Xcel Energy (XEL) is back in focus as investors look ahead to its upcoming second quarter earnings release and conference call, scheduled for July 30, 2026, before the market opens.

The upcoming earnings update follows a mixed few months for Xcel Energy, with the share price currently at $79.62. This reflects a modest 30 day share price gain of 2.6% and a 1 year total shareholder return of 21.0%, which indicates that momentum has been building over a longer horizon.

If you are assessing how Xcel Energy fits alongside other utility and infrastructure opportunities, it can be useful to see what else is moving in the grid space via the 35 power grid technology and infrastructure stocks

After a 21.0% total return over the past year and a share price of $79.62, Xcel Energy now sits closer to analyst targets. The key issue is whether the current valuation still leaves enough upside to outweigh the risks.

Most Popular Narrative: 12.9% Undervalued

With Xcel Energy last closing at $79.62 against a narrative fair value of $91.39, the earnings story behind that gap is what stands out.

Xcel Energy is entering a major infrastructure investment cycle, supported by surging demand from electrification of transportation, manufacturing onshoring, data centers, and home heating. This is positioning the company for multi-year, above-average rate base and revenue growth. Policy-driven decarbonization and climate measures are accelerating demand for wind, solar, and storage projects. Xcel's aggressive clean energy buildout (aiming for over 80% carbon-free generation by 2030) is supporting long-term regulated asset base expansion and sustained earnings growth.

Want to see how this earnings runway turns into that higher fair value for Xcel Energy? The narrative leans on compounding revenue, fatter margins and a richer future earnings multiple. Curious which specific financial levers do the heavy lifting here? The full breakdown joins those assumptions into one clear valuation story.

Result: Fair Value of $91.39 (UNDERVALUED)

However, the bullish Xcel Energy story also depends on smooth regulatory decisions and manageable wildfire liabilities. Setbacks in either area could quickly challenge that upbeat narrative.

Another View on Xcel Energy’s Valuation

The analyst narrative suggests Xcel Energy is 12.9% undervalued, yet its 23.8x P/E sits above both peers at 20.1x and the US Electric Utilities industry at 22.5x, while still below a fair ratio of 25.4x. This raises the question of whether the market is pricing in extra risk or leaving some opportunity on the table.

Next Steps

With sentiment clearly divided between risks and rewards for Xcel Energy, it makes sense to review the numbers yourself and act early if needed. For a balanced snapshot of both sides of the story, take a look at the 2 key rewards and 2 important warning signs

Looking for more investment ideas beyond Xcel Energy?

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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.