Evergy (NASDAQ: EVRG) raises profit outlook after third-quarter adjusted EPS jumps 27.1%

What happened

Evergy, Inc. (NASDAQ: EVRG) raised its 2026 adjusted earnings guidance to $4.35 to $4.50 per share from $4.14 to $4.34. The utility said third-quarter results beat expectations, helped by strong operations and warmer weather. Adjusted EPS was $2.58, up 27.1% from $2.03 a year earlier, by OptimistFi's calculation.

GAAP earnings were $612.9 million, or $2.59 per share, against $475.0 million a year earlier. The board declared a quarterly dividend of $0.7225 per share. Chairman and CEO David Campbell said the company increased its dividend by 4%.

Key numbers

Metric	Latest	Change	Source
Q3 adjusted EPS (non-GAAP)	$2.58	from $2.03, +27.1%	Calculated from SEC 8-K
Q3 GAAP EPS	$2.59	from $2.03, +27.6%	Calculated from SEC 8-K
Q3 adjusted earnings (non-GAAP)	$609.9 million	from $475.1 million, +28.4%	Calculated from SEC 8-K
Nine-month adjusted EPS (non-GAAP)	$4.15	from $3.41, +21.7%	Calculated from SEC 8-K
2026 adjusted EPS guidance (raised from $4.14 to $4.34)	$4.35 to $4.50		SEC 8-K Exhibit 99.1
Quarterly dividend per share	$0.7225		SEC 8-K Exhibit 99.1

Read more: Evergy (EVRG) company research

Where the quarter's earnings came from

Adjusted earnings rose to $609.9 million from $475.1 million. Evergy said adjusted EPS benefited from warmer weather, recovery of regulated investments, growth in weather-normalized demand and higher large customer revenues. Higher operations and maintenance expense and higher depreciation and amortization expense partly offset those gains.

Campbell said generation reliability held up despite significantly warmer weather and record peak demand for both Evergy and the Southwest Power Pool.

The adjustments were small. GAAP earnings sat $3.0 million above adjusted earnings. The reconciliation removes $1.3 million of pre-tax losses on early-stage clean energy investments. It also removes a $5.3 million pre-tax gain from settling a complaint over Evergy Kansas Central's transmission revenue requirement for the 2018 and 2019 rate years. A $1.0 million tax effect is included.

Through nine months, adjusted EPS was $4.15 against $3.41 a year earlier. Adjusted earnings were $980.2 million against $794.0 million. The nine-month adjustments also remove $10.3 million of losses and fees from the first-quarter repurchase of $244.1 million of Convertible Notes.

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Why it matters

OptimistFi has argued that Evergy's value depends on turning grid and generation investment into timely allowed returns, not on rapid top-line growth. The release lists recovery of regulated investments among the quarter's drivers, which supports that view.

The guidance raise lifted the low end by $0.21 and the high end by $0.16, by OptimistFi's calculation. After nine months, the fourth quarter needs $0.20 to reach the bottom of the new range and $0.35 to reach the top.

Evergy reaffirmed its long-term adjusted EPS growth target of 6% to 8%+ a year through 2030, measured off the original 2026 midpoint of $4.24. It expects annual growth above 8% from 2028 through 2030. The target did not move with the higher 2026 range.

Weather is the caveat. It is one stated reason for the beat, so not all of the gain comes from allowed returns. Adjusted EPS also leaves out items management does not view as indicative of ongoing performance. The company cannot provide a GAAP equivalent for its 2026 guidance.

What the large-customer agreements add

Evergy signed three amendments to previously signed electric service agreements. They are expected to add ~250 megawatts of incremental load. It also signed a letter of intent with Digital Realty for a 1.4 gigawatt expansion.

Campbell said the deals show sustained interest from large customers in locating and expanding in Evergy's Kansas and Missouri service territories. The company says the load furthers affordability benefits for customers under its large load power service tariff. Higher large customer revenues were already one driver of the quarter.

The release's risk language names the outcome of customer negotiations and the execution of definitive agreements. It also cites capital access, revenue recovery and customer affordability risks tied to projected rapid growth in demand from data centers and other large load customers.

What's next

Evergy management hosts its earnings call on Thursday, Nov. 5, at 9:00 a.m. ET (8:00 a.m. CT), with slides on investors.evergy.com. The dividend is payable Dec. 18 to shareholders of record Nov. 20. The company's Form 10-Q for the period ended Sept. 30 is on its website.

A fourth quarter that leaves full-year adjusted EPS below the low end of the new range would undercut the raise. A definitive agreement with Digital Realty would firm up the load story.

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