Why Evergy’s latest earnings matter for shareholders

Evergy (EVRG) released first quarter results for the period ended March 31, 2026, reporting sales of US$1,443.7 million and net income of US$151.5 million. Both figures are above the levels reported a year earlier.

The earnings update comes after a steady run in the stock, with a year-to-date share price return of 13.79% and a 1-year total shareholder return of 30.14%. This suggests momentum has been building rather than fading.

If Evergy’s move has you thinking about grid and electrification themes more broadly, this is a good moment to scan 34 power grid technology and infrastructure stocks

The strong recent returns and solid quarterly numbers raise a key question for you as a shareholder: Is Evergy still trading below its underlying value, or has the stock already priced in the growth that lies ahead?

Most Popular Narrative: 8.2% Undervalued

Evergy’s most followed narrative places fair value at $90.63 per share, compared with the last close at $83.16, setting up a valuation gap that hinges on future grid and demand growth.

Strong anticipated growth in electricity demand from large-scale data centers, advanced manufacturing (e.g., Panasonic's EV battery plant), and other commercial users is expected to drive substantial load increases in Evergy's service areas through 2029, supporting higher revenue and long-term earnings growth.

Read the complete narrative. Read the complete narrative.

Want to see what is backing that higher fair value? The narrative leans on faster load growth, richer margins, and a future earnings multiple that assumes solid execution. The exact mix of revenue growth, profitability and valuation expectations might surprise you.

On top of that, analysts have refreshed their models with slightly higher revenue growth assumptions, a modestly higher fair value estimate, and a small step up in the discount rate that underpins this view.

Result: Fair Value of $90.63 (UNDERVALUED)

However, this depends on big projects and funding proceeding as planned, so delays with key customers or higher equity requirements could quickly challenge that undervalued narrative.

Another View: What Earnings Multiple Says

While the popular narrative leans on future growth to argue Evergy is 8.2% undervalued, the current P/E of 21.7x tells a more cautious story. It sits roughly in line with the US Electric Utilities industry at 21.6x, yet below an estimated fair ratio of 23x, which hints at only a modest valuation cushion. If sentiment or earnings expectations shift, that gap can close quickly in either direction, so it is worth considering how much weight to place on a relatively small margin of safety.

Next Steps

Mixed on the story so far? With both risks and rewards in play, consider taking action while sentiment is still forming and weigh up the 2 key rewards and 2 important warning signs

Looking for more investment ideas?

Do not stop with a single stock. Use this moment to scan fresh ideas so you are not looking back later wishing you had acted sooner.

• Hunt for potential upside in quality companies that might be trading below their estimated worth by checking the 51 high quality undervalued stocks.
• Lock in steadier income streams by reviewing the 10 dividend fortresses that may help anchor your portfolio when markets feel unsettled.
• Strengthen your core holdings by focusing on businesses with healthier finances through the solid balance sheet and fundamentals stocks screener (46 results).

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.