Overview
Scotiabank's Q2 2026 earnings roundup for the U.S. utilities and power sector identifies a clear top pick and highlights a patchwork of results across the peer group. WEC Energy Group emerges as the firms preferred holding, driven by what Scotiabank describes as a favorable mix of earnings growth prospects, material capital expenditure upside and a long record of stability that the analyst team believes is not fully reflected in the stock's modest valuation premium.
Sector tone and early results
Of the 15 utilities that reported earnings in the first two weeks of the reporting period, 11 beat consensus estimates, producing generally positive surprises on earnings per share relative to expectations. Scotiabank's analysis centers on companies showing strong execution on data-center opportunities, rising capital expenditure programs and shifts in regulatory posture that may support future estimate revisions.
WEC Energy Group (WEC)
Scotiabank ranks WEC as its top overall pick in the U.S. utilities group. The bank highlights WEC's combination of above-average EPS growth, a potential for upward revisions to both capex and EPS, and a decades-long track record of stable operating performance. Scotiabank notes that these attributes appear at odds with the stocks modest 5% price-to-earnings premium.
Operationally, two WEC data-center projects that are currently under construction are progressing ahead of schedule, and Scotiabank expects each project to ultimately scale beyond the conservative assumptions management has included in its budgets. WEC reported second-quarter 2026 EPS of $0.91, topping Scotiabank's $0.82 estimate and the consensus of $0.80. Revenue for the quarter was $2.06 billion, which fell short of forecasts despite the EPS beat.
Following the results, an outside firm, Ladenburg Thalmann, downgraded WEC from Buy to Neutral, citing political opposition to future data-center development as the reason for the change in view. Scotiabank, by contrast, anticipates a stronger-than-expected capex update from WEC this fall and expects that estimates will be revised higher.
Entergy Corporation (ETR)
Scotiabank maintains a favorable view of Entergy after its Q2 report, pointing to strong execution during the quarter. Entergy announced adjusted EPS of $1.03 and revenue of $3.55 billion for second-quarter 2026. Both figures came in below analyst estimates, yet Scotiabank continues to list Entergy among its top picks in the U.S. utilities coverage universe.
CMS Energy Corporation (CMS)
CMS remains a firm favorite for Scotiabank. The bank underscores CMSs above-average EPS growth profile, a consistent operating record, potential for positive estimate revisions and a regulatory backdrop in Michigan that it characterizes as very accommodative. CMS reported second-quarter 2026 EPS of $0.37, modestly above Scotiabank's consensus-matching estimate of $0.36. The company introduced a conservative 2027 EPS outlook while reporting some traction with data-center customers. Scotiabank views CMSs peer-average price-to-earnings ratio as discounting a business that historically attracted roughly a 10% P/E premium.
CenterPoint Energy (CNP)
Scotiabank expressed a positive stance on CenterPoint after a strong quarter that included an earnings beat and encouraging early visibility into the ERCOT Batch Zero process. CenterPoint submitted approximately 14 GW of Base/Studied Load projects for Batch Zero, which underpinned a notable increase to its capex plan. The company reported Q2 2026 adjusted EPS of $0.40, above Scotiabank's $0.38 estimate and the consensus of $0.37, with revenue of $2.11 billion that outperformed expectations. Scotiabank highlighted the capex increase and Batch Zero participation as constructive developments.
NextEra Energy (NEE)
Scotiabank retained a cautiously positive view of NextEra, noting that the stock has underperformed since a merger announcement but that the company is well positioned to serve data-center demand. NextEra reported second-quarter 2026 EPS of $1.15, beating Scotiabank's estimate of $1.13 and the consensus of $1.11, while revenue missed forecasts. The company reiterated its guidance, and Scotiabank indicated that the outlook for NextEra has been increased.
Eversource Energy (ES)
Scotiabank keeps a Sector Underperform rating on Eversource despite acknowledging the company has made progress on balance-sheet improvement measures. The firm views more downside risk to earnings than upside opportunity in the near term and expects negative headlines to remain a driver of investor sentiment. Eversource reported second-quarter 2026 recurring EPS of $0.87, matching consensus, on revenue of $2.9 billion that missed analysts' expectations. Scotiabanks bearish stance reflects concern over headline risk and limited near-term upside.
Implications and analyst outlook
Scotiabank's review underscores a few recurring themes across the utilities covered: data-center demand emerging as a meaningful driver of incremental load and capex, several utilities nudging capital plans higher, and pockets of regulatory environments that could support favorable returns. The bank expects that companies executing on data-center projects and delivering capex visibility are positioned to prompt positive estimate revisions. At the same time, political headwinds to data-center expansion and headline-driven sentiment shifts are cited as potential constraints on valuation upside for specific names.
Conclusion
Overall, Scotiabank presents a selective bullish view across the U.S. utilities space, elevating WEC Energy Group to the top of its list while maintaining favorable views on Entergy, CMS and CenterPoint. NextEra receives a measured endorsement, and Eversource carries a more guarded outlook. The bank will be watching fall capex updates and regulatory developments as potential catalysts for revisions to earnings estimates.