Evergy delivered a stronger third quarter, lifted its 2026 adjusted earnings guidance and outlined new power commitments tied to large customers, including a proposed 1.4 GW Digital Realty expansion. The utility also increased its quarterly dividend by 4%.
- GAAP EPS rose to $2.59 from $2.03
- 2026 adjusted EPS guidance lifted to $4.35-$4.50
- Three agreement amendments expected to add approximately 250 MW of load
- Digital Realty letter of intent covers a proposed 1.4 GW expansion
- Quarterly dividend increased to $0.7225 per share
Evergy, Inc. (NASDAQ:EVRG) raised its 2026 earnings guidance after reporting third-quarter GAAP earnings per share of $2.59, up from $2.03 a year earlier, while pointing to a much larger prize in the form of new electricity demand from major customers. The Kansas and Missouri utility said three amendments to existing electric service agreements are expected to add approximately 250 megawatts of load, alongside a letter of intent with Digital Realty for a 1.4 gigawatt expansion.
Third-quarter earnings rise on weather and customer demand
Evergy reported US$612.9 million in third-quarter GAAP earnings, compared with US$475.0 million in the same period of 2025. Adjusted earnings, a non-GAAP measure, came in at US$609.9 million, or US$2.58 per diluted share, versus US$475.1 million and US$2.03 per share previously.
The company attributed the adjusted EPS improvement to warmer weather, recovery of regulated investments, growth in weather-normalised demand and higher revenue from large customers. Higher operations and maintenance costs, along with increased depreciation and amortisation, partly offset those gains. That mix matters: some of the quarter’s strength came from conditions that may not repeat, while the large-customer contribution is tied to agreements and projects still moving through execution.
Guidance lifted as dividend reaches $0.7225
Evergy increased its 2026 adjusted EPS guidance to $4.35-$4.50 from $4.14-$4.34. The revised range is non-GAAP and the company said it cannot provide a corresponding GAAP forecast because future results may be affected by items including impairments, divestitures, regulatory orders, investment valuations or accounting changes.
The board declared a quarterly dividend of $0.7225 per share, a 4% increase according to the company. Evergy reaffirmed its long-term adjusted EPS growth target of 6% to 8% or more annually through 2030, based on the original 2026 guidance midpoint, and said it expects annual growth to exceed 8% from 2028 through 2030.
Large-load agreements add scale but not certainty
The new customer commitments are the more consequential strategic detail. Evergy said the three amended electric service agreements are expected to provide approximately 250 MW of incremental load, while the Digital Realty arrangement remains a letter of intent rather than a definitive agreement. The company described both developments as evidence of sustained interest in its Kansas and Missouri service territories.
For the utility, that demand could support revenue growth and the affordability benefits associated with its large-load power service tariff. It also raises practical questions about the generation, transmission and distribution investment needed to serve the additional load, as well as the timing of construction, regulatory treatment and cost recovery. Evergy’s own disclosures identify capital access, revenue recovery and customer affordability as risks if electricity demand grows rapidly and new infrastructure is required.
Bottom Line?
The raised guidance is immediate and measurable; the larger growth story depends on converting expected load into definitive agreements, infrastructure and recoverable investment.
Questions in the middle?
- When will the Digital Realty letter of intent become a definitive electric service agreement, and what load timing will it establish?
- What generation, transmission and distribution investment will be required to support the proposed additional demand?
- How much of the raised guidance can be sustained once warmer weather benefits and other temporary factors fade?