast, log on to https://investors.firstenergycorp.com/investor-relations-homepage/default.aspx
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

FirstEnergy Q2 26 Earnings Conference Call At 9:00 AM ET

(RTTNews) - FirstEnergy Corp. (FE) reported earnings for its second quarter that Increased, from last year
The company's earnings came in at $288 million, or $0.50 per share. This compares with $268 million, or $0.46 per share, last year.
The company's revenue for the period rose 8.8% to $3.678 billion from $3.380 billion last year.
FirstEnergy Corp. earnings at a glance (GAAP) :
-Earnings: $288 Mln. vs. $268 Mln. last year. -EPS: $0.50 vs. $0.46 last year. -Revenue: $3.678 Bln vs. $3.380 Bln last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

FirstEnergy Corp. Reveals Rise In Q2 Income

FirstEnergy Corporation FE is scheduled to release second-quarter 2026 results on July 28, after market close. The company reported earnings in line with Zacks consensus estimates in the latest reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
FE’s Q2 Expectations
The Zacks Consensus Estimate for earnings is pegged at 49 cents per share, indicating a year-over-year decline of 5.77%.
The Zacks Consensus Estimate for revenues is pinned at $3.59 billion, implying a 6.28% improvement year over year.
Factors Likely to Have Impacted FE’s Q2 Performance
FirstEnergy’s second-quarter earnings are expected to have been supported by higher load growth, reflecting increased electricity demand from data centers and industrial users. Strong economic activity across FE's service territory is expected to have driven earnings in the to-be-reported quarter. The company's growing customer base and continued investment in its transmission and distribution network are also likely to have contributed to its performance in the second quarter.
FirstEnergy continues to invest in infrastructure modernization, grid upgrades and asset replacement under its Energize365 program. The company's operational efficiency and robust infrastructure are expected to have supported rising electricity demand, contributing positively to second-quarter earnings. FE's diversified service territory is also likely to have generated fresh demand, while its low-risk investment plan is expected to have boosted second-quarter earnings.
However, higher operation and maintenance expenses, along with storm restoration costs, are likely to have partially offset the company's second-quarter earnings growth.
What Our Quantitative Model Predicts for FE
Our proven model does not conclusively predict an earnings beat for FirstEnergy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here as you will see below.
Earnings ESP: The company’s Earnings ESP is -3.34%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, FirstEnergy has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.
FirstEnergy Corporation Price and EPS Surprise
Stocks to Consider
Investors may consider the following players from the same sector, as these have the right combination of elements to post an earnings beat this reporting cycle.
Edison International EIX is set to report second-quarter results on July 30 and is likely to have come up with an earnings beat. It has an Earnings ESP of +4.66% and a Zacks Rank #2 at present.
EIX’s long-term earnings growth rate is 2.10%. The Zacks Consensus Estimate for second-quarter EPS is pinned at $1.02 per share, which implies a year-over-year increase of 5.15%.
The Southern Company SO is scheduled to report second-quarter results on July 30 and is likely to have come up with an earnings beat. It has an Earnings ESP of +2.54% and a Zacks Rank #3
at present.
SO’s long-term earnings growth rate is 11.15%. The Zacks Consensus Estimate for second-quarter EPS is pinned at $1.02 per share, which implies a year-over-year increase of 12.09%.
Southwest Gas SWXis scheduled to report second-quarter results on Aug. 5 and is likely to have come up with an earnings beat. It has an Earnings ESP of +5.64% and a Zacks Rank #2 at present.
SWX’s long-term earnings growth rate is 9.89%. The Zacks Consensus Estimate for second-quarter EPS is pinned at 47cents per share, which implies a year-over-year decrease of 11.32%.
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FirstEnergy to Report Q2 Earnings: What's in Store for the Stock?

In the latest look at the underlying components of the S&P 500 ordered by largest market capitalization, FirstEnergy Corp (Symbol: FE) has taken over the #342 spot from American Water Works Co, Inc. (Symbol: AWK), according to The Online Investor.
Market capitalization is an important data point for investors to keep an eye on, for various reasons. The most basic reason is that it gives a true comparison of the value attributed by the stock market to a given company's stock. Many beginning investors look at one stock trading at $10 and another trading at $20 and mistakenly think the latter company is worth twice as much — that of course is a completely meaningless comparison without knowing how many shares of each company exist. But comparing market capitalization (factoring in those share counts) creates a true "apples-to-apples" comparison of the value of two stocks. In the case of FirstEnergy Corp (Symbol: FE), the market cap is now $28.41 billion, versus American Water Works Co, Inc. (Symbol: AWK) at $26.23 billion.
Below is a chart of FirstEnergy Corp versus American Water Works Co, Inc. plotting their respective size rank within the S&P 500 over time (FE plotted in blue; AWK plotted in green):
Below is a three month price history chart comparing the stock performance of FE vs. AWK:
Another reason market capitalization is important is where it places a company in terms of its size tier in relation to peers — much like the way a mid-size sedan is typically compared to other mid-size sedans (and not SUV's). This can have a direct impact on which mutual funds and ETFs are willing to own the stock. For instance, a mutual fund that is focused solely on Large Cap stocks may for example only be interested in those companies sized $10 billion or larger. Another illustrative example is the S&P MidCap index which essentially takes the S&P 500 index and "tosses out" the biggest 100 companies so as to focus solely on the 400 smaller "up-and-comers" (which in the right environment can outperform their larger rivals). So a company's market cap, especially in relation to other companies, carries great importance, and for this reason we at The Online Investor find value to putting together these rankings daily.
Examine the full FE market cap history vs. the full AWK market cap history.
At the closing bell, FE is off about 1.2%, while AWK is up about 0.5% on the day Friday.
Further FE Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

FirstEnergy Now #342 Largest Company, Surpassing American Water Works

FirstEnergy Corp. FE is benefiting from the expansion and modernization of its extensive transmission and distribution network, strengthening reliability, meeting rising demand and supporting new energy sources. These investments improve operational efficiency, reduce the frequency and duration of outages, and create additional opportunities for earnings growth.
As of Dec. 31, 2025, the company operated an extensive electric network comprising nearly 252,959 miles of distribution line and 24,157 transmission line miles, providing a substantial infrastructure base for grid modernization investments and long-term rate base growth.
The company’s multi-year Energize365 investment program is upgrading grid infrastructure, improving customer service and supporting affordable, competitive electricity rates across its service territory. FirstEnergy plans to invest $36 billion from 2026 to 2030, which includes $12.7 billion in stand-alone transmission and $10.3 billion in the distribution network. These infrastructure investments focus on building a stronger, more flexible grid, preparing for future electricity demand, and keeping affordability and customer advocacy at the forefront. Together, these investments are expected to support 10% average annual rate base growth and 6-8% annual earnings per share (EPS) growth through 2030.
FirstEnergy’s transmission unit formed a 50-50 partnership with Transource, called Grid Growth to develop transmission projects awarded by PJM Interconnection. The partnership has secured a $1.2 billion transmission project.
Overall, FirstEnergy benefits from grid modernization and transmission and distribution expansion, supporting rate base growth, earnings and shareholder value.
Grid Investments Support Service Reliability
Utilities are upgrading transmission networks, substations, and smart grid systems to minimize outages and improve the reliability of electricity service. These investments enhance grid resilience, optimize system performance and help utilities meet growing power demand.
Ameren AEE is strengthening and modernizing its transmission network through MISO-approved projects and sustained infrastructure investments. These initiatives are expected to enhance grid resilience, improve service reliability and support long-term regulated earnings growth.
Entergy ETR is undertaking significant grid investments in Mississippi to strengthen infrastructure, enhance the power network and deploy advanced technologies. These initiatives aim to enhance reliability, reduce outages and accommodate growing electricity demand.
The Zacks Rundown on FE
FE’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 EPS indicates a year-over-year increase of 7.45% and 7.70%, respectively.
Image Source: Zacks Investment Research
FE Stock Trading at a Premium
FE is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 17.08X compared with the industry average of 15.47X.
Image Source: Zacks Investment Research
FE’s Stock Price Performance
In the past month, the company’s shares have risen 6.9% compared with the industry’s 2.1% growth.
Image Source: Zacks Investment Research
FE’s Zacks Rank
FE currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Can FirstEnergy's Grid Investments Drive Long-Term Earnings Growth?

Geopolitical tensions escalated over the weekend, as the United States and Iran carried out missile strikes on each other. Within hours, energy prices surged as fears grew that the conflict could escalate further.
A surge in global oil prices after the initial U.S.-Iran conflict in late February pushed inflation higher, with the Federal Reserve contemplating a rate hike by the end of this year. The Wall Street rally has time and again been interrupted by volatility this year, as fears of a rate hike, triggered by high inflation, global tensions and the recent tech sell-off, have been denting investors’ confidence.
Given this scenario, we recommend buying four defensive stocks from the utility and consumer staples sectors, namely, FirstEnergy Corp. FE, Ameren Corporation AEE, The Coca-Cola Company KO and The New York Times Company NYT.
These stocks are also from the low-beta category (beta greater than 0 but less than 1). Hence, the recommended approach is to invest in low-beta stocks with a high dividend yield and a favorable Zacks Rank.
Geopolitical Tensions Escalate Again
The United States and Iran fired a barrage of missiles at each other in the Middle East as tensions escalated over the weekend. The renewed tensions come after President Donald Trump last week said that he is no longer interested in negotiations.
Oil prices jumped more than 3% over the weekend following the attacks, as fears grew that the Strait of Hormuz could again be blocked, which could disrupt oil supply from the Middle East.
Energy prices had eased substantially over the past month after the United States and Iran signed a temporary memorandum of understanding in mid-June. Oil prices had surged nearly 40% after the war began in late February.
The surge saw inflation jump unexpectedly since then. The Consumer Price Index, an important gauge for measuring the prices of goods and services across the economy, rose 0.5% month over month in May after jumping 0.6% in April, and 4.2% from the year-ago levels.
This has made the Federal Reserve’s job difficult. However, the central bank left interest rates unchanged in its last meeting in the current range of 3.5-3.75%. The minutes from the Federal Reserve’s latest FOMC meeting show that officials are still divided over an interest rate hike, as some believe that inflation could ease after the hostilities ended with the signing of the memorandum of understanding.
However, the Federal Reserve could once again contemplate a rate hike if inflation remains high following the renewed tensions in the Middle East.
Markets have already been volatile over the past month due to a massive tech sell-off, which is being triggered by concerns over the sustainability of AI-related stocks. This has been denting investors’ confidence and could keep markets volatile for a longer period.
4 Defensive Stocks With Growth Potential
FirstEnergy Corp
FirstEnergy Corp. is a diversified energy company. Through its subsidiaries and affiliates, FE engages in the transmission, distribution and generation of electricity.
FirstEnergy Corp’s expected earnings growth rate for the current year is 5.5%. The Zacks Consensus Estimate for current-year earnings improved 0.4% over the past 60 days. FE currently carries a Zacks Rank #2. FirstEnergy Corp has a beta of 0.47 and a current dividend yield of 3.88%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ameren Corporation
Ameren Corporation is a utility company that generates and distributes electricity and natural gas to residential, commercial, industrial and wholesale end markets in Missouri and Illinois. AEE serves nearly 2.4 million electric and more than 900,000 natural gas customers.
Ameren Corporation’s expected earnings growth rate for the current year is 7%. The Zacks Consensus Estimate for current-year earnings improved 0.4% over the past 60 days. AEE currently carries a Zacks Rank #2. Ameren Corporation has a beta of 0.47 and a current dividend yield of 2.66%.
The Coca-Cola Company
The Coca-Cola Company’s strong brand equity, marketing, research and innovation help it to garner a market share of more than 40% in the non-alcoholic beverage industry. KO is putting its best foot forward to evolve its business model to become a total beverage company with something for everyone to drink. The Coca-Cola Company has coped with the industry-wide flattening of soda sales over the years by going on a buying spree and making investments in healthier alternatives like coffee, sparkling water and sports drinks.
The Coca-Cola Company has an expected earnings growth rate of 8.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.9% over the past 60 days. The Coca-Cola Company has a Zacks Rank #2. KO has a beta of 0.34 and a current dividend yield of 2.54%.
The New York Times Company
The New York Times Company is a leading global media organization focused on delivering high-quality journalism and information. Founded in 1851 and incorporated in 1896, NYT has evolved from a traditional newspaper publisher into a diversified digital-first media company with a strong global subscriber base and a growing portfolio of lifestyle and entertainment products.
The New York Times Companyhas an expected earnings growth rate of 19.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.7% over the last 60 days. NYT has a beta of 0.96 and a current dividend yield of 1.23%.
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Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
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CocaCola Company (The) (KO) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

4 Low-Beta Defensive Stocks to Buy as Geopolitical Tensions Escalate

Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. Is Ballard Power Systems (BLDP) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Ballard Power Systems is a member of the Utilities sector. This group includes 109 individual stocks and currently holds a Zacks Sector Rank of #1. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Ballard Power Systems is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for BLDP's full-year earnings has moved 2.3% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, BLDP has gained about 97% so far this year. Meanwhile, stocks in the Utilities group have gained about 17.1% on average. This means that Ballard Power Systems is outperforming the sector as a whole this year.
ENGIE BRASL EGA (EGIEY) is another Utilities stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 29.8%.
In ENGIE BRASL EGA's case, the consensus EPS estimate for the current year increased 7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Ballard Power Systems belongs to the Utility - Electric Power industry, a group that includes 59 individual stocks and currently sits at #61 in the Zacks Industry Rank. This group has gained an average of 18.2% so far this year, so BLDP is performing better in this area. ENGIE BRASL EGA is also part of the same industry.
Ballard Power Systems and ENGIE BRASL EGA could continue their solid performance, so investors interested in Utilities stocks should continue to pay close attention to these stocks.
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Are Utilities Stocks Lagging Ballard Power Systems (BLDP) This Year?

FirstEnergy Corp. FE is benefiting from rising electricity demand driven by data center development across its service territories and the broader region, strengthening its long-term growth opportunity. Rising demand from AI-driven facilities is expected to drive higher electricity consumption, expand regulated infrastructure investments and support sustainable earnings growth over time.
The company’s West Virginia service territory is witnessing strong interest from hyperscale, with nearly 1.8 gigawatts (GW) of highly credible data center projects already in the pipeline, representing a 50% increase from earlier expectations. The company is advancing negotiations for more than 6 GW of potential load, with nearly 4 GW expected to be contracted soon, providing strong visibility into future demand growth. Its 2035 pipeline demand continues to accelerate, reaching 14.9 GW, up 15% since February 2026. If these projects move forward, they could become a major long-term growth driver for the company through higher electricity sales and infrastructure investment.
The company’s Energize365 multi-year grid investment plan modernizes infrastructure, enhances customer experience and maintains competitive electricity rates across its service territory. The company plans to invest $6 billion in 2026 and $36 billion during 2026-2030. FE is investing heavily in grid modernization to accommodate expanding data center demand and facilitate new customer interconnections.
Growing AI-driven data center demand enhances FirstEnergy's long-term investment outlook. Expanding electricity consumption should fuel regulated capital investments, strengthen earnings visibility and support sustainable shareholder returns.
Data Centers Power the Next Phase of Utility Growth
The rapid expansion of artificial intelligence and digital infrastructure is making data centers a major growth catalyst for electric utilities. This supports regulated investments, long-term power purchase, revenue visibility and sustainable earnings growth.
American Electric AEP benefits from rising AI-driven hyperscale data center power demand. It expects 63 GW of incremental contracted load by 2030, up from 56 GW, with hyperscale data centers expected to represent nearly 90% of the total demand.
PPL Corporation PPL benefits from rising AI-driven data center demand. Its Pennsylvania operations have identified 28.3 GW of potential data center demand and approximately 12.9 GW of projected growth in Kentucky through 2032, including more than 11.9 GW from data centers.
FE’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 EPS indicates a year-over-year increase of 7.45% and 7.57%, respectively.
Image Source: Zacks Investment Research
FE Stock Trading at a Premium
FE is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 17.1X compared with the industry average of 15.87X.
Image Source: Zacks Investment Research
FE’s Stock Price Performance
In the past month, the company’s shares have plunged 6.3% against the industry’s 4.8% growth.
Image Source: Zacks Investment Research
FE’s Zacks Rank
FE currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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PPL Corporation (PPL) : Free Stock Analysis Report
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Is FirstEnergy Set to Benefit From Surging Data Center Demand?

Pinnacle West Capital PNW benefits from its strategic capital investment plan, which strengthens grid reliability, supports rising electricity demand and drives sustainable long-term earnings growth. These investments are aimed at improving system reliability, supporting customer growth and expanding the company's regulated asset base.
PNW aims to invest $2.6 billion in 2026 and nearly $7.95 billion during 2026-2028, allocating about $2.11 billion to transmission, $2.31 billion to distribution and $2.28 billion to generation infrastructure. These investments support a 7-9% rate base growth through 2028 and advance strategic transmission projects.
The company is witnessing strong growth in electricity demand, supported by sustained economic development across its service territory. Arizona continues to attract semiconductor manufacturers, large data centers and other large industrial customers that require 24x7 reliable power. The company expects retail electricity sales to grow 4-6% in 2026, driven primarily by expanding manufacturing facilities and data centers. It projects 5-7% annual weather-normalized sales growth through 2030. PNW is expanding its power infrastructure to meet growing demand and recover its investments through regulatory approvals.
The company continues to target 5-7% long-term EPS growth, supported by sustained infrastructure investment and increasing electricity demand. PNW's systematic capital allocation, expanding regulated rate base and constructive regulatory framework provide a solid foundation for future earnings growth.
Capital Investments Strengthening Regulated Growth
Capital investments strengthen regulated utility growth through grid modernization, transmission expansion, improved reliability and renewable integration. These investments expand the regulated asset base, support timely cost recovery and drive stable earnings and long-term growth.
FirstEnergy Corp. FE expects to invest $36 billion over 2026-2030 to strengthen its regulated transmission and distribution business. The capital plan prioritizes grid modernization and infrastructure upgrades, supporting an estimated 10% compound annual rate base growth.
PPL Corporation PPL plans to invest nearly $23 billion during 2026-2029, supporting an average annual rate base growth of 10.3%. These investments strengthen energy infrastructure, expand cleaner generation, improve reliability and maintain affordable electricity for customers.
PNW’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 EPS indicates a decrease of 6.73% and an increase of 18.05%, respectively, year over year.
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PNW’s Dividend Yield
PNW currently offers a 3.42% dividend yield, exceeding the Electric Power industry 2.99% average over the past year.
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PNW’s Stock Price Performance
In the past month, the company’s shares have risen 7% compared with the industry’s 3.3% growth.
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PNW’s Zacks Rank
PNW currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	26.98 20.80
Price/Sales	1.85 2.65
P/B	2.04 1.69
P/FCF	0.00 16.90

Indicator	TTM Median
ROE	7.55 9.50
ROA	1.91 2.93
ROI	2.71 4.55
Net Worth	28.80 6.24
Quick Ratio	0.42 0.75
Current Ratio	0.52 0.90

Indicator	TTM Median
Net Profit Margin	6.86 12.52
Operating Margin	14.68 20.99
Gross Margin	64.01 63.43
Return on tangible equity	12.56 11.30

Indicator	TTM Median
EPS	0.72 0.67
EPS Forecast	0.72 0.69
Revenue	4.20B 599.50M
Gross Profit	2.61B —
EBITDA	945.00M —

FirstEnergy Corp.

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