Duke Energy reported better-than-expected Q3 results on Friday, buoyed by growing electricity demand in the Carolinas and contracts with energy-intensive data centers. Revenue came in at $8.54bn, exceeding analysts' expectations of $8.50bn, while EPS reached $1.81 versus $1.75 anticipated. Earnings in the electricity segment rose from $1.46bn to $1.69bn year-on-year.
Growth is being driven by the electrification of residential and commercial buildings, as well as the rise of artificial intelligence-related data centers. Duke has signed approximately three gigawatts of energy contracts this year with players such as Digital Realty and Edged, and anticipates continued growth in this capacity. In response, the company plans to add more than 13 gigawatts of generation capacity over the next five years to meet record demand expected by 2026.
The group has tightened its annual earnings forecast to between $6.25 and $6.35 per share. It is also preparing a new five-year investment plan worth $95bn-$105bn, expected in February, which could include the construction of new-generation nuclear reactors and the extension of the life of certain coal-fired power plants. In Florida, Duke plans to recover $1.1bn in storm-related costs by early 2026. CEO Harry Sideris said he is now targeting the high end of the 5% to 7% earnings growth range starting in 2028.
