2Q26 Earnings Preview

Research evidence excerpt

2Q26 Earnings Preview

Idea

July 17, 2026 04:01 AM GMT

Morgan Stanley & Co. LLCMRegulated Utilities | North America David Arcaro, CFA

Equity Analyst

2Q26 Earnings Preview David.Arcaro@morganstanley.comAlexandre Zimmermann +1 212 761-1817

Research Associate

Alexandre.Zimmermann@morganstanley.com +1 212 761-3617

Key focus areas: Data center pipeline updates, affordability risk, Zhizhong Dong

and regulatory activity. Financial updates should be limited in ResearchJonathan.Dong@morganstanley.comAssociate +1 212 761-5632

this earnings season. Amanda Huang

We have refined our quarterly estimates for the Regulated Utilities space heading Amanda.Huang@morganstanley.com +1 212 761-4197

Jeremy Herring

into 2Q26 earnings. Please see our directional expectations and commentary in the Research Associate

Preview to Earnings table. We elaborate on several stocks with noteworthy updates Jeremy.Herring@morganstanley.com +1 212 761-4182

below. Regulated Utilities

North America

Data center demand growth remains the dominant focus into the earnings period. Industry View In-Line

We expect pipelines of data center demand to continue to rise across the country

and projects to keep moving to more advanced stages. We are mostly watching for

management comments on data center deal progress and regulatory updates. We

don't expect meaningful updates to guidance this quarter, and think most

noteworthy capex updates will come with 3Q earnings / EEI financial conference in

the November timeframe. Regulatory execution continues to drive recent stock

performance and we'd expect continued focus on states with emerging affordability

challenges on the negative side, and regulatory approvals for capex upside on the

positive side

AEE (EW): Positive. Focus on ESAs and potential upside opportunities