D Stock Today: Q4 revenue beat; 2026 EPS view light — February 24
Dominion Energy stock is in focus after Q4 results showed EPS of $0.65 in line and revenue above estimates, while 2026 guidance came in light as management raised its spending plan. Investors are weighing near‑term earnings pressure against regulated growth. Dominion Energy (D) recently traded near $65 with a modest decline as the market digested the update. We break down what the print means, how guidance affects valuation, and where utility stocks like Dominion may trend next.
Q4 recap and 2026 outlook
Dominion Energy earnings landed at $0.65 per share for Q4, matching consensus, while revenue topped forecasts, signaling steady demand and cost discipline. The mix reflects stable regulated operations across Virginia and the Carolinas with supportive rate structures. Management’s commentary pointed to ongoing project execution and a pipeline of grid and generation investments driving the medium‑term plan.
Management raised its multi‑year capital plan, which lifts rate base growth but pushes 2026 EPS below Street expectations, according to Reuters. The company framed the trade‑off as investing now for durable returns. Shares turned volatile as investors weighed timing of cost recovery and regulatory lag against clearer long‑term earnings power and potential bill impacts. See live market color via Yahoo Finance.
Stock reaction and valuation
Dominion Energy stock fluctuated around $65 after the print, recently down less than 1% as investors parsed guidance. The 52‑week range sits at $48.07 to $67.57, with the 50‑day average near $60.59. Average daily volume is about 6.4 million shares. Short‑term support sits near the 50‑day trend, while resistance aligns with the upper Bollinger Band around $67.
At a recent price of $65.46, Dominion trades at a P/E of 20.98 on EPS of $3.06. The dividend is $2.67 per share, a 4.13% trailing yield, offering income appeal among utility stocks. Payout levels appear manageable, aided by regulated cash flows. The setup suggests investors are paying a moderate premium for visibility and a rising rate base, despite near‑term EPS pressure.
Guidance debate: risks and opportunities
Higher capital spending can weigh on 2026 earnings if approvals and cost recovery trail project timing. Rate cases, interest costs, and construction risk can also impact quarterly optics. That backdrop may cap multiple expansion until investors see firmer recovery schedules and updated filings. Clear milestone updates in 2025 could ease concerns and stabilize expectations.
A larger capex plan can expand rate base and support regulated returns, which compounds value for patient holders. If approvals track, earnings can re‑accelerate beyond 2026 as new assets enter service. The thesis for Dominion Energy stock centers on durable cash flows, constructive regulation, and steady dividend growth once the investment cycle normalizes.
What the Street and our models say
Coverage skews constructive: 7 Buy, 4 Hold, and 2 Sell ratings. That mix implies moderate optimism, tempered by guidance risk. We see potential for estimate resets in the near term, followed by stabilization as projects clear gates. Position sizing and staggered entries can help manage volatility while maintaining exposure to regulated growth.
Our stock grade is B+ with a BUY suggestion, reflecting comparative sector strength and forecasts. Technically, RSI is 57, MACD is positive, and ADX at 33.8 signals a firm trend. Bollinger upper band near $67.2 marks resistance. A decisive close above the 52‑week high could target the quarterly projection near $64–67 before any larger move.
Final Thoughts
Dominion’s Q4 showed steady operations with a revenue beat, but the 2026 earnings view is softer due to a higher spending plan. For Dominion Energy stock, we think the debate is about timing. In the near term, estimate cuts and regulatory cadence may cap upside. Over the medium term, a bigger rate base can recharge earnings and support the dividend. For income investors, a roughly 4% yield with regulated cash flows is appealing. For total‑return investors, patience around approvals and project execution matters. We favor staggered buys near support, monitoring rate cases, financing costs, and construction milestones. Clearer recovery visibility would be a catalyst.
FAQs
Why did Dominion Energy stock move after earnings?
Shares swung as Q4 EPS matched estimates but revenue beat, while 2026 EPS guidance trailed Street due to a larger spending plan. Investors balanced short‑term pressure from higher capex against prospects for long‑term rate base growth and regulated returns once cost recovery is approved and projects enter service.
Is Dominion Energy stock attractive for income investors?
Dominion offers a trailing dividend of $2.67 per share, about a 4% yield at recent prices. The payout is backed by regulated cash flows. Near‑term capex can affect free cash flow optics, but long‑term, a larger rate base can support dividend stability and gradual growth, subject to regulatory outcomes.
How does the higher capex plan affect 2026 guidance?
The increased spending lifts growth investment but can dilute 2026 EPS if recovery lags build timelines. That timing gap likely drove guidance below Street. As projects reach service and regulators authorize recovery, earnings contribution should improve, though investors will watch approval pace and financing costs closely.
What are key technical levels to watch on Dominion Energy stock?
Near term, support sits around the 50‑day average near $60.6. Resistance aligns with the upper Bollinger Band near $67.2 and the 52‑week high at $67.6. An RSI around 57 and positive MACD favor trend continuation if shares clear resistance on solid volume without negative guidance revisions.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.