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PPL Corporation boosts earnings and dividends as data center demand soars

Strong financials and a 5% dividend hike reflect PPL's confidence in a power-hungry future. Can its growth keep pace with AI's insatiable energy needs?

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PPL Corporation boosts earnings and dividends as data center demand soars

PPL Corporation has reported strong financial results for its latest quarter, with earnings per share (EPS) rising by 7.1%. The company also announced higher dividend payments and extended its long-term growth targets. These moves come as demand for electricity in U.S. data centres continues to surge.

The company's ongoing EPS for the quarter reached $1.81 per share, matching the midpoint of its earlier forecast. This figure represents a 7.1% increase compared to the same period last year. GAAP EPS also climbed to $1.59 per share, up from $1.20 in the previous year.

PPL Corporation has set its 2026 ongoing EPS guidance between $1.90 and $1.98 per share, with a midpoint of $1.94. This target reflects an expected growth rate of 7.2%. Additionally, the firm reaffirmed its annual compounded growth target of 6%-8% through at least 2029.

The company also raised its quarterly cash dividend to $0.285 per share, bringing the annualised payout to $1.14. This marks a nearly 5% increase for shareholders.

The growth in electricity demand, particularly from U.S. data centres, has played a key role in shaping the energy sector. Since 2020, regions like Northern Virginia, Texas, and the Pacific Northwest have seen annual growth rates exceeding 15-20%, driven by the expansion of AI and cloud computing.

PPL Corporation's latest financial updates highlight steady earnings growth and higher returns for investors. The company's extended growth targets align with rising electricity demand, particularly in data-heavy regions. Shareholders will see increased dividends as the firm continues its expansion plans.

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